Ladies and gentlemen, good day, and welcome to Q2 and H1 FY 25 Earnings Conference Call of Jupiter Life Line Hospitals, hosted by Mirae Asset Capital Markets. As a reminder, all participants in line will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshal Patil from Mirae Asset Capital Markets. Thank you, and over to you, sir.
Thank you, Sejal. Good morning, all. On behalf of Mirae Asset Capital Markets, I welcome you all to Q2 and H1 FY 25 Post-Results Conference Call of Jupiter Life Line Hospitals. From the management, we have Dr. Ankit Thakker, the ED and CEO, along with other senior management team members. Dr. Ankit, over to you for the initial comments.
Thank you, Harshal. Good morning, everyone. I thank you for joining us on our Earnings Call to Discuss The Business and Financial Performance of Q2 and H1 FY 25. I hope all of you had a chance to go through the financial results and the presentation posted on the website and the exchanges. I'm accompanied by Mr. Anand Apte, our Chief of Business and Strategy; Mr. Nitin Patodi, Head of Finance; and Suma Upparatti, our Company Secretary and Compliance Officer, along with our investor relations advisors, SGA. So we got listed in the second quarter of last year. Today marks a year of us meeting over these calls. After a year of doing this, a realization dawned upon me: All of you have signed up for our earnings call, not for my Mann Ki Baat.
So out of respect for all of you and your time, beginning today, we will do away with generic opening remarks. Of course, whenever there's something substantial to announce, we will talk about it. Let's move straight to the numbers and then dive into the Q&A. For the quarter, the income stood at INR 324.2 crore, representing an increase of 22.7% year-on-year. The EBITDA was INR 76.6 crore, representing 23.5% growth. The EBITDA margin was 23.6%. The PAT at INR 51.5 crore, increase of 52.9% YoY. The PAT margin is 15.9% for the quarter. The half-yearly numbers: the revenue was INR 612.8 crore, a 20.5% increase YoY. EBITDA INR 141.9 crore, 22.3% increase YoY.
The margin is 23.2% of EBITDA. The PAT is INR 96.1 crore in the first half, representing a 9.5% increase, and the PAT margin is 15.7%. The ARPOB for the first half is 57,700, as against 53,100 for the same period last year. ALOS is 3.85 days compared to 3.89 days last year. The occupancy for the period this year was 67.2%, as against 62.3% last year. The overall volume has been 486,000 in the first half, compared to 435,700 last year. The payer mix, insurers, contributed to 55.4% of the revenue, self-payers 53.5%, and the government schemes at 1.1%. So these are the headline numbers, and I'm happy to take your questions.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, you may press star and one to ask a question. The first question is from the line of Dr. Sandeep, who is an individual investor. Please go ahead.
Yeah. Hi, good morning. I have, if I can be indulged, I have two small questions. The first one is on, you know, having missed out on the, auction process in Andheri, Medanta, to Medanta. Do we have any plans now to have any, you know, organic growth opportunities in our planning process? This also becomes important from the fact that KIMS also has, is coming up, coming up very soon in, Hiranandani Estate in Thane.
Yes, thank you, Dr. Sandeep. So, we keep on exploring growth opportunities from time to time. Currently, we have two new greenfields underway, one in Dombivli, which we have started constructing for 500 beds. The second one in Pune is under regulatory clearances. We expect approvals in the next quarter and plan to start construction soon after. So the thought process is that we must expand some more. Current geography in mind is Western India. While we will keep on looking at opportunities, we also are mindful of the value which we need to, you know, pay for pursuing that growth. So wherever we have that opportunity and value intersection, we will go ahead and do that.
Understood. If you please don't mind, just a quick one, one quick one on that. We do know that, you know, the Thane Hospital is the star hospital. Invariably, this is, has got a very decent occupancy level. So would there be an idea to, take over the Fortune Hotel, property and convert entirely into the hospital?
So, yes, Thane is the first one which we started. Our thought process is that there should not be one star in the group. All the hospitals are designed, to deliver, you know, at a similar level. They are built, similarly. They are sized and scaled, similarly. So as all of them achieve maturity, which you will see, Pune is now pretty much achieved, you will eventually find there are no star hospitals. To answer your specific question about Fortune, even today as we speak, Fortune occupies, I think 2 or 3%, of the, built-up space, less than 4% in any case. It is not a huge, you know, footprint. It is more of an amenity, which, helps us, you know, deliver care better. It is a source of comfort to the patients and the doctors and the community, and which is why it is existing. It will not really make too much of a difference.
Understood. Thanks a lot. That's all for now.
