Fortis Healthcare Ltd — Q3 FY26

Fortis Healthcare Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=NmKd9VNUFRs Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the 40th Healthcare Limited Q3 FY26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an 0:23 23 seconds operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I 0:31 31 seconds would now like to hand the conference over to Mr. Anurak Kalra, the head of investor relations for the opening remarks. Thank you and over to you sir. 0:41 41 seconds Thank you all. A very good morning, good afternoon ladies and gentlemen. Welcome to Fortis Healthcare's quarter 3 FY26 earnings call. Uh the call is being led 0:49 49 seconds by our MDNCO Dr. Rashoto Shaga. Uh with him we have our chief financial officer Mr. Voil from Agelist Diagnostics. Mr. 0:57 57 seconds Anand the CEO joins us. Along with him we have Mr. Axet Tamar Tari the CFO. Uh we will start with some opening comments 1:05 1 minute, 5 seconds by Dr. Raguanchi. Uh post which Anand will take you through the highlights of the diagnostics business and then we can open the floor for question and answer. 1:12 1 minute, 12 seconds Uh over to Dr. Awani. So thank you Anurraj. Uh good morning everyone and thank you for taking the 1:20 1 minute, 20 seconds time to join us on our Q3 financial year 26 earning call today. I wish you all a 1:27 1 minute, 27 seconds happy new year and hope all of you are doing well. I shall dive right into the quarterly uh results and my thoughts on 1:35 1 minute, 35 seconds the business performance and way forward. Our business performance in Q3 has been good considering the seasonal 1:42 1 minute, 42 seconds impact of festivals in some of our key geographies. Both our hospitals and diagnostic businesses witnessed a 1:50 1 minute, 50 seconds sustained growth momentum and delivered margin expansion compared to the corresponding quarter last year. For the 1:58 1 minute, 58 seconds quarter, our consolidated revenues were at INR 2,265 2:05 2 minutes, 5 seconds crores, registering a growth of 17.5% over the corresponding previous period. 2:12 2 minutes, 12 seconds Our hospital business revenues grew 19.4% to INR 1,938 2:20 2 minutes, 20 seconds crores. While the diagnostic business net revenue reported a growth of 7.3% to INR 327 2:29 2 minutes, 29 seconds crores. Our consolidated operating EIA increased 34.8% 8% to INR 505 crores 2:39 2 minutes, 39 seconds which translates into a margin of 22.3 crores uh 22.3% 2:47 2 minutes, 47 seconds uh in quest quarter 3 financial year 26 uh versus uh 19.4% 2:54 2 minutes, 54 seconds in quarter 3 of financial year 25. The hospital business operating EITA margin 3:00 3 minutes have improved from 20% in quarter 3 of 25 to 21.7% 3:06 3 minutes, 6 seconds in quarter 3 of financial year 26 with an EITA of INR 420 crores. Our 3:14 3 minutes, 14 seconds consolidated profit before tax uh before exceptional item for the quarter increased 21.9% 3:23 3 minutes, 23 seconds to INR 312 crores. Reported PAT stood at INR 197 cr versus 250 cr in quarter 3 of 25. 3:36 3 minutes, 36 seconds The decline in PAT was primarily due to the one-off expense for the quarter INR 3:42 3 minutes, 42 seconds 55 cr pertaining to new labor codes offset by a reversal of impairment in an associate company amounting to INR 9 3:51 3 minutes, 51 seconds crores. This resulted in net exceptional loss of INR 46 crores. 3:59 3 minutes, 59 seconds Coming to the 9-month performance of financial year 26, our consolidated 4:04 4 minutes, 4 seconds revenue stood at INAD 6,763 crores, registering a growth of 17.1% versus months of financial year 25. 4:18 4 minutes, 18 seconds Operating EITA increased to INR1,553 crores, reflecting a robust 300 basis 4:26 4 minutes, 26 seconds point improvement to 23% compared to 20% in the corresponding previous period. 4:34 4 minutes, 34 seconds Hospital business revenue for 9 months grew 19.1% to INR 5,749 4:43 4 minutes, 43 seconds crores while the operating margin improved from 22.2 two uh from 20% to 22.2%. 4:53 4 minutes, 53 seconds In the corresponding previous period on the balance sheet front, the company's 4:59 4 minutes, 59 seconds net debt stands at INR 2547 crores with a net debt of uh to AITA of 5:08 5 minutes, 8 seconds 1.24x 24x as on December 31st, 2025 as due to the fund raise uh ons to part 5:18 5 minutes, 18 seconds finance the acquisition of PE stake in Edilus diagnostic by the company acquisition of foris brand and trademark 5:26 5 minutes, 26 seconds and acquisition of Shrimal hospital Jalandra I'm pleased to announce that we continue to progress well on our clusterbased 5:35 5 minutes, 35 seconds inorganic growth strategy to that effect in January 2026 we acquired the 125 bedded people tree hospital in 5:43 5 minutes, 43 seconds Yashwanpur, Bengaluru uh for INR 430 crores. This was done through a 100% acquisition of tmi 5:52 5 minutes, 52 seconds healthcare limited uh private limited along with the underlying land building 5:59 5 minutes, 59 seconds and an adjacent land parcel that enables future expansion to over 300 beds within the same location. 6:08 6 minutes, 8 seconds With growing awareness on mental health, in November 2025, the company launched a DAO, a 36 pedited specialized mental 6:17 6 minutes, 17 seconds health care facility located in Gurugram. This facility offers evidence-based treatment through a multidisciplinary approach to deliver 6:26 6 minutes, 26 seconds comprehensive, compassionate and worldclass care. 6:30 6 minutes, 30 seconds Our bed expansion plans are progressing well. During the year so far, we have added approximately 750 operational beds 6:40 6 minutes, 40 seconds including the Bangalore acquisition and the Adaiou facility. The bed addition also accounts for our Jalander 6:48 6 minutes, 48 seconds acquisition, greater Nida lease facility and expansion in our existing facilities including Manesa, Noida and Faridabad. 6:58 6 minutes, 58 seconds A bit of flavor on the hospital business. Our hospital occupancy in Q3 7:04 7 minutes, 4 seconds financial year 26 remains steady at 67% compared to the same period last year. 7:11 7 minutes, 11 seconds However, the number of occupied beds increased 14% to 300,189 7:20 7 minutes, 20 seconds beds in Q3 from 2,790 beds in Q3 of financial year 25. Our 7:28 7 minutes, 28 seconds hospital business recorded a 4.5% increase in RPOP reaching INR 2.56 7:35 7 minutes, 35 seconds crores peranom. The growth in ARPOP was supported by increased share of complex 7:42 7 minutes, 42 seconds cases reflected in for instance a 52% yearon-year increase in robotic surgeries. 7:50 7 minutes, 50 seconds Just to provide all of you a perspective of the hospital business for 9 months of financial year 26 in 13 of our 7:57 7 minutes, 57 seconds facilities we have reported operating epida about 20% during this period and these 13 facilities together contribute 8:07 8 minutes, 7 seconds 77% of the hospital revenues. In comparison in 25 we had 10 of our 8:14 8 minutes, 14 seconds facilities with operating epida margin about 20% and contributing 73% of the hospital revenue. 8:24 8 minutes, 24 seconds Revenues from digital channel with uh the website mobile application and 8:30 8 minutes, 30 seconds digital campaigns witnessed a 19% yearon-year growth. Digital revenues 8:37 8 minutes, 37 seconds contributed approximately 30% to overall hospital revenues in Q3 of financial 8:44 8 minutes, 44 seconds year 26. Coming to the diagnostic business front, we continue to witness yearon-year improvement in topline and 8:52 8 minutes, 52 seconds margins. Ross revenue grew 8.3% to INR's 371 crores from INR 342 crores in Q3 of financial year 25. 