Aster DM Healthcare Limited

Azad Moopen

Chairman & Managing Director

Alisha Moopen

Deputy Managing Director

T J Wilson

Non-Executive Director

Sreenath Reddy

Group Chief Financial Officer

Amitabh Johri

Chief Financial Officer, GCC

Sunil Kumar M R

Head of Finance, India

6.8%

e of exceptions are India and UAE —India’s predicted growth rate in the current financial year is 6.8% and that of UAE is 5.1% which are relatively better when compared to major global economies. Th

5.1%

and UAE —India’s predicted growth rate in the current financial year is 6.8% and that of UAE is 5.1% which are relatively better when compared to major global economies. This will be one of the high

Rs. 2,816 crore

financial performance of Aster for Q2 of FY23, • At a consolidated level, we posted a revenue of Rs. 2,816 crore which is an increase of 12% when compared with the same period, last financial year. • EBITDA

12%

FY23, • At a consolidated level, we posted a revenue of Rs. 2,816 crore which is an increase of 12% when compared with the same period, last financial year. • EBITDA was Rs. 319 crore when compar

Rs. 319 crore

h is an increase of 12% when compared with the same period, last financial year. • EBITDA was Rs. 319 crore when compared to Rs. 343 crore in Q2 FY 22. EBITDA growth was impacted due to losses from commiss

Rs. 343 crore

compared with the same period, last financial year. • EBITDA was Rs. 319 crore when compared to Rs. 343 crore in Q2 FY 22. EBITDA growth was impacted due to losses from commissioning of new hospitals in GC

Rs. 342 crore

losses from commissioning of new hospitals in GCC and India. Adjusted for this loss, EBITDA was Rs. 342 crore. Aster DM Healthcare Limited – FY23 Q2 Earnings Conference Call • Profit after tax

Rs. 46 crore

re Limited – FY23 Q2 Earnings Conference Call • Profit after tax (post-NCI) stands at Rs. 46 crore when compared to Rs. 107 crore in Q2 FY 22. Profit After Tax (post-NCI) excluding impact of com

Rs. 107 crore

nference Call • Profit after tax (post-NCI) stands at Rs. 46 crore when compared to Rs. 107 crore in Q2 FY 22. Profit After Tax (post-NCI) excluding impact of commissioning of new hospitals is Rs

Rs. 88 crore

re in Q2 FY 22. Profit After Tax (post-NCI) excluding impact of commissioning of new hospitals is Rs. 88 crore. • With respect to the GCC business, revenue grew 9% year-over-year to Rs. 2,059 crore with EBI

9%

commissioning of new hospitals is Rs. 88 crore. • With respect to the GCC business, revenue grew 9% year-over-year to Rs. 2,059 crore with EBITDA at Rs. 192 crore as compared to Rs. 241 crore in

Rs. 2,059 crore

ospitals is Rs. 88 crore. • With respect to the GCC business, revenue grew 9% year-over-year to Rs. 2,059 crore with EBITDA at Rs. 192 crore as compared to Rs. 241 crore in the same period, last financial year

“We will call out your name, after which your line will be unmuted, and you will be able to ask your question.”

“This will be one of the highest growth rates for UAE compared to last several years buoyed by the high oil price and booming real estate sector.”

“Given our geographical spread in India and GCC, we expect Aster to have a robust business performance in the coming quarters Let me now discuss briefly the financial performance of Aster for Q2 of FY23, • At a consolidated level, we posted a revenue of Rs.”

“The newly launched institute under his dynamic leadership will be the centre of excellence for Cancer Care and Robotic Surgery, offering the entire range of oncology- Aster DM Healthcare Limited – FY23 Q2 Earnings Conference Call related services, backed by an experienced team of doctors, cutting-edge technologies, and the latest innovations in cancer care.”

“We expect to add another 2 to 3 hospitals of around 300 to 400 beds together before the end of the current financial year.”

“Now we have decided that this will be managed by the different clusters where the labs are situated for more efficiency.”

“This was a project by Aster Volunteers with support from philanthropists, partners and our employees of Aster.”

“With this agreement, Skin111’s unique offering will be incorporated into Medcare service portfolio which will give us an edge in the aesthetics and wellness segments which is a key driver of the UAE’s growing medical tourism sector.”

“An important point to mention is that we are now going back to the pre-covid scenario, wherein the EBITDA for the first half of the year as per the historical trends will be in the range of 35-40% of the full year number and H2 in the range of 60-65%.”

“We expect to see this positive trend to continue in the coming quarters.”

