Dear shareholders,
As always, it gives me great pleasure to welcome you to the Annual
General Meeting and present the annual report conveying the performance and also our plans
for the future. This is a landmark year for KIMS as it marks the completion of two decades
of successful and purposeful journey since 2004. I am aware that though it is a moment of
celebration, it is more an occasion for introspection and reflection - to look within and
look around with a clinical eye. Dedication, Diligence and Dynamism are the hallmarks of
this eventful journey. We witnessed so many highs as well as challenges along the long
path. The woes of the pandemic are still fresh in memory when our Doctors, Nurses and
Staff showed exemplary spirit in saving lives, risking their own in the process.
At 20, we are neither too old nor too young but in the right age and
stage to expand our presence and explore new opportunities. This explains our recent surge
in expanding our presence and scope of activities. Our hospital at Nagpur is fully
functional and showing great promise. We have acquired a running hospital of 200 beds
-QUEENS NRI HOSPITAL in Vizag, AP (july2024). This will be our second hospital in Vizag
and 9th in AP. The hospital in Nashik is ready and set to open soon. Our Thane hospital
with 300 beds is under brisk progress. We will be making our foray into Karnataka this
year with a 400 bed hospital at Bangalore. We have also entered into an O&M agreement
with a renowned group that will add another 250 beds at Bangalore. KIMS-SUNSHINE is
shifted to our spacious new premises in the heart of Hyderabad and is already making its
mark. In all, KIMS will be adding another 20002500 beds in next two years.
Over the years, our pioneering spirit has propelled us forward. We were
the first hospital in Asia to perform a Trans Catheter Tricuspid Valve replacement.
Besides, we conduct one of the largest Joint replacement Programs in South Asia and have
successfully created a robust neuroscience project for treating epilepsy. Our passion for
innovative methods in critical care resulted in development of the largest ECMO programme
in the country. We have also remained at the forefront in life-saving transplants,
performing India's first COVID Double Lung Transplant and Breathing Lung Transplant. It is
to be noted that 190 lung transplants have been performed in just three years by our
experts at KIMS, a record in the country. The Cost of transplant surgery in other nations
ranges between H 2-3 crore, while in India it costs roughly about H 40 lakhs.
Thus, as we complete two decades of growth from strength to strength we
look back with pride and look ahead with confidence.
For the nation also, it is an eventful year as we witnessed and
participated in the elections for the biggest democracy in the world. The smooth flow of
elections across the nation encompassing different regions, languages and cultures is a
testimony to the vibrant democratic spirit. The election results have opened doors for
coalition government at the centre and change of governments in some states and it is
hoped that economic momentum will be carried forward with greater vigour. We are poised
for great growth and it is imperative to increase the allocations for the healthcare as
people's health is a vital component of national wealth.
In the arena of sports also, India made history by winning the T20
World cup in style to the delight of millions of Cricket lovers.
FINANCIAL & OPERATIONAL HIGHLIGHTS
a. Our consolidated revenue stood at H 25,112 Mn for FY 24 compared to
H 22,235 Mn in FY 23, showing a growth of 12.9%.
b. EBIDTA stood at Rs. 6,534 Mn against H 6,299 Mn in FY 23 recording a
growth of 3.7%.
c. PAT for the year stood at H 3,360 Mn against H 3,658 Mn in previous
year FY 23 recording a decline of 8.15%.
d. IP & OP volumes grew by 7.9% & 9.9% respectively.
e. ARPOB for FY 24 stood at H 31,916 against H 29,946 in FY 23,
registering a increase of 6.6%.
SERVICE-OUR PASSION
Over the years KIMS carved and sculpted an indomitable character of
CARE, CONCERN AND COURTESY in dealing with everyone who enters its portals. The secret of
our success lies in our single minded attention to each and every patient in the minutest
way- the empathetic listening and infusing confidence. Caring for patients is not a job,
it's our mission- one that is precious and personal to us. We aim to support the
patients in more personalised and flexible way. Loss of near and dear is a horrifying
experience for anyone. Even in the face of such a personal loss when the family member
thanks and compliments the hospital, it is a real testimony to the organisational quality
and culture. We recently had such a touching experience.
A daughter who lost her father after transplantation conveyed her
profound sense of gratitude and appreciation to the hospital for the way her father was
treated though the life could not be saved. She profusely thanked not just the doctors and
nurses but also each and every staff she came across including the security guard for
their exemplary service. We are overwhelmed with this somewhat unusual experience of
gratitude in the face of utter grief. I am sharing this poignant experience with you as it
reveals the in-built spirit of service and inherent standards of your company.
It is values that constitute the lifeblood of an organisation. It is
values that sustain us and strengthen our structure. Sans values the organisation becomes
shallow.
It is our continuous endeavour to nurture the values among all staff so
as to ensure luminous legacy.
Howard Schultz, Chairman of Starbucks asked his employees to add an
extra ingredient in every cup of Coffee they served- their heart. This helped them grow
from a single store to the largest Coffee chain on earth. At KIMS too, we pour our heart
into the care of each patient.
HUMAN RESOURCES
While Investors are our growth engines, Patients our driving force, the
HR constitutes the soul of the organisation. The financial results reflected in the
Balance sheet are but a product of HR though HR doesn't appear in the balance sheet. HR is
an invaluable asset that contributes in making of other assets.
We have created a conducive climate for professional enrichment and
personal fulfilment wherein both complement and nourish each other.