9:06 9 minutes, 6 seconds Operating EITA margin gross revenue stood at 23.1% versus 14.4% 4% in Q3 of financial year 25. 9:18 9 minutes, 18 seconds On a like forlike basis, excluding one-offs, the operating EITA margin stood at 21.3% 9:26 9 minutes, 26 seconds in Q3 of financial year 25 as against 23.1% in Q3 of financial year 26. 9:36 9 minutes, 36 seconds As part of our ongoing network expansion strategy, the total number of new customer touch points has reached 4,370 as of December 31st, 2025. 9:49 9 minutes, 49 seconds The revenue contribution from preventive portfolio has increased to 12% in Q3 from 10% in Q3 of 25. 9:59 9 minutes, 59 seconds While the contribution from specialized portfolio has increased to 35% from 33% in the corresponding previous quarter. 10:10 10 minutes, 10 seconds We believe our diagnostic business is further positioned to scale its revenue while sustaining healthy margins. 10:18 10 minutes, 18 seconds With this I conclude my remarks. Our business remains on track to maintain this growth trajectory. We continue to 10:26 10 minutes, 26 seconds make strong progress across our strategic growth levers which we expect will drive sustainable growth and further strengthen our positions in the 10:34 10 minutes, 34 seconds healthcare sector. With that I hand over to Anand for his comments. 10:41 10 minutes, 41 seconds Thank you Dr. Awenshi. Good morning everyone and thank you for joining us today. On behalf of Agile Diagnostics, I'm pleased to welcome you all to our 10:49 10 minutes, 49 seconds Q326 results conference call. During the quarter, Agilus reported gross revenues of INR 371 crores compared to INR 342 10:59 10 minutes, 59 seconds crores in the Q3 of FI25, reflecting a 8.3% year-on-year growth. Operating AITA 11:06 11 minutes, 6 seconds stood at INR 86 crores, a substantial improvement from INR 49 crores last year with margins at 23.1% compared to 14.4% 11:15 11 minutes, 15 seconds in Q3 of 25. We conducted 9.9 million tests during the quarter, up from 9.6 6 million in the same quarter last year 11:24 11 minutes, 24 seconds reflecting 3.6% volume growth. Our B2C B2B mix stood at 52 to 48 indicating 11:31 11 minutes, 31 seconds balanced traction across both the channels. We also strengthened our network through gross additions of over 175 customer touch points further improving accessibility across markets. 11:43 11 minutes, 43 seconds For the 9 months period ending December 25, revenues stood at INR 1,139 crores, up by 7.7% 11:53 11 minutes, 53 seconds from INR 100,58 crores last year. While operating EITA 12:00 12 minutes rose to INR 275 crores from INR 185 crores. EITA margins improved to 24.1% from 17.5% in the same period last year. 12:12 12 minutes, 12 seconds During the 9-month period, we conducted 30.7 million tests against 29.6 million tests last year, supported by gross 12:20 12 minutes, 20 seconds additions of 550 plus customer touch points across our network. We also expanded our network footprint meaningfully, adding eight stat labs and 12:29 12 minutes, 29 seconds nine HLMS, strengthening accessibility and coverage across both focus cities and emerging micro markets. 12:36 12 minutes, 36 seconds Growth across geographies and product lines remains well distributed with routine specialized and wellness portfolios all contributing to the 12:44 12 minutes, 44 seconds momentum. Our preventive health and wellness portfolio continues to perform well contributing around 12% to the overall mix supported by growing 12:53 12 minutes, 53 seconds customer adoption of preventive panels and corporate wellness offerings. The segment remains an important long-term growth driver aided by the rising health 13:01 13 minutes, 1 second awareness across the markets. This quarter we strengthened our test portfolio with the introduction of CNS 13:08 13 minutes, 8 seconds biopsy with reflex to IHC enhancing our capability and capacity in neurooncology diagnostics. The RA extended panel 13:17 13 minutes, 17 seconds offering a more comprehensive assessment for autoimmune disorders and the acute leukemia panel which supports faster and 13:25 13 minutes, 25 seconds more targeted classification of hematological managencies. 13:29 13 minutes, 29 seconds Our continued investments in automation, digital tracking, and workflow optimization have strengthened efficiency, turnaround times, and 13:35 13 minutes, 35 seconds customer experience alongside steady expansion in our specialized and genomics offerings. Additionally, we also installed the Illuminina Noasic X 13:45 13 minutes, 45 seconds at our global reference laboratory in Mumbai, significantly scaling our NGS capabilities in genomics and proteomics. 13:52 13 minutes, 52 seconds This enables high throughput sequencing across oncology, infectious diseases, reproductive health, and rare disease diagnostics. 14:00 14 minutes Overall, the Q3 reflects a notable year-on-year improvement in growth, both growth and profitability, supported by disciplined execution, 14:09 14 minutes, 9 seconds network expansion, and operational enhancements. We remain positive about the opportunities ahead and remain committed to delivering consistent 14:16 14 minutes, 16 seconds highquality growth. Thank you, and over to Arva. 14:19 14 minutes, 19 seconds Uh, thank you, Anan. Ladies and gentlemen, we shall now open the floor for question and answers. Uh, may I please request the moderator to begin. 14:28 14 minutes, 28 seconds Thank you sir. Thank you sir. 14:29 14 minutes, 29 seconds We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on 14:36 14 minutes, 36 seconds their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 14:44 14 minutes, 44 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 14:56 14 minutes, 56 seconds Our first question comes from the line of Niha Manpurya from Bank of America. Please go ahead. 15:02 15 minutes, 2 seconds Yeah, thanks for taking my question. Uh the first question is on the people tree acquisition in uh in Bangalore. How 15:09 15 minutes, 9 seconds should we think about uh this facility because it's just an 190 bed facility. Um I think it's not fully ramped up now. 15:16 15 minutes, 16 seconds So you know how should we think about three years in this facility and it moving to let's say mid20s margin and would it require additional investment 15:25 15 minutes, 25 seconds uh you know to get to that mid 20% margin? 15:29 15 minutes, 29 seconds Yes nad. So we have u uh this facility as vive had said earlier the uh uh is 15:39 15 minutes, 39 seconds running suboptimally at the moment. Uh so it needs to be brought to standards. 15:45 15 minutes, 45 seconds it would require some investment in that uh regard. Uh the investment in the first phase is not very huge but at the 15:53 15 minutes, 53 seconds same time we are also going to expand uh the start the expansion work for creating further beds so that the 16:00 16 minutes capacity can be taken to 300 beds and uh that uh would uh entail some cap capex 16:07 16 minutes, 7 seconds both in medical equipment as well as the civil infrastructure. Uh so over the next three to four years we should see 16:14 16 minutes, 14 seconds this as as a high-end 300 bedded super specialtity hospital with all uh the modalities of treatment available. 