Shalby Limited has informed the Exchange regarding Investor Presentation
January 29, 2019
Shalby/SE/2017‐18/92
The Listing Department National Stock Exchange of India Ltd Exchange Plaza, Plot no. C/1, G Block, Bandra‐Kurla Complex, Bandra (E), Mumbai 400 051.
Corporate Service Department BSE Limited 25th Floor, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001.
Scrip Code : SHALBY Through : https://www.connect2nse.com/LISTING/
Scrip Code: 540797 Through : http://listing.bseindia.com
Sub: Investor Presentation for the Third Quarter ended 31st December 2018 ‐disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (“the SEBI LODR”)
Dear Sir / Madam,
We are submitting herewith Investor Presentation on financial & operational performance of the Company for third quarter ended 31st December 2018, which is also being made available on our website.
We request to take the same on your records and disseminate the same to the members.
Thanking you,
Yours sincerely, For Shalby Limited
Jayesh Patel Company Secretary & Compliance Officer
Encl.: as above
Investor Presentation Q3 FY 19
Important Disclosure
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of such information or opinions contained herein. The information contained in this presentation is
only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and
may be “forward looking statements”, including those relating to the Company’s general business plans and strategy, its future
financial condition and growth prospects, and future developments in its industry and its competitive and regulatory
environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including
future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social
conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial
situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or
subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with
any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this
presentation, without obligation to notify any person of such revision or changes. This presentation can not be copied and/or
disseminated in any manner.
2
…because passion drives perfection…
…and perfection drives
performance
“
3
Current Scale of Operations
11 Hospitals
2,012* Total Bed Capacity
1,102** Operational beds 887 Census Beds 165 Non Census Beds
55% Operating bed to total bed capacity 45% Bed Occupancy (based on census beds)
31% 11 year CAGR Revenue
40% 11 year CAGR EBITDA
404 Doctors & 3,000+ Support Staff
Double-digit return ratios against industry trend of single-digit
Consistently superior ROCE of mature hospitals
* Maximum number of beds according to structure of the hospital
**The operational bed count of 1,102 considers 50 operational beds at Zynova-
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Shalby Hospital, Mumbai, for which no other operational parameters are tracked
Decadal track record
5
Best in class financials
Revenue
EBITDA
Revenue (in Mn)
Growth (%)
3,555
3,923
EBITDA (in Mn)
Margin (%)
37%
3,305
2,610 2,776 2,927
16% 14% 14%
11%
26%
20%
21%
25% 25%
660 687
24%
778
20%
579
925
739
24%
21%
149%
55%
1,030
745
482
194
38% 29% 26% 1,685
1,332
2,307
13%
6% 5%
19%
13%
482
439
262
77 107 142
22
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY 19
Revenue CAGR – 31% for 11 years
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY 19
EBITDA CAGR – 40% for 11 years
Growth achieved without any outside equity funding till FY 17
Years represent Financial Years EBITDA calculated on total revenue FY 12 to FY 17 – Data as per restated consolidated financials
6
Best in class economic returns
RoCE%
RoE%
Capital Employed (Rs in Mn)
RoCE(%)
8,553
Net Worth (Rs in Mn)
RoE(%)
7,615
88% 66%
51%
36%
22%
20%
26%
15%
17%
9%
28% 31%
26% 20%
15%
13% 11%
6%
14% 13% 10% 5,488
4,153
2%
2,544
1,817
1,207
852
239 181 163 314
203 259 345 481
1,814 2,109
1,487
2,508
844 1,096
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
• Double Digit return ratios against industry trend of single digit due to our unique business model
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IP and OP Count (Yearly Trend)
