Artemis Medicare Services Limited (ARTEMISMED) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Artemis Medicare Services Ltd. Q1-FI27 Earnings Conference Call hosted by Anungvati Shares and Stock Brokers Ltd. 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 touch-tone phone. Please note that this conference is being recorded. And now at the conference, over to Mr. Himansha Binani from Andrati Shares and Stockbrokers Limited. Thank you. And over to Mr. Binani.

Thank you, Nirav. Good day, everyone, and welcome to the 1QF527 and next conference called Atlas Medical. Stead by Andrati. This is the problem. From the management, we have Dr. Devlena Chakravarti, Managing Director, Mr. Sanjeev Kotari, CFO of the company, and Mr. Rudra Narayanachalji, Head of Investor Agency. I would like to thank the management for giving us this opportunity to host this call. We will begin the call with a brief management post which we will have the session open for Q&A. Without further ado. I would like to hand over the call to Dr. Daghina. Thank you, and over to you, ma'am.

Thank you, Hemanshu. Good morning, and thank you for joining us for the Earning Call. We hope you all got a chance to go through our investor presentation uploaded on the stock exchange. We are pleased to share our financial and operational performance for the quarter ended June 30, 2026. I would like to begin by providing an overview of the health care sector and the overall hospital industry. The health care sector continues to see a sustained demand for quality, tertiary, and quaternary care services, supported by increasing awareness, improving access to advanced medical treatments, and rising preference for specialized health care. At the same time, hospitals continue to focus on expanding capacity, strengthening clinical capabilities, and adopting technology to improve patient outcomes and operational efficiency. We believe these trends will continue to support long-term growth for quality health care providers. Turning to our performance, Quarter 1 FY27 marked a significant quarter for Artemis as we continue to execute our growth strategy while maintaining our focus on clinical excellence and operational efficiency. Our consolidated revenue from operations for the quarter was at 287.35 crores, reflecting a year-on-year growth of 12.7 percent on a consolidated basis, and standalone year-on-year, Burgaon showed a top-line growth of 15.4 percent. This performance was supported by sustained demand across our key specialties, particularly cardiology, oncology, neurosciences, and orthopedics, along with continued improvement in case mix and higher contribution from complex procedures. Our EBITDA for the quarter was 61.78 crores. With an EBITDA margin of 21.5%. The quarter reflects our continued focus on improving operating efficiencies, optimizing resource utilization, and maintaining disciplined cost management across our healthcare network. Our profit after tax for the quarter was reported at 31.56 crore, representing a year-on-year growth of 48.9%. The improvement in profitability reflects the strength of our operating model and our continued focus on delivering sustainable and profitable growth. Operationally, our flagship Gurugram Hospital continued to perform very well during the quarter, supported by sustained patient volumes across key specialties and continued demand for advanced tertiary and quaternary services. Our occupancy for the quarter was at 65.7%, while average revenue per occupied bed increased to 85,690, reflecting continued improvement in case mix and higher contribution from specialized procedures. A key milestone during the quarter was the commencement of operation of Artemis Shanti Hospital, Raipur, our 300-bed multi-specialty tertiary care hospital in central India. The hospital became operational during the quarter under the Artemis brand and marked an important step in expanding our presence beyond North India. Equipped with advanced medical infrastructure and comprehensive specialty services, the hospital strengthens our ability to provide quality health care across a wider geography while creating an additional growth platform for the company. Although the hospital has very recently commenced operation, we are encouraged by the initial response and expect its contribution to increase as occupancy improves and additional specialties become operational. Our international patient business also continued to perform well during the quarter despite the West Asian war. We continue to witness demand from Middle East, Africa, CIS, and other international markets supported by our strong clinical outcomes and patient experience. Our focus remains on strengthening relationships across these regions while expanding our medical value travel platform through targeted outreach and clinical excellence. On the expansion front, we continue to make steady progress across our growth initiatives. We have received the approval from the shareholders for the proposed QIP, providing us with greater financial flexibility to support our expansion plan. We are in the process of starting our Tower 4 at Gurugram facility, subject to getting all the clearances and compliances. This marks another important milestone in our long-term expansion roadmap. The Tower 4 in Gurugram would house 200-plus beds within the same campus. Together with our expansion in Raipur and the planned South Delhi facilities, the projects which have already been announced, this would provide a total bed capacity of 2,000 operational beds by 2029-2030. On the clinical front, we continue to strengthen our centers of excellence by expanding specialist capabilities and introducing advanced treatment protocols across key therapeutic areas. All our transplants programs, including our heart and lung transplants, are doing extremely well with great patient outcomes. Technology continues to remain an important part of our operating strategy. We are further expanding our use of AI-enabled patient workflows, digital technologies, and data analytics to improve patient flow, enhance clinical decision-making, and optimize operational efficiency across our hospitals. These initiatives are expected to further improve patient experience while supporting scalability across our network. Sustainability also continues to remain an important part of a long-term strategy. We continue to focus on energy-efficient operations. Responsible resource utilization and environmentally sustainable healthcare practices across our network. These initiatives are aligned with our commitment to create long-term value for all our stakeholders while contributing positively to the communities we serve. Looking ahead, we remain focused on executing our long-term growth strategy. The successful commencement of Artemis Shanti Hospital in Raipur, our planned expansion in South Delhi, our Tower 4 project within the Burgao premises, our strong pipeline of our expansion. Our focus will remain on expanding capacity further. 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 the attached on telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and 1 to ask the question.

