Sastasundar Ventures Ltd (NSE: SASTASUNDR) Q4 2025 Earnings Call dated Jun. 12, 2025
Corporate Participants:
Unidentified Speaker
Prachi Ambre — Investor Relations
B.L. Mittal — Founder
Analysts:
Unidentified Participant
Raj Patel — Analyst
Ravi Gupta — Analyst
Presentation:
operator
Good day and welcome to the Sasta Sundar Ventures Limited Q4 and FY25 earnings conference call. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown form. Please note that that this conference is being recorded. I now hand the conference over to Ms. Prachi Amre from MUFT Investor Relations Team. Thank you. And over to you ma’ am.
Prachi Ambre — Investor Relations
Good afternoon everyone and welcome to the Q4 and FY25 earnings conference call of Sasta Sundar Ventures Limited today on the call we have Mr. Vanwari Lal Mittal, Founder and Executive Chairman and Mr. Lokesh Agarwal, Chief Financial Officer. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements which are completely based upon our beliefs and expectations as of today. The statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this I would like to hand over the call to Mittal sir for his opening remarks.
Over to you sir. Thank you.
B.L. Mittal — Founder
Hello participants. I am B.L. mittal, chairman and executive director of Sisa Sunder Health Limited and Sasta Sunday Ventures Limited. So on behalf of Sastra Sunde Ventures Limited I extend a warm welcome to all participants on our Q4 and F25 financial result discussion call. I hope you all have had an opportunity to review our financial results and our investor presentation. Both of which have been uploaded on the stock exchanges as we close the financial year. I must acknowledge that financial year 25 has been a year of transition, resilience and renewed focus. The material uncertainties that impacted our partnership with Flipkart has now been fully settled.
This has cleared the date for us to build a future of our own rooted in the same vision but now on a stronger, more more independent platform. We have successfully relaunched our B2C initiative under the Satsa Sundar app. Now housed in 100% owned subsidiary. All this transient, our full focus has shifted to strengthening both our retailer Sakti B2B and Sasavar B2C businesses and both are already showing strong momentum. We exited The Flipkart linked HealthBody model which has contributed Rs. 863 crore in F24 and instead laid the groundwork for own B2C journey. It anticipated the sustainable B2C business generated 144 crore in FY25 revenue reflecting its nation state.
However, this impact has been meaningfully cushioned by the strong and consistent growth in retailer 30, which nearly doubled its revenue from 489 crore in financial 24 to approximately 941 crore in financial year ending 31st March 25. Naturally, this strategic reset has had a near term impact on profitability, but the profitability we measure as or share in a associate company that it has improved, the decline in B2C revenue coupled with a largely unchanged fit cause the rates lead to temporary deep in margins resulting in negative EBITDA for the year. But if you compare the EBITDA along with our associate company margin then there is a savings.
However, with the business now fully under our control and efficiency measures underway, we expect steady improvement in earning as we scale our independent B2C platform along with our B2B platform retailer Sakti. Our platform stands on a robust foundation supported by strong tailwind at the country, sector and platform level. With government healthcare spending steadily increasing, access and affordability are improving for millions across India. At the same time, rapid digital adoption in transforming now, healthcare products and services are delivered presenting a unique opportunity to scale both medicine distribution and value added healthcare services. Unlike sector focused solely on either digital services, our product logistics healthcare offers a dual growth pathway enabling us to leverage our strength across both the dimensions.
As we enter the next phase of growth, our focus is thoroughly on execution, delivering seamless and affordable healthcare at scale by integrating digital innovation with a wide physical reach. Our differentiated model is anchored by strong product background and in this by embedded healthcare services. With our expanding network AI driven tools maturing at the upcoming Cuke health initiatives designed to meet urgent healthcare needs efficiently, we are unlocking new avenues for engagement and monetization for the new initiatives. I must brief you that as one of the critical factors is emerging consumer demand for generic medicine and therefore we have launched a separate channel under system in the brand called Jitto.
Jitto is a very unique position whereby the customers can opt for generic medicine without getting into difficulty of quality identification. The main problem of the customers and doctors are that even if they want to offer generic which generic they want to select, there is no standardization process. So to remove this problem we have launched a GISO recommendation portfolio where against each branded medicine there is a generic option available and only one medicine is available which according to the or quality test is fit for quality and still a very substantially low cost. This channel will give the customer discount up to 60% if they offer quality generic medicine.
