Dear Shareholders,
It gives me immense pleasure to present the Annual Report for FY 2022-23. I would take
this opportunity to thank all stakeholders for their significant contribution to upholding
your Company's commitment to building a healthier ecosystem while ensuring quality patient
care.
The year gone by has been a significant one with economies worldwide slowly showing
signs of recovery as the pandemic impact started to wane during the year though global
disruptions hampered its speedy recovery. The pandemic emphasized the need for efficient
healthcare infrastructure, especially in tertiary and specialty care. This led governments
worldwide to focus on the development of the healthcare sector with various initiatives
and investments driven to boost the sector. Providing impetus to the development of
healthcare infrastructure in India, the Indian Government has allocated Rs. 8,91,550
million to the Ministry of Health and Family Welfare (MoHFW) in the Union Budget 2023-24.
Our Performance Review
We are happy to communicate that your Company has reported the highest-ever Annual
Revenues and EBITDA in FY_2022-23. Our consolidated revenues stood at Rs. 8,274 million,
up by 16% while consolidated EBITDA reported at _1,593 million was up by 20% on a y-o-y
basis respectively. The robust performance was primarily driven by the stupendous
performance of our core specialties and our continued focus on clinical excellence
significantly igniting our Financial performance in the year. We reported a major increase
in elective surgeries and a rise in in-patient count by 35% and 18%_respectively.
The continuous efforts in our marketing and business development initiatives across
states saw an increase in the occupancy levels across units from 499 occupied beds in Q4
FY22 to 579 occupied beds in Q4 FY23 (excluding COVID-19 driven footfalls). Further, our
consistent focus on clinical excellence saw us perform over 27,350 surgeries across units
leading to improved quality of life for our patients. We also saw good growth in our
homecare services segment during the year as we made healthcare services affordable and
easily available to our in-home patients. We are very optimistic about the steady growth
of our homecare services on the back of growing demand of healthcare services at the
doorstep in all segments like medical attendant, physiotherapy, diagnostics, doctor's
consultation and many more. We are continuously exploring new geographies to grow our
thriving international business by capitalizing on the tremendous scope of being the
largest player in Western and Central India.
Our Shalby Orthopedics Centre of Excellence (SOCE) franchise model is also gaining a
strong foothold in the market.
We are exploring new territories with high catchment areas by offering the best
Orthopedics solutions through our expert orthopedic team. Through our asset-light model,
we are also working towards taking over franchise operations under our brand name and
penetrating deeper into Tier 2 & Tier 3 cities. We remain committed to our target to
open 50 SOCE centers in India by FY 2026. We have opened 2 new centers at Gwalior and
Lucknow during the year and aim to add 6-8 SOCE in FY 2023-24.
Our implant business with backward integration manufacturing has gained steady momentum
through our focus on innovating new products through our in-house research and development
division. We are focused on achieving operational breakeven through economies of scale and
improving overall efficiencies. The strategic measures undertaken saw our revenues jump
3-fold times during the year, while our manufacturing capacity expanded to ~4,500
components per month during FY 2022-23. During February 2023, we received license approval
to sell implants in Indonesia and are in the process of receiving registration to launch
SAT products in Latin American regions in due course. The growing demand for implants in
India is expected to further augment our implant business over the coming years.
Strengthening Capabilities
In today's rapidly evolving healthcare landscape, the assimilation of technology has
become imperative for organizations to provide efficient, patient-centric care. Your
Company is committed to driving technology and digital initiatives to enhance our patient
and doctor experience. Towards this, we have made commendable progress by focusing on
building a digital team and laying a strong foundation to deliver our digital vision
through ongoing investment in technology and digital solutions to help drive innovation
and transform the healthcare landscape. Moreover, our focus on data-driven insights
ensures informed decision-making and positions us at the forefront of the industry's
data_revolution.
As a responsible entity, we are fully committed to adhering to environmental, social
and corporate governance norms. We undertake various water management, energy-efficient
and safe water disposal initiatives as part of our environmental drive. Our employees are
our backbone and integral to our success journey. We continue to provide consistent
support to enhance their capabilities and overall well-being through our well-structured
HR initiatives. We also undertake activities to benefit the larger communities in which we
operate.
The Way Ahead
The government's aim to make India a global healthcare hub is expected to increase
public health spending to 2.5% of the country's GDP by 2025. Also, the government's plan
to introduce a credit incentive program for Rs. 50,000 million will further boost the
country's healthcare infrastructure. These measures open wide opportunities for the highly
diversified Indian health sector across segments that encompasses providers, payers, and
medical technology leading to better healthcare infrastructure facilities across the nook
and corner of India.
Shalby has stayed attuned to the favourable developments happening in the healthcare
sector in FY 2022-23. We intend to capitalize on these encouraging measures through our
competent team to flawless execution of our strategies towards achieving clinical
excellence and patient satisfaction while creating long-term sustainable value to all our
stakeholders.
In conclusion, I would like to express my gratitude to all our stakeholders for their
unwavering support and trust in our abilities to build a healthy ecosystem. We look
forward to your continuing support in our endeavour to leverage capabilities and expand
reach to become the preferred multi-specialty hospital chain in India.
Dr. Vikram Shah
Chairman and Managing Director