Global Health Limited — Q2 FY26

Global Health Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4wa5TrrLnA4 Published: 6 months ago

0:04 4 seconds Ladies and gentlemen, good day and welcome to Global Health Madanta Hospitals Q2 FY26 earnings conference 0:12 12 seconds call hosted by IFL Capital. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:21 21 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:28 28 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul 0:35 35 seconds Chivani from IIFL Capital. Thank you and over to you Mr. Chivani. 0:41 41 seconds Hi uh good afternoon everyone. This is Rahul from IFL Capital. On behalf of IFL, I welcome you all to the second 0:49 49 seconds quarter earnings conference call of Maidanta. Uh from Midanta, we have with us today Dr. Nareshan, chairman and 0:57 57 seconds managing director. Mr. Pankut Sahani uh group chief executive officer and director, Mr. Yogesh Kumar Gupta, Chief 1:06 1 minute, 6 seconds Financial Officer and Mr. Ravi Gwal, head investor relations. Over to you, sir, for your opening comments. 1:16 1 minute, 16 seconds Good afternoon and thank you for joining us today for Vanta's Q2 FY26 earnings conference call. 1:28 1 minute, 28 seconds I hope all of have had the chance to review the results and presentations that were released Friday. 1:36 1 minute, 36 seconds Over the years, Nadanta has remained committed to one core beliefs and worldclass medicine should be accessible and delivered with compassion. 1:47 1 minute, 47 seconds Every quarter as we reflect on the progress, I am reminded that what we are 1:54 1 minute, 54 seconds building is not merely a network of hospitals but a movement in healthcare. 1:59 1 minute, 59 seconds A movement grounded in clinical excellence, compassion and trust. 2:05 2 minutes, 5 seconds This quarter marked another proud milestone as we commence operation at our NOA hospital 2:12 2 minutes, 12 seconds medant's sixth facility. This 550 bed state-of-the-art patient centering hospital embodies our 2:21 2 minutes, 21 seconds vision of expanding access to ethical highquality healthcare. 2:26 2 minutes, 26 seconds The hospital began operations in September and is currently functional with 226 beds, including over 80 ICU 2:35 2 minutes, 35 seconds beds and five operating theaters as well as three CA labs and all of equipped with advanced medical technology. 2:45 2 minutes, 45 seconds Our teams are fully committed to ensuring a smooth ramp up and to extend the DAP's care to more lives in the region. 2:54 2 minutes, 54 seconds We also announced plans to establish a 400 plus bed super specialty hospital in Gojhati to serve the entire northeast 3:02 3 minutes, 2 seconds region. In October, Atlanta completed the acquisition and possession of a 3.5 acre land parcel in Gojhati and the Buli 3:12 3 minutes, 12 seconds Bujan ceremony was held on 21st of October 2025 paving the way for construction to begin. 3:20 3 minutes, 20 seconds Turning to our Mumbai project, we are pleased to share that we have received additional FSI approval enabling us to 3:27 3 minutes, 27 seconds expand our plans from a 500 to a 750 bed super specialty hospital. This is a 3:35 3 minutes, 35 seconds significant development and we are focused on expediting the construction process to create one of the most advanced healthcare facilities in western India. 3:45 3 minutes, 45 seconds With that, I now hand over the call to Mr. Was Sali our group CEO who will walk you through the financial performance. 3:54 3 minutes, 54 seconds Thank you very much. Thank you Dr. Jen. 4:00 4 minutes Good afternoon everyone and thank you for joining us today. I would like to begin with a key milestone of this quarter. The commencement of operations 4:08 4 minutes, 8 seconds at Maidanta our sixth hospital which became operational in September 2025. 4:15 4 minutes, 15 seconds This is a significant achievement for all of us at Maidanta. The construction of this hospital began in September 2022 4:22 4 minutes, 22 seconds and within just 3 years we have successfully brought this world-class facility to life. A testament to our strong commitment and execution capabilities. 4:31 4 minutes, 31 seconds Currently 226 beds are operational including 81 ICU beds, five operating theaters and three cat labs. The 4:41 4 minutes, 41 seconds hospital is equipped with cuttingedge medical technologies such as the Dainci XI surgical robot, next generation OAM, 4:48 4 minutes, 48 seconds itis artist icono AIdriven biplane cat lab, and state-of-the-art diagnostic systems including a three Tesla MRI, 4:56 4 minutes, 56 seconds dual source CT, PET scan, and gamma camera. These capabilities ensure that our clinicians have access to the most 5:03 5 minutes, 3 seconds advanced tools for diagnostics and treatment. And this aligns with our vision of delivering world-class care with precision and compassion. 5:12 5 minutes, 12 seconds Medanta Noida offers comprehensive tertiary and cordinary care across more than 20 super specialties including cardiology, oncology, neurosciences, 5:21 5 minutes, 21 seconds gastroenterology and orthopedics. We have already onboarded over 150 experienced doctors including more than 5:29 5 minutes, 29 seconds 30 senior director level clinicians who bring deep expertise across key specialties. Our emergency and critical 5:36 5 minutes, 36 seconds care services are fully operational, ensuring roundthe-clock readiness for complex medical needs. The early response from the community has been 5:45 5 minutes, 45 seconds extremely encouraging, reaffirming the trust that Nidanta names commands. We are confident that Nidanta Noa will evolve into a strong pillar of our 5:53 5 minutes, 53 seconds network and emerge as a significant contributor as it scales up over the coming quarters. 6:00 6 minutes In the first month of operations, Nidanta Noida generated rupees 39 million and reported an Aida loss of 6:06 6 minutes, 6 seconds rupees 197 million which is in line with expectations during the initial ramp up phase. We are very excited about 6:13 6 minutes, 13 seconds Madantaa and what it will offer to NOA the greater Nida and wider region given the strong clinical talent that we have 6:21 6 minutes, 21 seconds onboarded supported by the highest quality and ethical medicine that Madanta is known for. 6:28 6 minutes, 28 seconds Now moving to the consolidated performance of pip for Q2F 2026. 6:34 6 minutes, 34 seconds During the quarter consolidated total income was rupees 11,189 million compared to rups 9,748 6:43 6 minutes, 43 seconds million same quarter last year registering a strong growth of 15%. 6:48 6 minutes, 48 seconds Aida x Noida grew 14% yearonear with rupees 284 6:55 6 minutes, 55 seconds with a margin of 25.2% 2% compared to 25.3% in Q2 FY25. 7:02 7 minutes, 2 seconds IDIDA including NOIA was rupees 267 million up 6% year-on-year with margins at 23.3%. 7:12 7 minutes, 12 seconds Profit after tax for the period was rupees 1,584 million a strong year-on-year growth of 21%. 7:21 7 minutes, 21 seconds At margins for the quarter improved to 14.2% compared to 13.4% 4% in the same quarter last year. Overall, our 7:29 7 minutes, 29 seconds operating cash flows for H1 FY 2026 stood at rupees 3,295 million and capex was approximately 7:37 7 minutes, 37 seconds rupees 4,252 million primarily towards our NOA project and upgradation of medical 7:44 7 minutes, 44 seconds equipment across the network. Our balance sheet remains extremely strong with a net cash surplus of rupees 7,082 million at the end of September 2025. 7:56 7 minutes, 56 seconds Now moving to the operational performance highlights for the quarter. 7:59 7 minutes, 59 seconds Inpatient volumes during the quarter increased by 13% and outpatient volumes increased by 15% yearonear. Our average 8:08 8 minutes, 8 seconds occupied bed days for the quarter increased by 8% yearonear with strong occupancy of approximately 64% on increased bed capacity. 8:17 8 minutes, 17 seconds Average revenue per occupied bed for the quarter was rupees 65,570 compared to rupees 62,141 8:26 8 minutes, 26 seconds in the same quarter last year, an increase of 6% yearonear. 8:31 8 minutes, 31 seconds During the quarter, international patients revenue increased by 49% year-onear to rupees 762 million in Q2 8:40 8 minutes, 40 seconds FY26 driven by increased international patient volume. 8:45 8 minutes, 45 seconds Coming to the matured and developing hospital performance update. During the quarter, revenue from our matured hospitals which includes Midanta, 8:53 8 minutes, 53 seconds Gurugram, Indor and Ranchi was rupees 7,200 million compared to rups 6,833 9:00 9 minutes million in the same quarter last year registering a year-on-year growth of 5%. 