Dr. Agarwal's Health Care Limited — Q1 FY26

Dr. Agarwal's Health Care Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8sYyJ3a6YUE Published: 9 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Dr. Agarwal's Healthcare Q1 FI26 earnings conference call hosted 0:09 9 seconds by As participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star 10 on your 0:24 24 seconds touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Ashna Darya, head of investor relations from Dr. 0:34 34 seconds Agarwal's Healthcare Limited. Thank you and over to you ma'am. 0:39 39 seconds Thank you man. A very good evening ladies and gentlemen. Welcome to Dr. 0:43 43 seconds Agarwal's Healthcare Q1 FI26 earnings call. From the management side we have Dr. Adil Agarwal CEO, Mr. Ashar Agarwal, 0:53 53 seconds Chief Business Officer, Mr. Mr. Rahul Agarwal, Chief Operating Officers, uh Miss Wa Jen, uh Chief Strategy Officer 1:01 1 minute, 1 second and Mr. Yashwan Wenger, Chief Financial Officer. We have released our financial results, press release and investor presentation, all of which are available 1:10 1 minute, 10 seconds on our website and the exchanges as well. Before we continue, we want to remind everyone that this call is being recorded and the transcript will be made available on our website afterwards. 1:20 1 minute, 20 seconds Additionally, please be aware today's discussion may include certain forwardlooking statements which should be considered in the light of the risks our business faces. Please refer to the 1:29 1 minute, 29 seconds detailed statement on page two of the investor presentation. It is now my pleasure to hand over the call to Dr. 1:34 1 minute, 34 seconds Adil, a chief executive officer who will share his opening remarks and insights. Dr. Adil, over to you. 1:40 1 minute, 40 seconds Thank you Ashna. Good evening to all of you and a warm welcome to the Q1 FI26 earnings call of Dr. Aar Healthcare 1:48 1 minute, 48 seconds Limited. Let me begin by providing you all an update on the quarter 1 performance. 1:56 1 minute, 56 seconds The new fiscal year commenced with record-breaking results. We crossed the milestone of 500 crores in total income 2:04 2 minutes, 4 seconds for the quarter and delivered over a 100% year-on-year increase in profit after tax of 38 crores. For quarter 1 2:13 2 minutes, 13 seconds FI26, total income stood at 501 crores, up 22.3% yearonear, while revenue from operations rose 20.8% to 487 crores. 2:26 2 minutes, 26 seconds The quarter delivered a robust India IITA of 141 crores growing 28.9% 2:34 2 minutes, 34 seconds yearonear with margins at 28.2% and improvement of 140 basis points. 2:42 2 minutes, 42 seconds Pat more than doubled to 38 crores with a part pat margin expanding by 315 basis points to 7.6%. 2:52 2 minutes, 52 seconds Next I would like to share our footprint and network growth update. During the 3:00 3 minutes quarter ending June 2025, we served over 7 lakh patients and performed nearly 3:08 3 minutes, 8 seconds 79,000 surgeries through our network of over 29 49 facilities comprising 29 hubs 3:17 3 minutes, 17 seconds and 220 spokes in India. Now we have a total network of 230 facilities across 3:26 3 minutes, 26 seconds 14 states and five union territories covering 136 cities. 3:34 3 minutes, 34 seconds Our presence is well diversified now with 32% of our facilities in tier 1 cities, 61% in other cities and 8% located internationally. 3:46 3 minutes, 46 seconds We expanded our footprint by commissioning 13 new green field facilities furthering uh further strengthening our reach and capacity. 3:56 3 minutes, 56 seconds These included one tertiary center in Delhi, seven secondary centers in 4:03 4 minutes, 3 seconds Mangalore, Henu road in Bangalore, Vishaka Patnham, Sambalpur in Orisa, Red 4:09 4 minutes, 9 seconds Hills in Chennai, Lacnau and Kapur along with five primary centers in Andhra 4:16 4 minutes, 16 seconds Pradesh, in Ero in Tamil Nad, in Kerala, in Telangana and one in Tanzania. Of 4:23 4 minutes, 23 seconds these two facilities, one is Red Hills in Chennai and second Bavani in Ero were opened. 5:03 5 minutes, 3 seconds who was previously the former chief and HOD of the RP center of opthalmic sciences at as New Delhi. He is the 5:11 5 minutes, 11 seconds first Indian opthalmologist to have performed a live surgery at Ascaris USA. 5:16 5 minutes, 16 seconds Our Delhi facility now is equipped with cuttingedge technologies including the exam laser, smile for refractive 5:23 5 minutes, 23 seconds surgery, the alcon machine for catact, the size artivo 800 operating microscope amongst others. In the last month, the 5:32 5 minutes, 32 seconds center recorded over thousand patient visits underscoring the strong demand for the brand in this particular market. 5:40 5 minutes, 40 seconds This launch marks a strategic step in our organic expansion plans in North India with plans now underway to 5:49 5 minutes, 49 seconds establish our presence in Gurong and other parts of the Delhi NCR region. In Uttar Pradesh following our acquisition 5:56 5 minutes, 56 seconds in Vanasi last year, we are now focused on strengthening our brand equity to drive future organic growth and have 6:03 6 minutes, 3 seconds recently expanded our presence with a new state-of-the-art facility in Lacno as well. 6:10 6 minutes, 10 seconds Now moving on to a few highlights on the clinical front. There has been a significant focus around the firm to ensure we strive for clinical excellence 6:18 6 minutes, 18 seconds while we continue to scale. This is reflected in an increase in the following specialized surgical 6:25 6 minutes, 25 seconds procedures. In Q1 FI26, the contribution from high-end catact surgeries increased to 25.5% 6:34 6 minutes, 34 seconds out of the total catact procedures up 230 basis points year on year from 23.3% 6:40 6 minutes, 40 seconds in the same quarter last year. Overall, our robotic catact surgeries, what we call a stem to cataract surgeries, grew 6:47 6 minutes, 47 seconds by a robust 72% yearon year from 674 surgeries to 1160 surgeries. As shared 6:55 6 minutes, 55 seconds in our previous earnings call, we have installed new robotic catact surgery machines at our Bangalore and Hyderabad facilities which are now cumulative 7:04 7 minutes, 4 seconds cumulatively performing an average of about 110 surgeries a month. Our lenticular procedures what we call as 7:11 7 minutes, 11 seconds smile also increase from 1173 to 1257 reflecting a 7.1% year-on-year growth. 7:19 7 minutes, 19 seconds Retinal surgeries total 2,969 in Q1 FI26, up 23.5% from last year. 7:28 7 minutes, 28 seconds Cornal transplants also increased to 242 procedures in the first quarter of FI26. 