Aster DM Healthcare Limited

Azad Moopen

Chairman & Managing Director

Alisha Moopen

Deputy Managing Director

T J Wilson

Non-Executive Director

Amitabh Johri

Chief Financial Officer, GCC

Sunil Kumar M R

Country Head- Finance, India

Rs. 3,192 crore

financial performance of Aster for Q3 of FY23, • At a consolidated level, we posted a revenue of Rs. 3,192 crores which is an increase of 20% when compared with the same period, last financial year. • EBITD

20%

Y23, • At a consolidated level, we posted a revenue of Rs. 3,192 crores which is an increase of 20% when compared with the same period, last financial year. • EBITDA was Rs. 449 crore when compar

Rs. 449 crore

h is an increase of 20% when compared with the same period, last financial year. • EBITDA was Rs. 449 crore when compared to Rs. 397 crore in Q3 FY 22, an increase of 13%. EBITDA growth was impacted due to

Rs. 397 crore

compared with the same period, last financial year. • EBITDA was Rs. 449 crore when compared to Rs. 397 crore in Q3 FY 22, an increase of 13%. EBITDA growth was impacted due to losses from new hospitals in

13%

ial year. • EBITDA was Rs. 449 crore when compared to Rs. 397 crore in Q3 FY 22, an increase of 13%. EBITDA growth was impacted due to losses from new hospitals in GCC. Adjusted for this loss, EBIT

Rs. 468 crore

A growth was impacted due to losses from new hospitals in GCC. Adjusted for this loss, EBITDA was Rs. 468 crore, an increase of 15% over last year Q3. • Profit after tax (post-NCI) stands at Rs. 139 crore when

15%

ses from new hospitals in GCC. Adjusted for this loss, EBITDA was Rs. 468 crore, an increase of 15% over last year Q3. • Profit after tax (post-NCI) stands at Rs. 139 crore when compared to Rs. 1

Rs. 139 crore

as Rs. 468 crore, an increase of 15% over last year Q3. • Profit after tax (post-NCI) stands at Rs. 139 crore when compared to Rs. 148 crore in Q3 FY 22. Profit After Tax (post-NCI) excluding losses from n

Rs. 148 crore

f 15% over last year Q3. • Profit after tax (post-NCI) stands at Rs. 139 crore when compared to Rs. 148 crore in Q3 FY 22. Profit After Tax (post-NCI) excluding losses from new hospitals is Rs. 180 crore, a

Rs. 180 crore

o Rs. 148 crore in Q3 FY 22. Profit After Tax (post-NCI) excluding losses from new hospitals is Rs. 180 crore, a growth of 12% • The Aster India business continues to grow well with revenues growing 25% to

12%

22. Profit After Tax (post-NCI) excluding losses from new hospitals is Rs. 180 crore, a growth of 12% • The Aster India business continues to grow well with revenues growing 25% to Rs. 771 crore an

25%

crore, a growth of 12% • The Aster India business continues to grow well with revenues growing 25% to Rs. 771 crore and EBITDA increasing by 13% to Rs. 115 crore and Profit After Tax (Post-NCI) st

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

“Going forward, the GCC finance matters shall be looked after by Mr.”

“Accordingly, both of them shall be addressing you on both geographies today, and they will be available for any queries, now as well as in the future regarding the investment-related matters.”

“We have begun the process of selecting the CEO for India and expect to have the position filled within the next 2 months.”

“Appropriate intimations and impact/ disclosures will be made as and when any conclusions are arrived at and approved by the Board.”

“We expect this hospital business to grow larger, especially with the installation of the new beds of Sharjah and Oman.”

“So while we were hoping that most of this will be done by the end of Q3, this has starting a little bit more delayed than we anticipated.”

“But we know that we will be seeing much larger growth as these empanelment are complete.”

“‘Wellth’ will be managed by Medcare with a range of services including sleep improvement, anti-ageing and regenerative medicine consultation, addiction management, preventive screening package, osteopath treatments and much more at its premises in Jumeirah, Dubai.”

“Given the planned bed additions in FY '24, do you expect these losses to further go up?”

Dr. Azad Moopen

14

Balachander R

8

Sunil Kumar M R

8

Nikhil Mathur

7

Amrish Kacker

4

Alisha Moopen

3

Nikhil Chandak

3

Naman Bhansali

3

Amitabh Johri

2

Shyam Srinivasan

2

Balachander R

Good morning, everyone. I welcome you to Aster DM Healthcare's earnings conference call for the third quarter of Financial Year 23. The company declared the Q3 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. Amitabh Johri, Chief Financial Officer for GCC Operations and Mr. Sunil Kumar, Chief Financial Officer for India Operations 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 management, followed by an int

Dr. Azad Moopen

Thank you, Bala. Thank you very much. Good morning, everyone. Thank you all for joining us for the earnings call for the third quarter of financial year '23. The COVID-19 pandemic fortunately is very well under control with improving herd immunity of the population worldwide. We hope and pray that we won't have the challenge of a portent variant in future. It's very important that we remain vigilant about COVID as well as other infectious diseases, which are capable of playing havoc with the health of world population as we have seen. The International Monetary Fund recently published its forecasts, painting a slightly less gloomy picture, as inflation appears to have peaked in 2022, consumer spending remains robust and the energy crisis following Russia’s invasion of Ukraine has been less severe than initially feared. That’s not to say the outlook is rosy, as the global economy still faces major headwinds and a fall in growth from 3.4 percent in 2022 to 2.9 percent this year, before r

Alisha Moopen

Thank you, Chairman. Good morning, everyone. Aster DM Healthcare Limited – FY23 Q3 Earnings Conference Call As Chairman mentioned, we are seeing Covid receding, and UAE is seeing increased traffic of visitors and return of expats who had moved out during the Covid period. The overall numbers of GCC have seen a Revenue increase of 19% and 13% EBITDA increase over last year. The GCC business EBITDA excluding operational losses from the new hospitals commissioned during this period is Rs. 468 crores, which a growth of 15%. At segmental level, hospitals revenue during the quarter 3 increased by 22% Y-O-Y. We expect this hospital business to grow larger, especially with the installation of the new beds of Sharjah and Oman. But the empanelment of the new facilities has been a little bit more extended and delayed than we had anticipated. This is the intense negotiation that is a reality of a med-free insured market that we are facing. We want to make sure that we get the right contracts and t

Balachander R

Thank you, Mr. Sunil. 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. Nikhil Mathur. Please go ahead, Mr. Nikhil.

Nikhil Mathur

Hi. Good Morning Everyone. Yes, 2, 3 questions I had. The first question is on the losses currently sitting in the 0- to 3-year maturity profile hospitals. If I look at GCC and India combined, this loss in 9 months at EBITDA level is around INR 66 crores. Given the planned bed additions in FY '24, do you expect these losses to further go up? Or are you now reaching a stage where some of the losses are still start getting absorbed with incremental revenue. So we might be entering a phase of flattish losses from these maturity profile hospitals

Amitabh Johri

Sure, Mr. Chairman. Nikhil, thank you for the question. So if you look at from a GCC perspective, as we called out, there are 3 hospitals that have been opened recently. We're having operating losses at least for quarter 3. Alisha had alluded to some of the empanelment that are open, which we expect to come sometime between quarter 4 of this financial year and quarter 1 of next financial year, so FY '24. Assuming that happens, it will allow us to start reducing the losses, and we expect that by at least quarter 3 or quarter 4 of next financial year, we should start seeing neutrality coming in, in terms of initial losses reducing significantly. That is on the profile of these 3 hospitals that are at course.