GPT Healthcare Limited (GPTHEALTH) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to GPT Healthcare Ltd. Q1-FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sejal Bhattar from MUFG in time. Thank you and over to you ma'am.

Thank you Buddha. Welcome to Q1 and FI27 Earnings Call of GPT Healthcare Ltd. Today on this call, we have with us Mr. Anurag Tantya, Executive Director, Mrs. Kiti Tantya, CFO, and Mr. Atul Tantya, Group CFO. Before we proceed the call, I would like to give a small disclaimer that this conference may contain certain power-looking statements which are based on beliefs, opinions, and expectations of the company as or late. These statements are not guarantees of future performance and involves risk and uncertainty which are difficult to predict. A detailed disclaimer has been given in the company's investor presentation which is uploaded on the stockpixions. Now, I would like to hand over the questions to Mr. Anirak Tantia for the opening remarks. Thank you, and over to you soon.

Good morning, everyone, and thank you for joining us today for GPT Healthcare Ltd.'s Q1 FY27 earnings call. I hope all of you are keeping well. To begin with, let me share a few perspectives on the healthcare industry and the structural trends that continue to shape its long-term growth. India's healthcare sector is steadily shifting towards a model where the quality of care is becoming as critical as access. Rising incomes, greater health awareness, and expanding insurance penetration are enabling more patients to seek timely treatment at organized hospitals that can deliver specialized clinical expertise and better clinical outcomes. Consequently, demand for tertiary and quarterly care services continues to grow faster than the overall healthcare market. At the same time, a substantial gap persists between the demand for quality healthcare and the available infrastructure. Although India's healthcare system has advanced meaningfully over the past decade, the supply of hospital beds and access to advanced medical facilities remain significantly below global benchmarks. This shortfall is particularly evident in eastern and central India, where large populations continue to be underserved despite increasing healthcare requirements. We are also observing a clear shift in patient expectations towards hospitals that provide comprehensive, technology-driven care under one roof. Today's patients value not only experienced doctors, but also access to advanced diagnostics, robotic-assisted procedures, organ transplant programs, and integrated critical care services. These capabilities are emerging as key differentiators for organized healthcare providers and are reshaping industry competition. In addition, the rapid adoption of digital health technologies and AI-enabled solutions are transforming the way healthcare is delivered and experienced. Against this evolving backdrop, our strategic focus remains consistent. We continue to invest in strengthening clinical excellence, expanding specialized offerings, improving patient outcomes, and executing our expansion plans with discipline. We believe these priorities position GPT Healthcare well to capitalize on the long-term opportunities in the sector while delivering sustainable value to all stakeholders. Let me now take you through our operational highlights for the quarter. During the quarter, our total income increased by 18.2% and Pat increased by 66% compared to the same period last year. The network occupancy stood at 45.5%, while average revenue for occupied bed, or RFOB, improved to Rs. 42,350. Excluding the newly commissioned drive-off facility, occupancy across our mature hospitals maintained healthily at 58.07%, deflecting steady patient inflows and continued demand for specialized tertiary care. Approximately 90% of our revenues continue to be generated through cash and insurance patients, highlighting the strength of our payer mix and sustained demand for quality health care across our operating regions. Our performance during the quarter was supported by encouraging progress across each of the hospitals, starting with ILS Hospital Salt Lake. Our flagship surgery care hospital continued to deliver strong operational performance. The hospital further strengthened its leadership in robotic-assisted surgeries, with a cumulative number of robotic procedures now exceeding 800, reflecting increasing patient acceptance of advanced minimal invasive surgical techniques. During the quarter, occupancy stood at 62%, up from 60% on a via-via basis, while ARPOP improved to 45,300, supported by a favorable mix of higher-contributing surgeries. The hospital also received the approval for conducting the previous prestigious DRNB course in medical gastroenterology. This adds to a bouquet of excellence in clinical and academic work. Moving to ILS Hospital's Dumb Dumb. The hospital continued to build on the operation turnaround achieved over the past year and remain the highest-occupied hospital within our network. The renal transplant program continues to be one of the most recognized in eastern India, having successfully completed more than 700 renal transplants. During the year, the newly commissioned cardiothoracic and vascular surgery unit further strengthened our comprehensive cardiac care offerings, while advanced 3D imaging technology enhanced the hospital's interventional neurology capabilities. Dumb Dumb also continued its participation in the