9:07 9 minutes, 7 seconds Now please note that the OPD pharmacy business of Gurugram unit which is now operated by a 100% subsidiary of the 9:14 9 minutes, 14 seconds company named GHL Pharma and Diagnostics Private Limited. As a result, the OPD pharmacy revenue which is not part of 9:22 9 minutes, 22 seconds the mature unit reported numbers in Q2 FY26 in the presentation and therefore 9:29 9 minutes, 29 seconds excluding the impact of the Gura OPD pharmacy business the matured revenue has actually grown by 7.9% 9:37 9 minutes, 37 seconds yearonear growth was visible across core specialtities whereas degrowth was seen in internal medicine primarily due to 9:46 9 minutes, 46 seconds the lower incidence of vectorbor diseases. During the quarter compared to the same quarter last year, a bit of 9:53 9 minutes, 53 seconds matured hospitals stood at rupees 1,696 million compared to rupees 1,689 10:00 10 minutes million in the same quarter last year with a margin of 23.5%. 10:06 10 minutes, 6 seconds Adjusting for the impact of OPD pharmacy business switching, IIDA growth in the matured hospitals was 2.2% yearonear. 10:14 10 minutes, 14 seconds The vinda in Q2 FYI 2026 includes the impact of additional manpower cost largely in Burba and Indor as well as 10:23 10 minutes, 23 seconds the new unit in Ranchi. This increase includes the impact of increments as well as new hiring in the matured units. 10:32 10 minutes, 32 seconds On the volume side, inpatient admissions grew by 5% yearonear and the occupancy remained healthy at 61% on an expanded 10:40 10 minutes, 40 seconds base. RPOP for mature hospital stood at rupees 73,447 in Q2 FY2026 10:48 10 minutes, 48 seconds compared to rupees 66,989 in the same quarter last year registering a strong growth of 10% 10:56 10 minutes, 56 seconds primarily driven by a favorable change in specialtity mix moving to the developing hospital 11:03 11 minutes, 3 seconds portfolio which includes for cities less than six years old which is medanta lapa and now no nida during the quarter 37 11:12 11 minutes, 12 seconds new beds were added in partner taking the total bed addition to 57 beds in the first half of FY26 in Patna no bed 11:21 11 minutes, 21 seconds additions in Lucknau while 226 beds were added in NOA with our operationalization 11:27 11 minutes, 27 seconds of the unit there both Lucknau and Patna continued to deliver strong double-digit growth revenue from developing hospitals 11:36 11 minutes, 36 seconds excluding NOIA grew 28% yearonear to rupees 3,531 million including the initial 11:44 11 minutes, 44 seconds contribution from NOA total revenue stood at rupees 3570 million reflecting an overall growth of 11:51 11 minutes, 51 seconds 30% year-onear overall IITA from developing hospitals excluding NOIA was rupees 1,112 11:59 11 minutes, 59 seconds million registering a strong year- growth of 34% with strong IITA margins of 31.5%. 12:08 12 minutes, 8 seconds Iinda including NOA was rupees 915 million with a margin of 25.6%. 12:16 12 minutes, 16 seconds In patient volumes were up were up 26% yearon year reflecting based growth across Lucknau and partner along with an 12:25 12 minutes, 25 seconds early contribution from NOA which became operational only in September 2025. 12:31 12 minutes, 31 seconds Occupancy stood at 70% with an ROP of rupees 54,854 12:38 12 minutes, 38 seconds across the developing hospitals including NOA occupancy was 67% with an AR pop of rupees 54,980. 12:48 12 minutes, 48 seconds Now coming to our project updates in Gojhati we completed the acquisition of a 3.5 acre parcel of land for 12:56 12 minutes, 56 seconds approximately rupees 600 million. The site located along National Highway 27 offers excellent accessibility across 13:04 13 minutes, 4 seconds the entire northeast region. Aotment and possession are complete and I'm pleased to report that subsequent to quarter 13:12 13 minutes, 12 seconds ended on 31st of October 2025, we concluded the Bumi Pujan activities and construction of the Guhati facility can 13:21 13 minutes, 21 seconds now commence. In Mumbai Oshiwara, we received additional FSI approval, enabling us to expand our bed capacity 13:29 13 minutes, 29 seconds from the earlier reported number of 500 to 750 beds. The board has approved a new project cost of rupees 15,300 13:38 13 minutes, 38 seconds million to cater to the increased bet count of 750 beds. This cost includes the cost of land, additional FSI 13:46 13 minutes, 46 seconds purchased as well as the construction and medical equipment and also includes rupees 850 million for staff residential apartments. 13:55 13 minutes, 55 seconds Overall, Q2 FY 2026 was a quarter of steady growth with consistent performance and disciplined execution as 14:02 14 minutes, 2 seconds well as the launch of the exciting new opportunities that Nadantaa holds. Our expansion projects continue to progress 14:10 14 minutes, 10 seconds well across various stages of execution with a strong pipeline, disciplined capital allocation and a healthy balance sheet. We remain confident of sustaining 14:18 14 minutes, 18 seconds growth momentum and delivering on our strategic objectives. 14:23 14 minutes, 23 seconds With this, I request the operator to open the line for questions. Thank you. 14:29 14 minutes, 29 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If 14:37 14 minutes, 37 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 14:45 14 minutes, 45 seconds and gentlemen, we will wait for a moment while the question ceue assembles. 14:51 14 minutes, 51 seconds The first question comes from the line of Tusha Armani with Mutil Osul Financial Services. Please go ahead. 14:58 14 minutes, 58 seconds Uh thanks for the opportunity sir. So just on the uh matured hospital while even after adjusting for uh the pharmacy 15:06 15 minutes, 6 seconds and other income the AIDA growth still seems to be this two and a half% with addition of manpower cost. So uh are we 15:15 15 minutes, 15 seconds more or less done with the increase in the manpower cost or is there something more to come and subsequently when do we see the AIDA growth in line with the or better than the revenue? 15:28 15 minutes, 28 seconds So thanks. So uh there are two parts in the developing hospitals uh although the nomenclature may be a little misleading 15:35 15 minutes, 35 seconds because it does also include the uh 110 beds which are new in our Ranchi facility which was the expansion of that 15:42 15 minutes, 42 seconds facility. Uh so uh while it is part of the developing hospital group because Ranchi uh sorry mature hospital group because Ranchi is part of the mature 15:51 15 minutes, 51 seconds group that includes about 110 beds of new facilities. So there is some amount of expenses which go into the launching 15:58 15 minutes, 58 seconds of that new facility which we hope will uh stabilize as we get that facility up and running and we are actually hiring 16:05 16 minutes, 5 seconds additional manpower in Ranchi not only for the new facility but also to add in some of the specialties which were missing in the old facility which is one 16:13 16 minutes, 13 seconds of the reasons for taking this. So we do expect to see growth uh in Ranji as the new unit uh grows as well as the old 16:21 16 minutes, 21 seconds unit gets additional specialties. That's point number one. Point number two is that um last year in indoor we had a 16:29 16 minutes, 29 seconds unseasonably high amount of vectorborn diseases. So when you look at quarter to quarter there's a little bit of impact of a very high base from indoor last 16:37 16 minutes, 37 seconds year. Um and Gurau also we had some amount of uh vectorborn diseases which I think across the industry is a bit 16:44 16 minutes, 44 seconds lower. However, um we did hire uh and we did also do some manpower increases in Gurau and we do expect that to play out 16:53 16 minutes, 53 seconds over the coming quarters as well as uh going forward. And as we look at scaling up uh and beefing up our core, which is 17:02 17 minutes, 2 seconds part of our original strategy to to strengthen the core, we will look at continuing to invest uh into our mature 17:09 17 minutes, 9 seconds units. So we do expect to see the results of that as we go forward and we do expect to see in the coming quarters that you will see the bida growth a 17:17 17 minutes, 17 seconds little bit more in tune but if you look at it even from a year-on-year basis so if you take you know the complete six month to six month basis you will find 17:26 17 minutes, 26 seconds that there is a um you know significantly better performance uh in the mature facilities over the complete 17:34 17 minutes, 34 seconds 6 months. So not getting too much caught up into what happens in one quarter versus the other. If you look at it more of a 12- month run rate annualized 17:41 17 minutes, 41 seconds basis, you will see fairly healthy growth in the matured facilities as well. So I don't know if that answers your question. 