This we firmly believe that within the Sasta Sutra framework will go a very very long way. The second initiative is that we we have successfully integrated our diagnostic services in the app and getting good traction for diagnostic test and third which is very very important is that we recently launched the podcast on health and happiness that is also getting good fraction. So one of the critical sector in India we found is the lack of right kind of health information which are honest and easily available in customers local language. For that we have started engaging doctors and satsang.
The digital platform is one of the critical assets to build along with the Sastras on the commerce platform. This will not only give good and honest advice to our customers but this will also help in monetization of our platform in a better way so that we can reach out to the customer in an advisory mode through our platform. I would request all of you to please watch the various initiatives. Those are really very very helpful as far as your personal health journey is concerned and as far as health journey of your family is concerned. The these building blocks position us to scale rapidly and sustainably driving meaningful value creation for both our shareholders and millions of Indians seeking quality health care.
I must tell you that we aim to be third largest economy of the world and by 2047 we aim to be the big Sid Bharat. So if we aim to be third largest economy and working under the umbrella KAL for 2047 it is beyond any imagination that attic crore Indians we don’t have access of affordable accessible health care, will not have or will not seek the facilities if they seek the facility. That 90% facilities will be driven from the primary care and the primary care rapidly. Expansion is only possible in the digital arena whereby we can provide the personalized health tools.
So affordability, accessibility and personal centric AI tools will be very very important and central stage for Sasa Hudar digital platform. And definitely our model is highly scalable as we have demonstrated and we work on sustainable case investment. We are very particular to not to burn money in the tranche and thereby ensuring the contribution margin positive and then to invest in technology and building blocks of the various digital assets and that will contribute significantly for the welfare of the nation, for welfare of the community and also to the welfare in terms of revenue and profitability to all the shareholders.
So this model is a very great social model which has innovation and impact as the two pillars and we are working continuously on simplification of our corporate structure and we hopefully will solve this simplification by merging Sasanza HealthBuddy Limited into our holding company. With that I conclude my remarks and open the floor for questions thank you.
Questions and Answers:
operator
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 2. Participants are requested to use hansat while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one. Now the first question is from the line of Raj Patel from RK Securities. Please go ahead.
Raj Patel
Hi. So few questions from my side. So with the 145 crore capital pool from Flipkart settlement and the treasury income, how are you prioritizing the investment across technology, supply chain, customer acquisition and regional expansion? Apart from that, is there any phase deployment strategy on specific milestone?
B.L. Mittal
It’s very good question. So as in the last call we have narrated that around 150 crore we’ll be investing in building our success in the platform business as well as building our warehouse capabilities. So as of now we stand with that projections given by us in the last quarter call. So 150 crore we we are supposed to invest last year we have invested some money around the 40 crores and 110 crore this year and next year after that. We see the positive contribution margin from both retailer and success.
Raj Patel
Okay, so what are the key risks you are anticipated particularly in terms of competition, regulatory shift and evolving consumer behavior. And how prepared is the company to mitigate this risk while maintaining its growth momentum?
B.L. Mittal
So from consumer point of view we don’t find any substantial risk. We see the major tailwind as demand from consumers for various integrated projects and digital adoption is very rapidly doing very well. We don’t find any problem. And this is not absolutely very much positively allowed that yes it is allowed it. There is no law to restrain it but there is no rule to allow it purposefully. And it is a regulated business and we don’t think so that looking to the healthcare focus of government as well as the digital focus of the government, government will be averse to it.
But this is the regulatory clarity that may come into and we are carrying that risk along with us. As far as our model is concerned, our model is perfectly fit to adjust any changes because largely our entire dispensation in B2C business is through health buddy model. Each health buddy holds the DUG license which is retail drug license. So each packet we dispense with, we dispense with the local store which has a drug license and which has a qualified pharmacy sitting. So in fact if you see the legal is and every medicine dispensed in the same manner as any offline pharmacy dispensing.
And in B2B model we don’t see any regulatory risk because in any case we are supplying to the small pharmacies which are physical. So the only order procurement and order process is online. The key risk is we find is our efficiency in execution model. And we are closely monitoring that we are as efficient as in the past and we can be able to manage the scale that we are getting into. So yes, these are the risks which we have narrated which are critical to our business. But we are also fully prepared to face that.
