Shalby Hospital Business Registered Highest Ever Annual Revenue of Rs. 6,598 million up by 54%

Shalby Hospital Business Registered Highest Ever Annual Revenues of Rs. 6,598 million up by 54%, and EBITDA of Rs. 1,426 million up by 49% with margins of 22%, primarily driven by increase in In-Patients count by 41% and Total Surgery count up by 70%

Ahmedabad Gujarat, India, May 26, 2022: Shalby Limited, India’s leading multi-specialty hospital, has announced its financial results for the fiscal year ending on March 31, 2022.

 

Hospital Performance Highlights: FY2022 vs FY2021

Total Revenues of Rs. 6,598 million, growth of 54% y-o-y

Operating EBITDA of Rs. 1,426 million with EBITDA margins of 22%

Profit After Tax was Rs. 698 million, growth of 63% y-o-y

Realized Return on Capital Employed improved to 14%, compared to 8% in FY21

Bed occupied during the quarter were 563, with occupancy rate of 46%

In patients count of 40,603, growth of 41% y-o-y

Total Surgery count of 20,240, growth of 70% y-o-y

Hospital Performance Highlights: Q4 FY2022 vs Q4 FY2021

Total Revenues of Rs. 1,523 million, growth of 6% y-o-y

Operating EBITDA of Rs. 323 million with EBITDA margins of 21%

Profit After Tax was Rs. 157 million, growth of 42% y-o-y

Bed occupied during the quarter were 499, with occupancy rate of 42%

In patients count of 9,629, growth of 11% y-o-y

Total Surgery count of 5,558, growth of 1.6% y-o-y

 

Mr. Shanay Shah, President said:

“Shalby delivered a strong performance during the year and I am pleased that Shalby as a hospital group was able to support the Covid-19 patients especially during the second wave of Covid-19 which impacted the lives of many. In the second half of the year, we saw a strong recovery of elective surgeries which continues to drive our core specialty revenues.

 

During the year, a total of 20,240 elective surgeries were performed, an increase of 70% on y-o-y basis. We saw a strong jump of 41% for in-patient count and travel of international patients has also resumed. Occupied beds increased to 563 up by 31% in FY22 from 428 occupied beds in FY21. ARPOB and ALOS were recorded at Rs. 33,707 and 4.55 days in FY22 vis-a-vis Rs. 27,400 and 5.42 days in FY21. Our core specialty such as Arthroplasty, Critical care & General Medicine, Oncology, Cardiac Science, Orthopaedic, Neurology and Nephrology contributed 29%, 22%, 9%, 8%, 8%, 5% and 3% to the revenues respectively.

Continued generation of strong cash flow from hospital operation of Rs. 1,238 million helped to strengthen our balance sheet further. Our Realized Return on Capital Employed has increased from 8% in FY21 to 14% in FY22. We have closed the year with a net cash balance of Rs. 475 million at group level and are well positioned to fund our strategic growth plans.

Shalby has evolved and become a true multi-specialty hospital group which is backed by clinical excellence and patient delight. Shalby Jaipur created history with 200 Joint Replacement surgeries in a month by a single Orthopedic surgeon. We at Shalby units, have successfully completed total 28 Kidney and Liver transplants in FY22. We continue to focus improving internal systems and processes. We have also successfully implemented SAP in February 2022 and this strategic implementation aims to strengthen our financial & operational processes by improvising database management, administration, security, real-time access and advance analytics to support the business decisions.”

Mr. Sushobhan Dasgupta, Vice Chairman and Global President said:

“In FY22, Shalby delivered strong performance across all key operational and financial indicators. The company continued to achieve many milestones in clinical excellence across Shalby units and proud to make a difference in people lives.

 

During the year, we undertook various initiatives to improve occupancy levels and brand recognition by leveraging digital media and marketing campaigns. We are also focusing on geographical expansion of our footprint which will support our growth aspirations. Our Asset light franchise model plan is witnessing positive traction among partners and customers, we have added 3 hospital under franchise model at Udaipur, Gwalior and Kanpur. We have plans to open over 50 Shalby franchise hospital across India within the next 3 years and capitalize on Shalby expertise and excellence in orthopedics.

 

At Shalby Consensus, we have made significant progress within first 10 months of the acquisition. We have built a team of experienced professionals to lead the key departments, improved the operational capacity by around 50% and now focusing on improving the customer mix from wholesale to retail. In February 2022, we have received import license for complete range of Joint replacement products i.e. Total Knee System, Total Hip System for selling them in India. This will allow Shalby to import implants for internal consumption also cater to the additional demand for implants from the franchise centres and other hospital in India. Furthermore, we have launched new knee implant product called TCKS (Tahoe Unicondylar Knee System) for the US market very recently and the initial responses have been encouraging. The implant manufacturing business is fully synergistic with our core existing hospital and arthroplasty business, and we remain on track to achieve our annual sales target of Rs. 100 crores by end of FY23.

 

We are constantly innovating, improving our systems and processes, expanding our reach, developing talents and strengthening our brand to serve more patients with highest quality of healthcare offerings and enhancing overall patient experience. Our strategic initiatives are expected to drive the sustainable growth momentum of the business in the coming years and create value for all stakeholders.”

About Shalby Limited:

Shalby Limited (Shalby Hospitals) is India’s leading multi-specialty hospital established by Dr. Vikram Shah and has over 28 years’ experience in delivering quality and affordable healthcare. It currently operates a chain of 11 multispecialty tertiary hospitals across India with an aggregate bed capacity of over 2,000 hospital beds. Shalby has a 4,000 plus in-house team of skilled doctors, surgeons and support staff with relevant industry experience and in-depth domain expertise, who have been leading the Company’s growth. It is one of the top hospitals in joint replacement surgery in India with 15% market share in private hospitals offering joint replacement and 5% overall market share. Shalby is also the number one player worldwide for knee replacement surgery. The hospital is capitalising on this niche and working on an asset-light model around India.