Ladies and gentlemen, you are connected for the Medi Assist Healthcare Services Limited conference call. Please stay connected. The conference will begin at 6:35. Participants, you are connected for the Medi Assist Healthcare Services conference call. Please stay connected. The conference will begin at 6:35. Thank you. Ladies and gentlemen, good day and welcome to the Medi Assist Q4 FY 2025 results conference call. As a reminder, all participants' lines will be in the 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Niraj Didwania, Senior Vice President Strategy. Thank you, and over to you, sir.
Thank you. Good evening and a very warm welcome to each one of you to Medi Assist Healthcare Services Limited earnings conference call. As we discussed quarter and year-ended 31st March 2025 numbers with you, the results of the company's press release and the investor presentations have been uploaded to the exchanges and distributed to our mailing list. We apologize for the delay in doing so by five minutes. Please note any forward-looking statements are to be relied upon based on your own judgment, and all financial and operating numbers discussed on the call are based on either audited financials or management estimates, and hence investors should refer to them only on the basis of uploaded financial statements of the company. Without further ado, I would now like to hand over the call to Dr. Vikram Chhatwal, Chairman and Whole Time Director, Medi Assist Healthcare Services.
Good evening, ladies and gentlemen on the call, and a very warm welcome to our earnings call today. It is with great pleasure that I am here with my colleagues, our CEO, Satish Gidugu, our CFO, Sandeep Daga, and our Senior Vice President Strategy, Niraj Didwania. As I and my colleagues walk you through a quick presentation, I believe, which has been mailed to you, I would request that those on the call please refer to the slides on the attachment in the mail that was sent.
As we begin today's call and before we walk into the FY 2025 results and Q4 FY 2024-2025 results, I'd like to take this opportunity to once again give you all on this call a sense of where and how our business continues to perform, and more importantly, from a strategic perspective, how the proposition of a TPA evolving into that of a health benefits administrator. I believe that we are at that juncture as an organization where we continue to see not only improved operational and financial performance, but more importantly, I come to you today sharing that the proposition as a business that is part and parcel of the healthcare insurance ecosystem continues to remain strong with clear strategic direction and an increasing role or canvas of services that we as a health benefits administrator offer up to the ecosystem.
As you all know, we continue to work actively with provider networks. We continue to work actively on the group and retail portfolio. Most importantly, we work actively with our principals who are insurers on one hand and, of course, public health teams under PM-JAY. As I think of the business and its role today in enabling the health insurance ecosystem, the big shift that we continue to see as being a differentiator for us as a business is the evolution of us being just historically a claims processing company, a hospital network management company, and a customer service company to actually today coming to you as an established organization that is data-driven and the core role of data and technology and analytics that we continue to participate in and enhance value across these stakeholders.
Supporting this data-driven analytics backbone is services beyond claims management, which include technology services, fraud detection services, network enablement services, international private medical insurance, and last of all, predictive analytics. Our continuous engagement through personalized health journeys and digital touchpoints have truly and continue to become integral to the ecosystem in India. Last of all, and most importantly, we continue to collaborate and partner with insurers, build record provider networks, and of course, with technology innovators that build integrated outcomes focused on the health ecosystem as a whole. Today, as a reflection of that strength in technology, machine learning, AI, and analytics, we today operate not only within our ecosystem, but we have two customers, insurers in this case, who operate on Medi Assist technology platform. We have 19 insurers who use the Medi Assist network of hospitals.
Our AI and machine learning offering in terms of automation in claims adjudication, fraud prevention, and prediction of cost, we have three customers who today use our capabilities to enable their ecosystems. All of this is reflecting in the financial performance of the company. As you will see, we have expanded the scope not only in our India business, but you will also see and hear from our team the expansion in the international private medical insurance market focused again on India globalizing. In summary, before I hand over, I think your company today has demonstrated and continues to deliver on its promise as a third-party administrator while innovating in partnerships, innovating in technology, innovating in member engagement solutions, and innovating in adding both inpatient and outpatient services and capabilities to insurers.
With that, I take this opportunity to hand this call over to Satish Gidugu, our Chief Executive Officer, to walk you through the highlights on the financial performance of the business and specific data points that he'd like to share with you. Over to you, Satish.
Thank you, Dr. Chhatwal. Good evening to everyone who's joined us today. Thank you for your time. The investor presentation has been uploaded. For those of you who have access to it, we are using the same deck, and I will read out the pages whenever I'm talking about from the point so that you have access to it. On page five, as we talk about how we've stayed in terms of growth across key segments, within the group business, we continue to be a market leader with 30.3% market share. What really got us here is that our retention has been higher than usual at 95%. This is on a combined base of portfolio of Medvantage and Raksha that we've integrated. Now over 10,000+ corporate accounts.