Bimaki clinical trial on acute kidney injury, reflecting a growing emphasis on clinical research and evidence-based healthcare. Occupancy for Dumb Dumbs stood at 65% compared to 60% of last year, and RPOPS stood at 43,041. At ILS Hospital Agatala, we continue to stand in our position as the leading corporate tertiary care hospital in Tripuram. Our comprehensive cancer care center, equipped with PET scan and linear accelerator facilities, has now completed more than 700 radiation procedures since its launch and continues to witness encouraging response. The hospital also achieved important clinical milestones, including preparator's legless dual-chamber implantation and the state's first subclavian and vertebral artery stenting procedures. Supported by these specialized capabilities, Agarthala is witnessing increased patient inflows from Bangladesh as well, further strengthening its position as an emerging medical value travel hub for the region. The hospital saw a slight decrease in occupancy because of geopolitical reasons, but the overall op-up grew by 70% to 41,573 on account of higher-end tertiary care work. At Isles Hospital's Havra, we were able to significantly increase our revenue by 31% compared to last year and increase our occupancy levels by 15%. We continue to strengthen our orthopedic franchise through the NACO's Robotically Replacing Program. The encouraging response to robotic-assisted joint replacement surgeries has enhanced the hospital's clinical positioning while supporting improvement in ARPOG through a higher share of complex procedures. We remain focused on steadily improving occupancy while expanding the contribution of specialized surgical services across the hospital. Coming to ILS Hospital RIPOR. Our first hospital in Central India has continued to scale up operations in line with our expectations. During the quarter, we further strengthened our service portfolio across oncology, chemotherapy, renal transplants, oncosurgeries, and cardiology. We have also conducted our first liver transplant operation, becoming one of the few hospitals to achieve this feat in just over a year of commissioning. The hospital added another feather to its cap by being recognized as an NABH hospital in a record time of just 13 months. The bed occupancy for this hospital improved to 17% compared to 7% of the same period last year. Supported by its strategic location and asset-light operating model, Rifle remains on track to achieve operational reheaven, while steadily expanding its reach across the surrounding catchment area. Our expansion plans also continue to progress well. Construction of our 155-bed tertiary care hospital at Jump Shadeford remains on schedule and is expected to be commissioned during Q4 FY27. The project represents another important milestone in our strategy of expanding across access to quality tertiary care across underserved markets. In addition, we continue to evaluate opportunities for our 7th house portal, which will increase our network capacity to over 1,000 beds in the next two years and further strengthen our presence across eastern and central India. Let me now take you through our financial performance for the quarter. During Q1 FY27, revenue from operations stood at 126.2 crores, while EBITDA was 26.2 crores, translating to an EBITDA margin of 20.4%. Profit after tax for the quarter stood at 12.7 crores with a packed margin of 9.9 performance. Our performance during the quarter reflects the resilience of our matured hospital, supported by healthy patient volumes, improved occupancy, and a favorable case mix. At the same time, our newer facilities continue to progress in line with our expectations as they move through the ramp-up phase. Looking ahead, our focus remains on executing a disciplined growth strategy through capacity expansion, stronger clinical capabilities, and prudent capital allocation. We are ramping up our arrival hospital, progressing the Jumshifu project, and evaluating opportunities for the 7th hospital, which will expand and effort beyond 1,000 beds over the next two years. At the same time, we will continue to strengthen our high-acuity specialties, expanding our transplant programs, and investing in advanced medical technologies. Our growth strategy is centered on building right-sized hospitals in high-potential underserved markets, improving occupancy and asset utilization, and maintaining a balance with charity mix. Backed by a healthy balance sheet and disciplined execution, we remain committed to delivering sustainable earnings growth while targeting long-term ROE and ROC of around 25%. I would like to thank our doctors, nurses, clinicians, and every member of the GPD Healthcare family for the dedication to delivering quality patient care. I also extend my sincere gratitude to our patients, shareholders, lenders, business partners, and all other stakeholders for their continued trust and support. With a strong presence of growing network and a clear roadmap for expansion, we are confident of creating sustainable long-term value whilst strengthening our position as a leading healthcare provider in Eastern India. With that, I conclude my opening remarks and request the moderator to open the floor for questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants will request the queue with handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Somya Raghuvanshi from Nirvana Securities. Please proceed.

Ms. Swami, are you there?

