- 29 May 2024
- ICICI Securities
SHALBY Q4FY24 - STRONG QUARTER; IMPROVEMENT IN ALL PARAMETERS
SHALBY - 216 Change: -6.79 (-3.04 %)News: Revenues grew ~23% YoY to ₹ 244 crore, driven by both Hospitals and Implant segments. Hospitals grew ~21% YoY to ₹ 218.4 crore, driven by 12% ARPOB growth (₹ 39101) and 10% increase in occupancy. Implants (Shalby Consensus) sales grew ~46% YoY to ₹ 25.8 crore driven by 21% growth in hip construct sales in the US and 31% growth in hip construct sales in India / Singapore. EBITDA grew ~52% YoY to ₹39 crore while EBITDA margins improved 302bps to ~16%. (Q4 EBITDA is always lowest among four quarters). EBITDA growth was mainly driven higher ARPOB growth and lower total expenditure. Hospitals margins stood at 17.8% while Implant margins were 0.2%.
Views: The performance was slightly better on revenues front but lower on the EBITDA front. Shalby is making right strides with calibrated growth based on asset-light franchisee-based expansion in tier II-VI towns and a select big ticket expansion in metros and tier I cities. Shalby recently acquired Gurugram based Sanar International Hospital (P K Healthcare Pvt Ltd.) for a consideration of ₹ 102 crore. The hospital generates around 70% business from international markets catering to more than 60 countries. Similarly, it plans to add 40 franchisees over the next 4-5 years. For Implants business, after a tough FY24, the company has chalked out aggressive global expansion plans.
Impact: Positive