MEDANTA - Global Health Limited Share Price

1. Question: "Sir, firstly the clarification, like in your opening remarks you highlighted about Lucknow and Patna margins. If you could just spell out again?"

Answer: Total income growth for developing hospitals has seen a significant rise, with revenue jumping from Rs. 813 crores to Rs. 1,040 crores over the nine-month period, which is a 28% increase. The margin has expanded from 30.0% to 31.1%, excluding Noida. Factoring in Noida's loss, the overall margin sits at 25.0%.

2. Question: "Sir, on Lucknow particularly, how has been the margin scale up?"

Answer: We've made significant progress in Lucknow, achieving a margin expansion of over 150 basis points on a year-on-year basis during the last nine months. This demonstrates strong operational efficiency and effective management of resources.

3. Question: "So, now with respect to Noida, we have added 220 doctors. Are we more or less done with the onboarding, or what is the target for the future?"

Answer: While major hiring is nearly complete, we will continue to recruit for specific departments that aren't yet operational, such as Pediatrics and Obstetrics. If we identify a need for additional talent, we won't hesitate to bring more doctors on board to meet demand.

4. Question: "We expect to add 200+ beds in Noida. How should we consider the losses from here on?"

Answer: We hope that the losses we've reported are at their peak. With our clinician onboarding completed and increased patient volumes, we anticipate a steady improvement in revenue, which should help reduce these early-stage losses over the next quarters.

5. Question: "Could you share the employee-to-bed ratio for the hospital?"

Answer: The employee-to-bed ratio varies significantly by specialty; hence, it's not a standard metric we assess or report. For example, a highly specialized Liver Transplant department may have fewer beds but requires more clinical staff, rendering this metric less meaningful on the whole.

6. Question: "What is the current ALOS and should we expect a structural decline in ALOS at matured units?"

Answer: The average length of stay has seen some decreases; however, this should be looked at on an annual or multi-quarter basis due to seasonal disease impact. While we're focused on further reductions, maintaining a robust ALOS of around three days is a solid outcome for our complex system.

7. Question: "Regarding margins, will we see improvements now that higher costs and expenses are behind us?"

Answer: While employee costs will recur, we aim for operational efficiencies across our hospitals, understanding that some maintenance expenses may fluctuate seasonally. We expect overall margin improvements as we stabilize operations and recruit the right talent.

8. Question: "For Noida's beds, what occupancy do we need for EBITDA breakeven?"

Answer: We typically view the utilization from a volume standpoint rather than occupancy alone. However, historically, a long-term occupancy of around 40% to 50% helps us reach breakeven. We are focused on driving patient volumes to achieve sustainable growth.

9. Question: "Was there a guidance on when Noida might reach EBITDA breakeven?"

Answer: We do not provide specific future earnings guidance, but we're optimistic about strong positive momentum in Noida. While there's no fixed timeline for breakeven, we are confident that our strategy will lead to successful outcomes.

10. Question: "Lastly, what is your net cash position as of December?"

Answer: We carry a loan of about Rs. 600 crores, with a cash position exceeding Rs. 1,200 crores. Hence, our net cash stands at approximately Rs. 600 crores.