First question is from the line of Aditya Chera from Inquid Asset Management. Please go ahead. Aditya, sorry to interrupt you.

Can you repeat your question? We were not able to hear you.

I hope I am audible now.

Yes, you are.

Yeah, my question is on the international patient mix that has come off a bit. If you can, you know, share some outlook on the reasons behind the lower share, and how do you see this segment going forward?

So, Adarsh, the international patient mix continues to grow, is what I would like to say, and despite the West Asian war, in quarter one, we reported almost close to 30% of international business, 27% of international business, but if you see the overall business has grown. So in real time, the number of patients were... Actually, they were not that compromised as compared to some of the other hospitals. The reason is we do not have a single regional dependency, and the point is we are getting a large number of countries from where the international patients are coming, and every year we add two or three newer fronts. We open two or three newer international fronts to maintain this momentum, And in quarter two, we are again hopeful to see it closer to if not better than 30 percent is what we are looking at. And what I'm trying to emphasize here is that despite the West Asian war, when actually all the flights from West Asia stopped and we still managed 27 percent of international patients with, you know, 12 to 15 percent movement on the top line. So, in terms of number of patients, we more or less manage the balance. So, I hope I'm able to answer your question.

Right. My second question is on the point where we have announced the additional expansion of 200 beds. By purchase of additional FAR, whether this was a function of the change in regulations, which allow higher vertical construction and higher FAR, particularly for the Delhi NCR region. And if you can, you know, lay down a timeline for us, there are two elements here. A 100-bed FAR increase of the Platinum Green Building Certification and the additional 200-bed FAR. How are you thinking about your timelines in terms of occupied beds? Yeah.

So, basically, thank you for your question. So, it is, the tower 4 is basically a combination, like you mentioned, of the platinum rating, which gave us anywhere between 130 to 150 beds. But we wanted to maximize this, so we had to buy a minimal FAR, which was because of the change of the government rules, to go to 200-plus beds. And the timeline we are looking here is between around 18 to 22 months to be able to fully operationalize this.

Okay, just to clarify, this 100 and the 200 is different, right?

No, no, so this 200 is part of the 130 to 150, which we got free, of course, because of platinum rating, and another 70 beds additional FAR we have bought, so because of the change in the, you know, the height and we can go up further, so that we are able to once and for all completely utilize the government's permissible Thank you very much. So, this 200 beds plus is a combination of the extra FAR from Platinum Building and a small part we have also bought to be able to completely utilize our FAR.

Okay, got it. Thank you.

Thank you. Next question is from the Ryan of Samit Gupta from Antics Talk Broking. Please, go ahead.

Good morning.

Samit, the audio is not clear. So, what can you hear us?

Congrats on a good set. So, just want to understand, like, Gurgaon Hospital has reached nearly, like, margin has reached over 20%. So, like, in FI27 only, we can, like, see, 20 to 21% kind of margin.

Yes, sure. Absolutely. So, over the next 2-3 years, is it fine? Yes, it's fine now.

So, over the next 2-3 years, can we achieve around 20 people in Burma only?

Yes, the answer is yes.

And how is your rightful facility going on all the data summits of patients? So, like, what kind of patient can you witness?

We have witnessed a very encouraging trend as we have started. So we started on 9th of July, basically the OPD, and 27th of July is when the theaters and the CAT labs got operational, and we are seeing a very, very encouraging trend in terms of OPD football diagnostics, which has started on 9th, and early surgeries have also started happening there, And some complicated surgeries like commandos and all have also started happening there. So that gives us a good feel that, you know, we are on the right track and we are on the right wicket.