16:25 16 minutes, 25 seconds Uh Mr. Akuni Dr. Aunti this the 300 bed that you're talking about so currently it's at 190 beds and then you have the land uh adjacent land which allows you 16:34 16 minutes, 34 seconds to add more capacity. So essentially we'll build out that uh the new capacity in the adjacent land. Is that how we get to this 300 number? 16:43 16 minutes, 43 seconds That's right. That's right. We will we will be starting the construction pretty soon. 16:48 16 minutes, 48 seconds Okay. And um in terms of you know uh doctors etc you know hiring doctors because Bangalore is another market 16:56 16 minutes, 56 seconds which we seeing a fair bit of uh um you know capacity coming on board. So how do you think we're positioned to get let's 17:03 17 minutes, 3 seconds say a full-fledged doctor team for a multispy hospital that we we plan? 17:09 17 minutes, 9 seconds Yeah, I I think we are very positive about it. I think for carries a good brand and it attracts physicians from in 17:18 17 minutes, 18 seconds all different regions and uh I don't see any challenge in that regard. our 17:25 17 minutes, 25 seconds experience of another hospital which we had opened in Nagarbi and ramping it up though in that was also about a 100 17:34 17 minutes, 34 seconds bedded hospital uh and that is uh by the way currently doing a bit close to 17:41 17 minutes, 41 seconds uh upwards of 25% so uh we are pretty confident that we can attract good clinical talent in this micro market 17:50 17 minutes, 50 seconds understood uh my second question is on the expansion if I were to strip out All the acquisitions we have done uh 17:57 17 minutes, 57 seconds including NOIA from the 750 I think the organic bed edition this year has been closer to about you know 250 odd beds 18:04 18 minutes, 4 seconds 250 300 beds what would this number be next year and uh other than the 200 beds in fMRI um you know what would be the 18:13 18 minutes, 13 seconds other large acquis other large expansions that we should uh look at in fiscal 2728. 18:22 18 minutes, 22 seconds Yeah, Niha Vive decide. So, uh you are right till uh first 9 months we could add 250 Brownfield B. There are some 18:31 18 minutes, 31 seconds bats in pipeline for NOIA and that will further add 60 bats maybe probably in 18:37 18 minutes, 37 seconds this current financial year and uh next year we we can target around uh 400 plus 18:44 18 minutes, 44 seconds beds uh in the brownfield which majorly contributed by fMRI because expansion is almost ready. We 18:52 18 minutes, 52 seconds are planning to commission by Janu by April. 18:57 18 minutes, 57 seconds Understood. And again sorry to hack on this doctor point given that you know we have two other large hospitals that will be coming very close to uh you know 19:05 19 minutes, 5 seconds where fmri is um you know uh are we do we I mean is the doctor team fully equipped for this additional 200 bed 19:13 19 minutes, 13 seconds that we will add or uh is that something you know we need to spruce up some spe you know specialtity and you could see more doctor hiring for that. 19:22 19 minutes, 22 seconds No no we doctor hiring is something which is a ongoing process and that keeps happening but the current 19:29 19 minutes, 29 seconds physicians only uh will be able to utilize this capacity very effectively because uh occupancy rates of this 19:37 19 minutes, 37 seconds hospital have been typically high around it has been operating at 80% occupancy level. So we are pretty confident that 19:46 19 minutes, 46 seconds uh we have the clinical whereabout and uh uh we have a very stable clinical team. 19:52 19 minutes, 52 seconds All right. I have a couple of more questions but I'll get back in the queue. Thank you. 19:58 19 minutes, 58 seconds Thank you. The next question comes from the line of toss from BNP Paribas Xen Research. Please go ahead. 20:07 20 minutes, 7 seconds Uh thanks for the opportunity. First few question on the O andM agreement with clinical. Can you call out the ONM fees for this quarter and how is in the 20:15 20 minutes, 15 seconds performance of Glenigers for uh last 9 months and also where do we stand currently on the inclusion of Mumbai hospital in ONM in the O and M agreement? 20:24 20 minutes, 24 seconds Yeah. So uh we are in the integration phase for O andM as you know this has been started this quarter only. So we uh 20:33 20 minutes, 33 seconds we have earned uh 5 cr as a onm fees uh in the uh current quarter and uh the 20:40 20 minutes, 40 seconds revenue for this uh uh this quarter for the including 20:47 20 minutes, 47 seconds u excluding Bombay is 172 cr and IA is uh almost 3% after absorbing 3% fees to 20:57 20 minutes, 57 seconds us. So that means this will be around 6%. 21:02 21 minutes, 2 seconds And what would have been the growth in very much in the initial stage? Sorry. 21:07 21 minutes, 7 seconds Yeah. And what would have been the growth for 9 months of clinicals revenue? 21:12 21 minutes, 12 seconds 9 months growth uh growth is actually negative for the unit we are uh uh uh we are looking at it is almost 4% negative 21:21 21 minutes, 21 seconds and and there are lot of disturbance there their clinician at management team has also been changed. So all those 21:29 21 minutes, 29 seconds action has been taken. I think we will start seeing the result probably from the next peninsula onward. 21:37 21 minutes, 37 seconds Okay, that's helpful. Uh uh second follow-up question on the recent acquisition in Bangalore. Uh can you tell us when you do you plan to commercialize the adjacent land bets, 21:46 21 minutes, 46 seconds additional bets? Is it uh something one can look at the next 18 months or is a plan for beyond 28 FI28? 21:52 21 minutes, 52 seconds So it will be like uh a sort of brownfield expensor like we do in our facility which typically take 24 to 30 22:01 22 minutes, 1 second months time and Bangalore is a slightly difficult location and that's why I'm saying 30 months time because approval generally take more time but we will start the work immediately on that. 22:13 22 minutes, 13 seconds So it's something beyond FI28 one should look at it. 22:17 22 minutes, 17 seconds Yes. But in the meantime, we will operationalize and uh uh bring operational efficiency in the existing bets. 22:27 22 minutes, 27 seconds Thanks. A few more questions. I'll get back in the queue. 22:31 22 minutes, 31 seconds Thank you. The next question comes from the line of Aman Goyel from Access Securities. Please go ahead. 22:38 22 minutes, 38 seconds Yeah, thank you. Thank you for the opportunity sir. My question is related to since we are experiencing in the aggressive expansion in the NCR region. 22:47 22 minutes, 47 seconds So to maintain our clinical talent in the region are we seeing any uh higher MGs for these marquee uh hospitals or 22:56 22 minutes, 56 seconds doctors or are there any revised revenue shared over the last 12 months? 