Dr. Azad Moopen

22

Sreenath Reddy

16

Balachander R

13

Amitabh Johri

7

Ankeet Pandya

7

Harith Ahamed

7

Sunil Kumar M R

6

Rishabh Tiwari

6

Mehul Sheth

6

Amrish Kacker

5

Balachander R

Good morning, everyone. I welcome you to Aster DM Healthcare's earnings conference call for the second quarter of Financial Year 23. The company declared the Q2 FY23 results last evening. I hope you've got a chance to review them, along with other materials, which were posted on the stock exchanges and the company website. Today, to discuss the quarterly business performance and the future business outlook, we have the senior management team at Aster DM Healthcare available with us. It includes Dr. Azad Moopen, Chairman and Managing Director; Ms. Alisha Moopen, Deputy Managing Director; Mr. T.J. Wilson, Non-Executive Director; Mr. Sreenath Reddy, Group Chief Financial Officer; Mr. Amitabh Johri, Chief Financial Officer for GCC and Mr. Sunil Kumar, Head of Finance for India. I would like to inform everyone about how we will conduct this call. All external attendees will be in the listen-only mode for the duration of the entire call. We will start the call with opening remarks by managem

Dr. Azad Moopen

Thank you Bala. Thank you very much. Good morning, everyone. Thank you all for joining us for our earnings call for the second quarter of FY 23. I hope all is well with you and your families. The world is moving out of the dark clouds of Covid and businesses are slowly limping back to normalcy. However, with the very high inflation in many countries and a threat of recession in the horizon, central banks in many countries have been steadily increasing the interest rates. This has led to tepid economic activity in the near future in most countries resulting in lower growth forecasts by IMF across the globe. Couple of exceptions are India and UAE —India’s predicted growth rate in the current financial year is 6.8% and that of UAE is 5.1% which are relatively better when compared to major global economies. This will be one of the highest growth rates for UAE compared to last several years buoyed by the high oil price and booming real estate sector. Given our geographical spread in India a

Alisha Moopen

Thank you, Chairman. Good morning, everyone. Good morning, everyone. We are past the COVID travel restrictions, which is good news. Having said that, this has impacted the GCC in somewhat -- a couple of negative quarters. Quarter 2 saw some unprecedented travel out of the GCC region given the first vacation time post the COVID restrictions, which has been lifted off. The impact also from the reduction of PCR revenue was very visible on the financial results. Additionally, the quarter also witnessed the delays in the insurance and empanelment, as Chairman mentioned, for 2 of its new hospital, which is both Sharjah and Aster Royal Hospital Oman. This has delayed the ability of the hospital to start commercial operations fully. With regards to the GCC financial performance for Q2 FY 23, the hospital revenue during the quarter increased by 8% Y-O-Y. The Retail business saw an increase in Revenue by 34%, while the core revenue of Clinics business, which is excluding the PCR revenue saw an i

Sreenath Reddy

Thank you, Alisha. Good morning, everyone. On a consolidated basis, our revenue from operations for the quarter is Rs. 2,816 crores, an increase of 12% year-on-year. Consolidated EBITDA for the quarter was Rs.319 crores. Excluding the losses of new hospitals not present in FY 22 Q2, namely Aster Hospital Sharjah, Aster Hospital Sonapur, Aster Royal Hospital at Muscat and Aster Mother Hospital Areekode, the EBITDA stands at Rs 342 crores as against Rs.343 crores during the same period, last financial year. Consolidated PAT (Post NCI) is at Rs. 46 crores as compared to Rs. 107 Crores in Q2 FY 22. Excluding losses from new hospitals, PAT (Post NCI) stands at Rs. 88 Crores. Revenue from our GCC operations was Rs. 2,059 crores, an increase of 9% year-on-year whereas the revenue growth excluding Covid testing was 21% year-on-year. EBITDA from GCC operations stands at Rs. 192 crores. Excluding Aster DM Healthcare Limited – FY23 Q2 Earnings Conference Call losses of new hospitals in GCC, the E

Balachander R

Thank you, Mr. Sreenath. We have now opened the question and answer session. So, any of you who would like to ask a question, please press the ‘raise hand’ icon and we will unmute you in order. Please go ahead. I think the first question is from Mr. Amrish Kacker. Please go ahead, Mr. Amrish.

Amrish Kacker

Thank you for the opportunity, and congratulations on some very good progress in India. I had one question on GCC and one on India. So GCC just to make sure I have understood the financials for Q2. So, I'm looking more from a steady state going forward. I understand the seasonality impact, and I understand the COVID issue. So, we have still got a PAT, negative PAT. And Aster DM Healthcare Limited – FY23 Q2 Earnings Conference Call I think you've explained that there is perhaps a Rs. 19 crore impact just from the new hospitals. So, I think this part is clear. Is there from a steady state then Q2 going forward, generally, we should not be seeing negative PAT. Is that reasonable? And is there any impact on the clinic as well in GCC in Q2? Because the segment results show about just a Rs. 3 crore total for all clinics. That's the first question.