As there is no response, I am taking the next question from the line of Ruchita from CJ Shah Group. Please proceed with your question.

Hello, sir. Very good morning. So, sir, my question was on the Agarthala hospital itself. So, we are seeing geopolitical conditions, but, you know, we've been confident that in spite of that, we're going to increase our occupancy. So, what are we missing? Like, are you there issues taken or you're not seeing any, you know, just wanted to understand it.

Thank you for your question. So, the Agatala Hospital is improving every quarter. We are seeing improvement in RPOP and occupancy levels. Last quarter, there was a certain amount of debt in the occupancy level, and that was purely on account of the local elections in that area. There were tribal elections because of which the state had restricted movement during that phase of almost a month, which impacted the overall patient flow. That is what I meant by geopolitical conditions. Apart from that, we are seeing significant amount of patient inflow and increase. In fact, last month, we did one of our highest revenues ever in the hospital. So the hospital is on the right track. We are increasing our productivity across all disciplines and spectrums in the hospital.

So for last month what was the occupancy?

Last month we had an average occupancy of almost 51%.

Okay, so it's improving. And like this year-end, is our target in past or we've kind of recalibrated?

We are in line with our original target and our confidence will be reaching it.

Okay, and in July, was it only at Karthikala very good revenue? Or were there other hospitals which did better than what you've been doing earlier?

We are continuing good momentum across all hospitals. Quarter 2 does become a seasonally favourable season for healthcare, and that has its impacts across all the hospitals as well.

And Raipur, what have you seen? Is it improving above the 17% session?

Rajput is also continuing to grow. We are adding new specialties and verticals in its product offerings on almost a monthly basis. Like I said in my speech as well, we contracted liver transplant there last month. We are doing kidney transplants also. So there is a vast addition of spectrum of services being added, and that is adding to the overall growth of the hospital.

And we saw that in July as well, higher than 17% occupancy.

Yes.

Okay. Okay. That's it for now. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and run on their touchstone telephone. The next question is from the line of Adhishek Maheshwari from Skybridge Fund. Please proceed.

Thank you for taking my questions, and congratulations on good numbers. Just follow up on previous participant's question. You've explained the occupancy dip in Agarthala, but this splendid increase that we've seen in ARPA for Agarthala and Havra both, is it majorly because of the new high-end treatments, or you took calibrated price increases across all treatments?

We have not had any tariff increase in any of our hospitals. Our tariff increase generally happens in the month of October. This is purely an effect of incremental change in case mix. We have been focusing a lot on high-end tertiary care, including cardiology, oncology, neurosciences, which is giving it an impact in the blended R-copy increase.

Okay, good to hear. So, this is not a one-time thing. Going forward, this would be the strategy. We hope this will continue, yes. Okay. Secondly, can you say output loss during the Q1? It was minus 3 crore during Q4. Any update on Q1?

Q1 has been minus 3 crores.

Okay. Got it.

We expected to capo down throughout the year.

Right, right. And sir, anything on the Jamshedpur hospital, apart from that, any other city? I think we were linking up hospitalization some other year.

We are constantly evaluating greenfield and acquisition opportunities in these areas. It is just a matter of the right opportunity clicking. We have to be mindful of multiple factors, including location, pricing, etc., for the right hospital. So we are evaluating opportunities and are hopeful of clicking something in the near future.

Got it, got it. I'll get back to the queue. Thank you so much.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press down on their touchtone telephone. The next question is from the line of Parth Kotak from Plus91 Adet Management. Please proceed.

Hi, sir. Thank you for taking my question. Firstly, congratulations on a great set of numbers. A couple of questions from my end. One, Raipur, we've seen occupancy ramp up quite encouragingly. What should be our exit occupancy for Raipur?

We expect to close the year at around 30% occupancy at Rajapur. Okay.

Okay. Perfect. And, sir, Laki, if you can share the debt, has there been a meaningful change in our debt position because of Jamshedpur or is it the same as last year?

It is the same as last year. Jamshedpur will see an incoming debt, but that will happen in this FY. That will be to the tune of around 25 crores.

Perfect, sir. Got it. That's all from my side.

Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question, may press star and one on their touchtone telephone. The next question is from the line of Anuj Kashyap from A3 Capital. Please proceed with your question.