23:03 23 minutes, 3 seconds So uh I will say this is a ongoing process as Dr. Controversy mentioned this pull and pose always remain and we 23:11 23 minutes, 11 seconds need to correct sometime you know the uh sale uh the remuneration and take take out of the doctors and that will be more 23:19 23 minutes, 19 seconds than compensated by uh the revenue growth as you know uh companies in the growth phase so little bit increase may not be affecting our margin that much. 23:28 23 minutes, 28 seconds Okay. Oh sir uh my next question is related to the maniser facility. If you could throw some color on the revenue occupancy trends and all. 23:36 23 minutes, 36 seconds Yeah. So uh Mana is starting 15 cr per month revenue and uh I beta side it has already start contributing positive I 23:45 23 minutes, 45 seconds beta. So that way manur is good uh story 23:51 23 minutes, 51 seconds for us and um I think uh here onward it will start contributing more. We are starting the uh we have already started 24:00 24 minutes the work for enco block and uh that will further add to the profitability of this unit. 24:05 24 minutes, 5 seconds Sir the aida margin is in the single digit or uh if you could throw some uh on the aida contribution terms of 24:12 24 minutes, 12 seconds percentage wise where does this for very minimal as I said it is just baky one okay just started back. So my last question 24:22 24 minutes, 22 seconds is on uh related to uh the are we operating any facility above 80 85% and we are still evaluating the opportunity for the brownfield expansion. 24:35 24 minutes, 35 seconds Yeah, sometime our unit hit 80% like Salimar Bhag is one example which uh 24:42 24 minutes, 42 seconds very often hits 80% occupancy and we have planned for expansion. We have got all the approval now and uh we will 24:50 24 minutes, 50 seconds start uh uh work uh for the Salimmer bag uh immediately. 24:56 24 minutes, 56 seconds Okay. Thank you. Thank you. That's all for my side sir. 25:01 25 minutes, 1 second Thank you. The next question comes from the line of Sanjay Sha from KSA securities. Please go ahead. 25:08 25 minutes, 8 seconds Yeah, good morning gentlemen. Thanks for opportunity and congrats on the great numbers. So my question was uh regarding we see many new players are entering uh 25:17 25 minutes, 17 seconds via asset light or Pback model. So so how how how we are prepared? How does 25:24 25 minutes, 24 seconds 40s differentiate itself? Uh is it in a clinical depth or doctor's ecosystem? 25:30 25 minutes, 30 seconds how how what is differentiate itself? 25:36 25 minutes, 36 seconds Yeah. So I think one of the major differentiation is uh in terms of the kind of infrastructure we able to 25:43 25 minutes, 43 seconds provide and there's a legacy of uh of the institution and uh there is an environment which is very conducive for 25:52 25 minutes, 52 seconds clinicians to be able to practice effectively and that's what probably makes us attractive and uh we uh have 26:00 26 minutes lot of involvement of physicians in clinical governance and uh uh broad 26:06 26 minutes, 6 seconds policy making as well. Uh so that makes them feel included and that's what makes it attractive for them to be part of us. 26:16 26 minutes, 16 seconds So my second question was regarding our international patient revenue which is growing steadily and how scalable is 26:23 26 minutes, 23 seconds this segment and what investments is required uh to to to meaningfully grow in double digit from here. 26:34 26 minutes, 34 seconds Yes. So I mean the percentage of revenue this has been 26:40 26 minutes, 40 seconds stable at about 8 9% and somewhere as as total revenue percentage it has remained 26:48 26 minutes, 48 seconds in that level and it is likely to remain in that level because uh the international traffic is subject to so 26:55 26 minutes, 55 seconds many other geopolitical uh situations which are continuously evolving right now. uh so uh I think one cannot really 27:05 27 minutes, 5 seconds bank on that but what we are doing is that we are focusing on newer markets especially the west uh uh the east 27:12 27 minutes, 12 seconds Africa and uh uh also a little bit on on onto the middle east and and central Asia. Uh so those are the geographies 27:21 27 minutes, 21 seconds which we are focusing on. We are doing direct marketing there uh and opening some information centers in these geographies to increase this business. 27:31 27 minutes, 31 seconds Thank you sir. Very helpful. Best of luck sir. Thank you very much. 27:37 27 minutes, 37 seconds Thank you. The next question comes from the line of Karan Vora from Goldman Sach. Please go ahead. 27:44 27 minutes, 44 seconds Yeah thank you for taking my question. 27:46 27 minutes, 46 seconds Uh my first question is with respect to Glennigal. So I think we highlighted the 5 crore number we booked. Uh but is that 27:53 27 minutes, 53 seconds the full quarters number or we were only able to you know book a part of it. Uh uh so if you can clarify on that one 28:03 28 minutes, 3 seconds yeah it is almost full quarter uh uh uh Karan because uh we have started this in July somewhere mid July. So it is almost full. 28:13 28 minutes, 13 seconds Got it. and it will be included in our RPOP number as in this will help improve our RPOP numbers as well, right? Just from a calculation standpoint. 28:22 28 minutes, 22 seconds Yes. Yes, you're right. 28:24 28 minutes, 24 seconds Okay. Got it. And uh and and the uh uh for Glennals like I think uh we've highlighted some of the challenges but 28:32 28 minutes, 32 seconds can you you know elaborate more on the challenges we are facing uh at Glenn Eagles at individual hospitals and what are we trying to you know uh uh to 28:40 28 minutes, 40 seconds tackle those challenges uh going forward. 28:44 28 minutes, 44 seconds So I will say there are specific challenge for each facilities and it is not common for all. So there areos but 28:53 28 minutes, 53 seconds all the hospital looking like have good potential. Uh for example Chennai facility there are lot of potential there is expansion plan but I think 29:01 29 minutes, 1 second execution is the problem and there last year was totally disturbed year and I think as I said next year onward it will 29:10 29 minutes, 10 seconds start showing result. Similarly uh Hyderabad there are two facility and uh one is Lakri and another is 29:19 29 minutes, 19 seconds LG Nagar and LG Nagar is uh also there are lot of potential we are putting uh uh cancer there cancer facility there. 29:28 29 minutes, 28 seconds Um uh luckily Kapul is having a space constraint and we are trying to tackle that uh problem separately and uh as 29:36 29 minutes, 36 seconds regard Bangalore there are two facility Kangari and um one small facility and uh 29:43 29 minutes, 43 seconds I think Kangari is doing quite okay but uh that other small hospital is lot of work need to be done. 29:54 29 minutes, 54 seconds Got it. And like uh the same management team which operates the broader uh you know fortus uh hospitals or which looks 30:01 30 minutes, 1 second after the broader hospitals will be taking care of this or we have hired uh any regional or uh some some second layer of management which will look 30:10 30 minutes, 10 seconds after this or all the to to fix all the issues at clinical. 30:15 30 minutes, 15 seconds Yeah. So this essentially falls into our larger structure. uh so the uh of course we will have to strengthen it at the 30:23 30 minutes, 23 seconds regional level as you said so we have made some changes in some of the leaderships at hospital levels uh at the 30:31 30 minutes, 31 seconds same time we have appointed one or two people on the regional level as well uh but the Bangalore cluster for example 30:39 30 minutes, 39 seconds reports to the Bangalore cluster head who looks after the other four hospitals uh so similarly we have uh positioned 30:48 30 minutes, 48 seconds everything into our common structure of forest. 30:54 30 minutes, 54 seconds Okay, got it. And last question is with respect to you know FI27 guidance. So now that we are you know almost close to 31:01 31 minutes, 1 second end of FI26 and we've pretty much meet or beat our you know guidance. So any any qualitative color do you think a 20% 31:10 31 minutes, 10 seconds kind of a topline growth uh is possible for FI27 and you know can margins improve say 150 basis points more or or 31:18 31 minutes, 18 seconds any any color around that will be helpful. 