Not just that, some of the private and SAHI insurer premiums that we service have actually grown 42% in the group business. All of this is leading to our group premiums growing by 12.4% from FY 2024 to FY 2025 against the industry group growth rate of 10.5%. In retail, we have focused on the broader technology-led customer-first approach to retail, significant work on digital innovation, and expanding access and affordability in terms of cash flows for retail policyholders. We are working very closely with insurers who have significant in-house operations by integrating with them on technology, network, and fraud detection. This led to our retail book growing by 29.4% from FY 2024 to FY 2025 against the industry growth rate of 12.2%. In the IPMI market, the international private medical insurance market, our Medi Assist entity continues to look at making the most of the opportunity of India Inc.
Global expansion, Indians traveling abroad. As mentioned in some of the earlier calls, we have a technology platform now for the international private medical insurance business that we have built out. Combining that with MedPay's access to over 500,000 providers across 185+ countries, we are able to now deliver a significant amount of IPMI services to both global insurers and, more importantly, many Indian insurers today. As a result, our MedPay active membership has grown 71% during the period that we are comparing. Lastly, government. The government segment is seeing a lot of action, especially with insurance for all vision by the Indian government, serving the most vulnerable section of the population. The government is attempting to bring multiple categories of beneficiaries under this umbrella. We continue to actively participate in government health schemes pan-India.
We've powered fairly large-scale programs across multiple states and country schemes. Even our government revenues have grown over 24% between FY 2024 and FY 2025. I'm flipping to page six. Some of this and most of this is backed by our investments in technology to drive scale and leadership. We continue to invest annually about 5%-7% of our revenues in technology to build core differentiation and innovation. We process over 8.9 million in-patient and out-patient claims just in our group and retail business and process many more in government business. There are three or four distinct offerings that Dr. Vikram alluded to that our tech is actually enabling us to do, which is claims management at scale. Our platform today allows us to process almost a quarter of claims every year across multiple health and a senior planner.
The same platform today is made available in a SaaS model for other insurers to use. There are two insurers currently operating on our claims management platform. The third area is where we have invested heavily in terms of data analytics and insights, leveraging predictive analytics to forecast various claims costs, high-risk fraud-based abuse cases, and policy-level analytics, leading to better decision-making for insurance companies. We have also taken leadership in enabling compliance requirements for insurers, especially with the regulatory mandates for faster claims processing, a run towards 100% cashless adoption, and delivering cashless optimization and discharges in finite time windows. As you may be aware from our previous calls, we now publish some of our turnaround time in real time on our website in terms of how we deliver adherence to the regulatory mandates.
Moving forward on page seven, there's some of the other capabilities that we brought in during FY 2025 using our technology. We spoke about the global platform, the prediction feature resulting in Daksha Prime discharges, which is an innovation which actually completely eliminates the traditional discharge process that's commonly talked about in the insurance and cash flow conjunction. Today, over nearly 20,000 patients walk out of the hospital every month, even before the bills get generated, because we've eliminated the discharge process. In all of FY 2025, we've delivered over 100,000 such discharges.
We then took some of this predictive capability and enabled a prediction tool for out-of-pocket expenses, where we are enabling our membership to plan in a financially prudent manner the facility, the kind of room, the kind of procedures that they want to undergo, and estimate the out-of-pocket in each of those scenarios and make an appropriate call from where they want to get a hospitalization done. Lastly, we've also launched a consent feature, which is our innovation to improve policyholder experience. Today, in reimbursement, starting with the reimbursement, which will be expanded to all of those same sites, once we approve a claim, we are able to send a detailed provisional approval letter to the member and actually give them a chance to say, "I'm okay," or, "I need a clarification," or, "Help me understand the introductions," or, "I have an additional policy.
Can you help me use that?" We're actually enabling those conversations in real time. Almost 92% of all the claims that we process in reimbursements today go through this feature, with up to 55% that are actually acting on those links, explicitly saying they're okay to move forward, with less than 5% of those members coming back and saying, "Could we have a conversation about this claim before you finalize the outcome?" This is leading to a reduction in cost per claim. This is improving customer satisfaction in our portfolio. Moving to page number eight, continuing on the investments that we've made in the AI space, we've focused heavily on fraud-based and abuse elimination, more so specifically on the fraud prevention. We have delivered nearly INR 400 crore of savings on account of fraud prevention through insurers that we work with in FY 2024.
