Jupiter Life Line Hospitals Ltd (NSE: JLHL) Q2 2025 Earnings Call dated Nov. 11, 2024
Corporate Participants:
Ankit Thakker — Executive Director and Chief Executive Officer
Analysts:
Harshal Patil — Analyst
Sandeep — Analyst
Rohit Sharma — Analyst
Shivam Agarwal — Analyst
Sakshi Pratap — Analyst
Anisha Shah — Analyst
Jainil Shah — Analyst
Presentation:
Operator
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 participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] 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.
Harshal Patil — Analyst
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.
Ankit Thakker — Executive Director and Chief Executive Officer
Thank you, Harshal. Good morning, everyone, and 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 am accompanied by Mr. Anand Apte, our Chief of Business and Strategy; Mr. Nitin Patodi, our 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, 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 is 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 INR324.2 crores, representing an increase of 22.7% year-on-year. The EBITDA was INR76.6 crores, representing 23.5% growth. The EBITDA margin was 23.6%. The PAT at INR51.5 crores, an increase of 52.9% Y-o-Y. The PAT margin is 15.9% for the quarter.
The half yearly numbers, the revenue was INR612.8 crores, a 20.5% increase Y-o-Y. EBITDA INR141.9 crores, 22.3% increase Y-o-Y. The margin is 23.2% of EBITDA. The PAT is INR96.1 crore in the first half, representing a 9.5% increase. And the PAT margin is 15.7%.
The ARPOB for the first half is INR57,700 as against INR53,100 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.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Dr. Sandeep, who is an individual investor. Please go ahead.
Sandeep
Yeah. Hi, good morning. I have — if I can be indulged, I have two small questions. The first one is on having this doubt on the auction process in Andheri to Medanta. Do we have any plans now to have any inorganic growth opportunities in our planning process? This also becomes important from the fact that KIMS also is coming up very soon in Hiranandani estate in Thane.
Ankit Thakker
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 looking at opportunities, we also are mindful of the value which we need to pay for pursuing that growth. So, wherever we have that opportunity and value intersection, we will go ahead and do that.
Sandeep
Understood. And if you please don’t mind, just quick one — one quick one on that. We do know that the Thane Hospital is the star hospital. Invariably, this has gotten a very decent occupancy level. So, would there be an idea to take over the Fortune Hotel property and convert entirely into the hospital?
Ankit Thakker
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 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. And it is not a huge footprint. It is more of an amenity which helps us 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.
Sandeep
Understood, sir. Thanks a lot. That’s all for me.
Ankit Thakker
Thank you, sir.
Operator
Thank you. The next question is from the line of Rohit from SK Securities. Please go ahead.
Rohit Sharma
Yeah. Good morning, sir, and thank you for the opportunity. I have a couple of questions. And the first one is in H1 FY ’25, our overall volume and EBITDA increased by 12% and 9% on Y-o-Y basis, respectively, right? And can you please highlight for Q2 FY ’25 as well?
Ankit Thakker
So, it is, I mean, part of the growth process. Generally, 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 — I mean bed capacity availability and Indore being in its 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. In terms of business guidance, what I can tell you is that the Pune 22 beds which were just added in this quarter will continue to get more occupied in the second half of the year. Indore, we are adding 75-odd to 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 good occupancy currently, so it should continue performing the way it is.
Rohit Sharma
Okay, sir. Got it. And my second question is a little 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?
Ankit Thakker
So healthcare landscape has a huge headroom to grow because 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 in 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 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 a 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 insurance provides for my care, then who wants to go to those dimly lit 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.
Rohit Sharma
Got it, sir. Thank you for elaborative answers. That’s it from my side.
Ankit Thakker
Thank you, Rohit.
Operator
Thank you. The next question is from the line of Shivam Agarwal from Mirae Asset Capital Markets. Please go ahead.
Shivam Agarwal
Hello. Am I audible?
Operator
Yes, sir.
Shivam Agarwal
So congratulations on good set of numbers, sir. So, I have a couple of questions. So, firstly on the Indore side — Indore facility. So, can you provide for the, like, occupation for the current quarter, quarter two?
Ankit Thakker
So it was around 61% in this quarter, the Indore occupancy.
Shivam Agarwal
Okay. And like we have — like for the first half, we have reported 59% of the occupancy. So like, how can we see ramp up over the next one to two years post like 75-bed addition that you have planned?
