Sat Kartar Life Limited — Q4 FY26

Sat Kartar Life Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=dzLzO9DhWeg Published: 6 days ago

0:01 1 second Good evening participants. Thank you so much for joining today's call. Before we begin, a few quick announcements for the attendees. Certain statements made in 0:10 10 seconds the course of this call may relate to future performance or expectations and should be understood as forward-looking statements. These involve risk and 0:17 17 seconds uncertainties and are not guarantees of future performance and actual results may differ from those statements. Over to today's host for the con call, Noama 0:26 26 seconds Wealth PCG for the management introduction. Thank you. 0:31 31 seconds Good evening everyone. Uh on behalf of Satkar live I extend a warm welcome to all the participants on the H2 FI26 0:39 39 seconds earnings discussion call. Today on the call we have Mr. Manrit Singh. 0:43 43 seconds This meeting is being recorded founder and chief operating officer. I would now hand over the call to Mr. 0:49 49 seconds Manrit for his opening remarks. Over to you sir. 0:57 57 seconds Thanks Aush. Thanks Ban and thanks to everyone who has joined this call. 1:04 1 minute, 4 seconds You all have been looking into the company the numbers since inception and when I say inception since we became public. 1:14 1 minute, 14 seconds That time you were looking at Satka shopping. Today we are Satka life 1:20 1 minute, 20 seconds or change definitive statement. 1:27 1 minute, 27 seconds We were a product company categorized as a product company. We will definitely remain as a product company primarily 1:36 1 minute, 36 seconds but yes we are moving into a full-fledged ecosystem into the complete sphere of the 1:43 1 minute, 43 seconds healthcare of Ayurveda numbers you must have had a look has 1:50 1 minute, 50 seconds been a nice year 2026 with the revenue growing 23% 1:58 1 minute, 58 seconds crossing the 200 mark which was our first vision for the first year after IPO, 2:05 2 minutes, 5 seconds IIDA by 73% and PAT by 74%. 2:11 2 minutes, 11 seconds And this eventually gives a benchmark for our next two years numbers 2:18 2 minutes, 18 seconds which I've been always saying is crossing 300 and crossing 500 in the next and the following year. 2:30 2 minutes, 30 seconds With this change and with these numbers being posted, we now have a kind of a dual engine. the 2:40 2 minutes, 40 seconds product company in itself and a wellness or a hospital. I would club it both the 2:48 2 minutes, 48 seconds hospital wellness therapy punch karma everything into one sphere and that engine has started rolling out 2:57 2 minutes, 57 seconds with the first 30 bedded hospital already operational and running in Delhi. 3:07 3 minutes, 7 seconds As I already said, this hospital was actually made a 30 bed hospital. So 3:14 3 minutes, 14 seconds that as a learner into this industry, we wanted to be sure that before we invest 3:20 3 minutes, 20 seconds any capital into such kind of a venture, we should be sure that the payback 3:28 3 minutes, 28 seconds period, we should be clear as to what would be the payback period, what would be the profit. And yes today we are not 3:36 3 minutes, 36 seconds break even in the second month of the hospital operations as many few things are underway 3:45 3 minutes, 45 seconds like government empanelment insuranceances which we are hopeful by end of this month end of this May we 3:51 3 minutes, 51 seconds will have it and June is the time or the last few days of May when we hope to 3:58 3 minutes, 58 seconds break even this and then move to our second phase of moving into the 300 beds 4:05 4 minutes, 5 seconds which we are actually envisaging by the end of this year. Few interesting things 4:12 4 minutes, 12 seconds which actually happened or which actually were in the pipeline and which actually materialized were we 4:21 4 minutes, 21 seconds always wanted a factory under the umbrella of Satkatar that's in place working delivering capsules. 4:31 4 minutes, 31 seconds The subsidiary acquisition is now complete with the 100% planttomat being taken into the fold. 4:39 4 minutes, 39 seconds US operations product range has been set and various accounts into the marketplace 4:47 4 minutes, 47 seconds are underway to roll out the sales in US. 4:53 4 minutes, 53 seconds AI has already started delivering the results though to a very small scale still as we are very cautious. There's a 5:01 5 minutes, 1 second lot of buzz on the AI. People are talking about AI and in fact I've seen many companies burning money on AI. 5:10 5 minutes, 10 seconds Our few test results are very positive and we as since inception Satkatar always looks into the ROI. So AI has 5:20 5 minutes, 20 seconds started giving ROI and improving our efficiency into the company. 5:25 5 minutes, 25 seconds Another big benchmark or a big event which happened was we have joined hands with Tina 5:34 5 minutes, 34 seconds a collaboration and that collaboration is in a way I would put it into two folds definitely 5:43 5 minutes, 43 seconds for both the companies but ayurvea 5:53 5 minutes, 53 seconds for India as a whole and the world as a whole is definitely going to gain when a 6:00 6 minutes product company like Satkatar getting huge data already having a huge data and generating a huge data daily 6:10 6 minutes, 10 seconds is presently into products moving into hospitals but definitely hospitals coming up would take time. It has a 6:19 6 minutes, 19 seconds gestation period. It has a conceptualization period. It has a buildup period, the licensing period. 6:27 6 minutes, 27 seconds But we wanted 6:46 6 minutes, 46 seconds 2,800 beds. 6:50 6 minutes, 50 seconds So somewhere doctors and then they widely spread being into North India from every state. 7:01 7 minutes, 1 second So we plan to move those to the go clinical outlets 7:10 7 minutes, 10 seconds in turn get a revenue share from whatever revenue is brought in from there. 7:20 7 minutes, 20 seconds We have been very strong in South India. 7:23 7 minutes, 23 seconds Tamil Nadu, Karnataka and Andhra Pradesh have been our forte and under the agreement we have kept those territories under SQatar. 