Raj Patel
Okay, and just the last question from my side. So as the working capital days have been reduced sharply from 35 days in quarter four FY24 to 23 days in quarter four FY25. So what specific operational improvement drove this? And are this, are this efficiency level sustainable going forward? Especially as the B2C share grows?
B.L. Mittal
See, we are, we are basically. This is the beauty of our business. We are basically building the platform business. So if you ask me as a business Dynamics, so by 2030 we should be working capital around 15 days only. Because why we should have the working capital much? Because the data are almost, almost seven days only. There are no much significance and the inventory is only 35 days. The 35 days inventory which can be funded by further pharmaceutical companies because of the volume we get. So it depends upon the how critical mass we are able to create, how scale we are able to build as we build a scale, as we build the brand, as we build the platform economics.
Globally, the platform always runs without any working capital. So ideally we should have working capital zero. That is ideal. But I estimate that at least at the level of 25 to 30 days, 20 days to 30 days we should be able. So you can take from business perspective that the working capital efficiency will be the same as of today only. But in the intermediate time. I must tell you that since we are in a startup phase, we are working in a very, very infancy stage. There are always ups and down while building the block. We are not a mature company, we are a childish company.
So in the intermediate time, quarter to quarter there may be some something happen because we ensured one of the critical factor is availability. So in the quarter to quarter there may be some fluctuation because when it comes to availability and working capital increase, we prioritize the working availability to our customers because that is the critical bill to build our business. But as a business dynamic, you can take from 20 days to 30 days as a standard working capital requirement in our business.
Raj Patel
Okay. That was all from my side. Thank you for the opportunity.
B.L. Mittal
Thank you.
operator
Thank you. The next question is from the line of Ravi Gupta from Aarti Investments. Please go ahead.
Ravi Gupta
Hello. Hello Mr. Gupta, how are you? I’m fine sir. Thank you for taking my question. So I have a couple of questions. Firstly, the diagnostic vertical remains a very small part of the overall portfolio. Approximately 3 crore in FY25. Are there any strategic plans to scale this segment either through deeper integration with the Sasta Sunder B2C platform or through external partnerships? And do you see diagnostics becoming a meaningful revenue contributor over the medium term?
B.L. Mittal
You see the diagnostic is a very, very important part. So if you look at assessment platform, so if you see that after next five years how it will look like, so it will be an integrated primary healthcare platform and where the diagnostic is very, very important. So we firmly believe that going forward it will be a great contributor both in terms of the revenue and both in terms of the customer satisfaction. And we are working very good II driven personal centric healthcare tools where the diagnostic becomes very, very important to create a digital individual profile of a customer.
Once we know the profile of the customer then we can offer n number of services along with our data analytics. So our philosophy internally we actually are targeting for next slide here is that how we can drive artificial intelligence into the personal profiling. And for creating personal profiling we need both the entire prescription to be recorded both in terms of diagnostic and in terms of medicine supply. So if you have the data of both diagnostic and medical supply then we can integrate both and we can create a module for predictability of any complications or management of the complications.
So diagnostic as such in a healthcare platform is very, very important for us both in terms of customer value position as well as generating revenue and the customer retention.
Ravi Gupta
Understood, sir. My second question is considering the input cost fluctuation and distribution complexity in the healthcare sector, what challenges do you foresee in sustaining your current working Capital efficiency in FY26?
B.L. Mittal
FY26 we, we firmly believe that the current ongoing working capital efficiency will continue. We don’t see any problem. But as I said earlier that we are in a, in a startup phase. So I mean for any business model we always take into account the all the uncertainties which can arrive into in between. As I said that we are working closely into three warehouses tomorrow. If you want to increase some warehouse capabilities or you want to increase a particular area where the demand is generated, all of the second then there may be some, some inventory made up, uncertainties come into then some inventory made up.
So those, those, those kind of uncertainties are there. But overall in a macro level we find that working capital level will be the same.
Ravi Gupta
Understood, sir. And my final question is that receivable deals have sharply reduced to just 7 days by Q4FY25. What has contributed to this significant improvement? Is that due to tighter credit terms, better collections or customer mix shift? And is there any risk of this reversing as the B2C business scales up?