17:50 17 minutes, 50 seconds that that helps that helps. And secondly on the developing hospital side uh given that there has been I guess recent 17:58 17 minutes, 58 seconds traction as far as uh insulation patients are concerned but when do we see the ARPO you know further scaling up 18:06 18 minutes, 6 seconds uh with probably the change in case. 18:11 18 minutes, 11 seconds So um you know you have to look at because the AROP is blended for Lacnau and Patna which is you know quite 18:20 18 minutes, 20 seconds different in both the both the cities and both the geographies. Um if you look at the AROP growth uh you know we've had 18:28 18 minutes, 28 seconds fairly strong AROP growth in our partnner facility. Uh a lot of that is also the addition of you know more and 18:35 18 minutes, 35 seconds more complex work. So just to give an example we added a robot in Patna. I think when you look at it over the the last year or so and we see now robotic 18:44 18 minutes, 44 seconds work picking up. We see some of our cancer work picking up there. So a lot of the cancer work as you're aware is on lower length of stay. So therefore 18:51 18 minutes, 51 seconds you're seeing growth. Uh in luck now uh we are actually seeing also because we didn't have some of the specialties uh 18:59 18 minutes, 59 seconds say a year or so ago which were maybe uh lower ROP in nature like pediatrics like some of the other work. So that is 19:06 19 minutes, 6 seconds getting added in. Um but it's not a question of any kind of growth or degrowth. It's really just a question of 19:13 19 minutes, 13 seconds some of the AROPS in Lucknow stabilizing towards what we expect to see as a more rational AR pop from what it was in very 19:20 19 minutes, 20 seconds early days. Um very healthy AROPS there uh above 65,000 uh patna also almost 48 19:28 19 minutes, 28 seconds 50,000 AR pops. So we see very strong AR pops in all these areas. Um but we also 19:35 19 minutes, 35 seconds look at a lot of the volumedriven growth in both of these units as you're aware and if you look at the volumedriven growth in both of these units uh we've 19:42 19 minutes, 42 seconds seen very good growth in luck now almost 30 plus% growth in inatient volumes um you know similar kinds of growth numbers 19:50 19 minutes, 50 seconds coming in in partners so I think our cost as I've always maintained is really just an outcome of some of the mathematics that's that's worked out but if you see realization strong in both 19:59 19 minutes, 59 seconds units continuing to grow uh if you see volumes in both units It's also strong continuing to grow. I think some amount 20:06 20 minutes, 6 seconds of length of stay optimization still can be done in in some of the in both the units but like I said uh I I would 20:13 20 minutes, 13 seconds prefer to look into how the realizations are going rather than just the arox understanding of this clarification of lucknos are certain 20:22 20 minutes, 22 seconds specialities which sort of because of those specialities there sort of uh sort of a check as far as growth is concerned. Correct. 20:32 20 minutes, 32 seconds So uh you know when you look uh at the AR growth in luck now one of course is that you know like I said last year some of the vector bond diseases patients who 20:40 20 minutes, 40 seconds end up staying in the ICU for longer period of time last quarter versus this quarter but if you look at it across uh you know a slightly longer period of time you will see that growth is there 20:49 20 minutes, 49 seconds in luck now arox as well uh if you look at uh how we think about uh the growth in luck now it's adding in some of the 20:57 20 minutes, 57 seconds lower arox specialties that is correct pediatrics has just started we will continue to scale that scale that department up and if you remember 21:05 21 minutes, 5 seconds several calls back we talked about adding in some of the longer tail specialties in Lucknau so those have come uh and I would say that compared to 21:13 21 minutes, 13 seconds what you may have seen let's say about maybe 12 to 18 months ago in Lucknau these are more stabilized set of arops 21:21 21 minutes, 21 seconds uh in luck now uh you know in this kind of 65,000 range got and lastly as far as concerned 21:31 21 minutes, 31 seconds Is there any sort of guidance to have the way we have in case of SIPA in terms of certain beds allocated for 21:39 21 minutes, 39 seconds institutional patients or this is more like entirely we can use it for private patients? No. 21:45 21 minutes, 45 seconds Uh we can use there are no guidelines or restrictions in any of the beds in um this is uh you know part of the uh 21:54 21 minutes, 54 seconds advantage as 2.0 investment project that the government of Assam has done. Uh so there are no restrictions whatsoever on the on any of the beds in in uh Guji. 22:05 22 minutes, 5 seconds However um Manka will very much look at providing care to all the spectrum. It will not be that we will not be looking 22:13 22 minutes, 13 seconds into various different types of care classes as we have done in every every one of our units irrespective of the uh 22:20 22 minutes, 20 seconds requirements of each but no PPP. This is a pure uh you know kind of uh land which we have procured from the government as part of this investment uh initiative. 22:31 22 minutes, 31 seconds That is thank you. Thank you. Thank you. 22:36 22 minutes, 36 seconds Thank you. The next question comes to the line of Damian PKI with HSBC. Please go ahead. 22:43 22 minutes, 43 seconds Uh hi thank you for the opportunity. Uh my question is on your NA unit. So you mentioned you have already onboarded uh 22:51 22 minutes, 51 seconds 150 doctors including uh senior directors etc. So are you broadly set in terms of having the required uh medical 22:59 22 minutes, 59 seconds team which you which you intend to put up there and does uh 2Q operational cost 23:06 23 minutes, 6 seconds largely reflect the uh NOA unit cost uh largely and how do you see that panning out instead 3Q or 4Q? 23:18 23 minutes, 18 seconds Okay. So um you know first of all uh to your question on have we hired most of the clinical talent. I would say that we 23:25 23 minutes, 25 seconds have hired large part of the clinical talent but not all the clinical talent. 23:30 23 minutes, 30 seconds So to give you a simple example uh our obs team is not complete. Our pediatrics team is not complete. That being said I 23:38 23 minutes, 38 seconds think because uh noa we will get you know one complete tower in one shot. I think in NOA compared to some of the 23:46 23 minutes, 46 seconds other units especially most recently Patna where the hiring was a little bit more staggered uh in NOA I think a lot of the doctors have come in uh you know 23:55 23 minutes, 55 seconds sooner within the first month itself in many in Patna you saw them coming in over a period of 6 to 12 months in Nida I would say a majority of the senior 24:03 24 minutes, 3 seconds clinicians have come in on board in the first month itself and that is part of the reason why you're looking at some of that cost more obviously that is a huge opportunity for us and we're very 24:12 24 minutes, 12 seconds excited about that and And to be very frank, it's also an indication that there is a very huge excitement of senior and established clinical faculty 24:20 24 minutes, 20 seconds to join us. So everybody is raring to go. We are hoping that the official inauguration will happen in the uh 24:27 24 minutes, 27 seconds coming weeks. It's been just about a month or so uh that the hospital has been open. We are still actually building out the rest of the beds. So uh 24:36 24 minutes, 36 seconds 220 beds or so are there as of September. Uh we have added in some more beds. As on date, we are sitting on approximately 300 beds, but we intend to 24:45 24 minutes, 45 seconds continue this buildout without stopping uh over the next few months. So, uh I do believe that some amount of costs will 24:52 24 minutes, 52 seconds continue to come in as we'll hire in uh more doctors, more nurses, maybe not too many senior directors because that we have mostly filled out, but you'll of 25:00 25 minutes course need manpower to fill out all the beds. Um so, we're very excited actually about LA Noa as an opportunity and very 25:07 25 minutes, 7 seconds excited with the response that we get in. uh and hopefully we will have a a grand inauguration soon. Um as far as 25:14 25 minutes, 14 seconds the uh costs for Q3 and Q4 coming in uh I would say that you know we do have uh 25:23 25 minutes, 23 seconds costs which will get added in there. We will also of course have revenues that will get built up into that. I don't know exactly how that will play out. But 25:30 25 minutes, 30 seconds our perspective is that you know what we've been able to do is bring in the firepower that now enable enables us to 25:38 25 minutes, 38 seconds get running. So as soon as we get all our we only have five operation rooms in in uh active right now another 9 to 10 are coming on board in the next few 25:47 25 minutes, 47 seconds weeks. So as we get all this ready to go uh we're quite excited about getting uh you know this unit moving and so far the response has been very good. 25:56 25 minutes, 56 seconds Okay. So in view of you know great start for NOA unit and then uh largely you know your team is now in place uh do you 26:05 26 minutes, 5 seconds think Nida can achieve cost break even within 12 month of operations or it can be sooner? 