So, what kind of occupancy, like, can we expect over the next two, three, four years, and any losses that you are, so your loss, right, and stimulus are the same, or, like, can we expect...

So, so, you know, in a macro level, so we will break down for when we are fully operationalized, and maybe in the... We have a quarter to call that we take with all of you, but on a macro level that we have looked at it, we are going to be looking at 15 to 18 months of break-even, around 20 CR of overall operating loss, and occupancy. It's very early days because we have just started it, so we will be able to give you better handle, but as far as we are concerned internally, we are on track with whatever we had calculated, but we'll come back with exact numbers and figures in our quarter two presentation.

Thank you for the rest of the time.

Thank you.

Thank you. Next question is from the line of Ardesh Gosalia from Spark P. Rebdelen. Please go ahead.

Yes, good morning, everyone. I hope I am audible.

Yes, you are.

Congratulations for a great set of numbers. There are a couple of questions which I had. Firstly, just to get a better idea on the new expansion that we have announced. So, this new facility will continue to be a multi-specialty, continue to host all the facilities that we have, or are we looking at something specific in this new building?

It's a very pertinent question, and thank you for asking that. So this 200-plus facility is going to be extremely advanced tertiary and quaternary pediatric care and advanced gynecological and obstetrics wing. Basically, we are running a complete, but there is no extra cost which is being incurred. So we are running every pediatric super-specialty. I think we are known as the best pediatric tertiary, quaternary care super-specialty. But now we are putting them all together under one roof to be able to put it up to the people for them to realize that this becomes their one-stop shop for advance, whether it is a... High-end pediatric You know, heart surgery, pediatric heart transplant, liver transplants, or bone marrow transplants, or any kind of high-end pediatric orthopedics, endocrinology, gastroenterology. So while we were doing it all together, now we are putting them under one roof by adding these 200-plus additional beds so that the aim is to become the nodal referral center for Haryana, if not the entire NCR, for advanced pediatric and obstetric and gynecological care. So, it's a positioning statement that we are doing, and that's the reason of clubbing them together.

Okay, okay. And as you said, this will be a, you know, a core focus specialty. So, the margins over here are expected to be better than what we are generating in the normal, in our collection facility, or how do you think it will be?

So, the margins will be same to better, is what we predict, because as you know, we are continuing with all these specialties already. It is just like putting them under the same roof. But yes, having said that, since we are adding to economies of scale by adding 200 plus beds, so we look to improve. The overall margins beyond 21% is what I can say.

Okay. So continuing on the margin front, we have witnessed one of the best quarters on our control level when it comes to our return margin. So, is this the concern level? I think if you can just help me out with what are the drivers, like what are the operational drivers that have made such a good performance and how sustainable they are? And is it right to assume that cardiac care has now turned positive even on path level and has generated some decent profits? So, is that one of the drivers?

So, no, so while rightly you said the other smaller centers and cardiac care, but you must also remember 95 to 97 percent of revenues come from our Gurgaon specialty, the tertiary care and the quaternary care. So I would say the first reason for improved margins is economies of scale. Our cost remains the same, and we are able to admit more and more patients with almost more or less the same manpower cost. That is one big thing. So adding another 200 beds, you will only see these margins going up further. Yes, some of the other contributors are the smaller centers, but more importantly is the change of case mix. If you see our ARCOV, which is one of the highest in Delhi NCR, continues to grow because we are now seen as not just a tertiary, But one of the best quaternary healthcare facilities. So people come in for high-end work, high-end surgeries. We have brought in efficiencies in terms of our consumption. We have brought in efficiency in terms of average length of stay. We have optimized manpower parts. So all of this together, so if you were to ask me three points, I would say economies of scale, case mix, and the third would be contribution from the smaller centers, but that continues to be a relatively small contribution.

Okay. Okay, got it. Just a last question on the occupational bed. Would we average at around 545 even in Q1? And that has been the trend over the past. The average occupational bed that we are running came in at 544, which is, you know, something that has been there since Q1 of last year.

Our occupancy for quarter one was 66%. And we are looking to improve it in quarter two, and that's the reason we are already in talks to add 200 beds, because we feel we are at an infliction point where we would need more beds to prevent patient denial.

Okay. Okay. Thank you so much for answering your question. I will call back in the chat. Thank you.

Thank you. Thank you.

Thank you. Next question is from the line of Abhin Bini from JM Financial. Please, go ahead.

Hi, thank you for the opportunity. Hope I'm audible.

Yes, you are.