31:22 31 minutes, 22 seconds Yeah. So I will say uh you have seen that uh the company is in the growth trajectory and it is also showing improvement in the margin. We feel there 31:30 31 minutes, 30 seconds is still scope for uh uh for margin improvement especially with the brownfield expansion. We have discussed 31:38 31 minutes, 38 seconds the uh one of the uh question on the next year brownfield expansion and that uh brownfield is coming in one of our 31:45 31 minutes, 45 seconds premier facility fMRI. So we expect the m you will continue to see the growth trajectory what we are seeing in the 31:53 31 minutes, 53 seconds current financial year at least for two years. 31:57 31 minutes, 57 seconds any any number or range you can throw if possible. 32:00 32 minutes Uh it will be very difficult to give a specific number. Uh you can understand. Okay. Thank you. 32:09 32 minutes, 9 seconds Thank you. The next question comes from the line of Vive Agraal from Cityroup Global Services. Please go ahead. 32:16 32 minutes, 16 seconds Yeah, thank you for the opportunity. So just want to understand as far as the hospital business is concerned if you can break down what is the growth in 32:24 32 minutes, 24 seconds existing uh existing units and how much has been contributed from the new units. Thank you. 32:32 32 minutes, 32 seconds Yeah. So the acquisition uh which we have done the Jalander and uh this return that uh uh that has contributed 32:41 32 minutes, 41 seconds around 4% of the revenue growth balance is all from the existing units. Understood. uh the existing unit. 32:50 32 minutes, 50 seconds Understood. And how the margin trajectory looks like uh uh for the existing units. So overall margins have been expanded let's say around 170 basis 32:59 32 minutes, 59 seconds points. But uh in the existing units how we think uh how the margins have panned out. 33:05 33 minutes, 5 seconds Yeah. So existing unit also so uh major benefit is coming from the existing unit for the margin expansion and uh so it is 33:14 33 minutes, 14 seconds majorly from the existing unit. So because greater noa is the new unit so it is hardly contributing to iita actually it is dragging the margin 33:22 33 minutes, 22 seconds little bit and u jalander of course is 25% plus iita margin so is it fair to uh is it fair to assume 33:31 33 minutes, 31 seconds that exist overall margin expansion existing units is much better than 170 base 33:38 33 minutes, 38 seconds yeah I I I have already told about uh jaland jaland is start contributing as per our flexib hospitals and uh greater 33:48 33 minutes, 48 seconds NOA is on the uh uh you know improvement project. 33:52 33 minutes, 52 seconds Understood. So one question on institutional patient. So have you started seeing impact of better pricing in ECHS, EGSS etc. and how you see that trend in coming quarters. 34:03 34 minutes, 3 seconds Yeah. So we have start seeing the positive result from the uh from the CGHS particularly ECHF the circular is 34:12 34 minutes, 12 seconds new and there is still some um uh some doubts or which need to be cleared and team is working with the authorities to 34:20 34 minutes, 20 seconds you know get it cleared but uh till now the uh uh uh the number is quite positive. 34:29 34 minutes, 29 seconds Understood. So one question on debt right uh now after the people tree acquisition uh the debt is close to around 3,000 crores close to 1.5x of a 34:37 34 minutes, 37 seconds bida. So now how to look at the company's ability to grow further inorganically right are you flexible enough to take more debt let's say can 34:46 34 minutes, 46 seconds go to 2.5 3x of a bida or is now now onwards you need to mainly depend on dependent whatever for example green 34:53 34 minutes, 53 seconds field or brownfield plants that are in place. Thank you. 34:57 34 minutes, 57 seconds Yeah, first of all the data number is not that alarming. Uh we have still room to uh take some more debt for our growth 35:05 35 minutes, 5 seconds aspiration. Having said that, you might be aware that uh open offer thing is now settled and IH in the public forum has 35:15 35 minutes, 15 seconds expressed their willingness to increase the stake in the company. So in all probability there will be equity infusion by HH and that will be used for 35:23 35 minutes, 23 seconds either debt reduction or for growth opportunity. Thanks. That's from my side. 35:31 35 minutes, 31 seconds Thank you. The next question comes from the line of Karthik Agarwal, an individual investor. Please go ahead. 35:39 35 minutes, 39 seconds Yeah. Hi. Uh, you have reported a 14.3% increase in OBDs. I want to know what is the source of this growth. Is it coming from existing hospitals or new bed? 35:54 35 minutes, 54 seconds Yeah. So this is uh this is partly uh this is mixture of both because when we say occupied B increase it is increase 36:01 36 minutes, 1 second of bad by in Jaland as well as greater NOA because earlier these these hospitals were not there and little bit increase in the ADU also and rest of the 36:09 36 minutes, 9 seconds thing is uh in the in our existing facilities. 36:16 36 minutes, 16 seconds Uh so uh which of the existing facilities did you report this increase in? 36:22 36 minutes, 22 seconds So almost all the facilities have shown good ramp up Salimarb fMRI 36:30 36 minutes, 30 seconds um all our flexib hospital has some good attraction except I will say BG road which is still struggling and we are 36:39 36 minutes, 39 seconds working on how to you know improve the propensity level of BG road I will particularly like to mention about Muloon because earlier we were having 36:46 36 minutes, 46 seconds Muloon and BG road in the same category but Muloon has start operating at 65% plus occupancy level which is quite 36:53 36 minutes, 53 seconds increasing. So I think the next we have to improve the oppency level. 37:00 37 minutes Okay. Thank you. 37:03 37 minutes, 3 seconds Thank you. The next question comes from the line of Madhav Marda from Fidelity Investments. Please go ahead 37:14 37 minutes, 14 seconds Madav. Please go ahead with your question and kindly unmute yourself in case if you're on mute. 37:25 37 minutes, 25 seconds Since there is no response from the participant, we will move to the next participant that is Nicl Goyel, an individual investor. Please go ahead. 