Hello. Good morning, sir. First of all, congratulations for the good set of numbers. Sir, like I wanted to know that there is a change in the government in the state of West Bengal and Kolkata is heavily like dependent, heavily government organizations are there like the eastern command of the army and SS railways and everything. In our total revenue, we don't have any government segment, our government segment of the revenue is very small. Do you think, in the future, are we looking to press the accelerator on it, like there is a general scheme of the government region, you are guessing, so what is your take on Thank you for your question.

Yes, there has been an encouraging change in governance in West Bengal. That being said, hospitals in West Bengal are not very big and do not require government patients to support the overall financial metrics of that hospital. As a result of that, we never really focused on government patients, be it from government corporates or from... The schemes. That is the reason why we have not focused on it at any point. Even now, we don't really see a need to change our strategy and focus on these patients because they come with a delay in payments and lower RPAB numbers for sure. So, in Calcutta, we have not really seen the requirement to do that. If the requirement does arise, we would be open to it.

Thank you. Thank you. Thank you.

A reminder to all participants, anyone who wishes to ask a question, you press star and one on their restaurant telephone. The next question is from the line of Fahel Sharma from DD Capital. Please proceed.

Hi, sir. Thanks for the opportunity. So, I have some questions with me. First question is that the company continues to target long-term ROE and ROC of around like 25%. So, beyond improving occupancy, what are the biggest levers to achieve this target over the

next three or like three to five years?

Thank you for your question. So, yes, occupancy increase is one of the main reasons. Apart from that, we have also been focusing on lower length of stay, higher R-POP patients by changing our specialty mix and adding higher end quarterly care services. That is also something which has already started giving results. As you can see, our RPOV has significantly ramped up on account of the change in specialty mix, and our length of stay has also gone down across all hospitals because of our focus on higher RPOV lower stay procedures. Apart from this, the newer expansion which we are focusing on is also on an asset-like basis which should impact the ROC positively as well.

Great, understood. And, like, would you consider providing medium-term guidance on occupancy and make sure hospital revenue grows, like, similar to what larger hospital peers have started doing?

We can request MUFG to get back to you on that.

Sorry, sir?

I will request MUFG to get back to you on that.

Okay, okay, sir. And one last question is, like, regarding the proposed Seren Hospital, has the company shortlisted potential cities, and also, should investors expect another Greenfield Hospital, or are you evaluating acquisition opportunities as well?

We have been focusing on the Tier 1 and Tier 2 cities of Eastern India. These include cities like Katak, Raji, Patna, Banaras, Prayagraj. We have been evaluating both acquisition opportunities and greenfield opportunities in these areas. So depending on the right location and the right price, we are hopeful that something should click in one of these cities.

Okay, sir. Understood.

Thank you.

Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question, may press star and run on their touchtone telephone. The next question is on the line of Nilanjan from TCG AMC. Please proceed.

Hi, sir. Thanks. I hope more of you. Just a quick clarification. Can you mention something about asset-led businesses? Will you verify what you mean by that?

Sure. Thank you so much. So, by asset light, I meant, for example, our existing or newly commissioned hospital of Raipur is on an asset light model where the developer has customized the building and given it to us on a long-term rate. Similarly, the Zamshetpur hospital also, which is coming up, is on similar lines where the developer is making that building to a specification and giving it to us on a long-term rate. As a result, the investment in the real estate has reduced significantly, and we are investing more in medical assets and allied finishing. That is what I meant by asset like this. Okay, so that's the model you will adopt there, I guess. We are not fixated on that model. This model has been successful for us in Raipur and in Ramshakepur. Going forward, it is really a factor of the location. If the location has an existing asset which can be converted to an asset like model, yes, we would go for that, but we are not opposed to an acquisition or a greenfield. Okay, understood. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question, please press down and run on their touch-tone telephone. The next question is on the line of Taneisha from Karen Capital. Please proceed.

Hi, thank you for the opportunity, sir. Alluding to the previous question where we take on an off-term rental basis, what will be the rental we are paying currently for I-PUR and for Yamashit-PUR will be paying for?

So, the RIPO rental is in the mid-thirties. It is as per the market area, market standard. Similarly, the Yamsheepro rental is around that much only, completely based on the market feedback, around the mid-thirties. Okay. Okay.

And what were the reasons for the dropping off frequency in Damdam and Agarthala hospitals?