26:12 26 minutes, 12 seconds So you know as we said in um in many of our last earning calls um Naidanta has a good track record of achieving 26:20 26 minutes, 20 seconds operational break even in what may be considered extremely short periods of time. Um but that is not how we think about it. That may be you know an 26:28 26 minutes, 28 seconds outcome we may have been fortunate. Um we actually look at investing in the right resources and right infrastructure and right talent to build out for the 26:37 26 minutes, 37 seconds long run. Uh whether that will break even in 6 months, 9 months, 12 months I I would not like to you know project out into the future. Uh all I can say is 26:46 26 minutes, 46 seconds that we remain very excited about it. Um I see no reason to worry about any of how this will play out. Um but you know 26:55 26 minutes, 55 seconds I don't want to guess on which month it will break even. I think let time tell that. 26:59 26 minutes, 59 seconds Okay. And my last question is in India market obviously for NA you said uh doctors are really excited and that's why you saw most of hiring happened in first month itself most of joining etc. 27:12 27 minutes, 12 seconds uh but uh when we look at say overall Mia market uh what kind of competition you are seeing on the uh talent hiring 27:21 27 minutes, 21 seconds part especially from some of your larger peers. 27:25 27 minutes, 25 seconds Have you seen like any uh like attrition etc more than usual in your gurugam unit or something? 27:35 27 minutes, 35 seconds No, we have not seen any attrition in our gurugam unit uh in the last uh many quarters. I think at least four to six 27:43 27 minutes, 43 seconds quarters at all or at any of the uh senior positions of the heads of department or heads of department minus 27:50 27 minutes, 50 seconds one. Of course at the junior level there remains a certain amount of churn. Um but we have seen almost no significant 27:58 27 minutes, 58 seconds uh attrition in the last I would say I I think at least four quarters if not six quarters. Um that being said, I 28:06 28 minutes, 6 seconds maintained in in past calls that uh you know the competition and the ability to 28:13 28 minutes, 13 seconds attract and retain high quality and high ethical more importantly clinical talent especially in the kind of full-time model that we have will remain a 28:21 28 minutes, 21 seconds challenge and it is not only uh in NCR I think the challenge will remain in most of the major markets um and it will 28:28 28 minutes, 28 seconds remain so not only for the assisted players because there are also uh hospitals which are single especially single unit hospitals, unlisted 28:36 28 minutes, 36 seconds hospitals, uh all of them are growing, all of them are uh investing in scaling up uh the bed count uh from charitable 28:45 28 minutes, 45 seconds hospitals to unlisted private hospitals to uh you know the listed players and indeed even the government hospitals. So I do feel that access to clinical talent 28:54 28 minutes, 54 seconds will remain one of the key elements and key things to focus on for all the players in the industry. Um Atlanta has 29:02 29 minutes, 2 seconds been very fortunate that we are considered to be a very attractive place for doctors to work and we've seen that 29:08 29 minutes, 8 seconds with the NOA hiring and so far no uh attrition in fact no attrition even in Lucknau or Patna that I can actually 29:16 29 minutes, 16 seconds think of at these levels. So the only the only thing that happened is that one of our doctors from Patna has actually moved into one of our 29:24 29 minutes, 24 seconds department heads from Patna has moved to NOA. So we've done some juggler around the units but we haven't seen any major changes in in the headcom. 29:33 29 minutes, 33 seconds Sure. Uh thank you for response. I'll get back in the queue. 29:40 29 minutes, 40 seconds Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of Talanch Pagarodia with Alchemy Pria. 30:03 30 minutes, 3 seconds Hello, please go ahead with the question. Can you can you hear me? No. Can you just come in the range? 30:13 30 minutes, 13 seconds Can you hear me now? Yes, please go ahead. So, this is more a broad-based question. How are we seeing RPO for the industry? 30:21 30 minutes, 21 seconds Are we seeing uh saturation levels? Do we see that continued going ahead? Uh any thoughts on that? 30:30 30 minutes, 30 seconds So I think you know there's a lot of nuances to this question. Um if you look at uh first of all our ops are very 30:37 30 minutes, 37 seconds different. Uh first of all important to understand ROP is a is a derived metric right it's a function of realization and length stay. uh if you look at midanta's 30:46 30 minutes, 46 seconds length of stay probably amongst the lowest in the industry for institutions of this caliber and complexity of work 30:52 30 minutes, 52 seconds that we do um around 3 3 06 days however um if you look at ours uh as is commonly 31:02 31 minutes, 2 seconds studied it's very much a function of the cities where the hospitals are so as hospitals expand and you would see that 31:09 31 minutes, 9 seconds across various uh listed players as hospitals expand into markets which may not be in the metro cities or may not be 31:17 31 minutes, 17 seconds a Delhi Mumbai kind of market. You will see different markets. Obviously a Patna AROP or a Ranchi AROP will be different 31:24 31 minutes, 24 seconds from a Delhi AROP or a Mumbai AROP. Um as uh in our case uh we move into say a Mumbai market you may see AROCs increase 31:33 31 minutes, 33 seconds because Mumbai AROPS are typically higher even than Delhi. Uh Delhi AROCs tend to be a little bit higher than say 31:40 31 minutes, 40 seconds Gura or Noida. So it's very much a function of where your hospitals are. Uh and I think that is how we see it uh 31:48 31 minutes, 48 seconds across the group. So what you see as reported is a blended arop and therefore it depends on where you're operating. Uh south maybe has a different kind of an 31:56 31 minutes, 56 seconds AROP. So I think you have to study it slightly more granularly than just looking at it on an overall basis. Um 32:04 32 minutes, 4 seconds that being said I think the overall growth in our pop uh which till a few years ago was lot of it was linked to 32:13 32 minutes, 13 seconds postcoid uh very aggressive realizations. I think UCR is tapering out UCR growths across the players now 32:21 32 minutes, 21 seconds maybe middle to high single digits in in some cases maybe early double digits. Um 32:28 32 minutes, 28 seconds and a lot of that is actually increasing complexity of work. Some of that is increasing complexity of work in terms of say robotic surgery versus non- 32:37 32 minutes, 37 seconds robotic surgery. Some of it is uh in terms of uh you know increasing pharmaceutical costs like things like 32:44 32 minutes, 44 seconds imunotherapy and other uh expensive treatments in in cell cancer. Um there has recently been a revision of the 32:53 32 minutes, 53 seconds central government rates also uh which will play out as we move forward. I don't know if that would hopefully that would have an an increase as well 33:00 33 minutes because those rate revisions are happening after a long period of time. Um so I think study it more granularly. 33:06 33 minutes, 6 seconds I don't think that there's one answer to that. 33:09 33 minutes, 9 seconds Sure. As a followup uh you had mentioned in your uh answer right now that uh something like robotics has an impact on 33:16 33 minutes, 16 seconds art. I just want to understand now with uh even internship is talking about how robotics have start coming in operational surgeries. Wouldn't that 33:25 33 minutes, 25 seconds over longer term actually reduce uh prices cuz the robot can now be used for 24 hours uh cost of that or is that naive thinking is to understand? 