Shalby Ltd

- Hospital business is expected to achieve 18-20% annual growth driven by higher occupancy and ARPOB (average revenue per occupied bed) increases of 3-6%. - Occupancy levels projected to grow 15-18% in existing facilities with additional inorganic growth from acquisitions like Sanar Hospital. - EBITDA margins in the hospital business currently at 25-26%, with expected margin expansion due to operating leverage at 50-52% occupancy. - Implant business margins expected to improve from high single-digit EBITDA margin next year to higher double-digit margin in 2-3 years. - Standalone hospital ROCE improved to 20% (annualized in Q3 FY24) with strong balance sheet and low gearing supporting growth. - Franchise business expanding with 4-5 opportunities under evaluation; Rajkot unit expected operational soon. - Overall, growth in topline and profitability expected from organic improvements, new capacity, acquisitions, and operational efficiencies over next few years.

- For the Sanar Hospital acquisition, the funding has been done from internal accruals with Rs.102 Crores already infused. - The company plans a debt-equity mix of 50:50 for further funding related to this acquisition. - Around Rs.70 Crores cash utilization is expected in the next 12 months for working capital and product launches, but the net debt position is expected to remain stable or improve, indicating no significant new debt raising planned beyond this. - There is no mention of any new equity fundraising in the call. - Overall, the company is maintaining a strong balance sheet with low gearing (0.14x group level, 0.02x standalone hospital business). Hence, no immediate large new debt or equity fundraising is indicated, but selective debt utilization and internal accruals are planned for ongoing projects and acquisitions.

- Shalby Limited is pursuing both Greenfield and acquisition strategies for growth. - Greenfield projects include Mumbai (Santacruz), expected to take 3-4 years to become operational. - Nashik project is delayed due to developer issues; no timeline given yet; no capital employed by Shalby so far. - Recent acquisition: Sanar Hospital (180 beds, expanding capacity), adding to hospital business growth. - The company is exploring multiple franchise opportunities with 4-5 in due diligence, targeting 40 franchises over 4-5 years. - Capital infusion for Sanar acquisition involved a mix of internal accruals and debt-equity financing (50:50). - Implant business investment includes expanding production across multiple vendors, increasing engineering team, new product launches (CKS Gold), and expanding sales presence, particularly in the US and emerging markets. - Investment continues in supply chain optimization and operational cost reduction.

Future growth expectations for Shalby Limited are as follows: - Hospital business expected to achieve 18-20% annual growth, driven by organic and inorganic expansion. - Occupancy levels to grow 15-18% in existing facilities, with ARPOB (average revenue per occupied bed) increase of 3-6%, resulting in overall 20-22% growth in hospital business. - Inorganic growth opportunities like Sanar Hospital acquisition to add to revenue. - Implant business revenue targeted to maintain or slightly grow, with aggressive Q4 effort to meet prior year's levels. - Implant EBITDA margins expected to be in higher single digits next year and higher double digits in 2-3 years. - Franchise hospital expansion continues; 40 franchise hospitals planned over next 4-5 years. - New territories like Malaysia, Argentina, and Middle East to open for implant sales. - New product launches and increased sales force to drive implant business growth. - Continued focus on operational efficiencies and supply chain optimization to improve margins.

- Shalby Limited is accelerating production of lower-cost implants and instruments across multiple vendors to clear back orders in India and Indonesia. - The company is actively engaging prospects through virtual and face-to-face training, educational programs, and live surgeries to boost surgeon confidence. - Increased sales efforts in the US and India, with plans to add more sales personnel ("feet on the ground"). - Expansion into new territories such as Malaysia, Argentina, and Middle East countries planned by the end of 2024. - The implant business is expected to grow with new product launches like CKS Gold and Ambition knee implants. - Ongoing efforts to improve operational efficiency and reduce procurement and day-to-day costs. - Focus on clearing backlogs and enhancing supplies to meet demand in key markets including India, Indonesia, and the US. - Overall, the company is confident of significantly improving implant business results and order fulfillment through these measures.