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Krishna Institute of Medical Sciences Ltd

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BSE Code : 543308 | NSE Symbol : KIMS | ISIN : INE967H01025 | Industry : Healthcare |


Chairman's Speech

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