Dear Shareholders,
I am pleased to present the first Annual Report of the Company after
the maiden listing of the Equity Shares on the BSE Limited and National Stock Exchange of
India Limited on February 29, 2024. This event marks a milestone achievement in the life
of any corporate who is looking to encash the economic boom in the country and especially
in a capital intensive sector like healthcare where the demand for quality healthcare far
exceeds the supply. The Indian healthcare sector is experiencing a period of
transformative growth, fuelled by advancements in medical technology and increasing
government investment. We at GPT Healthcare (ILS Hospitals) are strategically positioned
to capitalise on these exciting opportunities, particularly in the underserved regions of
eastern India. We started this business in July 2000 as we became acutely aware of a
critical gap in the eastern region's healthcare landscape as there was a growing
demand for quality healthcare even in large city like Kolkata and the citizens
unfortunately had to venture out to seek treatment. A significant portion of the
population lacked access to advanced medical facilities, hindering their ability to
receive timely and effective treatment. Recognising this disparity, we formulated a
targeted expansion strategy focused on establishing high-quality, neighbourhood tertiary
care hospitals in easily accessible locations. This strategy directly addresses the
pressing need for improved healthcare infrastructure in eastern India.
Over the last 24 years, we have grown to a network of 4 hospitals in
the Eastern part of the country focused on providing tertiary medical care to patients in
densely populated neighbourhoods while ensuring to exceed the best in industry financial,
clinical and customer service benchmarks. The brand "ILS Hospitals" today is a
well recognized and trusted brand in eastern India by the community with people vouching
for the quality of treatment and the transparency in the billing process. The IPO was a
milestone event in this financial year as it also provided an exit opportunity to the
private equity investor, BanyanTree Growth Capital II LLC, who had invested in the Company
in November 2014. The investment had allowed us to deleverage the balance sheet while also
providing us growth capital to invest in a new hospital in Howrah. This is the second
successful exit for an external investor provided by the GPT Group and speaks volumes
about our business model and also the disciplined growth that we have had over the last 20
years, thus offering good returns to the investors. Given the high corporate governance
standards that we as a group are committed to maintain, we were able to complete the IPO
process within 170 days from the date of kick-off, which is one of the fastest in the
capital markets and speaks volumes of the team at GPT which worked day and night to ensure
that the transaction timelines were met. The IPO drew fabulous response from the market
participants with key marque investors being part of the investor base viz. Kotak Mutual
Fund, Axis Mutual Fund, Bandhan Mutual Fund and Aditya Birla Insurance to name a few. All
the categories viz. QIB, HNI and Retail saw oversubscription despite a turbulent market
due to the prevailing Russia – Ukraine war and the overall subscription was 8.52x
with more than 250,000 applications. The Company's shares were listed on the BSE and
NSE on February 29, 2024 at a premium of 16%, thus providing good returns to the almost
127,000 shareholders. After the IPO the company became net debt free. I am deeply indebted
to all the investors who have reposed faith in us and we as a Company to commit to ensure
that the returns for the investors will also be rewarding.
I would like to appreciate the Board of the Directors of the Company
and the entire team at the 4 hospitals including doctors who have ensured that the
business has performed well and continues to look promising going forward as well. I would
also like to thank the sole Book Running Lead Manager to the Issue, JM Financial Limited
for guiding us through the process along with other intermediaries, regulators and stock
exchanges for according their approvals expeditiously. For the year ended March 31, 2024,
we achieved a robust set of financials, with revenues of C 400.2 crore, a growth of 10.9%
year-over-year. Our EBITDA for the year stood at C 93.1 crore with a healthy EBITDA
margin of 23.3%. Our Net Profit stood at C 47.8 crore with a Profit margin of 11.8%
reflecting a sustainable growth in our performance.
The collective performance of our existing hospitals reflects our
commitment to providing exceptional care to the communities we serve. The network-level
bed occupancy currently stands at around 59%, with a healthy mix of inpatient and
outpatient volumes. The ALOS across the network is 3.95 days, underscoring our focus on
efficient patient care pathways. Additionally, approximately 90% of our patient business
comes from cash-paying and insurance-covered patients, a testament to our dedication to
serving a broad cross-section of the population. This also leads to a negative working
capital cycle with Cash Flow from Operations to EBITDA in excess of 80%, one of the
highest for any hospital operator in the country.
Investing in Our Future
Looking ahead, we are driven by a clear vision: to become a leading
healthcare provider in eastern India, recognised for our commitment to quality,
accessibility, and innovation. We are actively pursuing expansion opportunities in Raipur
and Ranchi, further solidifying our presence in the region. We have also set an ambitious
goal of becoming a 1,000-bed hospital chain within the next three years. This expansion
will enable us to reach more communities and deliver the life-changing care they deserve.
We recognise that continued success hinges upon investing in
cutting-edge technology and attracting the best medical talent. Our hospitals are equipped
with state-of-the-art infrastructure, ensuring our physicians have access to the tools
they need to deliver exceptional care. We actively recruit and retain highly skilled
professionals, fostering a collaborative and innovative work environment. Besides, we have
developed a custom-made backend app for enhancing operational efficiency and have
introduced the best in class medical technologies like robotic surgery to the patients.
Shaping the future of healthcare
We look to the future with optimism and excitement to uncover new
avenues of growth and transformation. With the support of a highly talented team and the
strategic direction offered by our board, we are confident of strengthening the foundation
of a healthier future. We remain confident in the future of GPT Healthcare and are
committed to delivering exceptional value to all our stakeholders. Thank you for your
continued support.
Regards,
Dwarika Prasad Tantia
Executive Chairman