7:36 7 minutes, 36 seconds We'll be opening hospitals under the name of Satkatar under the balance sheet of Satkatar in these territories and yes 7:45 7 minutes, 45 seconds Gina being already a leader and having all the clinical knowhow into this field 7:51 7 minutes, 51 seconds we would be taking help from Gina to get these hospitals operationalized and that would be the reverse way 7:59 7 minutes, 59 seconds wherein Gina would be charging a management fees for that. 8:04 8 minutes, 4 seconds The complete details about those are still being formulated and would be out soon. 8:30 8 minutes, 30 seconds I I know I've repeated this term very much and in most of my calls but 8:56 8 minutes, 56 seconds companies market and the growth is 9:07 9 minutes, 7 seconds I would say unlimited hospitals 9:13 9 minutes, 13 seconds the total If I'm not wrong around 19,000 or so or I would know not 19,000 19 lakh 9:22 9 minutes, 22 seconds total alopathy or 9:33 9 minutes, 33 seconds definitely cure but precaution or preventive preventive measures. 9:50 9 minutes, 50 seconds Total battery 2,800 10:04 10 minutes, 4 seconds but we are confident 300 and then 1,000 is not far. 10:11 10 minutes, 11 seconds are bets are just seeific 10:34 10 minutes, 34 seconds but cash cash inflow Working capital 10:42 10 minutes, 42 seconds compare 2025 say to 2026 working capital difference but you 10:50 10 minutes, 50 seconds should compare H1 with H2 H1 transition phase 10:57 10 minutes, 57 seconds after IPO factory plant 11:04 11 minutes, 4 seconds inventory invest H1 H2 compare All the numbers have improved. I won't 11:11 11 minutes, 11 seconds say drastically but yes transformation 11:18 11 minutes, 18 seconds stability or improvement phase H1 say H2 and plus going forward 11:27 11 minutes, 27 seconds and I think the better would be question answers inside this. 11:37 11 minutes, 37 seconds Yes, thank you sir. Uh dear participants, we will now be starting with the Q&A session of this call. If you wish to ask a question, please use 11:45 11 minutes, 45 seconds the raise hand feature available in a Zoom dashboard. We will announce your name uh post of which you can proceed to ask a question. We will wait for a 11:53 11 minutes, 53 seconds couple of seconds for the line to queue up. Uh kindly introduce yourself and the firm that you belong to before asking a question. Thank you. 12:09 12 minutes, 9 seconds We'll take the first question from Mr. Mitan Shira. Am I audible? 12:17 12 minutes, 17 seconds Yes. 12:19 12 minutes, 19 seconds Yeah. My name is Mitan Shira. I'm an individual investor. Congratulations sir for the H2 results. Thank you. 12:28 12 minutes, 28 seconds My question is so can you explain the business model and product offerings of this company called Ajuni Wellness 12:35 12 minutes, 35 seconds Private Limited and what is its current annual revenue and how much stake does Satkar own in it currently? 12:44 12 minutes, 44 seconds You are asking for Ajuni wellness or Ajuni life census. 12:48 12 minutes, 48 seconds Uh both if you can answer maybe a Juni wellness is just uh Ajuni wellness is nowhere into the business of Ayurveda. 12:59 12 minutes, 59 seconds Ajuni Life Sciences is actually a 100% subsidiary of Sgakata Life 13:07 13 minutes, 7 seconds and Ajuni Life Sciences is a company Skata Life has been into the product segment with a high ticket 13:15 13 minutes, 15 seconds size into the primarily diseases for de addiction, men's wellness, ortho piles 13:24 13 minutes, 24 seconds into these diseases and diabetes. But Ajuni life sciences is more into neutrauticals 13:31 13 minutes, 31 seconds in which we have a different range by the Veda Bay with a ticket size ranging 13:37 13 minutes, 37 seconds from 900 to 1200. So we have actually uh kept neutrauticals away from Ayurveda 13:47 13 minutes, 47 seconds and have formed Ajuni Life Sciences a purely 100% subsidiary to have neutrauticals and a lower range there. 13:55 13 minutes, 55 seconds Uh and what does uh Ajuni Wellness do? 13:58 13 minutes, 58 seconds Ajuni Wellness does nothing. It just holds uh shares of Satkata Shopping. 14:03 14 minutes, 3 seconds That's promoters company. It doesn't do any business. 14:07 14 minutes, 7 seconds Okay. And uh for FY26, how much money did we spend on advertising and what percentage of it did we capitalize? 14:18 14 minutes, 18 seconds 40% is our expense on advertisement. Nothing is capitalized in advertisement. 14:24 14 minutes, 24 seconds I would have loved to capitalize it because a lot goes into the branding but some accounting standards don't allow advertisement to be capitalized 14:33 14 minutes, 33 seconds around uh some amount ranging from uh would not be handy amount but around a 14:41 14 minutes, 41 seconds core or a less than that around 50 lakhs would be on the collaterals being produced which actually run for a period 14:50 14 minutes, 50 seconds of four to five years around that amount would have been capitalized. 14:55 14 minutes, 55 seconds So for the thousand beds plan that we have for the future approximately how much capital would be required to put up these thousand beds? 15:06 15 minutes, 6 seconds Presently the first hospital which we made was with a capex requirement of 7 to 8 lakhs per 15:15 15 minutes, 15 seconds bed. But when I say 7 to 8 lakhs per I always take that even the gestation 15:22 15 minutes, 22 seconds period till the hospital starts running the pre-operative expenses through which it comes to 7 to 8 lakhs 15:30 15 minutes, 30 seconds but a facility can get operational with 3 to four lakhs of bed cost. So taking 15:37 15 minutes, 37 seconds if I take benchmark as four lakhs and rest I take it as a working capital. So four lakhs into,000 15:45 15 minutes, 45 seconds would be the capex required 40 crores. 15:51 15 minutes, 51 seconds So uh Gina Secco has around I believe 50 to 60% occupancy rates currently and so 15:59 15 minutes, 59 seconds I want to know what what is our plan for when the bed capacity comes live what's our plan for improving the occupancy 16:07 16 minutes, 7 seconds rates would would it be similar to Gina would it be better and what would our plan be for improving those occupancy 16:14 16 minutes, 14 seconds rates with the data flowing in to us and already the customer inquiring as to 16:22 16 minutes, 22 seconds where I can actually meet a doctor and if required be in a hospital. So we feel 16:30 16 minutes, 30 seconds that occupancy rates can actually be as high as 60 to 70%. 