Results     29-May-24
Analysis
Shalby
NP up 19.42%
For the quarter ending March 2024, consolidated net sales (including other operating income) of Shalby has increased 22.74% to Rs 244.23 crore compared to quarter ended March 2023.  Sales of Health care services segment has gone up 20.55% to Rs 218.42 crore (accounting for 89.43% of total sales).  Sales of Manufacturing of implants segment has gone up 45.08% to Rs 25.81 crore (accounting for 10.57% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 13.51% to Rs 21.78 crore.  PBIT of Health care services segment rose 23.14% to Rs 27.96 crore (accounting for 128.35% of total PBIT).  PBIT of Manufacturing of implants segment fell 75.73% to Rs -6.18 crore (accounting for -28.35% of total PBIT).  

PBIT margin of Health care services segment rose from 12.53% to 12.80%.  PBIT margin of Manufacturing of implants segment fell from negative 19.75% to negative 23.92%.  Overall PBIT margin fell from 9.64% to 8.92%.  

Operating profit margin has jumped from 12.90% to 15.91%, leading to 51.44% rise in operating profit to Rs 38.86 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 4.51% to 3.08%.   Purchase of finished goods cost fell from 8.76% to 6.97%.   Employee cost decreased from 19.32% to 15.79%.   Other expenses rose from 55.52% to 58.80%.   Other direct service cost rose from 43.90% to 47.04%.   

Other income fell 45.64% to Rs 4.99 crore.  PBIDT rose 25.86% to Rs 43.85 crore.  Provision for interest rose 127.82% to Rs 6.47 crore.  Loan funds rose to Rs 377.86 crore as of 31 March 2024 from Rs 180.51 crore as of 31 March 2023.  Inventories rose to Rs 235.20 crore as of 31 March 2024 from Rs 185.40 crore as of 31 March 2023.  Sundry debtors were higher at Rs 144.63 crore as of 31 March 2024 compared to Rs 106.36 crore as of 31 March 2023.  Cash and bank balance rose to Rs 27.22 crore as of 31 March 2024 from Rs 12.29 crore as of 31 March 2023.  Investments declined from Rs 145.72 crore as of 31 March 2023 to Rs 80.64 crore as of 31 March 2024.  

PBDT rose 16.81% to Rs 37.38 crore.  Provision for depreciation rose 21.78% to Rs 15.6 crore.  Fixed assets increased to Rs 924.73 crore as of 31 March 2024 from Rs 685.56 crore as of 31 March 2023.  Intangible assets increased from Rs 10.15 crore to Rs 56.86 crore.  

Profit before tax grew 13.50% to Rs 21.78 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 5.74 crore, compared to Rs 5.29 crore.  Effective tax rate was 26.35% compared to 27.57%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 19.42% to Rs 16.60 crore.  

Equity capital increased from Rs 107.31 crore as of 31 March 2023 to Rs 107.41 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 74.24% as of 31 March 2024 ,compared to 74.12% as of 31 March 2023 .  

Full year results analysis.

Net sales (including other operating income) of Shalby has increased 16.01% to Rs 933.75 crore.  Sales of Health care services segment has gone up 19.81% to Rs 855.41 crore (accounting for 91.61% of total sales).  Sales of Manufacturing of implants segment has gone down 13.87% to Rs 78.34 crore (accounting for 8.39% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 25.62% to Rs 128.19 crore.  PBIT of Health care services segment rose 27.17% to Rs 150.87 crore (accounting for 117.69% of total PBIT).  PBIT of Manufacturing of implants segment fell 36.69% to Rs -22.68 crore (accounting for -17.69% of total PBIT).  

PBIT margin of Health care services segment rose from 16.62% to 17.64%.  PBIT margin of Manufacturing of implants segment fell from negative 18.24% to negative 28.96%.  Overall PBIT margin rose from 12.68% to 13.73%.  

Operating profit margin has jumped from 16.99% to 18.96%, leading to 29.46% rise in operating profit to Rs 177.03 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 3.80% to 3.27%.   Purchase of finished goods cost fell from 8.49% to 7.79%.   Employee cost decreased from 16.88% to 15.89%.   Other expenses rose from 54.75% to 54.96%.   Other direct service cost rose from 44.24% to 45.14%.   