7:36 7 minutes, 36 seconds Further, we continue to invest in specialized equipment and techniques to strengthen both diagnostic capabilities 7:43 7 minutes, 43 seconds and surgical outcomes. In our existing centers, we have upgraded our facility with advanced equipment. For instance, we have installed a new phentocatrack 7:51 7 minutes, 51 seconds robotic machine in Velacher, Chennai. We have launched a new Seiko catrack machine in Kirup and in Hyderabad and a 7:58 7 minutes, 58 seconds new retinal machine in our upcoming center in Orurangabad. 8:03 8 minutes, 3 seconds Shifting to some notable developments on publications, clinic and uh training and clinical research. Over the last three decades, our doctors have contributed to 8:11 8 minutes, 11 seconds more than 300 publications in leading international medical journals, underscoring our commitment to advancing public session. 8:20 8 minutes, 20 seconds During the quarter, we also focused a lot on capability building and nearly 90 doctors underwent training across a range of areas. On the clinical research 8:29 8 minutes, 29 seconds front, we currently have 20 active studies underway. This quarter we successfully conducted a phase three 8:36 8 minutes, 36 seconds clinical trial in patients with wet age related macular degeneration a common eye condition that can cause blurred or 8:44 8 minutes, 44 seconds distorted central vision. Now moving on to some business updates. 8:49 8 minutes, 49 seconds Let me first begin with our region wise performance. Our south region continues to be our largest market contributing to 8:55 8 minutes, 55 seconds 60 65% of the total group revenues. This region delivered 350 crores of revenue represent representing a strong year-on-year growth of 23.9%. 9:07 9 minutes, 7 seconds We have now 159 facilities across the southern states and this includes eight new additions 9:15 9 minutes, 15 seconds in the southern markets of Tamiladu and Telangana. We are focused on sustaining our market leadership while further strengthening that particular region 9:23 9 minutes, 23 seconds through adoption of the latest technology in Karnataka and Andhra Pradesh. We are strengthening our presence in both these markets by 9:31 9 minutes, 31 seconds expanding significantly into high potential underserved markets through strategic facility openings. If you look 9:39 9 minutes, 39 seconds at the west region that contributes to about 15% of the overall group revenues and that region uh delivered 73 crores 9:46 9 minutes, 46 seconds of revenue up 19% yearon year. This region operates 41 facilities and we added one new facility in this quarter. 9:55 9 minutes, 55 seconds Patient volumes grew by 18% to over 1.05 lakh while surgeries performed were up 10:01 10 minutes, 1 second 13.7% to 11 uh 11,691 procedures in Mumbai. We are leveraging 10:09 10 minutes, 9 seconds the strong brand equity from our recent acquisitions to drive organic growth to focus on adding new additional grain 10:16 10 minutes, 16 seconds field facilities in the rest of Maharashtra outside of Mumbai. We are targeting high potential tier 2 micro markets by capitalizing on our brand 10:24 10 minutes, 24 seconds strength and operational expertise and have recently launched a facility in Kapur and have one coming up in Orangabad very soon. In Gujarat again 10:33 10 minutes, 33 seconds our focus is on expanding into new urban markets and we set up a new facility in Udra in Sur 10:40 10 minutes, 40 seconds accounts for 7.8% of revenues and this region reported 38 crores of revenue this quarter up 13.4% 4% yearon year in 10:49 10 minutes, 49 seconds Delhi NCR we focused on organic band building while pursuing gradual gradual regional expansion with plans to open up 10:56 10 minutes, 56 seconds a facility in Gurong very soon in Punjab we are consolidating a leadership position following the thinned IA acquisition east contributes to about 11:05 11 minutes, 5 seconds 2.6% 6% of total revenues with 13 crores of revenue done in Q1 up 14.9% yearonear 11:13 11 minutes, 13 seconds overall all regions have posted very positive growth with the south leading in both absolute size and yearon-year 11:20 11 minutes, 20 seconds momentum while north west and east continue to build scale moving on to our same store sales growth 11:29 11 minutes, 29 seconds our mature centers are those that have been open for more than 3 years as of June 2025 We operate 116 mature 11:38 11 minutes, 38 seconds facilities. Revenue from these mature facilities has increased 19.4% reaching 354 crores in the quarter 1 11:46 11 minutes, 46 seconds FI26 contributing to 73% of the total group revenues. Revenue from mature facilities in India has grown by 21.1% 11:55 11 minutes, 55 seconds to 309 crores. Moving on to our vintage performance in uh Q1 FI26 facilities 12:03 12 minutes, 3 seconds operational or acquired prior to FI22 contributed to 340 crores in revenue registering a growth of 15%. Facilities 12:11 12 minutes, 11 seconds opened in FI23 generated 60 crores growing at 13.7% while those launched in FI24 delivered 40 crores in revenue achieving a strong growth rate of 23.3%. 12:22 12 minutes, 22 seconds Our third business update revolves around a case study which we have done in Telangana. This is a topic that 12:29 12 minutes, 29 seconds always comes up in conversations where we talk about our organic growth strategy. We would like to highlight a case study on our expansion journey in Telangana. 12:39 12 minutes, 39 seconds Our Telangana journey is a testament to steady and strategically planned growth. 12:44 12 minutes, 44 seconds We began in FI uh 2011 with three green field centers generating about 10 crores in annual revenue. 12:51 12 minutes, 51 seconds In phase two, we tripled our network expansion from network from three to eight facilities and grew revenue seven pole to 70 crores driven by a strong 12:59 12 minutes, 59 seconds brand presence and enhanced clinical capabilities. We are now in phase three and have rapidly expanded to 18 centers 13:09 13 minutes, 9 seconds extending into the suburbs of Hyderabad and tier 2 cities like Bangal and Islamabad. We have more than doubled our 13:16 13 minutes, 16 seconds network to 18 facilities and have almost doubled revenues from 70 crores to nearly 130 crores reflecting an 13:23 13 minutes, 23 seconds accelerated scale up and deeper market penetration. Moving on to our fourth business update. 