Mr. Shanay Shah with CNBC Bajar on Shalby’s Q1 Results & Expansion Plans
Shalby Hospitals presented good results in terms of revenue and profit during Q1 FY 2019-20 with 13% overall growth and a net profit of Rs. 23.66 Crore. Talking about the overall outlook of 2019-20, Mr. Shanay evinced confidence in achieving a better run rate during the financial year with the increasing number of Outpatients and Day care patients.
On EBITDA and margin expansion he said ”Out of 2000 beds, 70% beds are less than 3 years old and 30% are mature beds. Still we achieve above 22% EBITDA margin. When 70% of our beds become mature, we will get benefits of margin expansion within 1 to 2 years on quarter on quarter basis. Generally, in the hospital sector operational Break-even happens within 2.5 to 3 years but in our case we achieve break- even within 1.25 to 1.5 years“.
On the expansion plans of Shalby Mr Shanay elaborated ”We are coming with 2 more hospitals in the near future – Asha Parekh Hospital, Santacruz, Mumbai and the second one in Nashik. The Nasik facility would be operational in around 12 to 15 months with an investment of approx. 25 Crore on medical equipment. For Asha Parekh Hospital, it will take a little more time with a planned investment horizon of 2 to 3 years and an investment to the tune of 10 to 15 Crore in FY 20 itself.