16:39 16 minutes, 39 seconds But then this would all depend on the territory where the hospital is because 16:46 16 minutes, 46 seconds in Gina case also some territories would be giving him more than 80% occupancy and some might be giving 30%. So we 16:54 16 minutes, 54 seconds being I would say the third or fourth entrant we would actually be using that 17:00 17 minutes data plus our own data so that we can have higher occupancy 17:07 17 minutes, 7 seconds and would Mr. Manish Crover also promote Satkar's facility in South India like he 17:15 17 minutes, 15 seconds does does it for his own Gina facilities in North India. Definitely Gina I won't 17:22 17 minutes, 22 seconds say had been struggling into South India but yes their major focus had been in north India south they again for every 17:30 17 minutes, 30 seconds company there's a bandwidth they somehow could not penetrate or were taking time in penetrating into South India so it's 17:40 17 minutes, 40 seconds it won't be I won't call it a joint venture but it would be a win-win partnership for both wherein yes we 17:46 17 minutes, 46 seconds would be taking expertise of Mr. Manish and Gina so that those hospitals reach and cross the break even pretty fast. 17:58 17 minutes, 58 seconds I have just one last question. So I I am aware that our currently our philosophy is to be asset light but in a 18:08 18 minutes, 8 seconds hypothetical situation let's say if we decide to do 100% of the manufacturing in-house for all of our products what do 18:16 18 minutes, 16 seconds you think approximately would be the capital required that we would need to set up all the manufacturing facilities 18:23 18 minutes, 23 seconds to do all of the products in house I definitely don't have any plan to produce all the products in 18:30 18 minutes, 30 seconds I or we in sata life don't have plan to manu to have another facility we might 18:39 18 minutes, 39 seconds upgrade this facility we already have our capsule unit and powder unit up and running here the capex used was around 1 18:49 18 minutes, 49 seconds cr or 1.25 25 cr for uh including the gestation period for this facility and in the whole 18:58 18 minutes, 58 seconds number system or the whole balance sheet that's not a big figure which would actually change the capex 19:09 19 minutes, 9 seconds thank you sir all the best for the future thank you thank you we'll take the next question from Mr. sort of sing 19:18 19 minutes, 18 seconds two questions one you've already explained satkart gina but I just needed 19:26 19 minutes, 26 seconds some clarification you mentioned key tamil ladu karnatak orra may geno will not enter it will be satkart branded 19:34 19 minutes, 34 seconds hospitals is that a correct interpretation I would like not like to put it but I would like to tell you exactly what does 19:42 19 minutes, 42 seconds the agreement mean okay or What is the crux of the agreement? Sure. Nowhere it is a exclusive agreement. 19:51 19 minutes, 51 seconds Okay. It is a purely non-exclusive agreement. 19:55 19 minutes, 55 seconds Number one. Number two, it's derived in a way and defined in a way that wherever 20:02 20 minutes, 2 seconds it's a win-win situation for India for customers of India for Ayurveda 20:10 20 minutes, 10 seconds to grow, yes, we will hold hands and work jointly there. Presently 20:18 20 minutes, 18 seconds the objective is that Gina already has three hospitals in South India. We are 20:26 20 minutes, 26 seconds evaluating as to how occupancy of those three hospitals can be increased. Once with our data we are sure that yes this 20:36 20 minutes, 36 seconds model can work going forward from there Satkar will open the hospitals 20:43 20 minutes, 43 seconds in south India take expertise clinical knowledge of Gina 20:51 20 minutes, 51 seconds and try to penetrate into the south India the way Gina has already done in north India 20:58 20 minutes, 58 seconds and yes again I would say it's a non-exclusive till the time and yes when I say not non-exclusive Gina can open 21:07 21 minutes, 7 seconds hospitals in south India skgatan can open hospitals in north India and I would say this way that when south 21:16 21 minutes, 16 seconds market is totally barren why would I actually try to invest more in north India rather than invest in 21:24 21 minutes, 24 seconds south India and take the expertise and why to reinvent the wheel why not let the wheel move forward to South India 21:32 21 minutes, 32 seconds Got it. Um, and what is the average revenue per occupied bed that we are looking at for our our hospitals? The present one and the future expansion that we are looking at. 21:43 21 minutes, 43 seconds I'm working on a few things where generally the benchmark today is around 8,000 per 21:49 21 minutes, 49 seconds bed but we are we being into men's wellness and always into a high ticket size. 21:58 21 minutes, 58 seconds Today our budgeting is and all our projections are on 10,000 plus per per day. 22:07 22 minutes, 7 seconds Thank you very much. 22:10 22 minutes, 10 seconds Yes sir. We'll take the next question from Mr. Dyal. Yeah. Hi sir. Am I audible? Yes de. 22:18 22 minutes, 18 seconds Yeah. Hi sir. Thanks for taking my question. So firstly uh on the guidance part. So you have guided for product revenue of around 300 crores in FI27 and 22:27 22 minutes, 27 seconds around 500 crores for FI28. So just wanted to know what are the three main growth drivers behind this targets and uh what gives you the confidence in achieving this scale of growth. 22:38 22 minutes, 38 seconds When I say 300 with the current run rate I'm already at 225. 22:49 22 minutes, 49 seconds And once I am at 225 there are many things which are in the pipeline which have started firing and which would 22:56 22 minutes, 56 seconds start firing in a month or so those are if I take a modest growth into my current business say around 25%. 23:06 23 minutes, 6 seconds But the new things which are coming in, I'm not talking about the hospitals and the service industry, but the new things which are coming up where I'm confident 23:13 23 minutes, 13 seconds that they would be adding up and making it 300 is our subsidiary is firing well. 23:22 23 minutes, 22 seconds Uh in this year 2027 around its revenue would be around 22 23:29 23 minutes, 29 seconds crores. The US would give me at least 10 to 15 crores. The AI improvement and the journey life sciences where the 23:38 23 minutes, 38 seconds neutrautical my residual data will start working would give another 20 crores. 