So, there has been no drop in occupancy in Damdam Hospital. The drop in Agartalla occupancy is a factor of two things. A, our average length of stay has reduced in Agartalla, which has been a conscious call at our end to reduce it. So, the average length of stay at Agartalla has gone from almost 3.38 to just 3. That has reduced the overall bed days occupied, despite an increase in the number of overall inpatients we've catered to. So, this combination of the reduced length of stay has added to the reduced occupancy. Apart from that, there were tribal elections in the state of Tripura in the month of May, which added to restricted movement of patients in that entire region, which impacted some amount of patient flow.

Okay, sir, but in Dhamdham, our occupancy Q4 was 71% and it is down to 65%.

If you look at it on a, so that has a seasonal variation. If you compare it with the same quarter last year, it was 59.75%, which has moved to 65%. So Q4 to Q1, there is always a seasonal variation.

As compared to other hospitals where we have seen speciality mix being changed and that is related to R4 of injuries, so anything we are working at Dumb Dumb hospitals, other Dumb Dumb and Hover hospitals where we see the speciality mix would be changing?

Yes, we have been working. As compared to R4. We have been working on the change in speciality mix across most of our hospitals. In DumDum, there has been a strong push towards neurosciences and cardiac sciences. We have recently started cardiac surgeries in that hospital also, and in just five months, we've conducted almost 200 surgeries. Similarly, we are focusing very strongly on neurosciences also and high-end gastroenterology in that hospital. So, these are the focus on higher-end quaternary care services is giving its result in the Dandam Hospital. Similarly, in Havara as well, we've always had an excellence in orthopedics and joint replacement. We are supplementing that with a focus on nephrology and cardiology as well.

So, we can see similar hypo-op increases we've seen in current quarter for the Agarthara and our hospital, right?

We are assuming, we are assuming the RCOB to increase, it must stay stable. Thank you. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question, may press star and run on their touchtone telephone. The next question is from the line of Vart Sangvi from DYDX Advisors. Please proceed.

Am I ready for it?

Yes, please, go ahead.

So my first question is, I would have been with you from Q4 to Q4. This season for this theme, and to be expected.

I'm sorry I'm not very clear. Yes, go ahead.

I was asking about the IFOB in an ICO hospital, which is the DOC Q1. So, are we looking to further reduce or to improve the ICO?

So, the RPAB in Raipur has increased, has reduced slightly. It has gone down from almost 44,500 to 42,300. So, it is a minor reduction in RPAB compared on a quarter and quarter basis, and that is primarily because we are taking a limited amount of Ayishman Bharat patients in that hospital. It is a new hospital with spare capacity because of which we are taking some Aishmanwarath patients which generally work at a lower RPAB compared to the cash or insurance patients. That is clearly the reason. We don't expect it to fall a whole lot after this because now we have attained most of the insurance and payments also and the RPAB level should maintain if not increase.

What will be the expected RPOB in that hospital based on the therapies that we are looking for?

So the RPOB, initially the RPOB level at that hospital should be around the 38,000 to 40,000 mark. Slowly as the hospital establishes, we expect to catch up with the Calcutta level of around 42,000 to 43,000 on current terms.

And when we are planning to break even the Jamshed Guru, Apgur.

Any new hospital takes roughly 24 months to break even, especially when we are moving away from our home city of Calcutta. We expect the Yamashirpur hospital also to break even in around 24 months. However, that being said, historically, we have broken even within 12 months in both our Dandam and Havra hospital. In Raipur also, we expect our break even to happen around the 20-month mark. So, we are hoping we should be achieving our historical benchmarks.

Okay. Thank you. No problem. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question, may press R&B on their question telephone. The next question is from the line of Anuj Kasha, from A3 Capitals. Please proceed.

Hello, sir. Thank you for the follow-up, sir. Sir, I just wanted to know, sir, that do you keep the record of the attrition numbers, whether in the case of doctors and nurses?

Yes, we do keep the attrition records of doctors and nurses. That is maintained across all hospitals.

And, sir, what is the attrition rate among doctors?

So, the attrition rate among doctors is not very high. It is in the single digits, especially in our Califta market. It is slightly higher in the Agartila and Raipur because those hospitals... Come with their own geographic challenges. It would be around 10% in Agatala and Raipur, but in Calcutta, it is around 6-7% mark.

And sir, what is your strategy to get hold of the good doctors and the staff? How we reward them? It's not basically monetary, but how we can keep them as a family together?