Yes, go ahead. Thank you, ma'am. First of all, congratulations to the management and the great set of members. I have two questions. First one, ma'am, in the Raipur asset, what are the specialties that have been made available since the last 10 to 15 days since it hasn't started, and what are the phased plans to add the advanced specialties like onco-radiation going forward, and possibly the habits that we would be looking for that?

Yeah, okay. Great question. So actually, Raipur facility, when we started, we did a soft launch on 9th July, and we started with all the OPD services. But we are not doing any phased kind. We are starting everything together. So as we speak, we are doing an oncho surgery today, a very high-end commando surgery today. So we have started with advanced cat lab, EP systems, neurosurgery. So all of that has started... together in terms of services provided, and the overall CAPEX has been 120 crores. I stand corrected. 80% of the CAPEX is already done, and as we speak, certain installations like the PET CT are under installation, and the radiotherapy unit is on its way. That is to answer your question, that we are providing all the services at one go, and everything will start going live based on the installation between 10th of August to, I think, end of August. Yes.

Got it, ma'am. And regarding my second question, which is about the Tower 4, which I believe is the women and childcare that you mentioned, what kind of cross-integration with the main hospital are we looking at? Like, would there be a separate team altogether for the entire facility, or would there be any cross-integration as such?

So, like I said, we are already doing tertiary and quaternary women and child care, which is far more advanced than some of these pediatric stand-alone hospitals. So, when we realize that, it is all... Already in-house. So all this, whether it is people, whether it is equipment, all of this is already there. So we are now just clubbing it under one tower where we will have... OPD spaces and ICUs, theaters and rooms. But all the people and the technology are already available with us as we speak. But we are just putting them together under the Tower 4 wing to be able to talk more about it and for people to realize that they have far more capabilities than some of the standalone pediatric hospitals. So this is basically both from a capacity enhancement as well as from a business strategy point of view to showcase our strength in this segment, which we are anyway doing it, but we hope. The numbers will increase far more when we are able to showcase it as a separate standalone tower. That's the point.

Got it, ma'am. And just to follow up on that, so will there be any initial impact on the utilization in the charting page, like on occupancies, can we expect some moderation?

You know, like I mentioned, in quarter one, we had shown 66% of occupancy, and we see by the time this tower is operational, we will almost reach our capacity and reach a situation when we might have to say no to patients. So, basically, that is it, so that no spillover gets out of the hospital, and we are easily able to transit from a 70-75% occupancy to this additional 200 without... Having any patient denial. So, that is the thought behind it.

Got it, man. So, once the entire subspecialty of pediatrics and women care is transferred to Tower 4, around what kind of number of beds or capacity do we see being translated to multisexuality front, like to cater to the other demand that is there?

My point is that, you know, this is, it is not like we're transferring patients from here to there. What we are trying to do is, if you understand, if we reach 70-72% of bed occupancy, say by, maybe earlier, but say by the end of this financial year, we would almost reach a capacity. So if we empty out these beds inside the main tower and put the pediatrics and... And the women cases in the fourth tower, so our occupancy will continue in the range of 71-72% and in the overall aggregated numbers. That's what we see.

Got it.

Thank you very much.

Thank you very much. Next question is from the line of Nandkumar. Shareholder, please, go ahead.

Hello.

Nandkumar, our audio is not here. Can you speak through the handset, please?

Are you audible now?

Sir, can you please speak through the handset? Your audio is not clear.

I am speaking through the handset only.

Okay, now better. Yes. Yes, please go on.

Mr. Sanjay Kumar Quattiree, Mr. Jutta Narayanayacharji, congratulations for that very good set of Q4 for E27 numbers. Thank you for giving me an opportunity for asking. Thank you for giving me an opportunity for asking a couple of questions in the conference forum. We have two questions. The one is, what is the timeline for the forthcoming rupees 700 crore QIP?

Yeah, okay. You want me to answer that first? So, 7.000 crore is an enabling resolution which we have taken. We are in the process of finalizing some other assets, mainly brownfield, and it should be anywhere in the range of six to eight months before we go ahead with the QIP. So, this is an estimate. So, we will come back once the asset finalization happens.

Good, very good. That is a wise decision. My second question also was something like that. You have partially answered it, but I will still answer that. From the numbers, it is understood that only half of the capital raised from ISP has been spent so far. In light of this, it is more important to postpone the QIP for coming to QIP to a more opportune occasion so that the dilution can be minimized.