13:30 13 minutes, 30 seconds Our planned facility openings domestically for for each quarter of the of the current year. Over the next three quarters of this financial year, we are 13:38 13 minutes, 38 seconds targeting to launch another 42 new facilities which will comprise 23 centers in the south, nine in the west, five in the north and five in the east. 13:48 13 minutes, 48 seconds That's the business update from my side. 13:50 13 minutes, 50 seconds Now I would like to hand over the call to our CFO Mr. Yeshar who will take a deeper dive into our financial performance. 14:00 14 minutes Thank you Dr. Adil. Uh I'll begin with the operational update. Surgical services continued to be the main 14:07 14 minutes, 7 seconds revenue driver contributing 65.6% to to the group revenue. Diagnosis, consultations, and other non-surgical 14:15 14 minutes, 15 seconds treatments contributed 13% and the sale of optical products and pharmacy items accounted for 21.4%. 14:22 14 minutes, 22 seconds In Q1 FI26, we performed 78,882 surgeries, marking a 16% year-on-year 14:30 14 minutes, 30 seconds growth. Catact surgeries remain the largest contributor accounting for approximately 73.4% of total surgeries 14:39 14 minutes, 39 seconds followed by refractive surgeries at around 4.7%. 14:43 14 minutes, 43 seconds Volumes for catact and refractive surgeries grew 14.2% yearonear while other surgeries on a blended basis 14:51 14 minutes, 51 seconds recorded a growth of 22.8%. Our pair mix for the quarter stood at 61.7% from 14:58 14 minutes, 58 seconds cash, 29.1% from insurance and DPS and 9% from government schemes. Domestic 15:05 15 minutes, 5 seconds payer mix for the quarter stood at 72.5% from cash, 22% from insurance and DPS and 5.5% from government schemes. 15:15 15 minutes, 15 seconds Moving on to the financial section, I'll start with the revenue split. The group's revenue from operations grew by 15:23 15 minutes, 23 seconds 20.8% year-onear reaching 487.26 crores in Q1 FI26 compared to 43.49 crores in Q1 15:33 15 minutes, 33 seconds FI25. Revenue from operations in India to debt 440.4 crores reflecting 21.4% 4% 15:40 15 minutes, 40 seconds growth year on year despite disruptions from the Bahalgam attack and operations hindu which briefly impacted our 15:47 15 minutes, 47 seconds operations in the northern region particularly in Punjab and Jammu and Kashmir. This growth was supported by a 15:54 15 minutes, 54 seconds mix of volume growth of 9% value growth of 5.6% and balance from the contribution of new centers opened in FI25 and FI26. 16:04 16 minutes, 4 seconds Revenue from our Africa operations grew by 15.7% yearonear in Q1 FI26 while their contribution to overall revenue 16:13 16 minutes, 13 seconds declined from 10.1% in FI25 to 9.65%. 16:19 16 minutes, 19 seconds G margins 16:54 16 minutes, 54 seconds lower finance cost and higher profitability versus the same quarter last year from 66% in Q1 and FI25 the 17:03 17 minutes, 3 seconds share of profit after tax attributable to owners has expanded to 79% in Q1 and FI26 signaling improved profit distrib 17:12 17 minutes, 12 seconds distribution HCL standalone has delivered a positive pack of INR 10 crores in QY FI Q1 FI26 at compared to a 17:22 17 minutes, 22 seconds loss of INR 8.5 crores in Q1 FI25. 17:27 17 minutes, 27 seconds Uh thank you all. Uh we'll open the floor to questions. 17:39 17 minutes, 39 seconds Sir, should we begin the question and answer session? Yes. Yes. Yes. 17:44 17 minutes, 44 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 17:53 17 minutes, 53 seconds telephone. If you wish to withdraw yourself from the question Q, you may press star and two. Participants are requested to use handsets while asking a question. 18:03 18 minutes, 3 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 18:13 18 minutes, 13 seconds We have our first question from the line of Alanka Garud from Cortex Institutional Equities. Please go ahead. 18:22 18 minutes, 22 seconds Uh so in the past we have spoken about refractive being a strong growth driver for the company. However, if we look at 18:30 18 minutes, 30 seconds growth in refractive surgeries in this quarter, it seems quite low at 3% year on year. Uh can you can you help us understand the reasons for this 18:38 18 minutes, 38 seconds relatively slower growth in refractive compared to the other surgeries? 18:47 18 minutes, 47 seconds Yeah, nice to hear from you. Yes ma'am. 18:53 18 minutes, 53 seconds Alaska uh in terms of refractive surgical contribution over the last uh three years uh it has grown up by about 19:02 19 minutes, 2 seconds 04 to.5% every year but there is a certain amount of seasonality as far as refractive 19:09 19 minutes, 9 seconds surgeries are concerned. Uh the the strongest months as far as refractive surgeries are concerned are one July 2nd 19:17 19 minutes, 17 seconds will be December. So uh it it may not be fair to look at uh refer to surgeries go 19:23 19 minutes, 23 seconds growth on a yi for q1ar but then yashan when you look at yi the 19:31 19 minutes, 31 seconds seasonality which you mentioned gets captured right so so still not able to understand why just 3% year yearon-year 19:39 19 minutes, 39 seconds growth in refractive surgeries hi this is Rahul 19:48 19 minutes, 48 seconds So you know while you're right the seasonality gets captured but you know these are also the months where you know we don't push from our side with any 19:56 19 minutes, 56 seconds offers or campaigns. So we don't expect jumps coming in these quarters. The quarters where we also go aggressive uh 20:04 20 minutes, 4 seconds you know when there are more patients available in the entire pool when they're actually looking for surgeries are the quarter two and quarter three. 20:11 20 minutes, 11 seconds Those are the two quarters where we get the maximum impact. So from our side also we really do not push in these uh other quarters. 20:18 20 minutes, 18 seconds Fair enough. So would it be fair to understand then Rahul that uh broadly if you look at the full year uh growth in 20:26 20 minutes, 26 seconds refractive surgery should broadly mirror the overall surgery growth or maybe even grow higher. 20:35 20 minutes, 35 seconds I I would say overall yes it should mirror whatever the overall surgical growth is in line with the overall 20:42 20 minutes, 42 seconds growth is what refractive B should understood and maybe one followup question here apart from insurance 20:49 20 minutes, 49 seconds coverage are there any other key reasons to explain the relatively lower refractive contribution for IARE players 20:55 20 minutes, 55 seconds in India uh compared to some of the global peers Yeah, just once again Dr. Wana is going to take that. 21:07 21 minutes, 7 seconds Hi Alanar. Um, so I think first of all you're right compared to the other global players in India the uptake of 21:14 21 minutes, 14 seconds refractive surgery has been lower uh because most of the uh time the payments that happen are out of pocket. Secondly, 21:21 21 minutes, 21 seconds the incidence of myopia itself actually now it has begun to increase but in certain developed markets like the US, Europe or even China for for that matter 21:29 21 minutes, 29 seconds China the incidence of myopia actually started increasing much much earlier which now we are seeing the trend in uh Indian market also. So going forward we 21:38 21 minutes, 38 seconds do believe that in India also we are going to see a similar uptake of repractive surgery going forward. 