There are multiple strategies in place for that. We use a lot of reward mechanisms. I'm not just talking about financial rewards. There are other rewards as well at a staff level. We also have a nursing college in Azatalla, which also gives us a lot of access to a lot of highly trained nurses who are being trained by our own team. We conduct training programs for our staff on a regular basis. These are certified training courses and internal training courses as well. For the doctors, we heavily invest in academics. There are academic programs running across all our hospitals which give the doctors access to some of the best materials in the country and training in the country. We are attracting doctors on account of our academic work and on account of the locations where we are operating.

Thank you. The data number is very good, but I just wanted to know about it. Thank you.

Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and run on their restaurant telephone. The next question is on the line of Santos Shetty from LFCG Capital. Please proceed.

Good morning, sir. So, just wanted to ask a couple of questions. Like, the first one is the hospital has now crossed multiple clinical milestones and oncology appears to be ramping up well. Do you foresee Agarthala emerging as one of the highest growth hospitals within the network over the next two or three years?

Thank you for your question. That is definitely hope by which we have set up that hospital as a 200-bedded tertiary care hospital catering to the entire state of Tripura. We definitely hope that it should emerge as one of the highest hospitals in our network, but that is also contingent on multiple factors, which we are constantly working on. So, based on the growth and the traction we see, we are hopeful that it should definitely be one of the highest in our network.

Okay, okay. And another question in regards to that, Havra has consistently seen improving occupancy. So, what do you think are the key bottlenecks today to increase the occupancy to the fullest? Is it doctor addition, specialty mix, or simply market awareness?

So, there is a lot of awareness of our hospital. We have been marketing our hospital very well. We have been adding new departments and doctors as well. It is an evolving market which does not have the presence of a corporate hospital. We are the first corporate hospital in that micro market. So, it is a lot of creating awareness with regards to paying healthcare, good quality healthcare. People were used to traveling to Kaisata from Havra for the healthcare, so we are addressing their concerns when it comes to delivering quality healthcare in Havra itself. So it's an evolving market which we are addressing through our clinical excellence.

Okay, sir. And this is the last question. You highlighted increasing inflows from Bangladesh and strong traction and oncology. Could you comment on whether international patient inflows have now normalized to pre-disruption levels or is it still further upside over the coming quarters?

It is definitely an upside over the past few quarters that you were experiencing, but it has still not reached the pre-disruption levels. There have been changes in the policies of both Government of India and Government of Bangladesh, which is impacting this positively, I would say, because now the visa requests are coming with the targeted hospital names and not open access. So that is definitely helping in ensuring that patients who are taking the visa letters come directly to us. So there is a definite improvement with regards to the policy, and hopefully this should help us in getting back to the pre-disruption levels in the next six months. Okay, sir. Thank you so much for answering my questions. All the best.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and run on their restaurant telephone. The next question is on the line of Ruthita from CJ Shah Group. Please proceed.

Thank you for the call. So, basically, my question was more on the EBITDA front. So, since June is kind of, you know, week or quarter for us, so going ahead, do you see like a 50 crore run rate on the EBITDA, which would obviously translate to 110, 120 crore of EBITDA annually. Do you see that? Because our jobs are increasing and our occupancy is increasing, which would give us an operating leverage.

We expect the EBITDA levels to improve compared to last year on account of better occupancy of mature hospitals and the reduced loss of Arapur Hospital. We expect to close the year at around 21% EBITDA margins compared to the 19% of last year. So that is a 200 basis point increase in EBITDA margins, which would translate to somewhere around 110 crores, 115 crores.

Okay, this is including the other income that we're talking about.

Yes.

Okay. Okay. Understood. And we are confident that Jamshedpur coming in the fourth quarter, and would it be like in the beginning of the fourth quarter, or it would likely be...

We are expecting the hospital to be commissioned by late of fourth quarter, so there might be, if... The approvals come in place. We are hopeful of starting that, but in case of any delay in approvals, it might be pushed to first, the beginning of next year.

Got it. Got it. Understood. Thank you.

Thank you. Thank you. A reminder to all participants, anyone who wishes to ask a question, may press that and run on their touch-to-on telephone. The next question is from the line of Soumya Raghuwanji from Birma Securities. Please proceed.