Very pertinent question, sir. There is money left from the ISC, which is going to be pledged within the end of this financial year in terms of deposits, which has to be given to Wimhans, because Wimhans is on track. And for deposits, you cannot pick up, as you are aware, you cannot service deposits through debt. So this money is going to move, whatever money balance you see of the IFC is going to move towards the Wimhance project, which is moving as per timeline. And the second thing is, 700 crores is an enabling resolution. So how much of this we will pick up is based on, number one, the quality of asset that we get, number two, keeping the dilution of our shareholders in mind, And number three is the return on investment from these assets that we acquire. So I can rest assured it will be a very thought-through process, which we will come out with full transparency with our shareholders before we decide on the amount of this raise. Thank you.

Thank you very much. I will request to come back for a follow-up question. Next question is from the line of Anubov. From Manan Bharti, please go ahead.

Yeah, hi. Ma'am, my question revolves around CAPEX. So, two questions.

First would be, what would be the CAPEX per bed in Gurugan Tower for? And by when it would be operational? And second is, how should one look at the

CAPEX number for F527, F528, F529?

Okay, so your first question first. So, the Gurgaon, a tower of 200 beds, which also includes another 450 parking. All-inclusive, the CAPEX is going to be 55 lakhs per bed, and we are also increasing our parking so that the ease of patients coming in is taken care of, and the CAPEX for 27, 28, 29, I will ask Rudra to address.

Hi, Anubarb. So, for the next three years, the Kapex outlay, including Raipur, would be close to 800 crores. And that is what we have planned, which includes Tower 4, Raipur, the women's fees, and the regular capex that we entail in our flagship hospital.

Okay, so am I thinking it correct when I am saying that the capex per bed would ideally be lower due to the brownstone expansion as well as the pediatric care that we are opening?

So that what Dr. Devlina indicated would, see, the only the tower, only the building has to be built and few equipments have to be placed on that. That's why the capex per bed would be close to 50 to 55 lakhs per bed, like for in tower 4.

Okay, thank you.

So, basically, we are going to get 200 beds plus of Tower 4, which is around for, around Along with the parking, along with the parking for around 120 crores.

180 crores.

Yes. Am I clear?

Yeah, sure. Thank you.

Thank you. Next question is from the line of Vedanik from ICSA Securities. Please go ahead.

Hello.

Am I audible?

Yes, you are.

Hi, ma'am. Thank you for the opportunity and congratulations for a great set of numbers. Thank you. Thank you. First on the... First on the numbers front, so can you please share the revenues and EBITDA margins for your rest of the centers, separate like Artemis Light, Cardiac Care and Daffodils, is it possible?

Could you write to our CFO and Rudra for this? We will discuss it because we, you know, center-wise.

Gedanth, you write me offline. I will share you the details.

Okay, sir. Done. Second on the Raipur Hospital, just wanted to understand how will the initial, how is the initial... And when can we expect the insurance empanelment? Because I think industry-wide, there was a problem last year, but since it's a new hospital, do we have any timeline for that?

What was the first part of your question, other than the insurance? Initial progress is good, I would say, as per expectation. Like I mentioned, we started the operating theater on 27th, 28th of July, and today we have performed some simple gallbladder cases, but today we are performing a large commando surgery, which is an onco-surgery. And in terms of insurance, you know, we look to get the insurance empanelment in 8 to 10 weeks' time. Meanwhile, we have put an intermediary in place where TPA or insurance patient can come in and get a treatment and go back with a cashless, you know, these claim bodies and all which are intermediaries. We have put them in place so that services continue and patients don't have problem till we get direct insurance empanglement.

Okay. And I'm on the 200 beds, 200 odd beds that are going to come into the city. By when can we expect these beds to go online?

Maybe between 18 to 22 months. I mean, once the clearances come, it will be a very fast job because, you know, you don't have to dig the basement and all. It just goes, because the basement and all are already created to maximum, it just has to go up from ground up to, I think, 7th or 9th floors as per the new heights, and it would be pretty fast. In 18 to 22 months, we should be able to see, if not before. I'm giving you a... Kind of realistic to a little bit of a pessimistic estimate. Yeah.

Got it. And my last question is on a broader Goodgown Micromarket specific question. So Rainbow Children's is one of the mother and child care hospital, and they're going to come up with the capacity in Goodgown. So, and now that the 200 beds that we are installing are going to be for mother and child care. So how do you think the competitive intensity will shape up once these bets come up?