23:45 23 minutes, 45 seconds So if at a current run rate of 220 these 50 crores ads I am at 270 crores. So 23:53 23 minutes, 53 seconds that means 30 crores I have to get from my current business. So 300 as of now with the current scenario I would say is 24:02 24 minutes, 2 seconds pretty uh reasonable and I would actually like to cross that 300 24:10 24 minutes, 10 seconds right and on the 500 mark sir on the 500 marks again these seeds which 24:18 24 minutes, 18 seconds would start blooming along with satkar in skata life we have tried a few new products products with high ticket size 24:27 24 minutes, 27 seconds which are actually helping us improve the product uh margins 24:36 24 minutes, 36 seconds controlling the advertisement spend and increasing the per ticket size the ticket size of the products. So the aim 24:45 24 minutes, 45 seconds is that today when we became public our ticket size was in a range of 3100. We 24:52 24 minutes, 52 seconds have already crossed 3250 and we are working on to make the ticket size crossing the 3500. 25:01 25 minutes, 1 second So the ticket size itself will give me a 20% 15 to 20% jump and all others those four parameters 25:09 25 minutes, 9 seconds AI ustomade and sTA life eventually when they give me another 22 to 25% that 25:17 25 minutes, 17 seconds takes it to 500 right got it sir and uh sir in terms of 25:24 25 minutes, 24 seconds uh when I say 300 so when I say 300 in the next year which looks pretty much inside 25:31 25 minutes, 31 seconds but at that time at 300 the target is to be around 35 in the 25:38 25 minutes, 38 seconds last month and 35 in the last month translates it to already 400. So anything between 30 to 35 sale in the 25:47 25 minutes, 47 seconds last month of 2026 takes me to 500. 25:52 25 minutes, 52 seconds Right. Got it sir. Uh and sir in terms of the repeat patient so you've just mentioned it's around 25%. So it's around in the same rate or has it increased? 26:02 26 minutes, 2 seconds Marginally I would say 1% definitely on the upside but 25 to 26. 26:09 26 minutes, 9 seconds Okay. And in terms of the number of orders so what were what was the uh number of orders in FI26 and what initiatives are we planning to drive 26:18 26 minutes, 18 seconds this growth in FI27 and 28 as well in terms of number of orders? 26:22 26 minutes, 22 seconds Number of orders it's a clear maths for us. 200 crores 26:28 26 minutes, 28 seconds divided by 3,250 is the number of orders and uh the growth is presently we are if 26:39 26 minutes, 39 seconds you see Tamil ladu being a strongest area of us in north UP being the other strong area Madhya Pradesh Maharashtra 26:47 26 minutes, 47 seconds are coming up well so now we would like to spread even deeper into though we call ourselves and we are actually 26:56 26 minutes, 56 seconds panindia but Then there are many pockets which contribute to only 5 to 10% of our 27:02 27 minutes, 2 seconds revenue and the growth will come now from those pockets. 27:09 27 minutes, 9 seconds Okay. And we are currently working towards that right? 27:13 27 minutes, 13 seconds Yes we are working towards that. So that because when the base is small a growth doubling that growth is easy rather than 27:22 27 minutes, 22 seconds taking a 20 21% and increasing that from 21 to 30. 27:29 27 minutes, 29 seconds Got it sir. And next uh in your presentation you have mentioned that you'll be scaling your 300 beds by 27 and end of FI27 and thousand beds by 27:38 27 minutes, 38 seconds FI28. So will this future beds be in collaboration with Gina as it is a three-year contract with them? I believe 27:45 27 minutes, 45 seconds and uh you know shouldn't be our goal to learn the uh operations and set up our own independent practice post 1 to 3 27:53 27 minutes, 53 seconds years um of thisou look I would say 28:01 28 minutes, 1 second I'm not saying that all 300 beds should be with Gina but I'm clear that as we are thinking 28:09 28 minutes, 9 seconds being beneficial three ways for gina for satkar and for ayurvea uh as a whole 28:16 28 minutes, 16 seconds definitely 150 to 200 in this year would be something in collaboration with them and when I say collaboration it's a 28:24 28 minutes, 24 seconds collaboration in the sense that all 300 definitely would be under the fold of sqatar but yes 200 could be managed by 28:31 28 minutes, 31 seconds Gina right and uh will this hospital be branded like in the name of Satkar or 28:39 28 minutes, 39 seconds Gina or both still working on it but Guess as you asked it, my first answer would be in 28:46 28 minutes, 46 seconds south it could be the Satkatar hospital uh co-powered with Gino something like that. 28:55 28 minutes, 55 seconds Got it sir. And uh since both Satkar and Gina have their own product portfolio. 29:01 29 minutes, 1 second So how do you plan to manage your product prescriptions? Uh will there be a preference towards Gina products or Satkar products? And uh next just wanted 29:10 29 minutes, 10 seconds to ask uh who will maintain the customer data and information and who will be the customerf facing side. 29:16 29 minutes, 16 seconds In south the customer data remains with us. 29:21 29 minutes, 21 seconds In north the customers which we give to Gina those customers we have a understanding 29:29 29 minutes, 29 seconds that we will not in future divert those customers to any competitor. 29:37 29 minutes, 37 seconds that those customers for the future recurring business from that customers. 29:43 29 minutes, 43 seconds Satkatar would have a right to those uh revenues streams the percentage to those revenue streams and yes if the customer 29:52 29 minutes, 52 seconds there could be some therapies which Gina is not doing and our hospital is doing. 29:56 29 minutes, 56 seconds Yes, Satkatar can use those customers inhouse but yes, Satkatar would not sell those customers or root those 30:05 30 minutes, 5 seconds customers to any of the company apart from Gina Siko and Satkata. 30:10 30 minutes, 10 seconds Got it. And uh in terms of the product portfolio so if if suppose you're calling a patient so you'll first pitch your own Skatas product or Gina product 30:19 30 minutes, 19 seconds as well because even they have their products. 