That is over one and a half times the value of the previous year, with the exit rendezvous being much higher. Today, our machine learning models are able to evaluate over 160 parameters to extremely reliably detect and flag potentially fraudulent cases. The other feature that this capability is enabling is allowing us to reduce the number of claims that need to be investigated, improving member experience because our sample sizes are coming down while the outcomes are actually moving up. Moving to page nine, while we did all of this in terms of growth and technology, we have been steadily improving our financial performance as we continue to start to accrue the synergies from Raksha and Medvantage consolidations from 21% to an exit Q4 2025 of over 21.6%, and with the margin resulting in over 21.3% margin for FY 2025.
If I excluded a couple of one-timers, like some of the transaction costs and one-timers, which is almost a quadruplicate number, this is an adjusted EBITDA level of approximately 21.7% for FY 2025. Our revenue per head count has grown further from INR 1.38 million to INR 1.41 million this year. Our net cash flow from operating activities was INR 138 crore. Moving on to page 11, we talk about some of the operational highlights. Our total premium under management crossed the INR 20,000 crore mark, and we crossed our INR 10,000 crore mark back in March 2022. That was three years ago. We have crossed the INR 21,000 crore mark in group and retail premiums that we administer now. We have improved our market share both in group and retail. Moving on to page 12, some highlights that we probably have already covered in the previous two pages.
Our industry growth- rate, for example, in private and SAHI in group was 12.6%, but the premiums that we administered for that cohort grew by about 42% as we continue to power many of the private and SaaS insurers and get into the group segment and deliver great service that they're already known for in the retail segment. Our retail has grown at 29.4% against an industry growth of 12.2%. We have received the regulatory approval just two days ago to acquire a 100% equity shareholding in Paramount Health Services and Insurance TPA Private Limited by our wholly owned subsidiary, MedFix Insurance TPA Private Limited. As we move forward, we continue to work with MHA and the regulator to enable insurance to transition to National Health Claims Exchange Framework and also improving compliance to Master Circular.
I will now hand over to Sandeep Daga, our CFO, to give you a quick overview of the financial highlights for both Q4 and FY 2025.
Thank you, Satish, and I welcome all the participants. Thank you for joining the call at this point of time. The financial highlights for Q4 FY 2025: total income was INR 196.6 crore, which was a growth of 14.9% over the corresponding period of the previous year. Revenue from contracts with customers, excluding other income, was INR 188.9 crore, which was equivalent to 13.2% over the same period last year. Revenue from contracts included 13.2% from government business and 5.7% from our international benefits business. EBITDA during the quarter was INR 40.7 crore, which was equivalent to 21.6% on operating revenue and a variable growth of 10.1%. Profit for the period was INR 21.6 crore, which, versus the same period last year, resulted in a reduction of 15.9%.
It was primarily because of the one-time ETR benefit which we got during last year because of the Medvantage merger. However, this tag was equivalent to 11% on the total income. Now, giving you the highlights for the full year, 2025, total income for the year was INR 747.1 crore, which was equivalent to a growth of year-over-year 14.4% over the previous year. Revenue from the contracts with customers was INR 723.3 crore, growing at 14% year-over-year. This revenue included 11% from the government business and 5.1% from the international benefit business. EBITDA during the year was INR 154.1 crore, which was equivalent to 21.3% margin on the revenue and 15.6% year-over-year growth over the previous year. PAT profit for the period was INR 91.6 crore, which was equivalent to a 28.5% year-over-year growth on the PAT of previous year and a margin of 12.3% on total income.
Two key highlights from the balance sheet as of 31st of March 2025: the total net cash balance in the book net of borrowing was INR 312.2 crore. Net worth as of date was INR 552.2 crore, and the return on net worth was 16.6%. The return on capital employed was 18.7%. Revenue for average hard count on the non-government business was INR 14.2 lakh. I now hand over the call to Niraj.
Thank you, Dr. Satish and Sandeep, for giving these highlights. For the full year, as you can see, we have had a checkbox on each of the points in terms of growth, better than the industry, continuing improvement in profit margins, including EBITDA accretion, and very, very strong cash flow generation. We are holding among the highest cash reserves as of date. With this, I would now like to open the call to Q&A.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star, then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star, then 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. Again, to register for a question, please press star, then one. Our first question comes from the line of Chintan Sheth from Girik Capital. Please go ahead.
Thank you. Thank you for the opportunity and congrats for the recent product numbers and getting the IRDA approval for Paramount Acquisition. Hope I'm audible.
Yes, Chintan, we can hear you.
Hello.
Yeah, yeah. Yes, Chintan, we can hear you.