Leadership grooming is an essential and continuous part of HR
Philosophy. To see that staff are properly charged to align with Character and values of
KIMS where in both professional and personal life become enjoyable and drive each other.
TECHNOLOGY
Digital health knowledge resources, electronic medical record, mobile
healthcare, electronic health record, hospital information systems are some of the
technologies rapidly growing in the sector. We are fully alive to these realities for
deriving optimum benefit to the Patients.
The world of technology is ever evolving. What you thought possible a
minute ago, has already happened in some corner of the world day before yesterday. At
KIMS, advances in medical technologies are harnessed to introduce new solutions and ensure
optimum results for the patients. Innovation in healthcare is crucial for addressing
current challenges such as rising costs, limited access to care, and increasing prevalence
of chronic diseases. By fostering innovation we can improve Patient care, enhance the
patient experience and achieve better outcomes.
ACADEMIA
Regular conduct of academic activities is par for the course at KIMS.
However,
I would like to mention about two outstanding academic conclaves that
took place during the year.
First was the conference of the SOCIETY FOR IMAGE GUIDED NEURO
INTERVENTIONS (SIGN) participated by 125 neuro-sciences experts from 12 nations to
deliberate upon cutting-edge advances in the field including ultrasound breakthrough in
tumour treatment, AI and mini robots for brain surgeries. This is the first SIGN
conference to be held in INDIA and your KIMS is the proud host.
The second is about the first NONTECHNICAL COURSE FOR SURGEONS (NOTSS)
by the Royal College of Surgeons of Edinburgh (Oldest Surgical College in the World) in
partnership with the Association of Surgeons of India.
This mega event was also organised and hosted by KIMS HOSPITALS
providing invaluable insights to a number of surgeons.
INSURANCE
The pandemic had aroused health awareness among public. Health
awareness, however, should also include preparedness to meet the expenditure in case of
necessity. Health Insurance is an effective shield that offers protection from the
possible hospital expenditure. Otherwise, it can lead to financial turbulence in good
number of cases.
We insure our vehicles, houses, jewellery and other items of wealth,
ignoring the most important wealth- ie THE HEALTH.
Insurance awareness is significant, particularly for the bulging Middle
Class who are not rich enough to meet the hospital expenses and not poor enough to take
shelter under government schemes. Higher insurance penetration will make the healthcare
affordable and accessible.
The 18% GST charged on health insurance adds to the burden and puts
further strain the efforts to increase coverage to wider sections. By reducing it, we can
definitely increase the health insurance penetration in the country. The decision of the
Insurance Regulatory and Development Authority to remove the age restrictions is
heartening. It will promote greater financial security and healthcare access for a broader
segment of the population.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
It is a concept dear to our heart and we have undertaken various
activities in the realm of healthcare, education, skill development, women empowerment and
subsidised food for the needy and so on. We have built a fire station for the government
of Telangana at Hyderabad. We have pressed into service a mobile screening unit (MSU) to
create Cancer awareness and screening of people in rural area for early detection. The
community engagement will be carried out by involving government agencies, the state and
District level health administrations and frontline health workers.
OTHER MATTERS OF IMPORTANCE
Non- communicable diseases have emerged as the leading cause of death
in India. At least 60 percent of all deaths in the country are caused by noncommunicable
diseases and among them 80 percent are caused by Big Four- Cancer, Cardiovascular disease,
Chronic Pulmonary disease and Diabetes. This is mainly caused by unhealthy food habits and
inactive lifestyles. A range of diseases - both communicable and noncommunicable - can be
brought under the scanner if people's predisposition in various regions is profiled by
taking into consideration their genetics, immunity, lifestyle, diet, water quality and
exposure to air pollution. Disease predisposition mapping would help understanding which
sections of the population in which region are more prone to what disease. This would
allow for better planning to assign and distribute the health apparatus for quicker
treatment protocols. Fostering a robust Research environment will help in understanding
India's unique health care needs, challenges and developing localised and low cost
solutions.
We believe access to quality healthcare is a fundamental human right,
not a privilege it drives us to fulfil our commitment towards the patients. We are
committed to championing the theme of MY HEALTH, MY RIGHT by striving to empower the
communities where people have access to preventive healthcare, transparency and affordable
treatment. Our vision is to become flagship in clinical excellence, standards and human
values.
CLIMATE JUSTICE
Two recent court pronouncements - at the Indian Supreme Court and at
the Europe's top Human Rights Court - underlined CLIMATE JUSTICE as a FUNDAMENTAL RIGHT.
The Supreme Court said that people have a fundamental right to be free from impact of
climate change. The European Court of Human Rights ruled that the Swiss government had
violated the rights of its citizens by failing to do enough to combat climate change. This
shows the increasing importance of climate challenges in our lives as Climate safety is
regarded as fundamental right. The key steps include enhancing energy efficiency, reducing
waste, adopting renewable energy sources and preventive health measures. We are conscious
of the stark reality and have been adopting the necessary measures.
I am sure that our continued good performance, Clinical excellence and
elaborate expansions on the anvil will provide a reassuring premise and promise to our
investors.
I would like to thank our doctors and staff, the Board of Directors,
Investors, Bankers and, of course, our patients for their continuous support.
I would conclude with my favourite quote of Rumi, the great Sufi poet
YOU ARE BORN WITH WINGS WHY PREFER TO CRAWL THROUGH LIFE?
Let all of us work to realize our full potential and beyond to make the
world a still better place to live.
Regards,
Dr. Bhaskara Rao Bollineni
Chairman & Managing Director