B.L. Mittal
No. In the B2B business we worked very hard to reduce the receivables and we improved the logistics. So if you find that the last quarter turnover, the growth of the last quarter turnover was not in the expected. It was because of that that we improved the logistics part also and we improved on the receivable part also. But that efficiency will come in the current year. So we are working very closely to make it more sustainable and moving towards EBITDA positive business as in the. At least in the retail SFP business by end of this quarter, end of this year, in the last quarter.
And you will find that reflecting in our results, overall result.
Ravi Gupta
Understood, sir. Thank you. That’s all from my. Thank you.
operator
Thank you. The next question is from the line of Yashmatri from Cruise Capital. Please go ahead.
Unidentified Participant
Hi sir, good afternoon. My first question is retailer Shakti has delivered exceptional growth, nearly doubling its revenue in FY25. So what have been the key drivers? Network expansion, increase in order frequency, etc and. And how scalable is this model across newer geographies?
B.L. Mittal
This model is highly scalable as the newer geography. You know, if you see the data of northern India, we built a warehouse in Noida and in northern East. So this is a very unique positioning. So this business is highly scalable and we can scale like anything. But the main part is that scalability with profitability. So in the current year we will balance both scale scale and profitability. And our target is to move out EBITDA positive in the retailer safety from this year. So maybe this year we target a bit lower growth but with profitability so that we have a model which is scalable as well as profitable.
And then we grow very fast and rapidly so that we can generate case out of this little SFP business.
Unidentified Participant
Got it, sir. My second question is the Success on the B2C revenue of 144 crores for FY25 is below the earlier projections. So what were the bottlenecks?
B.L. Mittal
No earlier position. We was because of the fact that we estimated some revenue to be continued from Flipkart Health and unfortunately the Flipkart Health decided to close down their operation before our projected date. So that part will remain. If you see now the Flipkart app itself, Flipkart Health app itself is not continuing. As the closure was pretty faster. We estimated that our independent platform will grow and the Flipkart Health will continue for some time. And that time factor resulted into little bit compromise on B2C size.
Unidentified Participant
So what are the steps being taken to accelerate the B2C growth in FY26?
B.L. Mittal
In FY26, in B2C growth, we estimate growth of 100% from last year and we have taken all the steps and from the last year, this year it should double.
Unidentified Participant
Okay, sir, my last question would be in FY25 we reported a negative EBITDA due to the strategic alignment. So could you walk us through the expected EBITDA trajectory over the next two to three years across both B2B and B2C segments and what will be the key levers to achieve the 4 to 5% blended EBITDA margin target by FY30?
B.L. Mittal
FY26 is, I mean by as I said earlier that we are in a startup infancy stage. So you, I would request all of you to take this company as a, as a company which is working to built at various blocks of the business. We are not a mature business, but we are a business where, you know, the clear cut indication, you can define that there are a clear cut indication of all the good levers. So if you see, if you ask me that FY26 then FY26 in the last quarter of this year we target around 1% EBITDA.
So in next year in retailer Safi at consolidated level there should be 1% EBITDA for the whole year. Because this year, last quarter we are hopefully achieving in retailer safety business the positive EBITDA margin. As a standard, we will continue to invest around 45, 50 crores in this year and next year also. So. But if you see the, if I, if I see that how in FY30 it looks like FY30 we are working towards an EBITDA margin of 7% and the retailer Sakti an EBITDA margin of around 4%. At blended it should be between 4 to 5%.
That is what the business which we are building. But as I said earlier that these are not the guidance and these are not, I mean we have a central risk of execution and substantial risk of building new businesses. So while you invest, you should consider those very important points. That is a highly scalable, highly sustainable and this is a very good dynamics as far as the tailwinds in India is concerned. And we are very, very much hopeful. But. But this is something very very new. Nobody has done this kind of the business in this way in India and so obviously new scalable business where you have the large potentiality of growth, large potentiality of the profitable and large potentiality of the capital efficiency carries high risk of execution.
So you must take into account we are not a company to look into quarter to quarter. I must be very clear. If you are investing, you should be patient fully wait for next five years and then you should only invest.
Unidentified Participant
Got it sir. Thank you so much.
operator
Thank you. The next question is from the line of Ritisha from SES Capital. Please go ahead. Hello.