21:43 21 minutes, 43 seconds However that that uh trend we are not noticing immediately right now. And lastly as uh you know as Rahul mentioned 21:51 21 minutes, 51 seconds that because overall the technology uh you know this technology which has now come into India there is there is now a greater adoption by more and more 22:00 22 minutes players but still when you compare it to the west or to China the number of machines or even if you look at the density of machines India is much lower compared to the west or to China. 22:10 22 minutes, 10 seconds Got it. No that's that's really helpful. 22:13 22 minutes, 13 seconds Uh the second question is unlike Maharashtra wherein acquisitions have played a big role for the company growth 22:20 22 minutes, 20 seconds in Telangana has been more organic as you pointed out in your opening remarks. 22:25 22 minutes, 25 seconds How would you contrast your journey across Telangana and Maharashtra? Um the the reason for asking asking this question is basically to help us 22:33 22 minutes, 33 seconds understand the difference in scaleup timelines across organic and acquired facilities. uh maybe these two uh 22:41 22 minutes, 41 seconds examples of these two states could be useful. 22:46 22 minutes, 46 seconds So uh Telangana you had a you went through a phase of uh struggle for the first four to five years. It takes that much time to build your brand Alanka. Uh 22:55 22 minutes, 55 seconds we were also growing as an organization at that point. Uh now you have a fairly established presence in Telangana. We've been operational in that market for over 23:04 23 minutes, 4 seconds 13 14 years and it takes it takes a while for the brand to get established. 23:08 23 minutes, 8 seconds Once the brand gets established now when you put out organic centers, green field centers in your own brand automatically you get walk which is what is actually 23:16 23 minutes, 16 seconds helping you uh provide those kind of results which is what has helped you actually double your revenue from 70 crores to almost 130 crores in Telangana. Maharashtra again we are 23:25 23 minutes, 25 seconds following that thought process but Maharashtra is a slightly more complicated market because there are a lot more established players in Maharashtra uh we also entered 23:32 23 minutes, 32 seconds Maharashtra only in 2019 so there's a 8-year gap between when we enter Telangana and Maharashtra now we are currently to see traction in the Maharashtra region as well which is why 23:41 23 minutes, 41 seconds we have opened five new green field centers in Mumbai alone so we have set up a center in in Badlapur in in Kalyan 23:49 23 minutes, 49 seconds in Vir in Dongiwali and one more in Washi and we are seeing good traction in these markets Because over the last five to six years as we have gone about 23:56 23 minutes, 56 seconds building our brand the brand is slowly getting established in some of these markets and now you're starting to see some of that traction actually help you scale up some of these centers. So we 24:04 24 minutes, 4 seconds believe if we continue on this organic path which we have done in Telangana similarly in in Mumbai and Maharashtra you will start to see the similar kind of results in this particular region. 24:14 24 minutes, 14 seconds Understood. And one final question, what was the same show sales growth for the secondary and tertiary sectors in this quarter? 24:24 24 minutes, 24 seconds We'll just give you the number right now. So I I'll give an overall uh uh same store sales growth it was to the tune of around 14.5%. 24:34 24 minutes, 34 seconds Yeah. But then that doesn't become comparable. If you can provide it for secondary and tertiary separately, that uh would really help. 24:44 24 minutes, 44 seconds We don't have that that data right now Alanga but what we have is our our mature fit centers and which is and and fundamentally which will it will 24:52 24 minutes, 52 seconds represent your secondary and tertiary centers because the primary center contribution is much lesser anyways. Uh so this 14 15% is pretty much uh 25:02 25 minutes, 2 seconds representative of your secondary and tertiary facilities. 25:05 25 minutes, 5 seconds There won't be too much of a difference between that and even if you even if you take out the impact of the primary centers. 25:10 25 minutes, 10 seconds Got it. and between secondary and sorry to interrupt you Alankar. Can you please request you to rejoin the queue? Yeah. Yeah. Thank you. 25:18 25 minutes, 18 seconds Thank you. 25:21 25 minutes, 21 seconds We have our next question from the line of Tushar Manuan from Motilus Financial Services. Please go ahead. 25:27 25 minutes, 27 seconds Yeah, thanks for the opportunity sir. Uh so just on surgery side like total surgeries I see 16% growth in terms of 25:35 25 minutes, 35 seconds number of surgeries while the revenue has grown by 21%. 25:40 25 minutes, 40 seconds And within surgery also as the earlier question the refractory was bit soft for this quarter. So what explains this 25:48 25 minutes, 48 seconds revenue growth being higher than the number of surgeries growth. 25:54 25 minutes, 54 seconds Sure. Yeah. Um so Tushar overall the growth we can look at it as a volume growth and price growth. Uh and part of 26:02 26 minutes, 2 seconds it would be from the new green fields that comes in right. So I I would just break it up for you. uh overall from a volume perspective we had a 9% growth 26:11 26 minutes, 11 seconds and I'm largely focusing on the domestic market on this uh we had a 9% volume growth which was led largely by the opening growth that we got. Second was 26:20 26 minutes, 20 seconds on the uh value growth which is a combination of our price hike as well as the premiumization that we drove. So 26:27 26 minutes, 27 seconds that would be to the tune of almost 5.5 to 6%. And finally another uh 6 and a half% uh sorry 8% which came in from uh VPS. 26:38 26 minutes, 38 seconds So that is the entire combination of around 23% uh overall growth that we drove for uh domestic business. 