Sure. So my question is on the initial remark from Dr.
that the evolution of our business from TPA to health benefit administrator, the SaaS services and all, and we have started getting the inroads onboarding to insurers right now. What are the key KPIs which help us understand the business model for that piece of the business which is getting rolled? Given that the investments have been already, the data has already been in other systems, how should one look at the cost trajectory if we scale up this business going forward? Do we see the margins pressurized because of the investment we continue to put in in that piece of the business and help us understand the business better?
Thank you, Chintan.
I could not get the second part of your question very clearly, but I will, between all of us, attempt to answer it and let me know if there is anything that you would like us to answer additionally. Yes, first of all, I would ratify what you just said that this transition from a pure GA to a health benefits administrator is real and now. I think that the best way for you and the listeners on this call to think about it is one that it has allowed us to unbundle our services as an organization. Historically, we have serviced our partners in a single contract that includes all services as governed under a TPA contract. What we have clearly demonstrated is the unbundling of it and strategic opportunities thereof that get created for the business.
Illustratively, I talked about two insurers who have worked and now work on our core claims platform called Matrix. Illustratively, again, I talked about our fraud, waste, and abuse with three insurers. Again, illustratively, I talked about 19 insurers and the hospital network. I would think that the unbundling has allowed us to unlock value both to our partners, our customers, and most importantly, as we organize ourselves as a business both in India and in the international private medical insurance market, we today do not go in a singular frame but have the ability to engage, to partner, and to contract across frameworks. To the second part of your question, I will ask Niraj to just respond to it.
Thank you, Dr. So Chintan, the second part of the question was, will this transition have an adverse impact on the margins?
Is that the correct question that you were asking?
Yeah, basically, given that a lot of this unbundling even requires our platform to operate separately, and as in the past, we have been mentioning that the investment from the resource side on the tech side has been a continuous process. How do we see these investments continuing going forward? Is there any impact in the margins? As we scale up and as we ramp up our onboarding of insurers, we will see the benefits accruing at a later stage of the evolution of moving from TPA to SB?
You're right. We've always maintained that we will continue to invest in technology and forward-looking opportunities. As you can hear from Dr.
We have already seen payouts from these technologies or investments in the form of insurance companies recognizing the value we bring to the table from these investments, and we are truly able to unbundle these services. Also, please note, we are only building on top of most of these services already being captured in our TPA business as a cost aspect. We do not believe that these investments, first, there is a proven track record of these investments being our ability to monetize them. Second is, they should be far more operative than the current business because we are leveraging. This is a pure form of operating leverage for us where the same expenses are able to deliver more for us. That is what we expect in the long term. I'll bring in Dr. here to add one more point.
I think, Chintan, a good way to think about this for all of you is that all the investments were made for the core business that we run today. That continues to demonstrate greater stickiness, greater growth, and more insurer participation. What unbundling in a benefits frame allows us to do is to engage with a wider set of stakeholders and customers who are at different stages of evolution of their intrinsic business models. A one-size-fits-all is not necessarily the only available contracting template that we have. Thank you for asking us that question, Chintan. Could we go back to the next question?
Should I chip in one more?
Could we come back, Chintan? Should we just cover the rest? Sure. I appreciate it if you come back.
No problem. Thank you. Thank you for answering.
Thank you. Our next question comes from the line of Nidhesh Jain from Investec. Please go ahead. Nitesh, your line is unmuted. Please proceed with your question.
Hello. Am I audible?
Yes. Yes, you are.
Yeah, yeah. First question is on retail premium. I think that number is different on two different slides. Can you confirm which number is right, retail premium under management?
On slide number 5, the retail premium is around INR 2,092 crore. I think on slide number 13, 14, slide number 11, it is around INR 2,341 crore.
Nidhesh, that INR 2,341 crore is without the adjustment of Raksha premiums on prorata basis. That was the reported number on slide 11 for last year.
Slide 5 is actually with the footnote that we had mentioned that if we allocate on a prorata basis Raksha premium in proportion to what consolidated revenues we took for that period, then the number would be slightly lower because we cannot take the full consolidation for only seven months.
Sure, sure. Second question is that you also spoke about international opportunity. What is the exact play there? There are business models like fragility, etc. Do we also see a play in that model where they are offering services to healthcare providers outside India?
Not at all, Nidhesh. Just to make sure that we're all on the same page, I take you back in time when we acquired a company called Mayfair We Care.