IP Count
OP Count
40,669
32,967
15,348 16,609 17,147
20,528
24,704
5,244 6,983 8,660 9,758
2,413
219,057
222,970
166,519
152,921
125,981
128,821
110,919
33,285 43,409
55,143
7,632 19,295
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IP and OP Count (Quarterly Trend)
IP Count
OP Count
6,142 6,871
5,873 5,818 6,258
8,788
7,923
14,761
13,642
12,266
9,998
42,819 44,050
37,590 42,060
55,554 55,271
47,956
76,794 71,738
70,525
64,189
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Surgeries Count (Yearly Trend)
Surgeries Count: Arthroplasty vs Others
9,059
6,280 7,399
8,463
6,361
5,586
3,827
2,628
2,014
1,900 2,596 3,576 4,442 5,166 6,019 6,856 7,330 8,006 7,816 8,495
371
154
66
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Arthroplasty
Others
6,552
9M FY19
10
Surgeries Count (Yearly Trend)
Arthroplasty Vs Others
3%
6%
9%
97% 94% 91%
31% 34% 39% 45% 46% 44% 49% 52% 56%
69% 66% 61% 55% 54% 56% 51% 48% 44%
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
9M FY19
Arthroplasty
Others
11
Surgeries Count (Quarterly Trend)
Surgeries - Arthroplasty vs Others
1,932
1,870
1,773
1,824
2,041
2,113
2,330 2,575
3,155
2,689
2619
2,215 1,874 1,737 1,990 2,139 1,840
2,289 2,227 2,325 2,208
2,019
Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19
Arthroplasty
Others
12
Surgeries Count (Quarterly Trend)
Arthroplasty Vs Others
47% 50% 51% 48% 49% 53% 50% 54% 58% 55% 56%
53% 50% 49% 52% 51% 47% 50% 46% 42% 45% 44%
Arthroplasty
Others
13
Performance Q3FY19
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Key Achievements of the Quarter
Awarded Medical Value Travel Specialist Hospital Award 2018 in “Orthopaedics – Joint Replacement” instituted by Ministry of Commerce and Industry and FICCI
Awarded best “Medical Tourism in Gujarat Award” consecutively for 3rd year.
Successfully carried out surgery on 5 month old suffering from Pulmonary Wide procedure penetration Atresia at – to Tier 2 and 3 cities Indore Unit
Mohali unit successfully broken even at EBITDA level.
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Performance Synopsis
(INR in million)
Note: The operational bed count of 1,102 considers 50 operational beds at Zynova-Shalby Hospital, Mumbai, for which no other operational parameters
16
are tracked
ParticularsQuarter Ended% of RevenueQuarter Ended% of RevenueGrowth31/12/201831/12/2017Total Revenue1,151.11,013.114%EBITDA213.319%250.825%-15%Bed Capacity (Nos.)201220120%Operational Beds (Nos.)1,10295116%Average Length of Stay(Days)2.673.7529%Occupancy (Beds) 39735811%In-Patient Count (Nos.)13,6428,78855%Out patient Count (Nos.)71,73855,27130%Surgeries Count4,6384,6190%ARPOB ( In Rs.)31,51730,7602% Financial Highlights Q3FY19 Standalone
(INR in million)
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Revenue from Operations1131.4966.617.1%Other Income19.746.5-57.7%Total Income1151.11013.113.6%ExpensesMaterials & Consumables298.525.9%280.8 27.7%Fees to Doctors and Consultants311.027.0%215.5 21.3%Other Operative Expenses35.33.1%30.9 3.0%Employee Costs215.818.7%164.8 16.3%Administrative Expenses58.75.1%58.8 5.8%Advt & Promotion18.51.6%11.5 1.1%Total Operational Expenses937.881.5%762.3 75.2%EBITDA213.318.5%250.824.8%-14.9%Finance Cost14.634.4Depreciation & Amortization Expense85.266.7Profit before tax (PBT)113.5149.7-24.2%Tax Expense-15.444.86Profit after tax (PAT)128.911.2%104.910.4%22.9%GrowthParticularsQuarter Ended 31/12/2018% of RevenueQuarter Ended 31/12/2017% of Revenue Financials Parameters
Total Revenue
EBITDA
1,151.1
250.8
(INR in million)
PAT
128.9
1,013.1
213.3
104.9
Q3 FY18
Q3 FY19
Q3 FY18
Q3 FY19
Q3 FY18
Q3 FY19
• Total Revenue has increased by 13.6% on Year on Year basis • EBITDA for Q3 FY 19 has decreased by 14.9% compared to Q3 FY 18 as Doctor cost has increased by 44.3% and
Employee cost has increased by 31%
• PAT for Q3 FY 19 has increased by 22.9% on Year on Year basis
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ARPOB and ALOS
30,760
3.75
31,517
2.67
Q3 FY18
Q3 FY19
ARPOB (in Rs / day)
ALOS (Days)
• Change in ALOS is a result of increase in operational excellence as a continuous process as well as