37:35 37 minutes, 35 seconds Hi, first of all, congratulations for a good set of numbers. Uh my questions are two. One is on ARPOB. So our ARPOB is 37:43 37 minutes, 43 seconds currently 2.65 KES. uh I want to understand what is our target ARP maybe 1 two years down the line are we 37:51 37 minutes, 51 seconds expecting any increase in it or are we expecting it to remain flat going forward uh the second question is on the 37:58 37 minutes, 58 seconds distribution of our revenue across uh the different EITA margin buckets that we have uh so I have observed over a 38:06 38 minutes, 6 seconds period of time that some hospitals are consistently under the less than 10 margin percent range so are there any actions that we are planning there 38:14 38 minutes, 14 seconds either in terms of improvement or in terms of you know having them out of of the system. Thank you. 38:22 38 minutes, 22 seconds Yeah. So ARP of increase we are expecting around four to 5% ARP of increase going forward also this year we 38:30 38 minutes, 30 seconds are uh trending around this level and uh uh I want to clarify that ARP of increase should not be confused with you 38:39 38 minutes, 39 seconds know price increase. So 4.5% AR of increase to 2 and a half% is only price increase and balance is because of the 38:46 38 minutes, 46 seconds case mix and majorly coming from the high-end work we are doing especially in the enco business where you know apart from 38:55 38 minutes, 55 seconds the IP you know there are lot of daycare business come and uh as a result of which you know the revenue goes up uh at 39:03 39 minutes, 3 seconds the same time bad remain constant and this result into the arc of increase. So I am uh uh uh we are expecting around 39:10 39 minutes, 10 seconds four to 5% ARP of increase going forward for next 2 years. As regard of a beta for the low beta margin uh 39:19 39 minutes, 19 seconds unit uh I will say uh all these units are not very big unit except Japur and 39:27 39 minutes, 27 seconds uh this uh manur man we have discussed is a new unit. I expect this unit to move up in the IITA margin LAR as well 39:37 39 minutes, 37 seconds as in Japur also we are considering uh other plan for expansion and uh uh uh 39:43 39 minutes, 43 seconds and with that uh we feel that this uh unit should also move in move up in the beta margin uh trajectory. 39:52 39 minutes, 52 seconds Other unit are very small and these unit are having their own challenges um and very difficult to correct those challenges. 40:02 40 minutes, 2 seconds Thank you sir for for the details but just a follow-up question. So as you said Japur is facing challenges and it is very difficult to correct those 40:10 40 minutes, 10 seconds challenges. I understand maniser has a potential to move up the header but Japur has been in that bucket for a very long time and why are we planning an 40:17 40 minutes, 17 seconds expansion uh in a hospital where uh there are challenges to and historically we haven't been able to move it also. Is 40:25 40 minutes, 25 seconds it because you believe that when scale comes the margins would improve or is there something else that we are trying to do there? 40:32 40 minutes, 32 seconds So I will say it is a question of strengthening the clinical program. 40:37 40 minutes, 37 seconds Okay. So Japur is missing you know anko business very much and that has resulted into 40:45 40 minutes, 45 seconds into the margin dip with along with tokco business there are a lot of business come from uh to the other speciality also and it has space and it 40:54 40 minutes, 54 seconds has uh all the uh you know uh uh uh things which uh which can absorb one 41:02 41 minutes, 2 seconds enco block there in jaur. Uh so we were having the plan for earlier also but uh we have put on hold because of the 41:10 41 minutes, 10 seconds challenge Japur has faced last uh year and so and now Japur has come back to the original plan and we will evaluate 41:18 41 minutes, 18 seconds again that plan and by when we will have on installed in Japur if you have any timelines in mind. 41:26 41 minutes, 26 seconds So these type of facility take some time and uh generally it is 18 to 24 months 41:32 41 minutes, 32 seconds time. So uh uh in the um uh next year budget we were planning to put something 41:40 41 minutes, 40 seconds for Japur. Understood sir. Thank you so much. Just one last question on the ARPOB. You mentioned that uh half of it comes from price and half of it comes 41:48 41 minutes, 48 seconds from product mix. Uh going forward also we are expecting a similar trend that half of it comes from price and half of it comes from product mix. 41:56 41 minutes, 56 seconds Absolutely. Great. Thank you so much for your time. 42:01 42 minutes, 1 second Thank you. The next question comes from the line of Shalen from UBS Global. Please go ahead. 42:08 42 minutes, 8 seconds Yeah. Hi sir. Uh sir, just want to uh check about you that I that you know capital is very much needed uh for our 42:16 42 minutes, 16 seconds growth. So do we have any sense on the timeline um you know what could be the potential investment from IHS can come in? 42:25 42 minutes, 25 seconds So as you know they have just completed the open offer. there is a pooling period uh till then they cannot uh uh go 42:33 42 minutes, 33 seconds ahead with the further equity in infusion. I think that cooling period end by uh May and this is a board level 42:41 42 minutes, 41 seconds bare board level discussion then our board level discussion uh on the equity need as I said currently we have we are 42:48 42 minutes, 48 seconds in a very comfortable position but uh from the management side we have expressed that we want to create sufficient room in our balance sheet for 42:57 42 minutes, 57 seconds future expansion we feel we are in idle position uh looking at you know current market 43:04 43 minutes, 4 seconds dynamic to reap maximum benefit uh from this uh current market. So we will we will like to take that advantage. Uh I 43:13 43 minutes, 13 seconds think uh in a four 3 to 6 months time we will be having more clarity about that exact timing. 43:21 43 minutes, 21 seconds Got it sir. And uh I assume it will be either preference or warrant kind of a thing right given IHS wants to increase 43:28 43 minutes, 28 seconds the stake and it's not going to be a you know any other further dilution uh because earlier there was a 43:37 43 minutes, 37 seconds restriction for IHS to it's sort of restriction not restriction in real sense uh for increasing the stake with the open offer completed that 43:44 43 minutes, 44 seconds restriction has gone uh has is not no more there so as I said it is a board level decision uh we have expressed our 43:52 43 minutes, 52 seconds desire to have more equity in the balance sheet to create room for f further growth and I think 3 to 6 months 43:59 43 minutes, 59 seconds time uh this will be done you are right in our estimate also it will be preferential allotment 44:06 44 minutes, 6 seconds okay sure last say sir I know uh it's again little maybe a little early but any sense that what kind of a fund you would like to have it or be comfortable 44:13 44 minutes, 13 seconds with when you're looking for such kind of a raise yeah so uh very difficult to give number 44:22 44 minutes, 22 seconds um we would like to um have at least 5% uh type of uh uh base uh for preference 44:29 44 minutes, 29 seconds alert which is allowed also as per CB regulation. So again this is our desire this is how IH will take it is their decision 44:38 44 minutes, 38 seconds but uh can I also think about doing creeping uh at least we have not heard from them 44:46 44 minutes, 46 seconds during our discussion with them that they are looking for that option they also want uh to grow Indian business is 44:53 44 minutes, 53 seconds doing quite well for them and they want to grow the business they have openly mentioned in many investor conference 45:01 45 minutes, 1 second that is their growth engine for India and um I think u uh they will like to infuse price equity. 45:10 45 minutes, 10 seconds Got it sir. Got it. Cool sir. Uh thank you. That's it from my side and uh congratulations on a good set of numbers. Thank you. 45:18 45 minutes, 18 seconds Thank you. Thank you. 45:20 45 minutes, 20 seconds The next question comes from the line of Nicl Maturial Fund. Please go ahead. 