Other income fell 13.72% to Rs 19.43 crore.  PBIDT rose 23.35% to Rs 196.46 crore.  Provision for interest rose 75.58% to Rs 16.03 crore.  Loan funds rose to Rs 377.86 crore as of 31 March 2024 from Rs 180.51 crore as of 31 March 2023.  Inventories rose to Rs 235.20 crore as of 31 March 2024 from Rs 185.40 crore as of 31 March 2023.  Sundry debtors were higher at Rs 144.63 crore as of 31 March 2024 compared to Rs 106.36 crore as of 31 March 2023.  Cash and bank balance rose to Rs 27.22 crore as of 31 March 2024 from Rs 12.29 crore as of 31 March 2023.  Investments declined from Rs 145.72 crore as of 31 March 2023 to Rs 80.64 crore as of 31 March 2024.  

PBDT rose 20.17% to Rs 180.43 crore.  Provision for depreciation rose 8.63% to Rs 52.24 crore.  Fixed assets increased to Rs 924.73 crore as of 31 March 2024 from Rs 685.56 crore as of 31 March 2023.  Intangible assets increased from Rs 10.15 crore to Rs 56.86 crore.  

Profit before tax grew 25.61% to Rs 128.19 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 44.69 crore, compared to Rs 34.37 crore.  Effective tax rate was 34.86% compared to 33.68%.

Minority interest decreased 2,800% to Rs -0.58 crore.  Net profit attributable to owners of the company increased 24.19% to Rs 84.08 crore.  

Equity capital increased from Rs 107.31 crore as of 31 March 2023 to Rs 107.41 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 74.24% as of 31 March 2024 ,compared to 74.12% as of 31 March 2023 .  

Cash flow from operating activities decreased to Rs 19.60 crore for year ended March 2024 from Rs 67.77 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 47.11 crore, compared to Rs 18.48 crore during the year ended March 2023.  

Business Highlights

The board Recommended a final dividend of Rs 1.20 per equity share of the face value of Rs 10 each fully paid-up, for the financial year ended March 31, 2024.

Paid-up equity share capital, having face value of Rs 10 each decreased from Rs 107.353 crore in quarter ended Dec 2023 to Rs 107.31 crore in quarter ended March 2024.

Occupied Bed during Q4 FY24 were 637, growth of 10% YoY. In patient count (incl. Day Care) was 21,313, growth of 14.9% YoY.

ARPOB during the quarter was 39,101, growth of 12.1% YoY.


Management Comments :
Mr. Shanay Shah, President said: “It has been a landmark here for the company, we have completed 30 years of operations in this year. The company continued to show a steady performance in FY 24 with a revenue of 953 crores and an EBITDA of 197 crores which is a growth of 15% and 23% respectively from the last financial year. I`m pleased to announce that our hospital business has maintained consistent performance across key operational and financial metrics, witnessing a 10.0% increase in occupancy and a 14.9% rise in in-patient count (including day care) year-on-year in Q4 FY24. Additionally, hospital revenue and EBITDA grew by 14.8% and 16.8% respectively, with a robust EBITDA margin of 20.2% in the same period. Notably, ARPOB and ALOS stood at Rs.39,101 and 3.75 respectively in Q4 FY24, compared to Rs. 34,867 and 4.01 in the corresponding quarter of the previous year. Our core specialties, including Arthroplasty, Oncology, Cardiac Science, Orthopedic, Critical Care & General Medicine, and Neurology, collectively contributed 82% to the revenues in Q4 FY24. We are pleased to announce our strategic foray into northern India through the acquisition of 100% stake in Healers Hospital Pvt. Ltd. (Land & Building of Sanar). Sanar International hospital, with an operational capacity of 130 Beds, offers advanced surgical care across specialties such as Oncology, Cardiology, Bone Marrow Transplant, Kidney & Liver Transplant, Bone & Joint, and Neurosciences, with 70% business from international markets serving over 60 countries. Our Homecare business exhibited robust growth, increasing by 36% year-on-year in Q4 FY24 compared to Q4 FY23. Additionally, our Shalby Academy vertical witnessed an encouraging response, with over 395 students enrolled in various healthcare programs during Q4 FY24. Furthermore, our Realized Return on Capital Employed from the hospital business stood at 18% in FY24 on an annualized basis. As of the quarter`s close, our net debt balance at the group level amounted to Rs. 1,557 million, with a net cash balance of Rs. 220 million at the standalone level, reinforcing our ability to support strategic growth initiatives. Shalby has continued to achieve numerous milestones driven by clinical excellence and patient satisfaction, and we take pride in making a positive impact on people`s lives.”