30:22 30 minutes, 22 seconds Presently when in a 30 beded hospital the pharmacy which is running and the products which are running are totally 30:30 30 minutes, 30 seconds different from the products which are already we are selling through the D2C model and in the D2C model the way we present 30:40 30 minutes, 40 seconds a product and the way we sell the product and especially on a high ticket size we would not like to bring those all products into our hospital range. 30:53 30 minutes, 53 seconds There it would be more of a serviceoriented fees and the products could be of a lower 31:00 31 minutes ticket size. We are developing a few products in our factory for those for our pharmacy and why not if Gina 31:07 31 minutes, 7 seconds products are there we can have an understanding of using their products also. 31:13 31 minutes, 13 seconds Okay. So basically bilatory our products can also be placed in there because there are many 31:21 31 minutes, 21 seconds many I would say problems like de addiction. 31:27 31 minutes, 27 seconds Satkatar has a lot of de addiction range. Gina is presently not in de addiction range. 31:37 31 minutes, 37 seconds Right. So in a hospital which is developed jointly by skatar and gina. So that can be product of Satkar as well as Gina right? 31:44 31 minutes, 44 seconds Yes. 31:46 31 minutes, 46 seconds Okay. And for the 30 bed hospitals that we have currently the utilization is around what sir? 31:52 31 minutes, 52 seconds Not much I would say we have yet not crossed 10% but then I said we still are there to get a few certifications and 32:02 32 minutes, 2 seconds especially the insurance tire and it's still it's been just 40 days since we started running it. Yes. our walk-in 32:09 32 minutes, 9 seconds patients and our data off that territory within a kilome 10 uh 10 km range we are 32:17 32 minutes, 17 seconds pushing them to our hospital and rather than bed occupancy I would say that the break even for that hospital is around a 32:26 32 minutes, 26 seconds revenue of 1 lakh a day we are already at around 50,000 a day okay got it and lastly so I just wanted 32:33 32 minutes, 33 seconds to know so the MU also mentions that you'll acquire customers for Gina so basically You'll acquire customers in the north 32:40 32 minutes, 40 seconds but in south Gina will have to acquire customers themselves right if Gina opens its own hospitals in south 32:49 32 minutes, 49 seconds which presently as I said if it is a win-win situation why would Gina 32:56 32 minutes, 56 seconds actually today already when they have opened three hospitals yes they could open it but that doesn't make a business 33:03 33 minutes, 3 seconds sense and it doesn't make a business sense for me that I as a first today when I'm entering into the hospitals I 33:12 33 minutes, 12 seconds would rather move to the have hospitals in sqatar in south rather than start opening in north when in north I can 33:20 33 minutes, 20 seconds generate the revenue from that data through dina so it's I would say it's a wonderful partnership right but the revenue recognition that 33:29 33 minutes, 29 seconds you'll have it would be only 15% right instead of opening yourself you'll get 100% of it yes true I would instead of 100% % I 33:37 33 minutes, 37 seconds would recognize 15% but try to understand that this 15% would have not been with me for the next two years 33:46 33 minutes, 46 seconds today after 2 years if I open if if this year I open 300 beds those would become operational say after 7 months 33:55 33 minutes, 55 seconds and 300 beds would not cater to complete north India of my data so why not I help 34:02 34 minutes, 2 seconds grow through those 3,000 beds right so yeah so That's what my point is revenue. That's a dead revenue for me. 34:09 34 minutes, 9 seconds Yeah. So that's what my point is sir. So after a three-year MOU, you you can get the expertise, right? You'll obviously know all the in and out of running a 34:17 34 minutes, 17 seconds hospital. So after 3 year you can yourself develop a particular hospital in north as well as south right without the help of gina is that's a possibility 34:25 34 minutes, 25 seconds that you can have right that's number one too early say est to say number two 34:33 34 minutes, 33 seconds I would give respect to gina this way that today if they have 3,000 beds after 3 years if I have thousand beds there 34:42 34 minutes, 42 seconds would be at a 10,000 bed at each nook and corner and district of India still I would be having data there. So 34:49 34 minutes, 49 seconds why would I let that data go waste and not feed the remaining 7,000 bets? 34:58 34 minutes, 58 seconds Right. Got it sir. Thanks. Thanks a lot. 35:00 35 minutes Thank you. Thank you. We'll take the next question from Mr. W. Please introduce your workplace as well. 35:10 35 minutes, 10 seconds Good evening from street smart opportunities fund. We are based out of Gazyabad. Yes. 35:18 35 minutes, 18 seconds So sir, couple of questions I have. 35:21 35 minutes, 21 seconds Uh first sir, if I remember in your first call, you told investor that 40 to 42% of the revenue goes into advertisement. Correct. 35:29 35 minutes, 29 seconds So what is the current run rate of our uh advertisement going into revenue? 35:35 35 minutes, 35 seconds In my first call itself when I said 40 to 42%. And I've been repeating this that this is one area which definitely 35:45 35 minutes, 45 seconds in a product if it remains only a product company this is not going to reduce this is going to remain around 40 the best benchmark could be 38. 35:56 35 minutes, 56 seconds Yes, this would how the satka life would actually generate profits and improve its profits 36:05 36 minutes, 5 seconds from a current 8.5 to 9% pad to a vision of 15%. Now I'm dividing it two ways. 36:12 36 minutes, 12 seconds The product range and the hospital range as we are soon moving into the hospital range. So how that would happen is which 36:20 36 minutes, 20 seconds actually happened this year we move from 6 to 9 is we have around 30% of spend 36:28 36 minutes, 28 seconds which is totally semivariable and when I say semivariable in that 30% 36:35 36 minutes, 35 seconds at least 12 to 13% is totally fixed so that get absorbed over a top line 36:47 36 minutes, 47 seconds sir And on the next question on your vision to have a 300 beds capacity by the end of FY27. 36:55 36 minutes, 55 seconds So sir could you please share like uh have you finalized some n location uh for the future bed capacity or what are the status of further hospitals. 