DEAR SHAREHOLDERS,
It is with great pride and a deep sense of responsibility that I
welcome you to the first Annual Report following the company's successful listing.
This milestone marks a significant chapter in our journey, opening new
avenues for growth, transparency, and shareholder value creation. We are now poised to
leverage our strengths and the opportunities ahead, building on our rich legacy while
embracing the responsibilities that come with being a publicly listed company. Together,
we will navigate this exciting new phase, striving for excellence and sustainable
progress.
A stellar IPO
The successful completion of our IPO, which raised H6,100 million,
marks a significant milestone in our company's growth journey. The proceeds have been
strategically allocated to maximize long-term value for our shareholders. A substantial
portion, H2,450 million, was directed towards debt repayment, resulting in a remarkable
93% year-on-year reduction in finance costs. Additionally, we have allocated H1,326
million for organic capital expenditures, reinforcing our commitment to sustainable
growth, and H650 million for strategic inorganic expansion. This prudent deployment of
capital underscores our focus on strengthening the company's financial foundation and
positioning us for sustainable growth.
Evolving healthcare landscape
India's healthcare landscape has been significantly transformed by
key government initiatives aimed at broadening access and reducing financial burdens. The
Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), launched in 2018, offers
health coverage of up to H500,000 per family per year to over 120 million vulnerable
families, with over 72 million hospital admissions covered by 31st August 2024.
Meanwhile, in the organised sector, the Employees' State Insurance (ESI) Scheme
serves over 130 million beneficiaries; the Ex-Servicemen Contributory Health Scheme (ECHS)
and Central Government Health Scheme (CGHS) ensure quality healthcare for about 5.5
million retired Armed Forces personnel and about 4.2 million central government employees,
respectively. These reforms have not only improved healthcare access for millions and
driving inclusive healthcare services for all.
Strategic roadmap
This year, our strategic vision and operational efficiency have driven
us to new heights, surpassing expectations. As patient preferences shift towards safer and
quicker recovery options, we have successfully integrated robotic surgeries into our
standard procedures, completing 115 robotic surgeries to date. Notably, we pioneered the
first robotic surgery in the Greater NOIDA region and have expanded our capabilities with
the installation of three Da Vinci X Surgical Robots and one Stryker Orthopedic robot
across our five hospitals. These advancements reflect our continued leadership and
adaptability in providing cutting-edge healthcare solutions.
In February'24, Yatharth Hospitals took a significant strategic
step by signing a definitive agreement to acquire Hospital in Faridabad for H1,160
million. This acquisition is a key milestone in our growth strategy, aligning perfectly
with our commitment to expanding our presence in North India, particularly in the Delhi
NCR region. The hospital, with its modern facilities and expandable capacity of up to 200
beds, enhances our service offerings and market positioning. The transaction was completed
on March 28, 2024, and the hospital became operational on May 12, 2024. This move not only
strengthens our network but also supports our broader strategy of inorganic growth,
ensuring that we continue to meet the rising demand for quality healthcare in the Northern
part of the country.
Operational highlights
In a rapidly evolving healthcare landscape, Yatharth Hospitals has
consistently aligned its operational performance with market demands, demonstrating
resilience and a commitment to excellence.
This year has been a transformative period for Yatharth Hospitals,
marked by the launch of our state-of-the-art Radiation Oncology and Nuclear Medicine
Center at the NOIDA Extension Facility. This strategic addition, featuring cutting-edge
technologies such as a linear accelerator, Elekta Versa HD, brachytherapy, and PET CT scan
capabilities, has strengthened our comprehensive cancer care services. Oncology now
accounts for nearly 10% of the revenue at NOIDA Extension Hospital, reflecting significant
growth and positioning us for further expansion in this critical area.
Financially, we have seen an 8% improvement in ARPOB, reaching H28.6K
for FY24, with a strong contribution from our super specialty services, which continue to
grow robustly. The focus on specialized treatments has resulted in a notable case mix
shift, with internal medicine's share reducing, paving the way for a greater emphasis
on high-value, specialty care.
Financial performance
Our revenues soared by an impressive 29%, reaching H6,705 million, a
testament to our robust growth strategy and operational excellence. This momentum was
further reinforced by a 35% surge in EBITDA, amounting to H1,799 million, with a margin
expansion of 113 basis points to 26.8%. These results underscore our ability to drive
sustained profitability while maintaining a disciplined approach to growth.
Additionally, our profit after tax witnessed a remarkable 74% increase,
rising to H1,145 million, highlighting our strong financial health. The diversification in
our payer mix has been pivotal, with government contributions nearing 40% of our total
revenue, and the remaining revenue evenly distributed between cash and private insurance
segments.
Positioned to expand our services of healthcare
With the upcoming launch of Asia's largest airport at Jewar –
Uttar Pradesh, we are poised to expand our medical tourism business. Our NOIDA Extension
facility now includes a dedicated international patient floor and lounge, and we're
adding 200 beds at our Greater NOIDA location to cater specifically to global patients.
Additionally, our doctors are actively engaging in OPDs across Africa, Iraq, and CIS,
enhancing our international outreach.
In parallel, we are exploring growth opportunities in North India,
particularly in National Capital Region (NCR), Haryana and Uttar Pradesh. With the
population growth and urbanization in these areas, there is significant potential for
establishing Super Specialty hospitals. We are actively pursuing acquisitions to
capitalize on these emerging markets.
As we move forward, I extend my heartfelt thanks to our stakeholders,
including our board of directors, employees, partners, and patients, for their continued
support and trust. Together, we are poised to achieve new heights of excellence and
continue our journey of growth and success.
Warm Regards,
DR. AJAY KUMAR TYAGI
Chairman & Whole-time Director