33:37 33 minutes, 37 seconds No, I mean like there is a certain amount of consumable cost for operating a robot in every case. The instrumentation the items which get used 33:46 33 minutes, 46 seconds in the surgery actually have a cost. So it is not that because you're using a robot for more period of time it's cheaper uh and it's not like the robot 33:54 33 minutes, 54 seconds is doing the surgery without the surgeon. There's still all the other costs associated with the surgery. So I don't think necessarily that's true. Um 34:02 34 minutes, 2 seconds but robotics is only one part of it right there is also cost of of the pharmaceuticals. There is also cost of advanced procedures like cart cell 34:09 34 minutes, 9 seconds therapy. there is also cost of uh increasing uh you know antibiotic resistance and therefore need to put in higher levels 34:18 34 minutes, 18 seconds of antibiotics. So there's all kinds of things that are going on. It's not uh uh you know kind of a one-sizefits all kind of a simplistic answer that I can give you. 34:26 34 minutes, 26 seconds Sure. So just last question. So going ahead then for most of the players let's assume half of is a single uh digit 34:34 34 minutes, 34 seconds number uh higher level of growth will just be now bed additions. Is that is that fair? 34:42 34 minutes, 42 seconds No, sorry. Could you repeat? Are you asking that in Madansa has those more competitive edition? 34:46 34 minutes, 46 seconds No, no, no. I'm saying going ahead let's assume if RPO for most or maybe if you don't answer for you but for the industry if RPOP is as you said going in 34:55 34 minutes, 55 seconds a single digit uh level. So then now most of the growth will just be coming from bed growth. Is that uh the right way to look at it now? Going ahead? 35:04 35 minutes, 4 seconds No, that is not true. You can generate volume growth without bed growth as we have done very successfully in in many of our units. Uh bed growth alone 35:13 35 minutes, 13 seconds doesn't volume growth means different kinds of procedures. You can actually generate uh more efficient operations. 35:20 35 minutes, 20 seconds If you study Madanka as a group, our AROPS have been falling sorry our uh ALOS has been falling consistently over 35:27 35 minutes, 27 seconds last several years. So you can get more efficient about getting patients home sooner which is always a good thing. So there are many different ways to 35:34 35 minutes, 34 seconds generate growth. Uh of course basics of volume and realization is one part. Um but you can generate volume growth 35:42 35 minutes, 42 seconds without bed growth as well. It's not necessary that you need new beds. And by the way you can also generate bed growth without new hospitals by optimizing how 35:49 35 minutes, 49 seconds you are actually um putting up beds how how you actually have them utilized. So lots of things can be done. 35:57 35 minutes, 57 seconds Thank you Mr. Bodia. Please rejoin the queue for more questions. 36:02 36 minutes, 2 seconds A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Rahul Chiwani with Capital. 36:10 36 minutes, 10 seconds Please cover it up. Yeah. Uh thanks for taking my question. 36:14 36 minutes, 14 seconds Uh sir, you indicated that the Lucknau hospital saw 30% IP volume growth during the quarter. So can you comment in terms 36:23 36 minutes, 23 seconds of what has led to such strong volume growth for the uh Lucknau hospital given that this year al we haven't added any 36:31 36 minutes, 31 seconds incremental beds at luckno apart from let's say 50 60 beds which we had added last year and if you can also comment in 36:38 36 minutes, 38 seconds terms of how has the occupancies been at the luckno hospital. 36:45 36 minutes, 45 seconds Yeah. So um I think in the quarter if I look at the occupancy in luck now it's been upwards of 65% I think around 67% 36:53 36 minutes, 53 seconds or so. Um and you know this growth see one is that you know we study only one quarter and another quarter. However I 37:01 37 minutes, 1 second think that you have to take a little bit broader view. So we have seen very strong growth uh in luck now and that growth has come in from many of the 37:09 37 minutes, 9 seconds actions that we've been taking over the last you know maybe 12 months or so. you just are looking at a snapshot period in time. Um you know if I look at this 37:18 37 minutes, 18 seconds growth even in the previous quarter uh it was in a you know similar kind of uh percentage and if I look at it over 6 37:26 37 minutes, 26 seconds months or if I look at a 12 month uh running period it's also been fairly robust. So I I don't think that this is uh anything very unique that has 37:34 37 minutes, 34 seconds something special has happened only in Q2. It is a combination of the clinical talent that we added in over the last 12 37:43 37 minutes, 43 seconds months or so. It is a combination of our increasing uh beds. We started out with about 4 500 beds. We scaled that up to 37:51 37 minutes, 51 seconds about 700 beds. Uh it also includes the addition of some uh clinical talent there. We've added in some pediatric 37:59 37 minutes, 59 seconds talent. We've added in talent in our oncology function. We've added in uh talent in some of our uh surgical and 38:06 38 minutes, 6 seconds neuro neuro functions. Uh even uh subsequent to quarter end, we've added clinical talent in in our neurosurgery 38:14 38 minutes, 14 seconds department and we will continue to add in clinical talent in the coming months. 38:19 38 minutes, 19 seconds So we added in a very senior cardiologist I think uh about 6 months or so ago. Uh so a lot of this is you know talent that we've been building up 38:28 38 minutes, 28 seconds in the unit that you see playing out over the over the you know various months. Uh one snapshot I don't think is only that something extra special 38:36 38 minutes, 36 seconds happened in Q2. It is the ongoing investment in that unit which will continue. We still have more beds to go in that unit. Uh and we'll be adding in 38:45 38 minutes, 45 seconds you know maybe one or two more uh specialties as well. We'll be building out a comprehensive rehabilitation center there as well. 38:53 38 minutes, 53 seconds Sure sir. And in terms of competitive intensity in the luckno market, so let's say the kind of competitive intensity uh 39:00 39 minutes which you were facing from some of your peers 12 to 18 months back. Have we seen some letup there which is also helping 39:08 39 minutes, 8 seconds us to drive this uh strong volume growth. 39:13 39 minutes, 13 seconds So I mean I don't know if letup is the right word or even what happened 12 to 18 months ago was driven purely by 39:19 39 minutes, 19 seconds competitive intensity. I think that um we have definitely not seen any significant impact in terms of any 39:26 39 minutes, 26 seconds clinical attrition. Uh no more no significant dip in you know patient volumes or any kind of feedback from the 39:33 39 minutes, 33 seconds patient community that we are preferring to go to uh you know another hospital versus meant and I think that maybe last 39:41 39 minutes, 41 seconds three four quarters or more we have seen uh you know everything you know firing on all cylinders. I haven't seen any change actually uh in anything that's 39:50 39 minutes, 50 seconds been happening there in the last several months. So no no real impact of of this. 39:57 39 minutes, 57 seconds I'm sure that competitive intensity exists. I'm sure it will remain. Um but uh you know we haven't seen any any difference any anyway. 40:08 40 minutes, 8 seconds Sure sir. My second question is with respect to the NOA hospital. So by when do you expect the insurance and 40:14 40 minutes, 14 seconds panelments to get completed? Uh Kinoa hospital. 40:20 40 minutes, 20 seconds So we are working very closely with all the insurance uh providers. Um I'm hoping that they will be able to move a little bit faster than they have so far. 40:29 40 minutes, 29 seconds Um we have good strong relationships with all of these people and we hope within you know days and weeks we'll be 40:36 40 minutes, 36 seconds able to get this closed. Um but you know we are waiting for them to get a little bit faster to the responsiveness. Let's hope that pays off quickly. 