45:27 45 minutes, 27 seconds Yeah. Hi sir. Good morning. Um sir I I want to uh visit some 9mon numbers. Um 45:35 45 minutes, 35 seconds so can you highlight the bet count addition uh exact in in this 9 months and uh where all have you added these bets? 45:44 45 minutes, 44 seconds Yeah so bad count addition is 750 total. 45:48 45 minutes, 48 seconds uh out of that as Niha earlier has asked 500 plus bed is through acuan and 250 is through the brownfield expansion majorly 45:56 45 minutes, 56 seconds coming from the noa faridabad and mana facility. Um there is some more bags we are planning to open in noa. Uh the 46:05 46 minutes, 5 seconds final finishing work is going on. I think that that will be completed by this quarter. And then we have as I 46:13 46 minutes, 13 seconds mentioned earlier fMRI which is our flexib hospital. uh we were planning to open that block in January. It has delayed little bit because of all these 46:22 46 minutes, 22 seconds environmental other issues. Uh but we are quite uh we are targeting to open those beds by uh April uh this year. 46:32 46 minutes, 32 seconds Okay. So uh can you split the occupancy between uh these new additions including the acquisition and uh base business 46:40 46 minutes, 40 seconds because uh occupancy is largely flat in 9 months at around 69% in 9 months versus a similar number last year. So I 46:48 46 minutes, 48 seconds guess there's some drag on overall occupancy from these new additions. So what's that uh number right? So, so the occupancy uh drag is mainly coming from 46:57 46 minutes, 57 seconds the NOA data NOA facility as well as uh from little bit from the DO because I do we have open only in December u uh 47:06 47 minutes, 6 seconds Jalander start contributing in the occupancy uh uh matrix quite well. So uh 47:14 47 minutes, 14 seconds but uh uh greater NOA and DU are very small unit it will not be having much impact 47:22 47 minutes, 22 seconds find occupancy 50 basis point occupancy may have gone up if we exclude this new unit. 47:30 47 minutes, 30 seconds So of the total addition 50 basis points is the drag right? 47:34 47 minutes, 34 seconds Yes. And I've told you which two units are dragging it. 47:38 47 minutes, 38 seconds Yeah. Okay. Got it. Um uh so if I look at if I refer to your JAN presentation of the betc count addition uh from FI25 47:47 47 minutes, 47 seconds to FI30 uh which gives a CAGGR of around 10.7%. 47:52 47 minutes, 52 seconds Now FI26 obviously is a big addition year uh which kind of brings you to somewhere around 6,800 beds. So the bet 48:01 48 minutes, 1 second count addition from FI26 to FI30 goes down to almost 66 and a half%. uh as per 48:07 48 minutes, 7 seconds the current plan. Uh so once uh uh so so my my question is uh are we at uh a risk 48:15 48 minutes, 15 seconds of kind of growth slowing down uh because the betc count addition itself will be will be sub 8 9% post fi26 and 48:23 48 minutes, 23 seconds your rpop expectation is 4 5% so that gives me to 11 12% maybe the base occupancy moves up uh maybe a few 48:29 48 minutes, 29 seconds percentage points so uh so is there a growth risk to you might have to uh revisit your M& studies a bit more aggressively Okay. 48:39 48 minutes, 39 seconds Yeah, that is one thing which we are now targeting very aggressively and uh we have done couple of acquisition in the 48:45 48 minutes, 45 seconds last quarter. There are a couple of others which are in pipeline. Uh we can't disclose the uh details uh as of 48:53 48 minutes, 53 seconds today but u uh yeah you're right. So there will be the growth will be coming from the three uh three bucket. One is 49:01 49 minutes, 1 second the brownfield expansion. Apart from whatever disclosed earlier the we have identified certain more which will be coming in the next year investor 49:09 49 minutes, 9 seconds presentation then we will also be having uh this acquisition thing and then there is some green field project also we are 49:17 49 minutes, 17 seconds looking at but sir sorry to be a bit cynical about this uh there are so much expansion going I mean everyone every top 49:26 49 minutes, 26 seconds corporate chain in this country is looking for bed expansion so does that leave the current valuation environment conducive enough for you to keep doing 49:34 49 minutes, 34 seconds M&A because the Bangalore's one seems slightly on the higher side if I look at on a EV per bed basis uh and with capex 49:41 49 minutes, 41 seconds also needed for the further expansion there. Um so just some broad thoughts are the valuations conducive enough. 49:48 49 minutes, 48 seconds Yeah, this is a good actually I give you math. Uh you know if you uh first of all the location is fantastic. Okay, this 49:56 49 minutes, 56 seconds Bangalore one and there is a potential to reach up to 300 beds and uh if you still uh if you do 300 bed green field 50:05 50 minutes, 5 seconds expansion in that locality it will minimum cost you 1,000 cr okay with all the facility which we are planning and 50:13 50 minutes, 13 seconds uh this acquisition will be costing us 800 so in the metro in the heart of the city with 300 ved capacity I don't think 50:22 50 minutes, 22 seconds so it is a um it is expensive location and uh uh I think little bit risk we 50:28 50 minutes, 28 seconds have to take and uh having said that for has now established itself in the cluster where they are present and we 50:36 50 minutes, 36 seconds are quite confident we can handle any competition. 50:41 50 minutes, 41 seconds Understood sir this is helpful. Thank you. 50:45 50 minutes, 45 seconds Thank you. The next question comes from the line of Nia Manpurya from Bank of America. Please go ahead. 50:56 50 minutes, 56 seconds NA please go ahead with your question and kindly unmute your line in case if you're unmute. 51:00 51 minutes Yeah sorry yeah sorry about that. Um okay uh you mentioned there are a few M&A in the pipeline. Uh from a priority perspective what markets would you be 51:08 51 minutes, 8 seconds interested in uh for potential M&A given a cluster based approach? That's the first one. And second one uh for the 400 bed addition that we have outlined for 51:17 51 minutes, 17 seconds the next two years. What would be the rough cubeex? 51:22 51 minutes, 22 seconds Uh so the brownfield expansion for the next year mainly is coming from this fMRI. major portion is coming from fMRI 51:30 51 minutes, 30 seconds and little bit uh increase in the maniser uh thing and uh for which almost entire capex has already been incurred 51:39 51 minutes, 39 seconds uh little bit uh uh uh you know medical equipment we have to acquire so there's no much capex for the brownfield uh 51:47 51 minutes, 47 seconds meaningful uh uh capex for the brownfield expansion for the bed which are coming of course the new project which we are starting like mahali 51:55 51 minutes, 55 seconds salarbath these two units which we have taken And those expension we will be starting there will be additional capex 52:02 52 minutes, 2 seconds that we will uh able to tell you once you know the uh the plan is finalized. Um what is the next question? 