So first, to answer it on a more generic way, you know, there has been no other place, I think, in the country which has as intense a bed competition or a brand competition as Gurgaon. So as you have seen, we have continuously grown from a 90-bed to where we stand today. So that means people trust us in terms of our outcomes, the ethical practices, and the quality of health care that we provide. That is on a more generic term. And in terms of more specific, in terms of pediatric, tertiary, and quaternary, I believe and I am confident that we do far more, like I mentioned earlier also, we do far more in terms of... services, as compared to any of the pediatric hospitals that you have mentioned. And in fact, that was one of the reasons for us, knowing that we will have competition here, we decided to create a separate benchmarking for us in a separate tower, just to highlight the services that we have done, the track record we have in those services, and the outcomes in those services, which are far greater than any of these standalone pediatric hospitals. So actually, it is part of the business strategy to talk that, you know, what all we are capable of in this space, much more than some of the competitors.

Got it. Thank you so much, ma'am. All my questions have been answered. I'll fall back in the queue.

Thank you. Thank you. Thank you.

Thank you. Thank you. A request to all the participants, kindly limit yourself to one question per participant and rejoin for a follow-up. Next question is from the line of Sanitya from Unicorn Assets. Please go ahead.

Yeah, hi, Tim. A couple of questions. First on the Gharwan, the new expansion, it says we need two years, like proposed capacity should be added within two years. By when can we see the ramp-up? And is it exactly 950, 900, 1000, quite an ambiguity over there. And what could be the operation that, or the census bets, if you can give a number, and by when?

So, Rudra will answer that. So, hi, Sandhya. So, see, currently we are operating 700 beds. As per the layouts and the drawings, it is coming up to 200 plus beds, but the exact number of beds, it would somewhat lie between 950 to 960 maybe, with the inclusion of these 200 plus beds. So, that is what we have, but without the correct architectural drawings and the things in place, we will not be able to give you the exact numbers. That is why we have mentioned 200 plus beds. So, the least would be 700 plus 200, 900, the maximum would be close to 980.

So, and by when are we expecting this sample?

So, just talking about architectural improvements. Yeah, so, like Dr. Devlina said, all the permissions, including the architectural and the commencement would take, would be somewhat between 18 to 22 months, but that is a long-stop date. We, and that is a long-stop date, it would be prior to that only, but having said that, on the, on the estimated timeline, we are taking 18 to 22 months.

Sure. And second, on the hyper-facility, exactly when did we start the operations there?

So 9th of July we started the OPD and 28th of July we started the OPD. We operationalized our operating rooms, the theaters and the Catalan. So, actually, end of July, you can say. Yeah.

Yeah, makes sense. So, is this facility completely operational in terms of equipment, softwares, houses?

Yes, it is completely operational, except for installation of the pet city, where some infrastructure creation is still going on, and radiotherapy, which takes at least six months to be transported. Barring that, everything is in place.

Sure, and on the insurance ramp-up there, what kind of numbers should we be looking at, say, 18 months down the line for RIPO?

So, exact insurance numbers only, you're talking about?

No, I'm saying insurance ramp-up. How is insurance ramp-up taking place at the RIPO?

So insurance, basically, right now, you know, it takes three to four months, but we are hoping to get direct insurance empaneled within at least eight to ten weeks' time. This is also because now, as you are aware, the good news is the providers and the payers have come into a common platform through CII, and I am part of one of the co-chairs of this working group. So, empanelments, turnaround times are happening quicker, and this is mediated through the IRDA chairman, Mr. Saeed. So we are hopeful that we should be getting direct empanelment in 8 to 10 weeks' time. And post that, we will see a quick ramp up at least 20-25% faster than what it is today. But having said that, today we have put an intermediary for a cashless experience for people who have insurance cards so that they don't have to pay out of their pockets. So those systems are in place. Thank you.

Sure. Good. Thank you.

Thank you.

Thank you.

I request all the participants. Can you limit yourself to one question per participant? Next question is on the line of Sridhar from Blue Hill Capital. Please go ahead.

Am I welcome?

Yes, you are. A little soft. If you could come closer to the microphone.

Is it bent now?

Yes.

Yeah, good afternoon. I've asked the conversation when I answered the numbers. Thank you. I have three questions, of which one has already been asked, but I just wanted to be confirmed. So the $700 raise for which you got approval will be largely used for acquisition-related financing. Number one.

That's right.

Question number two is wonderful. Question number two, what has been the experience that Deford is, given that you've seen the mix of Cloud9 and, you know, Madhuo doing really well, what is the plan for Deford? Is it laying out as per your original plan or is it not expanding? And the third question is... In terms of the organization structure, I know, Dr. Debrina, you've been performing a fantastic job so far, almost 20 plus years. The question is, how is the organization getting built under you? And also, in terms of even the expansion to now multi-cities, how is that being kind of taken care of?