Thank you. The next question is from the line of Rohit from SK Securities. Please go ahead.
Yeah, good morning, sir, and thank you for the opportunity. I have a couple of questions, and the first one is, in H1 FY25, our overall volume and EBITDA increased by 12% and 9% on YoY basis, respectively, right? And, can you please, highlight for Q2 FY25 as well?
So it is, I mean, part of the growth process. Generally, you know, there are no magics that we can spin quarter to quarter. As this year against last year, we have had a little bit of increase in bed occupancy, I mean, bed capacity availability. And in those, being in its, you know, growth phase now, you are seeing that growth. In terms of numbers, how to extrapolate it, you guys are more adept at it than I am. What. In terms of business guidance, what I can tell you is that the Pune 22 beds, which was just added in this quarter, will, you know, continue to get more occupied in the second half of the year. In dore, we are adding 75 - 80 odd beds, which are expected to begin operations in the next quarter, so they should start contributing a little bit. And Thane, of course, is at a good occupancy currently, so it should continue performing the way it is.
Okay, so got it. And, my second question is, which are bit of broader level, that how do you see the healthcare landscape evolving over the next few years? And how is Jupiter positioning itself to maintain its leadership role in the Western region?
Healthcare landscape has a huge headroom to grow because, you know, if you look at both the metrics, because what we strongly believe is that you need to analyze the quantity and quality both. The easier thing is to analyze quantity. If you look at the number of beds, currently in the areas where we operate, Western India, versus what the desired numbers, you will see that there is a huge gap. But if you do a secondary analysis and say that, "Okay, from the available beds, how many are of the quality that I desire?" Then you will see that the gap becomes still bigger. Even in a city like Mumbai, a large share of healthcare is provided by the unorganized sector, which is small nursing homes and not, you know, large, organized healthcare providers.
So over the next decade, I think both the factors will play in: A, new capacity will get added, and B, the old unorganized capacity will eventually have to get replaced by a new organized facility. So this is on the supply side. On the demand side, we believe now that the insurance sector in healthcare has reached a critical mass, and from herein forward, it has only one way to go, and that is north. So with more and more insurance penetration, the affordability for healthcare of a common man will drastically increase. And once people are insured, which means they don't have to pay out of pocket, then their desire for the higher quality consumption goes up disproportionately. Because if I had to pay out of pocket, I am willing to make some compromises.
But if my, you know, insurance provides for my care, then who wants to go to those dimly lit, you know, unorganized places? Everyone wants to go to a place where they can fully trust the quality. So these factors, I think, are two key factors which will play out over the next decade.
Got it, sir. Thank you for availability of answer. That's it from my side.
Thank you. All the best.
Thank you. The next question is from the line of Shivam Agrawal from Mirae Asset Capital Markets. Please go ahead.
Hello, am I audible?
Yes, sir.
So congratulations on good Q2 numbers, sir. So I have a couple of questions. So firstly, on the Indore side, Indore facility. So can you provide, like, the occupancy for the current quarter, Q2?
It was around 61% in this quarter, the Indore occupancy.
Okay. And, like we have currently, like, for the first half, we have reported 59% of the occupancy. So, like, how can we see ramp up over the next 1-2 years post, like, 75-bed addition that we have planned?
Yeah. So in percentage terms, next quarter you will see a dip because the base will become bigger. So, but in absolute terms, you will see that the occupancy will be higher. Typically, when we achieve a 60%+ occupancy, we want to expand more beds. So between 60% - 65%, we always try to add more beds if it is possible. So now we have crossed that 60% mark, in the next quarter, we add these new beds. So, in absolute terms, they'll keep growing, but in percentage terms you will see a little drop. Once in the expanded base, we again cross 60%, 65%, we will try and explore the possibility of adding some more beds in Indore.
Hmm. Oh, okay. So like, I guess, like 200 odd beds can be added in the Indore facility that.
Right.
I think I remember correctly. So out of the 75 post, like 100 beds can more be added in the facility. Am I correct?
Yeah, something like that.
Okay. Second one is on the CapEx front. Like we have few greenfield opportunities in Dombivli and Pune facility. Like, any update on both the facilities?
Yeah, Dombivli is progressing as per schedule. We should expect to start operations in calendar year 2026. Pune is in the regulatory phase. We have cleared a few steps. Currently, because of elections in Maharashtra, the, you know, government is not really on for too much of clearances, but it is, it has made progress. I think in the next quarter we should have all approvals, and then thereafter, we should be able to begin construction in Pune as well.
So, and any, like, what is the CapEx plan for the facilities, right, CapEx number, if you can just provide?