37:07 37 minutes, 7 seconds We have till now just identified that we have to be in Tamil Nadu and Vishaka. 37:14 37 minutes, 14 seconds And when I say Tamil Nadu, we are still evaluating based on the earlier experience of Gina when they opened 37:22 37 minutes, 22 seconds three hospitals in South India as to what were the challenges they faced and why they actually were not as strong as 37:31 37 minutes, 31 seconds in North India. So that when we put our step forward the chances of success are far far more. But yes, till now we have 37:39 37 minutes, 39 seconds not finalized a place. In fact, not even the district. But yes, the study is on, 37:46 37 minutes, 46 seconds the data is being turned out and we are hopeful that by next month June, we should be ready with the place. 37:58 37 minutes, 58 seconds And sir, final question on your uh cash generation side. So sir you have been into the D2C space and sir your 38:06 38 minutes, 6 seconds receivables also quite high and we have not able to generate cash in this fiscal year operating cash I'm talking about what 38:15 38 minutes, 15 seconds has been the reason for this uh no cash generation this I said in the my opening statement 38:22 38 minutes, 22 seconds also that yes in H1 we actually with the 38:29 38 minutes, 29 seconds kind of a transition our numbers is our inventory build up and working capital 38:37 38 minutes, 37 seconds cycles and cash generations got a hit because of the hospital coming up the factory coming up the planttomat acquisition going on. 38:47 38 minutes, 47 seconds Now if you see these things have stabilized in most of the most of the parameters and ratios and in fact they have started improving. 38:59 38 minutes, 59 seconds The apart from inventory days which has marginally increased by 12 to 15 days all other parameters of the working 39:06 39 minutes, 6 seconds capital have actually improved uh on H1 to H2 basis. 39:15 39 minutes, 15 seconds Okay. So going forward what uh like CFO to pet to conversion ratio we can expect for the company? 39:23 39 minutes, 23 seconds Yeah how much uh otherwise uh I would say if cash is not generated 39:33 39 minutes, 33 seconds uh my the difference between which has never been the aida to pack is going to get skewed. 39:42 39 minutes, 42 seconds Okay sir. Thank thanks sir. All the best. 39:46 39 minutes, 46 seconds Thank you. We'll take the next question from Mr. Dash. 39:55 39 minutes, 55 seconds Uh good evening sir. Thank you so much for taking my question. Lovely. 39:58 39 minutes, 58 seconds Congratulations on a great set of results sir. Thank you. 40:01 40 minutes, 1 second I just wanted to understand a bit more about our you know hospital. So right now like uh you want to end the year by 40:09 40 minutes, 9 seconds nearly 300 beds right? work. So uh but you've not even finalized the district. 40:15 40 minutes, 15 seconds So how much time will it take for us to you know set up because I'm assuming there'll be need for interior there'll be because it's a hospital there'll be 40:22 40 minutes, 22 seconds some you know level of quality that we'll have to maintain. So how much time does it take to set up a bed and the location like we're looking at so are we 40:31 40 minutes, 31 seconds looking at like 30 seater beds or like in terms of bed size hospitals what are we looking at? 40:38 40 minutes, 38 seconds We are looking anywhere between the range of 50 to 100 beds. So that means it would translate to four facilities. 40:46 40 minutes, 46 seconds Each facility we plan to start simultaneously or in a range of 30 to 40 days. 40:56 40 minutes, 56 seconds Once finalized those four places then it generally takes 6 to 8 months to 41:04 41 minutes, 4 seconds get all the in from in I would say 6 months from interiors till all the licensing it could stretch to another 2 41:13 41 minutes, 13 seconds months 8 months. So when I say 300 bets I mean to say by last quarter of this year 41:21 41 minutes, 21 seconds 2027 but again I'm not taking any revenue from these as I said 300 is all from our 41:30 41 minutes, 30 seconds current business. So the revenue of these hospitals would actually flow in the following year. 41:38 41 minutes, 38 seconds Oh okay. Okay. Uh fair enough sir. And so just want to know like so for this year our margin will be similar to what 41:46 41 minutes, 46 seconds we have done kind of in H2 right or can it because our major revenue in this 41:53 41 minutes, 53 seconds year will be product side. So the the you know double digit margin that we are planning to do in terms of P can it come this year how would you know we look at it sir? 42:03 42 minutes, 3 seconds Yes. If from a revenue growth from 160 to 200 has given a margin growth from pat margin growth from 6 to 8.5. 42:16 42 minutes, 16 seconds So a revenue growth of 200 to 300 with that 30% and out of that a fixed cost being a huge cost in those 30% we are targeting anywhere between 11 to 12%. 42:31 42 minutes, 31 seconds Oh. Oh. Oh. That that that's really great to hear, sir. I I just wanted to know like uh so uh nearly the 300 beds 42:39 42 minutes, 39 seconds if I see we are uh allocating nearly uh you know I think 7 to eight lakhs per bed are we we are thinking around right 42:47 42 minutes, 47 seconds so the current year we have enough cash for it but once we plan to go to thousand beds sir will we need another 42:55 42 minutes, 55 seconds fund raise because uh thinking thinking about this thousand beds. 43:07 43 minutes, 7 seconds Thinking about this thousand beds, thinking about a capital of say uh 7 lakhs or six lakhs per bed as we reach the economy of scale. 43:20 43 minutes, 20 seconds That is the reason that immediately when we thought that we are moving into this field, we raised a capital. 43:29 43 minutes, 29 seconds We would be with another 45 crores into the bank which would help us build up 43:35 43 minutes, 35 seconds the first phase of hospitals and the cash generation in the hospitals plus the cash generation coming from this 43:43 43 minutes, 43 seconds company will help in rebuilding the second phase of hospitals. Eventually if at all if there is a shortfall in the 43:52 43 minutes, 52 seconds working capital that would be funded from presently the plan is from a debt 43:59 43 minutes, 59 seconds presently the plan to further dilute the company and raise the fund is not there. 