40:48 40 minutes, 48 seconds Sure. So so by end of the year do you think that most of the empanelments for the NA hospital should be largely done? 40:57 40 minutes, 57 seconds I hope so. I hope it's done sooner than that. 41:00 41 minutes Okay. Sure sir. And sir last question before I join back the queue. Uh you talked about the benefit on the CGHS 41:07 41 minutes, 7 seconds business. Now if I see from your presentation our CGHS revenue contribution is around 11 12% of overall 41:15 41 minutes, 15 seconds revenue. So what kind of a price increase uh let's say on a blended basis the price increase which you are 41:22 41 minutes, 22 seconds expecting on the CDHS portfolio uh to play out from FI27 and what would be the quantum of uh margin benefit as well uh to us. 41:34 41 minutes, 34 seconds So you know that that's a very nuanced uh uh answer to that question. So I don't have a number to give you. I'm not even sure whether yet we have you know 41:42 41 minutes, 42 seconds done the complete calculation on that yet. Uh what we have seen is that the CGHS authorities have seen fit to 41:50 41 minutes, 50 seconds increase the rates uh after several years. Uh keep in mind that this currently applies only to CGHS not ECHS. 41:57 41 minutes, 57 seconds Uh and you know that hopefully will come out if if they choose to follow suit as well. uh and some of the other uh you 42:05 42 minutes, 5 seconds know state governments and some of the other uh public sector undertakings etc which follow a similar guidance may may 42:12 42 minutes, 12 seconds follow suit. Uh we've seen some positive trajectory over there especially in some of the specialties and departments which are very very low and almost 42:21 42 minutes, 21 seconds unsustainable. So departments like ENTP have seen you know high growth in some of the bigger departments like you know 42:28 42 minutes, 28 seconds cardiology or cancer we've seen you know maybe 5 to 10% growth in different procedures but I think each procedure 42:35 42 minutes, 35 seconds has a different growth rate and so therefore requires quite a bit of getting nuanced understanding into that 42:42 42 minutes, 42 seconds um as with uh as with any price increase uh since we assume that there would not be a proportionate cost increase that 42:50 42 minutes, 50 seconds should all then flow through to the bottom line. Um but that remains to be seen. I think the biggest challenge frankly with this business remains the 42:58 42 minutes, 58 seconds uh payments and the collections. So while we have seen some increases uh it is not necessarily that suddenly this 43:05 43 minutes, 5 seconds has become on par with with the cash or insurance business because collections also remains a problem. That being said 43:12 43 minutes, 12 seconds um given our model our our large scale model our fixed cost of doctors etc. 43:18 43 minutes, 18 seconds uh we actually feel that we should continue to serve this section of of the public and we intend to do so and across all our hospitals and as we build out 43:27 43 minutes, 27 seconds the new ones we will do them do some amount of work there as well. 43:31 43 minutes, 31 seconds Sure sir. So what is a pure let's say CGHS revenue contribution apart from let's say ECHS? 43:39 43 minutes, 39 seconds I'm sorry. 43:41 43 minutes, 41 seconds So so you said obviously 11 12% is including both uh CGHS and ECHS. So what is the contribution just from the uh CGHS business? 43:53 43 minutes, 53 seconds I don't know your base if we know that off the top of our head but I would say more than 50% of this 50 maybe. Yeah. 44:02 44 minutes, 2 seconds Okay. Sure sir. Thank you. 44:06 44 minutes, 6 seconds Thank you. Next question comes on the line of Harit Ahmed with Aventus. Please go ahead. 44:13 44 minutes, 13 seconds Hi. Uh thanks for the opportunity. So your comment uh about moving the operations uh of the Budau hospital 44:21 44 minutes, 21 seconds pharmacy unit to a new subsidiary. Uh so we're trying to understand the thought process here and if you would be moving 44:28 44 minutes, 28 seconds you know more pharmacy operations uh to this subsidiary and then also the lab operations you plan to consolidate it consolidate under this entity. 44:42 44 minutes, 42 seconds No, I um sorry, I think maybe uh it's it's actually the reverse. Maybe you're not aware of the history. Uh this entity 44:50 44 minutes, 50 seconds already has the complete retail lab operations. This entity also already has the retail pharmacy and outpatient 44:58 44 minutes, 58 seconds pharmacy for all other hospitals. In fact, only the pharmacy was left to move in. So in I don't even remember now in which quarter but in in several 45:06 45 minutes, 6 seconds subsequent periods uh we have moved all the outpatienties and all hospitals to this entity as well as some of our out 45:14 45 minutes, 14 seconds of hospital retailies and all retail labs are running in this entity. So only do was actually left over to transition 45:22 45 minutes, 22 seconds and as soon as we got the relevant licenses for that uh that was undertaken and so you are seeing actually the last transition impact now all outpatienties 45:31 45 minutes, 31 seconds are in this subsidy and uh you should also note that that it's only the retail business or op business which has gone 45:39 45 minutes, 39 seconds through their pharmacy and another question which you asked was about the lab business being consolidated with 45:47 45 minutes, 47 seconds this all are retained Labs are run by a subsidiary since beginning. All hospital labs are run by hospitals and we don't 45:55 45 minutes, 55 seconds have any such plans to move hospital lab to this entity. Uh so they will remain as a two separate businesses. 46:04 46 minutes, 4 seconds So the IP pharmacy would remain under GHD pharmacy retail business which is done 46:13 46 minutes, 13 seconds by our understand and go was the last leg of that transition. All of the transition I done in the previous years 46:22 46 minutes, 22 seconds retail labs was always part of this company only which they will continue to do. Hospital labs are part of the 46:30 46 minutes, 30 seconds hospital business and uh this company doesn't do any part of the hospital business. 46:37 46 minutes, 37 seconds Okay. Got it. And uh uh if you can give an update on the additional 110 beds 46:43 46 minutes, 43 seconds that we've commissioned in that uh sorry what kind of update were we 46:50 46 minutes, 50 seconds looking for? the the the how ramp up has progressed and 46:59 46 minutes, 59 seconds so yeah so just to give you a sense uh in Ranchi our you know volumes have grown 47:08 47 minutes, 8 seconds on an annodized basis somewhere around 15% uh year on year um the existing the 47:15 47 minutes, 15 seconds new facility is still getting its various impanments done uh so we expect that as that gets done we expect to see 47:24 47 minutes, 24 seconds some amount of growth there. Um once we get the panelments done we will optimize the specialty mix across both the 47:32 47 minutes, 32 seconds physical sites although we will continue to run these as one campus. Uh I think the thing that has not yet happened which we are looking into and do intend 47:41 47 minutes, 41 seconds to do is to add in the oncology services into our uh Ranchi campus which were thus far missing. So I think that is 47:50 47 minutes, 50 seconds still pending. Uh and as soon as we get the specialties aligned across the two facilities, we will be adding in the oncology services. 48:00 48 minutes Okay. And and last one uh on the ongoing projects at uh South Delhi and Katamura if you can give an update on the 48:07 48 minutes, 7 seconds progress and uh also any uh comment on the timelines that we should expect for the four new projects. I understand 48:16 48 minutes, 16 seconds these are you know beyond FI27 but if we think about the commissioning timelines FI28 or FI 29 some would be so 48:26 48 minutes, 26 seconds yeah so um if you look at our let me first go to our uh Delhi projects um so in our South Delhi and Pampura projects 48:35 48 minutes, 35 seconds we have uh commenced the uh digging activities in our South Delhi project 48:42 48 minutes, 42 seconds we have submitted our plans for approval And as soon as those get approved, we will be commencing all our various construction activities. Both those 48:50 48 minutes, 50 seconds projects are moving well. Uh Mumbai also uh moving well. I mentioned in uh earlier comments that we have been able 48:58 48 minutes, 58 seconds to obtain uh additional beds. So that's excellent news. We we now can put up a 750 bed hospital in Oshiwara as opposed 49:06 49 minutes, 6 seconds to a 500 bed hospital. And uh we have also uh will be looking to get now the approval for starting the construction 49:14 49 minutes, 14 seconds activities there. But we've just recently paid off and acquired the additional FSI etc. there. Uh Gojhati like I said we've just done the bum 49:22 49 minutes, 22 seconds pujan on 31st of October. We have possession of the land. Uh we have paid out for the that land and now drawings 49:30 49 minutes, 30 seconds etc will be uh built for these. You know all the hospitals are typically about three years away. I would say uh three 49:38 49 minutes, 38 seconds noa we built in 3 years from starting construction till now. So but any hospital typically takes 3 to four years. So I don't have an exact date 49:45 49 minutes, 45 seconds what will come in 28 29 like that but it take about 3 to four years to build out all of got it thanks for that. 49:57 49 minutes, 57 seconds Thank you. Next question comes on the line of Amit Tawani with Clear Blue Capital. Please go ahead. 50:04 50 minutes, 4 seconds Hi, thank you for taking my question. Uh can you tell me what the impact of the CGHS uh revision is on our revenue? 