Very pertinent question. So, firstly, the second is... Asset crore isn't enabling the resolution, and how much of that we are going to raise will depend on the asset finalization. Mostly, this will go towards newer assets, not the ones which we have already announced, preferably brownfields with close to EBITDA break-even or positive EBITDA. That's your first question. The Daphudence, a very pertinent question, we had started it as a hub-and-spoke model because we were a standalone hospital, and we put it in areas from where we are, you know, we also start getting patients and the experience of the services. While the experience has been very, very good, we are also looking at basically combining some of the services, like putting two of the centers together to increase the efficiency, Because end of the day, high number of beds always work better in terms of overall EBITDA. I'm not talking about margins. Thank you. So, the idea will be now to kind of consolidate some of the centers, bring in more efficiencies, maybe start a new floor on the new center and merge two of them or start a wing in the hospital and merge the pediatric care of, say, another center to this. And having said that, when we go to a newer area like Araipur, we will look at the similar concept of hub-and-spoke, but as we reach a maturity, we will continuously consolidate these centers because at the end of the day, our niche is tertiary and quaternary care, and tertiary and quaternary care can be provided only with a large hospital with large operating leverage. So it is, to your answer, your question is, both will go hand in glove. We will continuously converge and expand depending on the need. Where are we opening our next big center? Yes, very pertinent, the management bandwidth. I think you should get in touch with Rudra to look at our entire management bandwidth and the organogram that we have created with central teams, regional teams, zonal area. How each is managing? What are the kind of controls that we are keeping? A very pertinent question. It will be very difficult for me to explain it without you looking at the organogram. So please write to Mr. Rudra Acharya or speak to him to get the whole organogram. And this organogram is a very exhaustive one, which will also keep where each... The region will keep getting added in a very systematic manner with the people, their designations, and with the central control. So please get in touch with him for you to understand this organogram. Thank you. Sure.

I will do that. Just one quick follow-up on that. I'm assuming at least you would have another five years to play as a CEO in this company.

Sorry, I missed your question.

You would have at least another five years. I guess you are at 59 and you will be there till about 65 at least for this company.

No, I'm planning 75 unless you want me to go on.

I'm really glad to hear that. I know because this company is really going on the relationship and really happy to kind of know that.

Thank you. All right.

Thank you very much. Next question is from the line of Kumar Saurabh from Scientific Investing. Please go ahead.

Hello, ma'am. Congratulations on... Hello, hello, hello. My question is on the Brownfield expansion. We are already there with an established brand. Once it is launched in 18 to 22 months, in how many months do you see it doing break-even and reaching the 60% kind of target compared to Raipur, where we are expecting it to become profitable in two years?

No, you're talking about any new brownfield that we acquire. Is that what you're telling?

No, the 200, no ma'am, the 200 bed expansion which we are doing in Goodman for that.

Yeah, so your question is when do we see it breaking even? I would say it would do in 8 to 10 months' time.

And how much time will it take to reach to 50-60% utilization, ma'am?

In my opinion, it should reach 50% in the first six months.

Oh, great, great. And last question, ma'am, I know you told the 700 crores for enabling resolution, but if we look at right now, it's as we are doing almost 150 crores of cash flow. And in next three to four years, we might need 600, 700 crores of capital for all the, you know, expansion. So maybe more than 50% can come through internal accruals itself. So, I know you are telling about there are some assets also you are looking for. So, my understanding is we will factor all the internal accruals and then additional debt because I think our leverage is also very good. We are paying hardly 25 crore interest from 200 crore of a bidder. So, I hope we will factor all of that before diluting because, you know, equity is appreciated.

Absolutely, absolutely. Like I said, and Rudra will tell you the details more about it. We are very clearly aware of our cash flows. We are aware that we have huge leverage in debt, and like I said, this is an enabling resolution, and we will try to do minimum dilution, maximum return on investment, and balance Rudra will address.

So let me take it from Dr. Devalina Saurabh. Saurabh, as I said earlier, 800 crores of CAPEX is lined up for the next three years. And as you said, 150 crores generated every year for the next three years, close to 450 crores. But 800 crores doesn't include the 250 crores of deposit that we have to pay to women. So for the announced projects, my internal accruals with the debt leverage that I have is totally tied up for the next three years. Now coming to the 700 crores enabling resolution like Dr. Devlina mentioned, we are only looking for, basically looking for brownfield projects. For the brownfield project, it is an equity expansion that we have to do. So that can only come through the internal accruals or an equity infusion. So that's why we have kept that enabling resolution in place. Having said that, once the asset gets finalized, we will see at the current cash position how much to raise, and then we will see that the minimum dilution is there for the existing shareholders.