26:46 26 minutes, 46 seconds Okay. I was referring specifically for surgery's revenue not the overall revenue and considering the surgery's volume. So, 26:55 26 minutes, 55 seconds so okay from from the surgical perspective itself the 16% growth that we are talking about that contributes to the 16% part of the growth the remaining 27:04 27 minutes, 4 seconds comes from the value growth that we drive in those 16% uh overall growth uh so basically how we are driving the premiumization if I'm answering your 27:12 27 minutes, 12 seconds question right uh is that you have high-end lenses which contribute to higher value per surgery that uh comes 27:20 27 minutes, 20 seconds in for example last year we had our yield per patient on catact was around 38k that has now moved to around 40k. So 27:29 27 minutes, 29 seconds that is uh you know the value increase that we are getting. Similarly what Adul spoke about initially was the phentocats. So femtocats by itself adds 27:39 27 minutes, 39 seconds to added around we did around 1160 odd surgeries this year compared to 674 last year. That's an added uh additional 27:47 27 minutes, 47 seconds value in our high-end surgeries over and above the regular lens cost that we get. 27:51 27 minutes, 51 seconds So that contributes around 26 that contributed around 26.2% 2% in the overall high-end numbers that we got uh for uh the quarter. 28:01 28 minutes, 1 second Did I answer your question? 28:03 28 minutes, 3 seconds No. Yeah. Yeah. Very much very much. So this yield per patient for catact where do we see or emphasize these numbers say 28:10 28 minutes, 10 seconds by end of this year probably next year given that you know we are moving towards high-end uh lenses or sort of uh 28:19 28 minutes, 19 seconds convincing patients to go to the high-end lenses. 28:24 28 minutes, 24 seconds So I I'll just give you the trajectory that we've had so far. Uh we did 32K in FI22 28:31 28 minutes, 31 seconds and now in FI26 Q1 we've reached 40. So that's been the trajectory around 2,000 kind of a growth every year is what we 28:39 28 minutes, 39 seconds have been able to achieve. We don't see a reason why it should change as we move forward. 28:46 28 minutes, 46 seconds Perfect. And the second one from my side is about uh the consultations revenue while uh relatively smaller proportion 28:54 28 minutes, 54 seconds but that has grown at say 14%. Uh while we had a very healthy growth on the surgery side but consultation probably 29:02 29 minutes, 2 seconds gives more sort of a forward-looking indication in terms of you know conversion to surgeries. So that piece 29:09 29 minutes, 9 seconds is bit soft despite addition of two centers as well as sort of healthy growth at the organic level as well. So if you could just elaborate on that aspect of me. 29:20 29 minutes, 20 seconds Perfect. So largely I I would not say that you should look at consultation revenue as a proxy to uh you know the 29:27 29 minutes, 27 seconds volume growth and how you know your surgical numbers would pan out. I think new op growth would be a better benchmark to look at how the new OPD uh 29:36 29 minutes, 36 seconds and overall OPD is growing for us. Uh that would be a better way to look at uh you know how many uh new surgical advisers will happen and how many 29:44 29 minutes, 44 seconds surgeries will happen. So I I I would say consultation may not be because uh you know we have various agreements 29:51 29 minutes, 51 seconds across India with different companies and those kind of things where we might even go down or up on different consultations uh that we do. 30:01 30 minutes, 1 second All right. So if you could just give some indication about the new OPD growth quarter for last year how much? 30:09 30 minutes, 9 seconds So just on the patient served I can tell you that we had a growth of 18.6% 6% from 5 lakh 94,000 we moved up to 7 lakh 30:17 30 minutes, 17 seconds 5,000 all questions thank you 30:24 30 minutes, 24 seconds thank you a reminder to all participants if you wish to ask any questions you may press star and one 30:33 30 minutes, 33 seconds anyone who wishes to ask a question may press star and one on their touchstone telephone we have our next question from 30:39 30 minutes, 39 seconds the line of Burman from Veraka please go ahead. 30:45 30 minutes, 45 seconds Uh hi good evening. Uh thanks for taking my question. I just have a couple on the subco. Uh the 17% revenue growth in the 30:52 30 minutes, 52 seconds subcore 217 uh cr can you also divide this into u uh the volume and the pricing and the new center edition please. 31:04 31 minutes, 4 seconds Sure. So our our overall patient volumes which is our total opening volumes increased by about uh 16%. 31:13 31 minutes, 13 seconds At the at the subco level we saw a total volume growth of about 16 16% increase from about 1.4 lakhs to about what 1.6 31:22 31 minutes, 22 seconds lakhs has put up. Yeah. Go ahead. 31:30 31 minutes, 30 seconds Yeah. Does does that mean that the pricing growth and the new center growth was flat this quarter? 31:37 31 minutes, 37 seconds No, that's not that's not what it means. 31:39 31 minutes, 39 seconds Uh both both uh volume and the pricing have pretty much have pretty much increased at a steady state which is 31:46 31 minutes, 46 seconds what is driving this growth at the at the sub subsidiary level as well. 31:52 31 minutes, 52 seconds Yeah, in terms of number of I think your question was on the number of facilities in the subco we have opened two facilities uh this quarter however just 32:01 32 minutes, 1 second to throw some light uh we had 50 facilities at the end of FYI 24 currently in the subco we have 63 32:08 32 minutes, 8 seconds facilities marking a 1.3x growth over the last 15 months in terms of the number of facilities as well in the subco 32:15 32 minutes, 15 seconds yeah so that I saw in the presentation my question was that the revenue growth has been 17% and you're saying if the 32:21 32 minutes, 21 seconds volume growth is 16% % uh so I mean uh usually it's a combination of volume price and new center addition so if 32:29 32 minutes, 29 seconds almost all the growth has come from volume does that mean that pricing growth in this quarter was just 1% I mean that was the question 32:37 32 minutes, 37 seconds oh that's a question okay so we'll just break it up and tell you so approximately your existing centers which which which from last quarter have grown at about 14.8%. 