Mayfair, the whole objective was that as India globalizes, as Indian insurers globalize, as Indian businesses globalize, and the Indian traveler globalizes, there is a need to extend what we do here in India to the global markets, given that Indians and the Indian diaspora are far and wide today. We continue to believe that as the core business continues to grow, we will see an increased participation on the international private medical insurance market, and that we would need to extend these capabilities to other geographies, other networks of hospitals, and possibly other global insurance providers. Our focus, although, will and continues to remain on India, Indian insurance providers, and the offering of Indian health plans with global coverage. I'll stop at that. Thank you.
Sure. Thank you. That's very clear. Just lastly, we have been seeing some adoption of health benefit model from the corporates.
They're taking insurance globally. That is the prevalent model. Is there any trend in India, and if you can share some numbers there, how it is panning out? That would be useful.
Nidhesh, if I understand your question, is that the evolution of a self-financed or a self-funded program relevant in India? It is still in its nascency. We do have certain partners that have migrated to such programs, but I would still share with you that it is still early for us to give you a view or a comment on how and where this will go and at what pace will the uptake be, if any at all.
Sure, sure. Thank you. That's it from my side.
Thank you.
Thank you. Our next question comes from the line of Prakash Gadavia from Spark PMS. Please go ahead.
Yeah. Thanks. A couple of questions from my end.
Premium under management for outsourcing historically was, I think, 50%-55% of the TAM. As you know, group is a much larger percentage, and retail is a small pie of the addressable TAM for us. Wanted to understand some of the changes in terms of product offerings or taking a more holistic approach, which we are trying to build and not just claims processing. Is it in the background of recent slowdown in the group GDPI segment, which is showing in terms of lower GDPI at 3%-4% now versus earlier growth? What is happening in the industry, and what kind of organic revenue growth can we continue to see?
Could you give some more insight into how will monetization of some of the newer areas, which we are trying to focus on, how will it help us in adding to revenue, or what kind of organic growth that could add? That could be helpful on the revenue side. I think it was an enabling resolution for fundraise. Any updates on the fundraise? I could not see the dividend payout or dividend this thing at the board meeting today. These were my questions.
Thank you, Prakash. This is Satish. I will let him answer the first part of your question. I think Dr. Vikram, when he answered, he clarified. It is also about unbundling, right? Historically, we required an insurance partner to create a TPA kind of a structure to work with us.
In that TPA model, we delivered all of these services as a completely bundled capability, right? Whether it is fraud prevention, whether it is enabling the cashless network, delivering inflation, reducing inflation, and so on and so forth. One of the things, like you said, is that the industry, especially between the vintage and the newer insurers, are at a different stage of evolution and how much they engage with the partners. Increasingly, in the last few years, we have seen various models where insurance companies also look at a mix and match or using the best-of-breed solutions to really deliver policyholder value and improve profitability of the portfolio. Our tech has been built to work independently at a component level.
We've been able to make some investments, and today we are able to deliver, say, just the fraud detection as a standalone capability, even though part of the portfolio of claims that we are managing or enabling access to our cashless network, even though it's not for a policyholder for whom I'm the TPA. This is where we've been able to unbundle a lot of the components, and we believe that we are unlocking value for even those insurers who are currently not in a position to engage in a traditional TPA model. It's not necessarily in reaction to the current growth rate. Coming back to your question on growth, yes, if you look at the group, there's a substantial part of group is driven by the employee segment.
Of course, it does reflect a little bit of the slowdown in the underlying employment growth in the formal employment, especially in those segments that offer health insurance, right? It would be unfair for us to say that there is no employment growth, but it is also about the industries, the companies that are actually offering health insurance.
Right, right.
Among those sections, how has the employment growth been? Specifically around large predominant employees like ITITs. That is the market reality today. Of course, retail, two reasons why there are numbers that are on the lower side. One, the reported churn in the portfolio, especially in the vintage portfolio, given the pricing and the other adjustments. The second, of course, also partly the reporting requirement changed by the regulator of the one-by-one for a multi-year policy.
We are not impacted by the one-by-one because we've always recognized at an annual level. From an organic and claim store growth perspective, we've always maintained that our growth rates in group and retail will track through or be better than the industry growth rates in the respective segments. We continue to sort of look at our own growth from that lens.
Perfect. We would continue to outpace industry growth. Any sense of the growth trajectory being continuing? Unless and until we don't gain market share, assuming industry remains muted in the near term because of these reasons and macros, organic growth beyond a point of time or outperforming the margin would come down. Unless and until industry growth doesn't pick up, organic growth could be difficult to get back to 15-18%, which historically we would gain.
That's the context I was trying to understand.