Great, that's very helpful. Thank you, Doctor. Thank you, Rudraji. Wish you all the best. Thank you.

Thank you very much. Next question is on the line of Neelam Punjabi from Perpetual Ventures. Please go ahead.

Thanks for the opportunity and congratulations on some great set of numbers. My first question is, in the last earnings call, you had mentioned that we would, you know, you had indicated we would get to the 70% occupancy by Q2. So, are we on track to get there?

Yes, we are.

Perfect. And secondly, just to zoom out a little bit, you know, as we get to 900 to 950 beds in this standalone facility in the next 18 to 22 months, So, three to five years out, at 85% census, 70% optimum occupancy, and probably, you know, 4% to 5% ARPOP growth, we can essentially get to a 2,000 crore supply. Is that a valid assumption only from the Burdhaan facility?

Yes, it is possible. Absolutely.

Great. And at that level, at that scale, what kind of margins that we can deliver with the, you know, operational efficiency playing out, given it's a brownfield?

Upwards of 23%, I would say.

Got it. And lastly, if I just back-calculate the numbers for the quarter, it seems that daffodils and light has, the performance has been a little muted. So what exactly is happening there? So I can just, you know, give some indication.

No, so the, you know, like I told you that they all have some kind of capacity constraint over a period of time because these are short units, small units. So, basically, they have served us two purposes. One is Hub and Spoke. We were a standalone brand in Gurgaon. So, now we have a large number of patients coming in from South Delhi and Manistar and other places where presence was a little less. Second is our idea, which I mentioned in my previous question, is after a period of time, it could be three to four years, when you have grown these places, broken even, made some money, and then we try to consolidate it, so whether two centers get consolidated into one, so that we bring in working efficiencies, increase the bed in one center, bring the two of them together,

or You know, kind of integrate them

with a bigger hospital, like... Like, we are now integrating the New France Colony Centre with the East of Kalaj Centre, which is South Delhi Centre, and going forward, we may run it as a standalone or integrate it with our Vivance Hospital, which will come with 650 beds. Because sometimes what happens, the rentals and the cost of manpower will start outdoing the, you know, your top lines and your bottom lines because the bed capacity is limited in these areas. So that's a management and a business strategic call we will continuously take. So we could start new centers around a tertiary care hospital, like a Raipur, going ahead in different districts of Raipur to make it a hub-and-spoke model, and after a point of maturity, we could consolidate a few of the centers with each other. So that's an ongoing business call we will continuously take depending on how we want to do. But as you would have realized in the last 18-19 years, we are known for tertiary and quaternary healthcare. So that is the focus and that is where we will continuously push our growth engine. So, I hope I have made myself clear. Thank you.

Yes, thank you very much, and all the best. Thank you.

Thank you. Next follow-up question is from the line of Aditya Sheda from Inquid Asset Management. Please go ahead.

Hi. This question is on the KPEX number of 800 crores. As we can see in the annual report, a deposit of around 130 crores is already paid. And if I break the 800 crore and keep 120 crore aside for Tower 4, whether this 125 crore already paid is also part of the 800 crore and since Raipur is already operational, how much of the capex is attributable to Raipur?

So, let me answer you the breakup of this 800 crores. So, 120 is for Raipur. 350 to 360 is for women, which doesn't include the deposit portion of it. This is the pure, pure capex. So this 120 and 350 is close to 470, 480. 120 for your tower core, which is close to 700. 100 to 120 for your replacement capex over the period of next 3 years. So that is the math behind 800 crores. Having said that, the deposit is over and above this, which is close to 250 crores, out of which we have already paid 130 crores.

Got it, sir. Thank you.

Thank you. We take the last question from the line of Andesh Basalia from Spark PWM. Please go ahead.

Yeah, I am audible, and thank you for the opportunity again, but my question now just got answered. So thank you so much.

Thank you.

Thank you very much. With that, I now hand the conference over to the management for closing comments.

I would like to thank everyone for joining the call. I hope we have been able to respond to all your questions adequately. For further information, we request you to please get in touch with me or our investor relations team. Stay safe, stay healthy. Thank you once again for joining with us. Thank you.

Thank you very much. On behalf of Anand Bhatti Shares and Stock Brokers Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

Thank you very much. Thank you. Bye.

Thank you. Bye-bye.