For Pune?
Like overall CapEx for the whole company as a whole.
Overall company, in the next year, I think the main CapEx will only be for Dombivli and Pune. Unless, of course, we get new land and we start a new project. I'm not talking about that now because there's nothing to announce. But from the existing, what we have, Thane, Pune and Indore, all three are pretty much set in terms of their CapEx needs for the time being. Dombivli will need INR 150-odd crore, I think, in the next year. And Pune should also need maybe INR 50+ crore in the next year.
Oh, okay. Thank you. Thank you. That's all from my side.
Thank you.
Thank you. The next question is from the line of Sakshi Pratap from Worth Investment and Trading Limited. Please go ahead.
Hello. Thank you for the opportunity. I just have one question. So the second Pune hospital is in advanced stages of regulatory work. When can we tentatively start the construction process, if you could highlight?
So we expect the approval, Sakshi, in the next quarter, which is Q4 of this financial year. So towards the end of this financial year, beginning of the next financial year, sometime in that, within India, we should begin construction.
Okay. All right. Thank you. Also, how many more can we add after adding 75 beds in the Indore Hospital?
We have a large land there. We have 5+ acres of land in Indore. There is a lot of empty land available where we can build. We have one semi-finished building, which can take 100+ beds. What we have committed currently is that we can do about 200 beds, but yeah, it depends on the need and depends on the growth, we can take that up.
Okay, got it. Thank you so much.
Thank you.
Thank you.
Before we take the next question, a reminder to all the participants, you may press Star and one to ask a question. The next question is from the line of Anisha Shah, who is an individual investor. Please go ahead.
I thank you for the opportunity. I just. we added 22.
Sorry to interrupt, Miss Anisha. I would request you to please use your handset.
Hello, can you hear me now?
Yes, ma'am, please go ahead.
So I just had two questions. First is, we added 22 beds at the Pune hospital. So post this addition, is there any further scope of addition, or will it reach to maximum capacity?
So we have 10-12 beds, which we can add in Pune. After that, we are at maximum capacity.
Okay. Second question was that, so Indore occupancy for H1 stood at 57% and ARPOB was INR 46,100. So can you please share for Q2 as well?
For quarter two, we had 61% was the occupancy and INR 43,500 was the ARPOB.
Okay. Thank you very much. Bye.
Thank you.
Thank you. Ladies and gentlemen, you may press Star and One to ask a question. A reminder to all the participants, you may press Star and One to ask a question. The next question is from the line of Jenil Shah from JM Financial. Please go ahead.
Yeah. Hi, thank you for the opportunity, and congratulations on a good set of numbers. My question is on, you know, EBITDA margins. So we've delivered almost 23% revenue growth, but our margins are still flat. So is it fair to assume that most of it is being dragged by our Indore expansion or is there something else also?
Yeah. So Indore expansion definitely is a factor. I think the margin for this quarter is what? 23.6%. The new beds in Pune would not have, you know, full capacity utilization currently, and Indore would not be at peak occupancy currently. So those are two slight drags. But having said that, our aspiration for EBITDA margin, as we have said, is 25%, give or take something. So we are in that zip code, and yeah, that is where we are updated.
So when do we think we'll reach the 25% mark? Because we'll be adding more beds in Fortune, Indore and then probably, you know, next year or so, we'll also have Dombivli expenses coming in, so.
On individual level, you know, the properties may reach. On a group level, I hope we don't, because that would mean that there is always a growth pipeline and something is still, you know, in a phase of maturity. So we would always want to have something new coming up, which is dragging us down. I like to be dragged down rather than be flat. So, yeah, on a mature unit level, I think we are probably there in Thane and Pune. And by the time Indore reaches there, the Dombivli should create a little bit of drag and then Pune should create a little bit of drag and then something else. So, yeah, that is a process.
Sure. Just one more question. Have you seen any attrition in Thane so far? And, I mean, do you expect something going ahead there?
No, we have not seen any attrition in any of our hospitals. Unusual attrition, let us put it that way. When I'm talking about it, I'm talking about senior level, which means doctors and senior management. I'm not talking about nurses, because that is a perennial problem, I must admit. Apart from that, on the senior level, we have not seen any attrition.
Sure. Thank you. That's also nice.
Thank you.
Thank you. A reminder to all the participants, you may press Star and One to ask a question. Ladies and gentlemen, you may press Star and One to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you everyone for joining us on this call. I hope the answers were satisfactory. If there is any further clarification needed, please, please feel free to call our IR team. Thank you and have a good day.
On behalf of Mirae Asset Capital Markets, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.