Prakash, I would try and answer this in a slightly simplified fashion, maybe oversimplified, but we are handling about a fifth of the premiums of the industry. There is an 80% that's out there. In both the models, both the traditional TPA model and also the other models where we believe that we can deliver significant value, like we delivered INR 400 crore of savings last year on account of broadly preventing fraud. It's not in the deck, but nearly INR 1,000 crore of discounts and savings from our cashless that we've delivered to our insurance partners. I think my request would be, when you look at our growth, it may or may not be a fraud premium and a market share kind of a growth.
It will be more based on the value that we bring to the ecosystem and how we get remunerated for that.
Fine. Anything on the fundraise and dividend?
On the fundraise, we have always maintained that it was an enabling resolution at the board, and that is valid for 12 months. We have not announced any further timing, quantum, or usage of that. As and when there is any development on that, we will update the shareholders and the public at large. In terms of dividend, there is a stated commitment on capital allocation. In the past, we have consistently rewarded the shareholders in the form of dividend, and we continue to be very profitable and cash flow generating, so that intent remains. At this point, the board has deferred the decision on whether we will announce dividend and when and how much.
We do have another quarter where we can come back with that detail. At this point of time, we will come back based on how we are able to meet our capital allocation requirements and also the growth investment needs.
No, that's fine. Just to stop with that, I think as you are all aware, it's a great historic moment for us with conclusion and regulatory consent on Paramount TPA. We are very excited about the partnership and the coming together of the two businesses. As we evaluate that and look at how we need to move forward, we will, as a board, take a view and will get back to all of you over the coming quarter.
Sure. Sure. Dr. Prakash,
lastly, one data keeping point. Would you have the technology spend for FY 2025?
Prakash, may we request you return to the question queue for a follow-up question?
Thank you. Okay.
Participants, in order to register for a question, you may press star then one on your touchstone phone. Our next question comes from the line of Parimal Mithani from Credential Investments. Please go ahead.
Also, thank you for the opportunity. So basically, I want to know how do you differentiate between your claim processing and a new entity that you have created? If you can help me understand, that would be much better for us. I'm sorry, I'm logging for the first time. If you can help us.
Hello? Parimal, the question is not very clear in terms of which entity you are referring to.
No, no. My point is you migrated from a claim processing to this platform business. And how do you see yourself going ahead?
If you can just help me, I'll be understanding. Because I think you've grown by too much of acquisitions. If you can just narrate how it's going ahead.
No, I think Parimal, this is Satish here. I will attempt to answer your question. Maybe there are two or three things that got mixed in that question. I just want to first clarify. We happen to be the market leader in the TPA business by a very substantial margin over everybody else. We manage a fifth of the market in the pure TPA contracting template. As part of building this scale and getting through this leadership, we have built significant capabilities, obviously, to operate at this scale at various technology components that we believe could also be made available independent of TPA contract to other insurers. It's about unbundling the capabilities that we have built.
It's not a migration away from one business to the other. It is simply an opportunity to add value to insurers who are currently not actively participating in the TPA template. Secondly, from an acquisitions perspective, I think we've explained this in some of our past calls. All of our acquisitions are very specific from an intent perspective. They're not just only to shore up the pipeline. We have, since 2015-2016, acquired four TPAs, and there is a fifth TPA approval that we have just received. In those cases, we have acquired a TPA to strengthen our geographic presence, strengthen our relationship with insurers that we did not have contracts with. Now, with Paramount, the objective is to build a truly pan-India platform that insurers can rely on for a seamless service delivery.
In fact, to put that in perspective, Raksha Advantage and Mayfair combined were sub 10% across that period. It is more about the strategic intent and plugging gaps or strengthening our ability to serve. Thank you.
Thank you. Thank you.
Thank you. Our next question comes from the line of Madhukar Ladha from Nuama Wealth Management Limited. Please go ahead.
Hi. Good evening, everyone. Just a couple of questions from my side. First, can you give us some sense in terms of our group number of lives covered? Help us get some idea on volume growth, if we can call it that. Second, I also see that the government business and international business has also done better in this quarter. If you could help us understand what is changing or what is moving up there. Yeah, those would be my two questions.
Thanks. Satish here.
Historically, we've not necessarily presented the—sorry, this is Madhukar. Sorry. I've got a bad accent. Hi, Madhukar. Apologies for getting you involved. Hi. Sorry. Lives are hard because the industry does not have uniqueness in the way they report lives, and lives could be duplicated across multiple policies. One of the reasons why we've sort of stayed away from publishing lives or a revenue per life kind of a metric. If you remember some of our earlier conversations, especially in group, we had this rule of thumb that for every INR 100 of claim store growth, historically, 50% came from lives growth, and the other 50% was sort of equally distributed between benefits expansion or an inflation-related correction, right? That was sort of the rule of thumb.
