Narayana Hrudayalaya Ltd.

Viren Shetty

VICE CHAIRMAN

Emmanuel Rupert

CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR

Sandhya J

GROUP CHIEF FINANCIAL OFFICER

R. Venkatesh

GROUP CHIEF OPERATING OFFICER

Anesh Shetty

MANAGING DIRECTOR, OVERSEAS SUBSIDIARY HCCI

Nishant Singh

VICE PRESIDENT - FINANCE, MERGERS & ACQUISITIONS & INVESTOR RELATIONS

Vivek Agarwal

SENIOR MANAGER, INVESTOR RELATIONS

Venkatesh

Group COO, Dr. Anesh

rs,

ecretary Listing Department BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 539551 (EQ), 975516 Dear Sir / Madam, To, The Secre

5%

quentially better is a tough bar to cross. But let's look at Q2, where we had about, I would say, 5% to 7% margin dilution. And that's because we were starting to bear a lot of costs for the new fac

7%

ally better is a tough bar to cross. But let's look at Q2, where we had about, I would say, 5% to 7% margin dilution. And that's because we were starting to bear a lot of costs for the new facility,

85%

the outpatient services being commissioned. But for Q3, in our estimate, we've been bearing about 85% of the costs, if not slightly more, for the new hospital. So, we're very happy to see that a lot

3%

take Gurugram, Dharamshala and SRCC together, is around % for this quarter - Q3, which was around 3% in the Q3 FY24. So, there is a marked improvement. SRCC was marginally negative, but obviously

INR 130 crore

e, would not be a material thing. Nishant Singh: Yes, the three put together, is roughly around INR 130 crores. Prithvi: Okay. Thanks. That is all from my side. Nishant Singh: Thank you. Thanks, Prithv

60%

oughly around the same between both the quarters of the two financial years. It is slightly below 60%. Viren Shetty: For the Cayman, do you want to help them derive it? Anesh Shetty: Yes, I thi

INR 293 crore

ly HCCI, there is a bit of ICO, inter- company elimination. But the number which you get to see is INR 293 crores as per the press release, which is what we should consider the revenue for HCCI. And EBITDA also

100%

December, like I said, about 85% of the manpower hiring will be and the costs would be complete. 100% of the fixed costs of the facility, about 85% of the manpower costs. By Jan, that's going to be a

90%

e fixed costs of the facility, about 85% of the manpower costs. By Jan, that's going to be almost 90% and by Feb it will be 100%. It is 100% as of now. Damyanti: Okay, got it. That's helpful. Tha

4%

t have one follow-up question, Anesh, on the Bahamas stake acquisition. What is the rationale for 4% acquisition? I mean, what kind of value will we be in a position to add if we have only 4% stake?

100 million

y: Sure. So, Prithvi, in the Caribbean, there are only two private healthcare assets, which are 100 million plus scale. Anything below that doesn't make much sense for us to work with. That's one is us, on

“I mean, I'm not asking for the specific guidance, but is it fair to assume that margins, going forward, will be sequentially better from now on?”

“And it's a fair assumption… no hard numbers to guide on, but it's a fair assumption to say that I think the worst is behind us, that was Q2, and let's see how things play out next quarter onwards.”

“Going into Q4, we expect all these units to perform better, with Gurugram likely to lead in the improvement metrics.”

“Sorry, we will be breaking out the revenue by cohort, I think, going forward.”

“There will be some other minor things in between.”

“As far as India is concerned, Q4 operating cost structures will be similar to Q3, except that the variable cost structures are variable to revenue and Q4 will be a higher revenue quarter.”

“Anesh, you mentioned by March, all the parts of new facility will be like… all services will be started by March.”

“So, as of December, like I said, about 85% of the manpower hiring will be and the costs would be complete.”

“By Jan, that's going to be almost 90% and by Feb it will be 100%.”

“And we said that was not our intention and we don't intend to do so.”

Viren Shetty

50

Nishant Singh

27

Anesh Shetty

24

Deekshant

15

Sandhya J

11

Deven

9

Prithvi

8

Nitin

8

Damyanti

5

Yash

4

MANAGEMENT

MR. VIREN SHETTY – VICE CHAIRMAN DR. EMMANUEL RUPERT – CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR MS. SANDHYA J – GROUP CHIEF FINANCIAL OFFICER MR. R. VENKATESH – GROUP CHIEF OPERATING OFFICER DR. ANESH SHETTY – MANAGING DIRECTOR, OVERSEAS SUBSIDIARY HCCI MR. NISHANT SINGH – VICE PRESIDENT - FINANCE, MERGERS & ACQUISITIONS & INVESTOR RELATIONS MR. VIVEK AGARWAL - SENIOR MANAGER, INVESTOR RELATIONS

Nishant Singh

Good afternoon, everyone. My name is Nishant Singh, and I welcome you all to the Q3 FY25 Earnings Call for the company. To discuss our performance and address all your queries today, we also have with us Mr. Viren Shetty - Vice Chairman, Dr. Emmanuel Rupert - CEO and MD, Mrs. Sandhya Jayaraman - Group CFO, Mr. Venkatesh - Group COO, Dr. Anesh Shetty - MD of our Overseas Business HCCI, and Vivek - Senior Manager in the IR function. Before we proceed with this call, we would like to remind everyone that the call is being recorded and the transcript of the call shall be made available on our website as well as on the stock exchange later. We would also like to remind you that everything that is being said on this call that reflects any outlook for the future, or which can be construed as a forward-looking statement, must be viewed in conjunction with the uncertainties and the risks that they face. With that now, we would like to start the Q&A session. I request everyone to now raise the ‘

Prithvi

Yeah. Obviously, the first couple of questions to Anesh on Cayman Business. Anesh, is it possible for you to provide some color on the scale-up of the new facility? Which departments have been commissioned, how is the response, etc.?

Anesh Shetty

Yeah, hi, Prithvi. Sure, happy to take that. So, we started the outpatient facility in the new hospital in the beginning of December. So, the results that you're seeing in Q3 only include the outpatient services, and that is also only from December, which is the last month of Q3. Prior to that, we were only bearing, I would say, a lot of the costs of the new facility, but we didn't have any revenue, incremental revenue, coming in. And the first few weeks of the new hospital have been fantastic. We've been very, very happy to see the positive response, and it really proves our investment thesis is in the right direction. From the end of Q3 i.e. Jan 1st onwards, although those are not disclosed in the financials here, but just to give you some additional information, we commissioned a lot of other services such as the emergency room, inpatient surgeries, etc., as of January. The plan is in February i.e. mid-February onwards, to start obstetrics and neonatal care. So, hopefully by March o

Prithvi

Yeah. Just a follow-up on this. If you look at Cayman margins this quarter, they have been quite exceptional with the kind of sequential improvement that we saw. I mean, I'm not asking for the specific guidance, but is it fair to assume that margins, going forward, will be sequentially better from now on?

Anesh Shetty

So, sequentially better is a tough bar to cross. But let's look at Q2, where we had about, I would say, 5% to 7% margin dilution. And that's because we were starting to bear a lot of costs for the new facility, but no revenue coming in. Whereas if you see now, you will see a good amount of recovery, almost very close to our usual run rate on an EBITDA basis. And that's only with the outpatient services being commissioned. But for Q3, in our estimate, we've been bearing about 85% of the costs, if not slightly more, for the new hospital. So, we're very happy to see that a lot of that was covered because of the revenue growth. And it's a fair assumption… no hard numbers to guide on, but it's a fair assumption to say that I think the worst is behind us, that was Q2, and let's see how things play out next quarter onwards.