Ankit Thakker
Yeah. So in percentage terms, next quarter you will see a dip because the base will go — become bigger. But in absolute terms, you will see that the occupancy will be higher. Typically, when we achieve a 60%-plus occupancy, we want to expand more beds. So, between 60% and 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 will 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.
Shivam Agarwal
Okay. So like I guess, like 200-odd beds can be added in the Indore facility that I think I remember correctly. So, out of the 75 post, like 125 beds can — more can be added in the facility. Am I correct?
Ankit Thakker
Yeah, something like that.
Shivam Agarwal
Okay. And second one is on the capex front. So, like we have few greenfield opportunities in Dombivli and Pune facility. So, like any update on both the facilities?
Ankit Thakker
Yeah. Dombivli is progressing as per schedule. We should expect to start operations in the calendar year ’26. Pune is in the regulatory phase. We have cleared up a few steps. Currently, because of elections in Maharashtra, the government is not really on for too much of clearances, but 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.
Shivam Agarwal
And any like — what is the capex plan for FY ’26, like capex number if you can just provide it?
Ankit Thakker
For Pune?
Shivam Agarwal
Like overall capex, for the whole company as a whole?
Ankit Thakker
So, 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. So I am 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 INR100 crore, INR150-odd crore I think in the next year and Pune should also need maybe INR50 plus crores in the next year.
Shivam Agarwal
Okay. Thank you. Thank you. That’s all from my side.
Ankit Thakker
Thank you.
Operator
Thank you. The next question is from the line of Sakshi Pratap from Worth Investment & Trading Limited. Please go ahead.
Sakshi Pratap
Hello. Thank you for the opportunity. I just have one question. Sir, the second Pune hospital is in advanced stages of regulatory work. When can we tentatively start the construction process, if you could highlight?
Ankit Thakker
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 vicinity, we should begin construction.
Sakshi Pratap
Okay. Got it. Thank you. Also, how many more can we add after adding 75 beds in the Indore hospital?
Ankit Thakker
So we have a large land there. We have 5-plus acres of land in Indore. So there is a lot of empty land available where we can build. We have one semi-finished building, which can take 100-plus beds. So what we have committed currently is that we can do about 200 beds. But — yeah, depends on the need and depends on the growth, we can take that up.
Sakshi Pratap
Okay. Got it. Thank you so much.
Ankit Thakker
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Anisha Shah, who is an individual investor. Please go ahead.
Anisha Shah
Thank you for the opportunity. I just [Technical Issues] we added 22…
Operator
Sorry to interrupt, Ms Anisha. I would request you to please use your handset.
Anisha Shah
Hello. Can you hear me now?
Operator
Yes, ma’am. Please go ahead.
Anisha Shah
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 to reach maximum capacity?
Ankit Thakker
So we have 10 to 12 beds which we can add in Pune. After that, we are at maximum capacity.
Anisha Shah
Okay. And second question was that Indore occupancy for H1 stood at 57% and ARPOB was INR46,100. So can you please share for quarter two as well?
Ankit Thakker
So, for quarter two, we had 61% was the occupancy and INR43,500 was the ARPOB.
Anisha Shah
Okay. Thank you so much.
Ankit Thakker
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Jainil Shah from JM Financial. Please go ahead.
Jainil Shah
Yeah. Hi. Thank you for the opportunity and congratulations on a good set of numbers. My question is on EBITDA margins. So we have 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?
Ankit Thakker
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 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 operating.
Jainil Shah
So when do we think we will reach the 25% mark? Because we will be adding more beds in 4Q in Indore and then probably next year or so we will also have Dombivli expenses coming in. So…
Ankit Thakker
Correct. So, on an individual level, 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 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, 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.
Jainil Shah
Sure. And just one more question. Have we seen any attrition in Thane so far? And I mean, do you expect something going ahead there?
Ankit Thakker
So, no, we have not seen any attrition in any of our hospitals, unusual attrition let us put it that way. And when I am talking about it, I am talking about senior level which means doctors and senior management. I am 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.
Jainil Shah
Sure. Thank you. That’s all from my side.
Ankit Thakker
Thank you.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Ankit Thakker
So, thank you, everyone, for joining us on this call. I hope the answers were satisfactory. If there is any further clarification needed, please feel free to call our IR team. Thank you, and have a good day.
Operator
[Operator Closing Remarks]