Today, a significant amount of the claim store growth in group for us has come predominantly from premium and benefits expansion and very little from the lives growth. While these are not necessarily published, from claim store growth, from a life expansion perspective, we are seeing possibly about 50% of what it was compared to Q4 of last year. That is just more an approximation, Madhukar, just so that you get a sense of where the market is. Retail, of course, for us is we do not track the lives because we work with insurers as a portfolio. Often, the life growth is also subject to the kind of products and the portfolios we manage and how the underlying products and portfolios are growing because we do not take responsibility for churn in the portfolio that we manage,
right.
Because the net lives are in the retail business.
Lastly, on the government and international business, the corporate side, of course, had a little bit of a slowdown from the large ITIPs. Similar to the employment slowdown, we did have some of the travel slowdowns. What has really helped is our recent work that we've done with some of the Indian insurers, especially delivering retail with both global benefits and also travel benefits. We're beginning to see a lot of work sort of coming from there, and we are hopeful that Mayfair will continue to be a growth driver as we continue to integrate into those portfolios. Lastly, on the government side, government, as you know, is an L1 kind of process.
We've always maintained that given the intensity of work and given the significant focus on performance and speed penalties that NHA actually imposes or the State Health Authority imposes, it was always imperative for us to participate only in those kind of schemes where we could get remunerated in a manner we could deliver good quality service. I'm happy to say that increasingly in the government business, there is a focus on the partner's ability to serve and the partner's scale. A lot of the government business today runs purely on technology. It captures its electronics. We do see an opportunity for us to participate more in the government business. Of course, we'll continue to be very opportunistic in what specific schemes we will participate in.
Got it.
If I understand the answer to the first question more correctly, you mentioned that the number of lives or sort of volume growth for you is at about 50% of the volume growth that was there a year ago. Is that what you meant? Is that what you said?
Yeah. Directionally, that's what you said.
Directionally. Earlier, it would be roughly 50/50, but now it's like 25% and then 75%, which is what is indicated by the slower growth rate in group PUMs as well.
Most likely. It's also obviously a function of, yeah, obviously, right? The headcount is a big function. I must say that a lot of the corporates are expanding benefits actively. We are seeing newer kinds of treatments, newer kinds of benefits, outpatient flexible benefits sort of coming into group plans. That is cushioning a bit.
Obviously, nothing beats a continuously growing employment number.
Also, just to confirm, Madhukar, this is a big term just to support what Satish just said. I think we've seen cycles of such shifts between the left and the right pocket when it comes to the group business. There are periods of employment generation, and there are periods of benefits expansion. I think all at best we can collectively read the current frame of reference is that in the recent past period, we have seen expansion of benefits driving a majority of what you've seen as corporate growth. It does not in any way become a litmus or a definition for what will happen in the ensuing quarters. I'd like you to be aware of that because we've seen cyclicality in expansion and contraction between recruitment and expansion of benefits.
It is really important to keep that in mind. It necessarily does not become a trend line. I'll go back to questions, please.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants present in the conference, please restrict your questions to one question each per participant. If you have a follow-up question, please rejoin the queue. Our next question comes from the line of Meera Chah from Perpetuity. Please go ahead.
Hello. You're sounding good. Yes, you are. My question is, as you said, growth in retail will be higher than industrial.
Sorry, you're not audible, Meera. Sorry, Meera, you're not audible. Now? Sir? No, sir, I'm not audible.
If you're using a speakerphone, may we request you use the handset, please? Now can I not hear you? Yes, please go ahead. Niraj,
can we connect offline? I know you guys are Perpetuity, so we can connect offline. Can we move to the next one, Chagos?
The next question comes from the line of Tushar Narwal from Ambit Capital. Please go ahead.
Yeah. Am I audible?
Yes. Yeah.
Thank you for the opportunity. Actually, I wanted to ask regarding yield. In fourth year, yield seems to increase on both quarterly and yearly basis. If you could tell me what led to this and what would be the yield going ahead? That is my question. Thanks.
Are you referring to the group yield? Sorry.
Yes, yes, yes.
Yeah, I think yield for us, I think it is two or three points to understand from our field perspective. One, it is also a function of the corporates in the mix in a particular quarter and the service levels and the contracts that we have.
It is not necessarily a constant number because we have, as you are aware, annually renewing contracts. Different contracts renew on different dates within the same year. It is one is a mix. The second is in groups, significant number of groups now offer add-on or top-up products, which are opt-in for employees, and these are voluntary and typically not fully priced either from a premium or yield perspective given the lower workloads in that space. As more and more groups are offering, more and more employees are opting in. When you blend the premiums, optically, it might look like yields are contracting, but typically, that results in more revenue per life. Third, we internally track significantly on revenue per life and the cost that we have per life.