44:05 44 minutes, 5 seconds Oh okay okay fair fair enough so uh yeah that's it from my side so thank you all the best. 44:12 44 minutes, 12 seconds Thank you. We'll take the next question from Mr. Lokesha Garwal. Am I audible? Yes, Lkesh. 44:21 44 minutes, 21 seconds Yeah. Hello, sir. Uh, congrats for a good set of numbers. I'm an individual investor. So, sir, my first question is what is our current gross margins and 44:30 44 minutes, 30 seconds what are the margins we anticipate for our hospital business when it reaches let's say an occupancy rate of 50 to 44:37 44 minutes, 37 seconds 60%. So is it like a margin lucrative for us or what can be the hospital margins we can expect in F528 when our 44:46 44 minutes, 46 seconds 300 beds kind of capacity is in its optimum stage. 44:53 44 minutes, 53 seconds Hospital business at a occupancy of 60% should give us a margin ranging from 30 to 35%. 45:05 45 minutes, 5 seconds and any occupancy increase would exponentially increase that margin. 45:11 45 minutes, 11 seconds So on a blended scale with the product company say at 300 and the revenue coming from those 300 beds and the 45:19 45 minutes, 19 seconds product company 300 we targeting at a margin of 11 to 12% the blended rate including the hospital revenue 45:28 45 minutes, 28 seconds in the first half of 2028 we should be crossing 18 to 20%. 45:38 45 minutes, 38 seconds Okay, that's very nice sir and sir one other thing is the revenue projections that you have given of 300 and 500 cr that is excluding of this hospital 45:46 45 minutes, 46 seconds revenue that we will get right so it will be on the cherry on the top if I can see definitely 45:57 45 minutes, 57 seconds and that's it from my side sir thank you thank you we'll take a follow-up question from Mr. 46:05 46 minutes, 5 seconds Yes sir. Uh so just more on the industry side I wanted to know like it's very great to see that you're collaborating 46:12 46 minutes, 12 seconds with Gina. So is there like any kind of a you know industry plan like you know we see ads of mutual fund so any kind of 46:20 46 minutes, 20 seconds like full industry where we promote more because I think as we are also spending so much on ads more recognition is 46:28 46 minutes, 28 seconds needed for this right. Uh so just wanted to you know uh g gather your thoughts in terms of uh the industry and when you 46:37 46 minutes, 37 seconds say there's enough place for everyone but at a point of time in a small micro market like a city there will when will 46:45 46 minutes, 45 seconds the competition start creeping up where you know we will turn more of 46:52 46 minutes, 52 seconds today with 19 lakhs bets in alopathy 46:59 46 minutes, 59 seconds with companies like Apollo, Max, Foris and many more taking a chunk. 47:08 47 minutes, 8 seconds I'm really I myself sometimes ask myself that we are worried that Ayurveda would 47:15 47 minutes, 15 seconds reach a saturation point with say 5,000 10,000 bets in a country like India where at the 47:23 47 minutes, 23 seconds time of corona yes people have a very short memory but corona pushed all of us to Ayurveda 47:31 47 minutes, 31 seconds our present government and honorable prime minister is taking ayura to the world. 47:40 47 minutes, 40 seconds Our whole ecosystem is evolving around the Ayurveda. 47:44 47 minutes, 44 seconds So 5,000 10,000 beds why not even if these 10,000 beds are at 47:51 47 minutes, 51 seconds two lakhs. So just see that the kind of time it would take to reach there. So I 47:58 47 minutes, 58 seconds don't think that for the next 3 years or 4 years the actual or in fact 5 years 48:06 48 minutes, 6 seconds the space is so wide. Forget about the competition the collaborations are the things which are needed to 48:14 48 minutes, 14 seconds actually take this industry to the every nook and corner of India. And why not why India bring the international 48:24 48 minutes, 24 seconds customers here for the transformation and therapies. 48:33 48 minutes, 33 seconds Okay. Uh fair enough. So uh my thing was more not from like the demand perspective like uh like in terms of so many beds setting up I don't know uh the 48:42 48 minutes, 42 seconds industry that well but like the doctors that are needed like will there be like a competition in that perspective like 48:48 48 minutes, 48 seconds because uh one person like I don't know how many current doctors are there but even if new supply has to come in so it 48:55 48 minutes, 55 seconds will take like the graduation time four to five years for more doctors to come in. So how does how is that set up sir 49:03 49 minutes, 3 seconds in terms of uh is is there like enough uh uh you know that and how do we certify or how do we hire doctor what is 49:12 49 minutes, 12 seconds our plans for that I don't have a handy number on the doctors BMS doctors already there but yes when I see the market by sitting 49:20 49 minutes, 20 seconds into my office and when I put a ad to hire doctors yes the BMS doctors who are 49:28 49 minutes, 28 seconds ready to come for the interview are four far more than when I put a ad for a customer care person. 49:37 49 minutes, 37 seconds Oh, okay. Okay. Fair enough. That's it from Thank you. 49:42 49 minutes, 42 seconds We'll take the next question from Shy Mal. 49:52 49 minutes, 52 seconds Yes. 49:54 49 minutes, 54 seconds Hello, sir. Congratulations on great results. 49:56 49 minutes, 56 seconds Thank you, Shy. Um so sir my first question was online that um how much working capital do we require for bed or 50:04 50 minutes, 4 seconds like how do we analyze the working capital requirement uh you know for the hospital business 50:10 50 minutes, 10 seconds I would say when I say 7 to eight lakhs whereas when other companies are quoting 50:17 50 minutes, 17 seconds 3 to four lakhs per bet so in fact I have already when I say 7 to 8 lakhs I've already taken from four to eight 50:26 50 minutes, 26 seconds the difference is actually the working capital. 50:30 50 minutes, 30 seconds Okay. So per 50% is the working capital that we um require requiring. 