52:12 52 minutes, 12 seconds What was the next question you have for you uh from you? 52:15 52 minutes, 15 seconds Uh I was just asking you mentioned there's a few M&A in the pipeline that you're considering. uh you know what are the you know given we have this cluster 52:22 52 minutes, 22 seconds based approach what are the markets that focus is looking at from a priority perspective to add assets 52:29 52 minutes, 29 seconds we are doing uh uh we we are looking at uh uh you know the acquisition opportunity in the existing cluster itself. So we are uh we want to 52:38 52 minutes, 38 seconds strengthen and deepen our presence in the existing cluster. We feel we have a very strong brand equity in whichever cluster we present uh we are there and 52:46 52 minutes, 46 seconds we want to further strengthen our position in those clusters and this would include Hyderabad as well now with the Glen Eagles you know on&m that we have. 52:56 52 minutes, 56 seconds Yeah, Hyderabad is now uh a sort of new cluster for us. Uh we are slightly mindful for Hyderabad because of the 53:04 53 minutes, 4 seconds intense competition there but uh it is not ruled out from the cluster approach Hyderabad is definitely there. All right. Got it. Thank you so much. 53:14 53 minutes, 14 seconds Thank you. The next question comes from the line of Madav Mara from Fidelity Group. Please go ahead. 53:24 53 minutes, 24 seconds Madav, please go ahead with your question and unmute yourself in case if you're on mute. 53:35 53 minutes, 35 seconds Hello. Yes, Madav. Please go ahead. 53:38 53 minutes, 38 seconds Yeah. Sorry. Sorry. So my question was on the um CGHS and ECHS rate hikes which have come in. Uh have you been able to 53:45 53 minutes, 45 seconds quantify what kind of benefit we can get on an annualized basis say in FI27? 53:52 53 minutes, 52 seconds Yeah, it is positive impact MU and it is not that meaningful in the this quarter. 53:57 53 minutes, 57 seconds As I said there are if you have gone through that circular for CGHS there is a super speciality hospital category for 54:06 54 minutes, 6 seconds which is the race station not yet been opened and so uh so all those thing will uh will be finalized in maybe by next 54:15 54 minutes, 15 seconds year. Similarly, ECHS also there are lot of confusion about you know the drug pricing and things like that and there 54:22 54 minutes, 22 seconds are lot of clarity team is asking so I think let us wait for some time uh this much I can tell you that this there will 54:30 54 minutes, 30 seconds be positive effect okay okay got it and then the second question I think you mentioned we've identified some more uh brownfield 54:39 54 minutes, 39 seconds expansion potential for fus uh could you give some more clarity in terms of you know which units are these where we identified more brownfield expansion and 54:46 54 minutes, 46 seconds uh over what period of time uh you know these could uh come in for us. 54:52 54 minutes, 52 seconds Yeah. So we uh we continuously uh you know look for brownfield expansion opportunity if there is any like last 55:00 55 minutes year last quarter we have uh taken approval from the board for opening ako block in farabad unit. So uh so uh 55:10 55 minutes, 10 seconds similarly uh you know uh these two unit which we have taken galant as well as uh 55:16 55 minutes, 16 seconds uh tmi there is a scope for further expansion. There is adjacent land parcel we have taken for uh uh uh for expansion 55:24 55 minutes, 24 seconds only and uh thirdly you know uh this greater NOA also there is a potential to go up to 250 to 300 BS currently it is 55:34 55 minutes, 34 seconds operating at 150 BS. So uh we have just taken over in a quarter. So we are stabilizing the things. So all those thing will be coming and plus there is some opportunity in the existing units. 55:45 55 minutes, 45 seconds We are finalizing the things. I don't want to name it because there is some approval and the related issue may be coming. 55:53 55 minutes, 53 seconds Understood. Great. Thank you. Thank you. 55:58 55 minutes, 58 seconds Thank you. The next question comes from the line of Atul Minocha an individual investor. Please go ahead. 56:06 56 minutes, 6 seconds Yeah. Hello. Uh thanks for taking my question. My question is how do we uh if we are leveraging AI for improving operational efficiency that is my first 56:15 56 minutes, 15 seconds question and second question is with respect to a recent budget announcement right uh government has mentioned to 56:22 56 minutes, 22 seconds create regional medical hubs. So is there any work which you are doing as part of net health or any other body uh 56:29 56 minutes, 29 seconds to work with the government and if you can share some details around it. Thank you. That's my questions. 56:37 56 minutes, 37 seconds Yeah. So AI is a new theme and healthcare. There are a lot of use cases for AI and we are also working on some of the use cases and uh we are taking 56:47 56 minutes, 47 seconds help of our parent IHS. They are slightly more advanced in AI. uh so we are taking help from them and u I think 56:55 56 minutes, 55 seconds you will uh uh you will see much more application of AI at least in our healthcare network and uh as regard 57:02 57 minutes, 2 seconds engagement with the government it is ongoing process and we keep engaged with the government and continue to work with them to provide quality healthcare for the uh to the masses. 57:12 57 minutes, 12 seconds So my question was more specific with respect to medical tourism coming from Europe and US you know medical visa option. So the government has mentioned 57:21 57 minutes, 21 seconds that you know they will be creating five hubs uh you know during this period. So if you can share more details around that 57:29 57 minutes, 29 seconds yeah I will say currently the country is not equipped to handle patient from those geography because they have other options also. You want to okay yeah got it. 57:42 57 minutes, 42 seconds Thank you. That's it. 57:44 57 minutes, 44 seconds Thank you. The next question comes from the line of Amar Aer from Raiden Capital. Please go ahead. 57:55 57 minutes, 55 seconds Amar, please go ahead sir. 57:58 57 minutes, 58 seconds Yes. Yes, you are. Uh so my question was that on a consolidated level, how many uh what's the number of uh beds you're going to add in FI27? 58:09 58 minutes, 9 seconds Yeah, we mention about 430 uh odd beds. 58:14 58 minutes, 14 seconds Okay, 430 including any be able to complete. 58:17 58 minutes, 17 seconds Okay, 4:30 will be adding and uh how many will be operational? 58:26 58 minutes, 26 seconds Yeah, I think almost all will be operational. FM fMRI we are planning to operationalize in two phases. FM fMRI is 58:33 58 minutes, 33 seconds 200 plus beded expansion. So we'll first open 100 bed. We are quite hopeful we will able to fill it quite fast and then 58:39 58 minutes, 39 seconds we'll open uh the next uh uh b batch of beds also. So fm is the only 58:47 58 minutes, 47 seconds question mark that 100 beds may be operationalized this year or next year depending upon the ramp up other will be operationalized fully. 58:55 58 minutes, 55 seconds Okay sir got it sir that's all from my thank you so much. Thank you. 59:02 59 minutes, 2 seconds The next question comes from the line of Karthik Aarwal, an individual investor. Please go ahead. 59:17 59 minutes, 17 seconds Since there is no response, uh ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Anurak Kalra for the closing remarks. 59:27 59 minutes, 27 seconds Thank you all. Uh ladies and gentlemen, thank you for your time today. If there are further follow-up questions, data clarifications, uh please feel free to reach out to me or my colleague Amit. 59:35 59 minutes, 35 seconds We'll be glad to help you. Thank you and have a good day. Thank you, sir. Ladies and gentlemen, on behalf of Fortis Health Limited, that concludes this 59:44 59 minutes, 44 seconds conference call. Thank you for joining us. And you may now disconnect your lines.