32:48 32 minutes, 48 seconds Okay, your centers which have opened in FI26 have contributed to about 2% and about.1% has come from the two centers 32:55 32 minutes, 55 seconds which yes mentioned which is uh contributing to about.1%. This is what is your is driving your 17% growth from 33:03 33 minutes, 3 seconds 100 crores in Q1 FI FI25 to 117 crores in Q1 FI26. 33:10 33 minutes, 10 seconds Okay, thank you. The second question is on uh like again if you look at the subco and if you uh see the mature facility revenue growth like you uh 33:19 33 minutes, 19 seconds disclosed for the whole core uh how is the mature facility revenue growth here and that is also you can divide broadly into uh volume. 33:30 33 minutes, 30 seconds Yes ma'am. Uh in terms of same store sales growth in subscope it is at about 14.8%. 33:38 33 minutes, 38 seconds uh the rest is contributed from FI25 and FYI 26 uh facilities. 33:44 33 minutes, 44 seconds Uh in terms of volume and value growth for the subco, we don't have the numbers right now. Probably we can uh reert later. 33:52 33 minutes, 52 seconds Okay. Thank you. I'll get back in the queue. Thank you. 33:58 33 minutes, 58 seconds Thank you. A reminder to all participants, if you have any questions to ask, you may press star and one. 34:06 34 minutes, 6 seconds Anyone who wishes to ask a question may press star and one. We have a follow-up question from the line of Alankar Gurud 34:13 34 minutes, 13 seconds from KCH institutional equities. Please go ahead. 34:17 34 minutes, 17 seconds Yeah, thank you for the opportunity again. Uh sir on uh this secondary and tertiary same show sales growth. Uh you 34:24 34 minutes, 24 seconds you broadly mentioned uh same show sales growth is around 14 15%. Uh would the the broader growth rates be similar across secondary and tertiary? 34:36 34 minutes, 36 seconds Yes, absolutely. 34:38 34 minutes, 38 seconds Okay, great. Um, and uh just uh two bookkeeping questions. What was the rental payout in this quarter? And 34:46 34 minutes, 46 seconds secondly, what was the share of minority in this quarter? 34:56 34 minutes, 56 seconds uh in terms of overall minority on pack contribution uh close to 79% is packed attributable 35:04 35 minutes, 4 seconds to owners and 21% is minority whereas if you take Q1 of uh last year it was close to about 65 and 35 that's moved up to 35:13 35 minutes, 13 seconds 1721 and one can 35:21 35 minutes, 21 seconds uh the rental payout for uh Q1 is close to about 30 crores. 35:29 35 minutes, 29 seconds Got it. And yes, if you can help us with the minority share of IITa as well. You spoke about PAT but AITA as well would be helpful. 35:39 35 minutes, 39 seconds Yeah, minority share of IITA close to 87 and a half% uh uh attributable to owners. This is 2 and a half%. 35:48 35 minutes, 48 seconds Got it. Very helpful. Uh thank you and all the best. Thank you. 35:57 35 minutes, 57 seconds A reminder to all participants if you wish to ask any question you may press star and one. We have our next question from the line of Shrian Stabu an individual investor. Please go ahead. 36:18 36 minutes, 18 seconds Thank you. We have our next question from line of Shri Tabu, an individual investor. Please go ahead. 36:27 36 minutes, 27 seconds Hello. Hello. Yeah. Hello. Yeah. 36:33 36 minutes, 33 seconds Yeah. Yeah. So, I was just I'm an individual investor. So I'm just going through the um uh you know the new 36:40 36 minutes, 40 seconds hospital that's coming up um in the eye uh the listed I entity just understanding why has there been such a 36:49 36 minutes, 49 seconds delay in this because it's been there in last couple of reports. Is there any particular reason? 36:57 36 minutes, 57 seconds So we have we've had a 6 to9 month delay predominantly because the facility was affected by floods uh one and a half 37:04 37 minutes, 4 seconds years ago. So I don't know if you remember in December faced some delay right. 37:11 37 minutes, 11 seconds Yeah. So at that point we faced a significant amount of uh delay in the particular process because at that point and you know there are videos all over 37:18 37 minutes, 18 seconds where the the site had effectively caved in because of rampant floods in Chennai. 37:23 37 minutes, 23 seconds So we faced uh certain flooding of our our basement and everything. So we were uh put back by about 6 to 9 months which is why there has been a delay in the 37:32 37 minutes, 32 seconds project and but right now it's good to know that you know things are back on track and we are hoping to get everything up and running by Q4 FI26. 37:40 37 minutes, 40 seconds That's great. That's great. So the next the last part of my question two questions but like they go hand in hand is generally you know the model that is 37:48 37 minutes, 48 seconds there is of a lease model but this time it's a own model thereby entailing a higher investment. So would this mean that this would be a more margin accretive or any other reason of that? 38:00 38 minutes Uh what do you mean by more margin accretive? 38:03 38 minutes, 3 seconds Would it be a higher margin accretive than the existing uh businesses going forward this particular hospital if you would stand alone and why is it moved to 38:11 38 minutes, 11 seconds a um old model compared to a lease model which is generally the case? So the the the original so this was the original 38:17 38 minutes, 17 seconds facility which uh belonged to the to the company when we were doing the constru when we were doing the construction of 38:25 38 minutes, 25 seconds this main flagship facility we had actually moved out to a rental facility. 38:30 38 minutes, 30 seconds So we are currently operating out of a rental facility and now that we are moving back uh to this particular facility uh we will not be uh the the 38:39 38 minutes, 39 seconds rent will only be paid for the land but the building is being frustrated by the company. So that rental outflow will be a little lesser. So from our perspective, the margins will be a 38:47 38 minutes, 47 seconds little higher in this particular facility. 38:50 38 minutes, 50 seconds Fair, fair, fair. That'll be that'll be good. And the subsidiary like how many more centers do you think will be opening this year like in the balance period? 39:02 39 minutes, 2 seconds We don't have anything right now in the pipeline in the in the subsidiary. But that said, we are looking at three to 39:08 39 minutes, 8 seconds four uh potential uh openings in Tamil Nad. uh those sites are being looked at once we have clarity I think by Q2 we'll 39:15 39 minutes, 15 seconds be able to give you a better picture in terms of where those centers will be coming up with Tamad fair enough fair enough fair enough that 39:23 39 minutes, 23 seconds that that's really helpful thank you thank you so much thank you 39:32 39 minutes, 32 seconds we have our next question from Lo Tushar Manuhani from Motila Financial Services please go ahead thanks for the opportunity sir so 39:41 39 minutes, 41 seconds there's this uh insurance share for the quarter uh moved up really well even if I compare year over year or even if I compare with the full year 25. 