increased multi-specialty focus including specialties like Oncology, Nephrology, Cardiac Sciences etc. which has large number of day care procedures
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Revenue Mix Q3FY19
Specialty Mix
12%
43%
4%
5%
7%
8%
10%
12%
Payer Profile
5%
15%
18%
63%
Arthroplasty Cardiac Science Other Ortho Nephrology
Critical Care & General Medicine Oncology Neurology Others
Self Pay
Corporate Government
TPA
Corporate Private
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Surgery Count and Cost Structure Q3FY19
Cost Structure
Surgery Count
44%
18%
3%
3%
6%
6%
6%
14%
Arthroplasty
General Surgery
Orthopaedic
Nephrology
Gynecology & IVF
Cosmetic & Plastic Surgery
Oncology
Others
2%
81%
5% 19% 3%
27%
26%
Q3FY19
Total Cost
Advertising and Promotion
Administrative Expenses
Employee Cost
Other Operative Expenses
Fees to Doctors and Consultants
Materials & Consumables
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Bed Count Split
2,012
2,012
951
358
1,102
397
Q3 FY18
Q3 FY19
Bed Capacity
Operational
Occupied
22
Maturity Profile – Q3FY19
Maturity Profile
Avg. Occupied Beds
Census Beds
Non-Census Beds
Operational Beds
Non- Operational Beds
Total Bed Capacity
4 years + (SG; Vijay; Krishna; Vapi)
2-4 years (Jabalpur, Indore)
< 2 years (Jaipur; Naroda; Surat; Mohali)
149
325
57
382
212
594
120
309
52
361
115
476
128
253
56
309
583
892
Total
397
887
165
1,102*
910
2,012
Note: The operational bed count of 1,102 considers 50 operational beds at Zynova-Shalby Hospital, Mumbai, for which no other operational parameters
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are tracked
Maturity Profile – Q3FY19 – with Revenue mix
Maturity Profile
% of Total Revenue
Arthroplasty
Non Arthroplasty
ARPOB(Rs)
ALOS(Days)
EBITDA %
4 years + (SG; Vijay; Krishna; Vapi)
2-4 years (Jabalpur, Indore)
< 2 years (Jaipur; Naroda; Surat; Mohali)
22%
28%
50%
30%
20%
41,629
3.73
29.7%
4%
18%
22,861
3.38
6.5%
9%
19%
27,952
1.75
8.2%
Total
100%
43%
57%
31,517
2.67
18.5%
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Maturity Profile – Q3 FY19 vs Q3 FY18 – Operational Parameters
Q3 FY 19
Q3 FY 18
Maturity Profile
IP Count
OP Count
Surgery Count
Maturity Profile
IP Count
OP Count
Surgery Count
4 years + (SG; Vijay; Krishna; Vapi)
3,673
26,955
2,531
4 years + (SG; Vijay; Krishna; Vapi)
4,006
26,665
3,150
2-4 years (Jabalpur, Indore)
3,265
21,887
976
2-4 years (Jabalpur, Indore)
3,180
18,994
803
< 2 years (Jaipur; Naroda; Surat; Mohali)
6,704
22,896
1,131
< 2 years (Jaipur; Naroda; Surat; Mohali)
1,602
9,612
666
Total
13,642
71,738
4,638
Total
8,788
55,271
4,619
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Shareholding Pattern
Shareholding as on 31st December 2018
0.54%
0.91%
0.94%
0.31%
0.12%
0.30%
0.05%
0.02%
4.24%
5.78%
7.39%
79.41%
Promoter Individuals
Resident Individuals
Foreign Portfolio - Corp
Bodies Corporates
Employee Trusts
Alternative Investment Fund H U F
Non Resident Indians
Mutual Funds
Non Resident Indian Non Repatriable Banks
Others
• Total Number of Shares: 108,009,770
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Our Strengths and Differentiators
Experienced promoters with hands-on involvement
Strong brand, global leadership in Joint Replacement
Optimized Business Model now being replicated
Increasing focus on Quaternary treatments such as Oncology and Organ transplants
Even after the IPO promoter holding is ~80%
Unleveraged Balance Sheet
Strong emphasis on governance and compliance
Leadership and succession plan in place
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Detailed Information
For more detailed information please click on the link below: • Q3FY19 result • Q2FY19 result • Q1FY19 result • Monitoring Agency Report for IPO proceeds • FY18 result
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Thank you
SHALBY LIMITED
Regd Off: Opp. Karnavati Club, S.G. Road, Ahmedabad – 380015, Gujarat, India. Phone: 079 4020 3000 Fax: +91 79 4020 3120 | Website: www.shalby.org | CIN: L85110GJ2004PLC044667
Script code: BSE: 540797 | NSE: SHALBY