Mr. Deepak Ananthakrishnan, Global Chief Business Officer said: “During the fourth quarter of this financial year, our implant business made significant progress, generating revenues of INR 258 million, with contributions from the USA and India at 41% and 59% respectively. In Q4 FY24, our US customer sales mix from retail and wholesale remained at 55% and 45% respectively. We are actively focused on bolstering our team with skilled professionals, transitioning our sales mix to retail customers from wholesale, enhancing operational capacity and efficiency, expanding our product pipeline through extensive research and development efforts, and significantly reducing procurement costs. The reception of our Shalby-Consensus implants in our hospitals has been highly positive, and we have received additional orders from the Indonesian market. With our key strategies firmly in place, our team is fully dedicated to executing these plans flawlessly. Shalby is well-positioned to achieve double-digit growth in the hospital business with sustainable profitability, while also expanding and deepening our presence by adding Orthopedic units under SOCE. These efforts will ultimately drive the creation of sustainable value for all stakeholders at Shalby.”

 



Shalby : Consolidated Results
 Quarter endedYear ended
Particulars202403202303Var.(%)202403202303Var.(%)
Net Sales (including other operating income)244.23198.9822.74933.75804.9216.01
OPM (%)15.9112.90302 bps18.9616.99197 bps
OP38.8625.6651.44177.03136.7529.46
Other Inc.4.999.18-45.6419.4322.52-13.72
PBIDT43.8534.8425.86196.46159.2723.35
Interest6.472.84127.8216.039.1375.58
PBDT37.3832.0016.81180.43150.1420.17
Depreciation15.612.8121.7852.2448.098.63
PBT21.7819.1913.50128.19102.0525.61
Share of Profit/(Loss) from Associates00-00-
PBT before EO21.7819.1913.50128.19102.0525.61
EO Income00-00-
PBT after EO21.7819.1913.50128.19102.0525.61
Taxation5.745.298.5144.6934.3730.03
PAT16.0413.915.4083.567.6823.37
Minority Interest (MI)-0.560--0.58-0.02-2,800.00
Net profit16.613.919.4284.0867.724.19
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations16.613.919.4284.0867.724.19
EPS (Rs)*1.541.2919.427.786.2724.19
* EPS is on current equity of Rs 108.01 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Shalby : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202403202303Var.(%)% of (Total)202403202303Var.(%)
Sales
Health care services89.43218.42181.1920.5591.61855.41713.9719.81
Manufacturing of implants10.5725.8117.7945.088.3978.3490.96-13.87
Total Reported Sales100.00244.23198.9822.74100.00933.75804.9216.01
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.00244.23198.9822.74100.00933.75804.9216.01
PBIT
Health care services128.3527.9622.7023.14117.69150.87118.6427.17
Manufacturing of implants-28.35-6.18-3.51-75.73-17.69-22.68-16.59-36.69
Total PBIT100.0021.7819.1913.51100.00128.19102.0425.62
Less : Interest0.000.00-0.000.00-
Add: Other un-allcoable0.000.00-0.000.00-
PBIT Margin(%)
Health care services 12.8012.5326.94 17.6416.62102.08
Manufacturing of implants -23.92-19.75-417.16 -28.96-18.24-1,071.09
PBT100.0021.7819.1913.51100.00128.19102.0425.62
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