39:51 39 minutes, 51 seconds So it will close from right here. 39:56 39 minutes, 56 seconds So uh overall we had a 2% jump uh on our insurance. Um largely this was done in uh the TP and the private insurance side. Um that's again yes you're right. 40:08 40 minutes, 8 seconds Uh you know that's an area which works well for us. Our DSO is much lower in these areas than the government space. 40:15 40 minutes, 15 seconds Our payments come in much faster. So that's one area we are very happy when this part of the business does well. Of course this is driven by higher 40:22 40 minutes, 22 seconds penetration of the the private insurance uh which really helps uh the overall business. 40:29 40 minutes, 29 seconds Yeah. But anything peculiar in this quarter that has happened to you know sort of or you know because this like a step up that's almost 2 percentage point 40:39 40 minutes, 39 seconds or in this particular reason uh region where the insurance uh sorry 40:47 40 minutes, 47 seconds no I I would say this is I think this is more market driven phenomena where more people are coming in with uh better coverages and uh you know higher more 40:57 40 minutes, 57 seconds number of people have insurance. So I I wouldn't say this is anything to do with uh us as an organization but this is more market driven. 41:04 41 minutes, 4 seconds also push just an additional additional note uh a slightly higher contribution from insurance and TPA came in from the Africa part of the business as well but 41:13 41 minutes, 13 seconds otherwise domestic like Rahul had mentioned is pretty much uh steady safe domestic payer makes it uh just is close 41:21 41 minutes, 21 seconds to about 72 and a half% from cash 22% from insurance NTP and 5.5% from government schemes to this has been the 41:29 41 minutes, 29 seconds trend over the last few years wherein the contribution from government schemes has hovered between 5 to 7%. 41:36 41 minutes, 36 seconds Got it. And this lastly uh sort of so the capex number remains steady right at 310 crores for full 26 considering the 54 facilities to be coming up. 41:51 41 minutes, 51 seconds Yes. Yes. Da no uh revision on that trend. 41:58 41 minutes, 58 seconds Sorry. Thank you. Thank you. 42:04 42 minutes, 4 seconds Thank you. We have our next question from line of Amit Kadam from Canada AMC. Please go ahead. 42:12 42 minutes, 12 seconds Yeah. Hi team. Uh good evening. So I just have a one question. Uh that uh can 42:19 42 minutes, 19 seconds you help me with the this quarter cash from operation generated? Is it around 100 105 cr? 42:29 42 minutes, 29 seconds No, you're talking about ITA. 42:31 42 minutes, 31 seconds No, no. Cash flowing from operation for the quarter. 42:37 42 minutes, 37 seconds Um uh Amit, I'll get back to you on the exact numbers. Okay, sure. That's it. Thanks. 42:48 42 minutes, 48 seconds Thank you. Next question is from L of Ankush Majin from Sanctum. Please go ahead. 42:55 42 minutes, 55 seconds Yeah, sir. A very good set of numbers. 42:59 42 minutes, 59 seconds uh with the margin expansions also is there brand is well recognized and uh geographical expansion is quly visible 43:06 43 minutes, 6 seconds now but when we compare the ROIC uh as computer industry it's at the lower level any number for the ROIC how we how 43:15 43 minutes, 15 seconds we should see this ROI number over the next two three years any number you want to put it 43:24 43 minutes, 24 seconds so as we continue to improve our M if you if you Notice our PAT margins for this particular quarter have moved up to 43:31 43 minutes, 31 seconds about close to about 8%. Right? Uh we believe you'll certainly see a consistent improvement in your PAT margins over the next two to three 43:38 43 minutes, 38 seconds years. As the PAT margins improve over the next two to three years and your margins improve steadily, you'll start 43:45 43 minutes, 45 seconds to see your ROSI profile also change over the next uh couple of years. So we'll see steadily uh improvement in the Rosie mix over the next couple of years. 43:54 43 minutes, 54 seconds So any numbers sorry go ahead next two to three years any numbers that 44:02 44 minutes, 2 seconds we are uh at looking for the ROIC's no on ro in uh in March uh uh 25 44:12 44 minutes, 12 seconds um in terms of uh numbers we were close to about 16%. on a console basis. Uh this year we can expect about uh close 44:21 44 minutes, 21 seconds to about uh 1 to one and a half% uh increase. 44:27 44 minutes, 27 seconds Okay sir. Thank you sir. That's from my side. Thank you. 44:35 44 minutes, 35 seconds Next question is from line of Vunat individual investor. Please go ahead. 44:42 44 minutes, 42 seconds Uh good evening to the whole team and uh congratulations on a good set of numbers. 44:50 44 minutes, 50 seconds Um I wanted to ask uh hi Abdul, how are you? I hope all is well. Um congratulations on a good set of numbers 44:57 44 minutes, 57 seconds again. I just wanted to ask uh any update on the merger between the two companies. 45:07 45 minutes, 7 seconds So right now as we had disclosed in the DRHP column the merger of the listed sub with the whole core is being is under 45:15 45 minutes, 15 seconds consideration uh management is now evaluating this further along with advisers and we hope to provide more clarity in the next few weeks to come. 45:25 45 minutes, 25 seconds Uh we continue with the endeavor to complete the merger in uh outer limit of next the next three years but we believe in the next one one and a half years we should be able to get this. 45:36 45 minutes, 36 seconds Okay, great. And I just wanted to ask I you know there was a investor before me who was asking some questions about the subsidiary. I just wanted to reconfirm. 45:44 45 minutes, 44 seconds So there's no other growth capex planned in the subsidiary except for the the large hospital which is currently 45:52 45 minutes, 52 seconds underway already. There's nothing else as of now. 45:56 45 minutes, 56 seconds We we we're looking at three to four more potential centers and we are uh looking at sites. We're looking at sites in Chennai. We're looking at a place called Thirupatulur and some of these 46:04 46 minutes, 4 seconds other markets just that we don't have the properties paralyzed. We're not able to commit on some of those locations, but we're looking at sites actively both 46:12 46 minutes, 12 seconds in the Chennai region and in the Tamadu region for us to further expand in the subsidiary level as well. 46:18 46 minutes, 18 seconds Okay. Fine. And finally, I just wanted to ask is there any particular reason why the subsidiary will only continue to look at Tamil Nadu as a market for expansion and not venture elsewhere? 