50:36 50 minutes, 36 seconds Okay. And the challenge challenge would be that how how fast that working capital can be rotated and turned into the cash. 50:48 50 minutes, 48 seconds Yes, actually that was only my next question. So like how do we see our receivables or like since we're offering 50:55 50 minutes, 55 seconds therapies so the these could range differently in 7 days 10 days. So how do you see that conversion do we 51:03 51 minutes, 3 seconds all it would all be now if we go back and understand that where the working capital gets stuck it is the blend 51:12 51 minutes, 12 seconds between the insurance government and the non-insurance and government customers. 51:18 51 minutes, 18 seconds So the non-insurance and government customers are paying upfront. 51:23 51 minutes, 23 seconds Some insurance companies are having a timeline ranging from as high as 30 to 51:31 51 minutes, 31 seconds 40 days. Government is having a high timeline. So eventually it would boil down on the customer mix. 51:42 51 minutes, 42 seconds So that customer makes in a territory wherein that hospital is being brought the customers will actually decide the 51:50 51 minutes, 50 seconds final outcome of the working capital which yes could go to 45 or even higher 60 days or could be 52:00 52 minutes depends if the government business is high it could go far higher but each hospital as a unit would have a different working capital set. 52:11 52 minutes, 11 seconds Okay. Sir I do understand the uh non- insurance and non-government and then insurance funds for government you said 52:18 52 minutes, 18 seconds is it uh what what are the number of days again it different empanments the 52:26 52 minutes, 26 seconds rule it is the getting the money into the bank generally takes apart from the 52:32 52 minutes, 32 seconds rule another 30 to 35 days okay sir noted sir in the financial statements um I also read something 52:41 52 minutes, 41 seconds about that uh the company has not received RBI approval for the US subsidiary. 52:47 52 minutes, 47 seconds Shri uh which company you represent? 52:52 52 minutes, 52 seconds Uh AR I really always like talking to you. I remember my talk with you before the IPO. Okay. 53:02 53 minutes, 2 seconds see yeah RBI approval is not there for the subsidiary which so it's actually not a 53:10 53 minutes, 10 seconds subsidiary yet but yes the RBI all documentation has been done 53:18 53 minutes, 18 seconds for the direct investment overseas direct investment we are waiting for the approval but that approval is more of a 53:27 53 minutes, 27 seconds like there's no red flag in that approval It's just that it's a time-consuming activity but that does not stop us from actually starting 53:36 53 minutes, 36 seconds operations in that company in US. Yes, it could take time another 30 days or so till it actually that company docks into 53:44 53 minutes, 44 seconds SQA life and that's the time still we need to actually get the product across 53:50 53 minutes, 50 seconds to the US company and set up other things. 53:55 53 minutes, 55 seconds Okay. Okay. So the company can totally be operational without that as well. 53:59 53 minutes, 59 seconds Yes. Today company is already operational with a bank account. 54:04 54 minutes, 4 seconds Business hasn't started there. But even if the RBI approval takes time till the equity is subscribed by Satka life that operations can start. 54:16 54 minutes, 16 seconds Okay sir. And um as you were mentioning in the call earlier about the AI usage wherein it'll increase our ROI. So um 54:25 54 minutes, 25 seconds like do we have a number to support like how much ROI or how much margin expansion we've seen from the AI especially if you have the ROI figure. 54:35 54 minutes, 35 seconds Yeah. Uh with the current trial uh we are getting a better ROI today by 54:41 54 minutes, 41 seconds another four to 5%. But as we scale this ROI will further improve. 54:50 54 minutes, 50 seconds Okay. AI is something which is a it is something like uh it's a ever every day things are 54:59 54 minutes, 59 seconds evolving in this so it's going to be a constant effort in 55:07 55 minutes, 7 seconds okay sir thank you so much that's it from my end thank you we'll take the last question from Mr. Oscar. 55:18 55 minutes, 18 seconds Hello sir. Uh hope I mod. 55:23 55 minutes, 23 seconds I sir. Uh sir, can you tell me how many subsidies do you have? 55:29 55 minutes, 29 seconds Uh I didn't get you. Could you repeat the question? Sir, subsidiaries. 55:39 55 minutes, 39 seconds Subsidies. We have three subsidiaries as of now and fourth one would be the US 55:46 55 minutes, 46 seconds company. When I say three subsidiaries, one is Ajuni Life Sciences which is into the neutrauticals, Plantommed which is 55:55 55 minutes, 55 seconds into the low ticket size diabetes and then we have also formed wherein we have not started operations is Satkatar Ocean 56:04 56 minutes, 4 seconds that we have formed primarily for the marketing efforts wherein we can actually show it as a advertising company and get discounts from Google, 56:14 56 minutes, 14 seconds Facebook because these they do not provide discounts to end user. So as a advertising company we should be able to 56:22 56 minutes, 22 seconds get discounts from Google and Meta and even television people. So that's a subsidiary but operations have not 56:29 56 minutes, 29 seconds started in that subsidiary yet. Two subsidiaries which are firing well are Ajouruni Licenses and Plantomet and the next one would be the US company. 56:41 56 minutes, 41 seconds Okay. Uh as on FI26 how much revenue come from those substitute? 56:46 56 minutes, 46 seconds 26 would be not the right number to quote as these are growing companies but as of March 26 the revenue which poured 56:55 56 minutes, 55 seconds in from these subsidies was 1.2 crores and uh FI27 target 57:04 57 minutes, 4 seconds uh 2 into 12 anything between 25 to 30 crores. 57:11 57 minutes, 11 seconds Excellent. Uh thank you sir. Yeah. 57:15 57 minutes, 15 seconds Yes. Thank you. Uh sir, since there are no further questions, we'll head to your closing remarks for the call. 57:23 57 minutes, 23 seconds Closing remarks is I would say satka shopping is now satka 57:32 57 minutes, 32 seconds life. Anything more I say to this and the other thing which is imprinted 57:40 57 minutes, 40 seconds into every partner employee of Sgata life is the vision of 200 57:49 57 minutes, 49 seconds 300 or 500 plus. Thank you very much. 57:59 57 minutes, 59 seconds Uh thank you Satka team. Thank you team Nama for hosting the call. Uh with this we now head to the conclusion of this call. Thank you.