Shalby Ltd Research ReportQ3FY21

Sequential recovery momentum continues… Shalby reported decent Q3FY21 numbers with revenues growing 9.1% YoY to | 132 crore amid continued sequential recovery in elective surgeries and higher Covid treatments. EBITDA margins improved 525 bps YoY to 23.3% due to lower employee and other expenditure stemming from cost rationalisation measures. EBITDA grew 40.7% YoY to | 31 crore. PAT grew 106.4% YoY to | 17 crore. Delta vis-a-vis EBITDA was due to lower tax rate. Market leader in fast growing joint replacement surgeries Rapid ageing, greater life expectancy, lack of exercise and altered lifestyles are driving incidences of osteoarthritis among Indians. Knee replacement surgery in India has been growing in double digits over the years. It is expected to emerge as fourth most common cause of physical disability in India in the next decade. Shalby is a market leader in procedure of arthroplasty (source: F&S Report). It has ~15% market share of all joint replacement surgeries conducted by organised private corporate hospitals in India. It has performed more than one lakh joint replacements till date. Led by renowned orthopaedic surgeon Dr Shah, the company has achieved strong brand value in joint replacement surgeries, especially in Gujarat.