Thank you very much for the opportunity. Sir, I just had a couple of questions from my side. Firstly, on Sword Lake. Sword Lake continues to deliver higher ARPOP driven by robotic surgeries and complex procedures. Going forward, do you see ARPOP growth being largely speciality laid, or is there still corporate revisions across key departments?

Thank you for your question. We do have an annual tariff increase in the month of October, which is inflation-linked, so that should definitely add to the overall RPOB increase, but that is a very small contributor to the overall RPOB increase. Bulk of the, or almost, I would say, 50% to 60% of the RPOB increase comes from an improved specialty mix and change in case mix.

Okay, sir. Understood. So, my next question is, last quarter, you had indicated that the restructuring exercise for Tam Tam was largely complete, and the focus had shifted towards higher art forms, departments such as cardiac surgery and advanced urology. How has the contribution from these new specialties evolved in Q1, and when should investors expect meaningful revenue acceleration from Dandam?

So, there has been a significant, the change is an evolution, is a process which is constantly happening. It is not something which finishes. Yes, we have been focusing on newer departments in that hospital, and which has started to give its results. We've seen an increase in the ARPAB levels and the occupancy levels of that hospital. So, it is a constant process which is happening. We expect that hospital to reach optimum occupancy levels in this year itself. Even last year, we had touched 70% in a couple of quarters. We expect that to become normal for us by the quarter three of this year.

Okay, sir. Thank you so much. Thank you so much.

Thank you so much. Thank you. A reminder to all participants, anyone who wishes to ask a question, may press start and run on their custom telephone. The next question is from the line of Yash Mehta from HKT Capital. Please proceed.

So, first of all, thank you for the opportunity. I have got a few set of questions. So, firstly, since the hospital has now crossed multiple clinical milestones, an oncology appears to be ramping up well. So, do you foresee Agarthala emerging as one of the highest-going hospitals within the network over the next two or three years?

Thank you for your question. Yes, Agarthala Hospital is showing good traction to us. We are seeing an increased amount of patient footfall across OPDs and IPDs at the hospital. The hospital was meant to be a tertiary care hospital, now a quaternary care hospital, catering to the entire state of Tripura and Eastern Bangladesh. So, we are definitely hopeful that down the line, it should be one of the highest revenue journals in our network of hospitals. There are other hospitals also which are giving its competition in the form of Agatala and Raipur and Dambam, but we are hopeful Agatala should also be fighting to retain the top spot.

Okay, got it, got it. And moreover, however, I have also seen consistently improving occupancy. So what do you think are the key bottlenecks today like to increase occupancy to the fullest? Is it doctor addition, some kind of specialty mix, or simply the market awareness?

So, yes, Havra is also seeing increased traction. We've grown by almost 30% in Havra on a why-why basis. Havra is an evolving market where we are addressing multiple concerns, including trust of patients. People have been used to going out of Havra in that micro-market to Calcutta for their treatment, setting up a world-class hospital in that area. It is leading to a lot of market education. Thank you. Teaching to patients with regards to paying healthcare in their own vicinity. Apart from that, yes, we've been adding a lot of departments and consultants to our hospitals as well, which is leading to a positive branding for that hospital as well. There is a big shift which we are doing in that region with regards to hospital branding rather than doctor branding. Those are also having its impacts in that hospital.

Okay, understood, understood. And you also mentioned, like, that liver transplant services has come in shortly. So what could be the potential impact on occupancy over the next two minutes?

So, we've already done our first liver transplant operation in the Raipur Hospital. Liver transplant, while it is a very big clinical and academic milestone for us, we don't expect a lot of numbers in this because it is a very rare surgery, which is academically and clinically very important. It highlights the level of care and service delivery we are capable of and are doing in that hospital. Overall, we expect to do around 10 liver transplants a year in that hospital. And that is a program which is ramping up. This I am talking in the first year. Hopefully, down the line, the program, once it gains a reputation, should be doing a lot more.

Thank you. All the best. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question, may press star and run on their touch-to-one telephone. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.

Thank you all for your valuable questions. We hope our responses have provided clarity you were seeking. If you have any further questions, our IR team will be happy to assist you. Your continued trust and support inspire us to pursue our vision with confidence. We look forward to achieving greater milestones together and creating lasting value for all our stakeholders. Thank you and wishing you a pleasant day ahead.

Thank you. Thank you. On behalf of EPG Health Care Limited, that concludes this conference. Thank you for joining us, and you may now disconnect tonight. Thank you.