46:31 46 minutes, 31 seconds uh we believe this is this is the most uh this this region has the highest potential and we are able to deliver the best particular margins. Uh we believe 46:38 46 minutes, 38 seconds we have a certain competitive advantage in this particular region which is why we continue to focus on this particular market but if opportunity comes about in 46:46 46 minutes, 46 seconds other regions we will consider but right now the thought process is that most of the expansion in Tamil will only happen in the subsidy level. 46:54 46 minutes, 54 seconds Okay fair. All right. Okay. Thanks so much. Thank you. Best of luck. Thanks. 47:03 47 minutes, 3 seconds Thank you. Thank you. 47:06 47 minutes, 6 seconds We have our next question from the lineup. Ashish, an individual investor. Please go ahead. 47:12 47 minutes, 12 seconds Uh, hi. Good evening, sir. Uh, my question has been answered. Thank you so much. Okay. Thank you. 47:21 47 minutes, 21 seconds We have our next question from the line of Sankit Gupta, an individual investor. Please go ahead. 47:33 47 minutes, 33 seconds are you there? 47:42 47 minutes, 42 seconds A reminder to all participants, if you have a question, you may press star and one. 47:50 47 minutes, 50 seconds A reminder to all participants, if you have any further questions, you may press star and one on your touchstone phone. 48:00 48 minutes We have a next question from the line of Sank Gupta, an individual investor. Please go ahead. Uh hello. Am I audible now? 48:08 48 minutes, 8 seconds Yes, we can hear you. Okay. Uh uh uh thank you for the opportunity. 48:13 48 minutes, 13 seconds I want a single question from me. Uh actually I have seen the Google rating of all the Dr. Agaral uh centers and the 48:21 48 minutes, 21 seconds new new center in Delhi. Uh generally the Google rating are around 4.8 8 4.9 uh and approximately more than 3,000 48:29 48 minutes, 29 seconds 5,000 people uh rate uh these centers uh I want any comments regarding how we achieved this uh great uh set of uh 48:38 48 minutes, 38 seconds Google no I think hi Shank this is Rahul thanks for the question um I think you're 48:47 48 minutes, 47 seconds absolutely right in most of our centers we get a lot of our patients who are happy with our services and they really 48:54 48 minutes, 54 seconds are happy to uh you know recommend us and give us good ratings. So I think that's one thing that we are very proud of and I think that's something that 49:02 49 minutes, 2 seconds really uh motivates the entire team when we get these kind of ratings. So thanks for really noticing it. 49:10 49 minutes, 10 seconds Uh and sir one more question about if you see any competition in terms of the 49:18 49 minutes, 18 seconds uh lens cut like businesses where uh glasses and all these uh sales. how how it is doing in uh your center. 49:29 49 minutes, 29 seconds Uh Sank see there is a fundamental difference between us and Lensard. 49:33 49 minutes, 33 seconds Lensard is fundamentally a eyewear retail company. We are fundamentally a healthcare services company which focuses on eye care. So the the business 49:42 49 minutes, 42 seconds model is completely different. Our primary focus is on eye care. Patients walk in they go through a rigorous checkup with all the with all our 49:50 49 minutes, 50 seconds optometrist and our doctors. and to provide an additional service is why we have retail uh operations within our hospitals where we uh sell glasses and 49:59 49 minutes, 59 seconds lenses. So the business model is completely different. So I don't think it's possible to compare us with the lens card in terms of what they're doing. For for example, many of the 50:07 50 minutes, 7 seconds typical uh patient who walks into our hospital is typically a slightly older patient whereas the demographic of a patient who walks into Lenskart is 50:15 50 minutes, 15 seconds fundamentally a slightly younger patient. Right? Also they focus a lot on a lot of uh uh eyeglasses and a lot of 50:22 50 minutes, 22 seconds other stuff as well which we don't focus on. Our focus is only on prescription glasses. That's something which we primarily focus on. 50:29 50 minutes, 29 seconds Okay sir. Uh and uh one more questions about the center how it is performing in New Delhi the new center uh uh I don't 50:38 50 minutes, 38 seconds want to exact numbers but how how's your expectations and performance? 50:45 50 minutes, 45 seconds Sure. So that's a very relevant question because this is something which will open up uh uh our expansion into the entire Delhi NCR region. Uh I'm happy to 50:53 50 minutes, 53 seconds share with you all that we have all the requisite licenses in our Delhi facility. We got that at the end of June. Uh July was when was our first 51:01 51 minutes, 1 second full month of operations. Uh over thousand new patients have walked into our facilities across uh uh in our Delhi facility and that is something which 51:09 51 minutes, 9 seconds continues to grow. We are we have a very strong uh doctor team right now and we cover all specialtities. We also have the best-in-class equipment at our Delhi 51:18 51 minutes, 18 seconds facility in in Southx and so far the results have been extremely uh extremely positive. So we are happy to see how 51:26 51 minutes, 26 seconds things are progressing with our first expansion to the Delhi area. Okay. Uh thank you sir. 51:33 51 minutes, 33 seconds Thank you S. Thank you very much. Thank you. 51:43 51 minutes, 43 seconds A reminder to all participants if you wish to ask any questions you may press star and one for your time. 51:54 51 minutes, 54 seconds Yes. 51:55 51 minutes, 55 seconds Sure. Sure. So, thank you everyone for your time, engagement and thoughtful questions today. Uh should you have any follow-up queries, please feel uh free to contact our investor relations team. 52:06 52 minutes, 6 seconds uh we look forward to speaking with you again next quarter and as usual we truly appreciate your continued support. So thank you everyone for taking the time to uh get around to thanks man and thanks everyone. 52:17 52 minutes, 17 seconds Thank you sir on behalf of Dr. Agaval Healthcare Limited that concludes this conference. Thank you for joining us and you may now disconnect your line.