50:16 50 minutes, 16 seconds So um I'm not sure if you heard my answer to the earlier question. Um but I did answer that uh uh earlier when there 50:24 50 minutes, 24 seconds was another speaker who had asked um we don't know this right now because it's quite a nuanced an analysis and quite a 50:31 50 minutes, 31 seconds nuanced uh expectation of how this will play out. Uh so as of date I don't have a number to give you as I mentioned to 50:38 50 minutes, 38 seconds the earlier speaker but any ballpark would also be uh helpful. 50:45 50 minutes, 45 seconds Uh I'm sure however you know we don't like to speculate so I'd rather prefer to give you facts rather than ballpark 50:52 50 minutes, 52 seconds speculations. So I don't have that number. 50:56 50 minutes, 56 seconds Okay. My second question is on the insurance revisions uh typ uh typically are we I mean we are seeing some kind of 51:05 51 minutes, 5 seconds a tussle between uh hospitals and insurers on the revisions. So I was just 51:12 51 minutes, 12 seconds I mean what is the current scenario? Are we done with our divisions for the next two years maybe? 51:20 51 minutes, 20 seconds Uh so yes and no again uh requires a little bit more nuanced answer. See we have different units and we have different insurance companies and each 51:29 51 minutes, 29 seconds of them have different contracts with different durations. So uh you know for example we may have done with one particular insurance company uh an a 51:37 51 minutes, 37 seconds renewal last year which is valid for two years. So therefore we are not due for that. Some are coming up in the next several months for renewal. Uh some may 51:46 51 minutes, 46 seconds already have have passed. So there's no one answer for that. Uh what I would say is that currently with the exception of 51:54 51 minutes, 54 seconds NOA and our new facility in Ranchi uh all Midanta units are impanled with all insurance companies for cash flow. 52:06 52 minutes, 6 seconds Okay. Yeah. Actually that was my uh that was the question I was asking. Yeah. Uh this with my last question is you 52:13 52 minutes, 13 seconds alluded to some uh kind of a payment issues when it comes to CGHS. Can you 52:19 52 minutes, 19 seconds just elaborate on that? And I mean uh what what kind of better days are we 52:26 52 minutes, 26 seconds seeing today in CGHS and in non CGHS government uh business? 52:33 52 minutes, 33 seconds The overall basis are data based remain about 80 to 90 days of our credit business that in CHS and DCS in the 52:42 52 minutes, 42 seconds government business average credit realization happen somewhere between 7 8 months. 52:48 52 minutes, 48 seconds Okay. Okay. Sometimes months plus also depending upon how they playing out. 52:56 52 minutes, 56 seconds It's like has moved on to a new portal. 52:59 52 minutes, 59 seconds Now that new bottle is take some time to stabilize. 53:04 53 minutes, 4 seconds We expect that with the new CDHS thing coming up new prices some delay will happen some kind of a working capital investment will be required. 53:15 53 minutes, 15 seconds So to again question answer to your question is that it takes six months 7 months sometime 9 months to realize from 53:22 53 minutes, 22 seconds GBHS or ECS but is that also uh applicable to ERISA 53:29 53 minutes, 29 seconds and DP uh the uh PSU business PSU business are much faster they don't 53:37 53 minutes, 37 seconds follow that longer longer period especially ECS takes longer. 53:44 53 minutes, 44 seconds Oh okay. Okay. Thank you so much. Thank you so much. 53:50 53 minutes, 50 seconds Thank you. Next question comes from the line of Tushar Mani Motil Osa Financial Services. Please go ahead. 53:57 53 minutes, 57 seconds Yeah, thanks for the opportunity. So just uh maybe if I miss the NOA operational cost while currently it is a 54:04 54 minutes, 4 seconds bit loss of 20 cr uh what kind of numbers to think about let's say over next one year in terms of cost or aid 54:11 54 minutes, 11 seconds the loss uh you are asking me to gaze into the future which I'm always tentative and 54:19 54 minutes, 19 seconds hesitant to do uh so I don't have a number to give you um you know you have followed us for some time and seen that 54:27 54 minutes, 27 seconds we've had a reasonably good record of being able to deliver consistent and strong growth uh in in a reasonably 54:35 54 minutes, 35 seconds short periods of time. I do not want to comment as I mentioned to another speaker that we would break even in this 54:42 54 minutes, 42 seconds month or that month. Um but we are very excited about this opportunity and with the kind of talent and you know 54:50 54 minutes, 50 seconds responsiveness which we are getting. I think that as this unit opens up fully as we get our inauguration done uh we do 54:57 54 minutes, 57 seconds hope to see a good response. uh I don't know what that means for next month or the month after that but I think in you know the next uh let's say you know 12 55:06 55 minutes, 6 seconds to 18 months we should see you know a good kind of performance coming out of here from from our quality of work which 55:13 55 minutes, 13 seconds we're doing in terms of complex work uh as well as on the financial side you know we have everything there is state-of-the-art it is not like it is 55:20 55 minutes, 20 seconds anything less than the kind of clinical talent the kind of equipment we've already you know most hospitals day one you don't open with a dainci robot right 55:28 55 minutes, 28 seconds we've already got all of the stuff there. Um you know the the radiation oncology machine in Laknau we brought in I think after 3 to four years of 55:37 55 minutes, 37 seconds operation we've already got that on site it's getting installed now. So I think we we are fairly bango on this 55:45 55 minutes, 45 seconds opportunity and fairly bangho in terms of putting in whatever it takes to deliver complete solution. Now if that breaks even in you know one quarter or 55:54 55 minutes, 54 seconds two quarters or three quarters I don't know. Um but we are not holding back in terms of investing into the thanks. 56:08 56 minutes, 8 seconds Thank you. Next question comes from the line of Sania with unicorn assets. 56:15 56 minutes, 15 seconds Hi. So my question is more on the big market size. when we see the difference between them at chore versus our developing hospitals. What we see at 56:24 56 minutes, 24 seconds trend has been that uh as soon as we launch a new facility likely a large facility like we we are launching NOA 56:32 56 minutes, 32 seconds right now and expanding our existing arch and other hospital. So what we see is uh there is a certain kind of say 56:41 56 minutes, 41 seconds depressedness in the AITA margins that we see for shorter period and eventually our aid margins more align with the 56:49 56 minutes, 49 seconds long-term trajectory. So do you think that's what the company is going through right now this quarter maybe even next quarter as well? 56:58 56 minutes, 58 seconds I mean I I'm not sure what margins you have been analyzing over the the various units. Um what I can tell you is that if 57:07 57 minutes, 7 seconds you go back in history um in the first year of operations luck now delivered somewhere around 15% if it does if I 57:15 57 minutes, 15 seconds remember correctly but delivered somewhere around an 8% uh I think if I'm not mistaken um so you know different 57:23 57 minutes, 23 seconds units play out differently I think Gorga uh took about 18 months way back when to to break even so different units behave 57:30 57 minutes, 30 seconds slightly differently right um it it's it's difficult to tell exactly how NOA will will behave. Um but obviously any 57:38 57 minutes, 38 seconds unit starts up there's some incremental initial costs that come in. Uh I think also if you really look at our the way 57:45 57 minutes, 45 seconds we categorize our developing hospitals, Lucknow has just completed six years. So we'll probably as per this definition uh 57:53 57 minutes, 53 seconds you know maybe from maybe next finanially onwards kind of move into what may be considered to be the mature hospital phase. Um but I I think these 58:02 58 minutes, 2 seconds are just nominations that you know are there and investor presentations and talks. I think you really look at each unit slightly more individually. Uh you 58:10 58 minutes, 10 seconds will find that you know all of them continue to perform extremely well especially in context to their individual uh location and situation and 58:20 58 minutes, 20 seconds we we it's not like uh you know we say that a hospital like Gong which is 15 years old is is finished. we we've been 58:27 58 minutes, 27 seconds delivering strong growth even in a in a 15y old hospital. So I think each unit plays out slightly differently and and we will see this in now in NOIA sorry as 58:36 58 minutes, 36 seconds we as we scale up and we