For reasons I expanded on earlier, we do not publish the life numbers because of the lack of uniqueness at the industry level. Often, yield is a means to the end in terms of what is the right kind of premium. If you have an INR 10,000 premium per life, even a 1% fee on it could be INR 100 of fee per- life. If you have INR 5,000 per- life, you need 2% to get to the same fee per- life. I think what I would like to close with is saying our revenue per- life, the kind of way we measure internally, has been stable or growing over the years. That continues to be an important barometer and the way we protect the quality of revenue that we serve.
Okay. Do we expect it to grow ahead?
Tushar, sir, may we request to return to the question queue for any follow-up questions, please?
Okay. Thanks.
Thank you. The next question comes from the line of Prithvish Uppal from Elara Securities. Please go ahead.
Yeah. Hi. Thank you for taking my question. So just wanted to understand once the evolution is happening from a pure TPA to a health benefit administrator, is there any change in terms of the revenue model from how if you could just help us understand how are we sort of charging the clients for the fraud detection or the unbundled services, is it going to be a yield-based or is it an annuity kind of a SaaS-based revenue model? What is the kind of opportunity size that you sort of see here in the fraud detection space?
Just post that as a data keeping question, if you could split the revenue from contract into retail and group as well, that would be useful. These are my two questions.
Our traditional revenue model, as you're aware, in the TPA business, which is currently still 90% of our revenue, is fee-based revenue as a percentage of premium that is given for historical models. Most of the TPA business continues to be in that model. If you do look at our revenue split, if you look at the government and Mayfair and excluded those, we currently have about a 1.5%-2% of our revenues from technology contracts. These are typically SaaS contracts. In almost all cases, these are SaaS contracts, either as an API access or on a per-transaction basis.
Again, as we unbundle some of the capabilities and insurance fee values, these pricing models and our contract structures will evolve. These are early days. I think it's best to look at them as a SaaS offering from a technology and the platform perspective in the whole pricing model.
Sure. Understood that. What is typically the opportunity?
Prithvish, sir, may we request to return to the question queue for follow-up questions? Thank you.
Okay. I had a second question that I had asked. Just the split, if you could provide that for between group and retail revenue.
Prithvish, what we do is we provide a premium split. We do not split revenue by the segment. It's overall because we do not treat group or retail in terms of servicing very differently.
In terms of when a client comes, it's all centralized operations at the back end. So we don't provide revenue and other details split by the segment. But premium split is provided.
Okay. Sure. Thanks.
Thank you. Next question comes from the line of Chenmai Neuma from Vessiant Capital. Please go ahead.
Good evening.
Sorry to interrupt, sir. Your line was breaking. Could you please retry? Chenmai sir, we are not able to hear you. Thanks, sir. As there is no response from the line of current participants, we'll move on to the next question. Our next follow-up question comes from the line of Chintan Sheth from Gherik Capital. Please go ahead. Noted on the questions. Your line was not clear initially. Could you?
I just reactualized the question.
So yes, Chintan, we've had debt on books in our balance sheet if you see.
Our gross cash, that is roughly around INR 460+ million gross. There is also a 1/3 of working capital OD limit that we have, which we are using for our day-to-day business. What we have recorded is net cash basis. The debt is just normal code of business for us in terms of using that capital as we create our reserves for the Paramount acquisition.
Right. Okay.
Second is on the contract liability. The closing one, the growth seems on a year-on-year basis a little lower than the business growth we have seen, right? That implies slight subdued environment continuing going forward. That is how one should, because that is the lead indicator we internally track, right? Contract liability. Just to get a sense of how to look at it?
Chintan, I would not go as far as saying that it is a big indicator. I understand what you are asking.
It is a function of the incoming and the outgoing. If it is a slower year, obviously, there will be a net fee contract liability difference. Also, we had this bit of a Raksha consolidation impact. I would not read too much into it at this point.
Got it. Got it, Niraj. Thanks. Thanks. That is all from me. Thanks.
Thank you. Ladies and gentlemen, we will stage that as the last question for today. I now hand the conference over to the management for closing comments.
Good evening once again. I wanted to thank each one of you for having been on the call with us this evening. It has been an excellent year as a team. We continue to build, partner, and grow in the benefits/third-party administration market. They are not mutually exclusive teams but collaborative teams as a business.
On behalf of my colleagues and I, I thank you all for being with us, and you have a good evening. Take care.
Thank you. On behalf of Medi Assist Healthcare Services Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.