- 27 Jul 2022
- ICICIdirect Research
STRONG Q1, REVENUES AND MARGINS BOOSTED BY SURGERIES
SHALBY - 245 Change: 2.43 (1.00 %)News: Revenues grew 24% QoQ to Rs 202 crore driven by growth in both hospital and Implant business. EBITDA margins improved 510 bps QoQ to 19.9% amid 470 bps QoQ improvement in occupancy levels and 5% QoQ growth in ARPOB. Subsequently, EBITDA grew 67% QoQ to Rs 40 crore. Net profit grew 97% QoQ to Rs 20 crore. Delta vis-à-vis EBITDA was mainly due to higher tax expense.
Views: Q1 results were better than our estimates on both revenues and margins front primarily driven by increase in In-patients count by 15% and surgery count by 30% QoQ. Shalby imported Consensus implants in India during Q1FY23 for hospital consumption and plans to launch these implants pan India for other surgeons and hospital groups by Q3FY23 to reach Rs 100 crores and be EBITDA positive in FY23. In asset light franchise model, Shalby remain focused to have over 50 Shalby franchise hospital across India within the next 3 years. Shalby continues to maintain leadership position in arthroplasty but has also transformed itself as a multispecialty hospital with diversified revenue mix. Shalby’s strategic initiatives are expected to drive its sustainable growth momentum in the coming years.
Impact: Positive.