will understand how similar or different NOA is to any of the other units but my our internal 58:45 58 minutes, 45 seconds management approach is to consider each unit differently and not worry about whether it's like Patna or like Lucknau or like Gurong but to run that unit for 58:53 58 minutes, 53 seconds what it is and we feel quite excited about uh NOA so we are very happy that it's up and running I And that was the 59:01 59 minutes, 1 second first step and now we have to get you know get it opened properly, get everything finished, get the inauguration done and you know be ready 59:10 59 minutes, 10 seconds to serve all the people that are hopefully excited to uh you know come to Madanga facilities if they if they need any kind of medical care. 59:19 59 minutes, 19 seconds Uh yeah I understand and just on a followup to the same question. So Tai is saying that uh sir saying that um we 59:27 59 minutes, 27 seconds when we look at the luck now versus NOA we are on the way all through going into in terms of technology and all the 59:35 59 minutes, 35 seconds machines that we need uh from start in the NOA facility. So my question is more on the approach the management is change 59:42 59 minutes, 42 seconds uh taking when it comes to NOA versus how we have been doing in the past when it comes to Takno or 59:49 59 minutes, 49 seconds so how different is our approach when it comes to NOA system. 59:53 59 minutes, 53 seconds I think the the main thing is that you know NOA is very much part of the Delhi NCR market. Obviously we are a fairly uh 1:00:01 1 hour, 1 second well-known and and important player in the NCR market with our presence in Gong for so long. um NOA we have you know 1:00:10 1 hour, 10 seconds kind of falls in that same territory and therefore we have a lot of patients in this area and we have a lot of brand recall in this area uh there's also 1:00:18 1 hour, 18 seconds maybe a little bit more familiarity uh easier potential availability of clinical talent in the NCR market and 1:00:25 1 hour, 25 seconds and Lucknau were new territories right um most of the private healthcare industry had never even been there uh if 1:00:33 1 hour, 33 seconds you look at when we walked into Lucknau there was a lot of uh question marks about how successful we would be and 1:00:40 1 hour, 40 seconds many of the other members of the industry saying that they would not be interested in that market. Now we proved many doubters wrong and we see a lot of 1:00:48 1 hour, 48 seconds people following us and copying us into these territories. Uh same was the story in Patna. Uh there are a lot of question marks about whether Putna can be uh not 1:00:57 1 hour, 57 seconds just clinically successful but financially successful. We have proven that as well. Um and very likely we will see people follow us there. uh I would 1:01:05 1 hour, 1 minute, 5 seconds not be surprised if people follow us into other markets which we've gone into. Uh we've kind of established ourselves as as a trends setter on this 1:01:13 1 hour, 1 minute, 13 seconds front. Uh we've always said that Manta will go where the people need us. Uh not necessarily just where the perceived 1:01:20 1 hour, 1 minute, 20 seconds high per capita income is, but we will go where the people need us. And we have made all those units financially and well and clinically successful. and uh 1:01:29 1 hour, 1 minute, 29 seconds NOA given that it's part of the NCR market uh we were a little bit more confident to go in with more talent and 1:01:37 1 hour, 1 minute, 37 seconds more investment sooner rather than actually going into a newer city like Alaknau or Patna where we had to learn also about that center learn about those 1:01:46 1 hour, 1 minute, 46 seconds cities and you know the doctors had to also learn about us I think in Naida we are maybe a little bit more familiar to the community. 1:01:56 1 hour, 1 minute, 56 seconds Yeah, thank you greatly. Uh, all the best. Thank you. 1:02:02 1 hour, 2 minutes, 2 seconds Thank you. Next question comes from the line of Rahul Giwani with Capital. Please go ahead. Yeah. Uh, thanks for the followup, sir. 1:02:10 1 hour, 2 minutes, 10 seconds Uh, so we did quantify the aida loss from the Noa hospital. Can you similarly call out the number for the new Rachi hospital where we commissioned 110 beds? 1:02:22 1 hour, 2 minutes, 22 seconds So what was the the AIDA loss from the new Ranchi hospital in Tuc because that's part of the Ranchi unit. 1:02:32 1 hour, 2 minutes, 32 seconds Uh I don't know. 1:02:34 1 hour, 2 minutes, 34 seconds We running both units as one single campus. So there are lot of shared cost and the shared management. So we we 1:02:42 1 hour, 2 minutes, 42 seconds can't track it what is the loss of any hospital. That will be unfair. 1:02:52 1 hour, 2 minutes, 52 seconds Yeah. The you know they are working as a single unit is working there and they correct right and same same management is managing that unit also. 1:03:03 1 hour, 3 minutes, 3 seconds Sure it separately. 1:03:07 1 hour, 3 minutes, 7 seconds Okay. Point noted. And second question is with respect to price increases across your network. So uh so let's say 1:03:15 1 hour, 3 minutes, 15 seconds I think we were supposed to take price increases across Lacnau and Patna. So have we already taken that at the beginning of the year or when do we uh plan to take those price increases? 1:03:29 1 hour, 3 minutes, 29 seconds No, we have not taken partner increases. 1:03:31 1 hour, 3 minutes, 31 seconds I think correct me if I'm wrong. I don't think we've taken our pata price increase since starting of the same tariff from what we started. Uh 1:03:39 1 hour, 3 minutes, 39 seconds never taken a tariff increase and partner is now our fourth year of operations I believe. Uh luck now also we haven't taken any tariff increase. Uh 1:03:48 1 hour, 3 minutes, 48 seconds we had taken some nominal so nothing this quarter to call out. I think maybe last quarter or even I think at the 1:03:55 1 hour, 3 minutes, 55 seconds start of the calendar year we had mentioned that we would be taking nominal increases in luck now and those I think have mostly already been 1:04:04 1 hour, 4 minutes, 4 seconds taken before the quarter. I don't think there's any major increase this quarter if I'm not maybe 1:04:15 1 hour, 4 minutes, 15 seconds few percentage points increases. 1:04:18 1 hour, 4 minutes, 18 seconds Sure sir. And does the PPP uh agreement in ATNA stop us from taking price 1:04:25 1 hour, 4 minutes, 25 seconds increases or because you said you haven't taken price increases in that market for uh four years now. 1:04:32 1 hour, 4 minutes, 32 seconds No, there are no constraints on taking any uh price increases for the non PPP part of the business which is currently 1:04:42 1 hour, 4 minutes, 42 seconds uh about 75 80% but you know 25% is reserved for PPP. So no constraints on the remaining 75. Frankly speaking, we 1:04:50 1 hour, 4 minutes, 50 seconds have not taken price increases because the unit is doing so well. Uh and we've always been an organization that wanted 1:04:57 1 hour, 4 minutes, 57 seconds to be conservative on how much we charge to to patients. Uh with the kind of financial performance we see in Patna, 1:05:06 1 hour, 5 minutes, 6 seconds we don't really see any reason to charge more to our patients just because we can. So we would like to be as 1:05:14 1 hour, 5 minutes, 14 seconds reasonable and as conservative on pricing as possible. Um we we we continue to open more beds there. We 1:05:22 1 hour, 5 minutes, 22 seconds continue to see growth across the board there. So you know what is the need to just you know blanketly take a price 1:05:30 1 hour, 5 minutes, 30 seconds increase um because you have to uh so that's our philosophy and our approach and I think well been stated for for 1:05:39 1 hour, 5 minutes, 39 seconds many years. uh but as and when we feel that you know there are some influary impacts to manage in partners we will look at that as well. 1:05:49 1 hour, 5 minutes, 49 seconds Sure sir thanks for answering my question. 1:05:54 1 hour, 5 minutes, 54 seconds Thank you ladies and gentlemen as there are no further questions we have reached the end of question and answer session. 1:06:01 1 hour, 6 minutes, 1 second I would now like to hand the conference over to the management for closing comments. 1:06:06 1 hour, 6 minutes, 6 seconds Thank you everyone uh for your questions and for joining us today. Uh please feel free to reach out to our investor 1:06:13 1 hour, 6 minutes, 13 seconds relations team in case uh you have any questions that remain unanswered and we look forward to speaking with you and meeting many of you many of you soon. 1:06:21 1 hour, 6 minutes, 21 seconds Thank you. 1:06:24 1 hour, 6 minutes, 24 seconds Thank you on behalf of IFL Capital this conference. Thank you for joining us. You may not.