Unidentified Participant
Thank you for this opportunity. I have a question. Can please elaborate on the quick health initiative and what specific urgent healthcare needs will it address and how does it integrate with your existing health buddy network and how it leverage the AI so.
B.L. Mittal
That cook health is a very very exciting opportunity. But we always say to our customer internally also that selling medicine is not selling potato. Healthcare is quite different from selling groceries in the cube. The model has a very very unique in the food the first incidence come from your stomach and your desire to eat food you quickly order. But healthcare, the first symptoms come from either fear or fever or pain. So the first consultation has to be the doctor’s consultation. And so we are working very closely that what can be the model. And we are very very much hopeful and very much excited about this qhelp.
But. But I must tell you that if our ongoing project and AI dependent development goes through, it will be a very unique offering in India that nobody has seen before. And people will be surprised to see that in QCAT how this is possible. But technology makes everything possible and we will really solve the actual problem of a customer rather than following this model of QC health.
Unidentified Participant
Okay, my next question is that post Flipkart exit, how many health buddies are currently active and contributing to the new SAA Sundar B2C model? And what is the plan to re engage or expand this crucial network?
B.L. Mittal
So at the time of exit of the Flipkart we were having around 500 health buddies. Out of that 50% of the hashb around 250 are already working and smoothly working the balanced 250 health buddies we are continuously engaged with them and we believe that another hundred out of those balance 25, 250 will will join the SATA center and balance will not join and they will somehow are not interested to carry on the business. So around 150 health buddy will be coming new. So 250 plus 150 400. So by the current year end we should be having around 400 health buddies working very closely with success in the network.
Unidentified Participant
Okay. Okay. Thank you. This was.
operator
Thank you. The next question is from the line of Devanshi Shah from ABC Capital. Please go ahead.
Unidentified Participant
Hi. So thank you for the opportunity. I had two questions. The first one was you indicated that rupees 145 crores would be invested into the B2C business. So could you provide us an update on the actual spend during FY25 and how it compares to the planned allocation?
B.L. Mittal
No, the investment is largely into technology team and little bit building the advertisements only. So we we invested last year 35 crores. We projected 35 crores and similarly we invested 35 crores. The current year projection is around 50 crores and working is going towards it only. So we will continue to invest 50 crores. So large part of this money is going into building our technology team and technology platform. So the large part is going for salary. So we are expanding into tech celery and the building was so software and tech platforms. And recently we have appointed a separate team for artificial intelligence blog that will be working to provide the artificial solution in terms of counseling and medicine and counseling and diagnostic and the doctor briefing.
So this tool will be very very helpful and this will be helpful in providing a very unique solution offering, you know Q care also. So I would require request all of you to wait for few quarters and see the offerings live. That is really exciting.
Unidentified Participant
Okay, thank you. And my second question was liquid assets have risen steadily to rupees 656 crores in Q4FY25. So what is the capital allocation strategy for this reserve and how much is earmark for growth Capex versus contingency or treasury optimization.
B.L. Mittal
So yes we have a sufficient liquidity. So if you see that we are projecting around 50 crores investment in Sasa Sundar that will or treasury income will cover that. So current year if you take our treasury income and then operational loss then you will see the page would be positive including the treasury income. So we are investing the treasury income balance of the asset. We will first see that how this year goes. Because this year is a very very critical year for us to examine whether A whether retailer safety becomes profitable in the last quarter of the current year B whether the Success of the model as we projected are acceptable by our customer and we are meeting the demand of the customer in the way we think of.
Because making plants in a drawing room and going into the ground and executing both are two different things. Once we are sure where our business is gone then we will decide where to put our capital. But we don’t project to raise any capital in next two, three years at least and want to be self sufficient. And we don’t want to spend management bandwidth in raising the capital because that takes lot of time. We want to fully focus and firmly believe that this is this, this is a very innovative model where all management should firmly focus on building the business.
And until unless we get all that clear indications which will work, which will not work, there is no point of unnecessary spending money into examining. We want to learn a lot of things in an innovation journey. But this is also sure that we want to learn without increasing cost. So that is the philosophy of our management, that learning should come without cost. So we experiment on a very very small capital in a very small initiative and we fail also. But in our failure the cost of fail is very less. So the capital efficiency is your backbone along with the consumer efficiency.
And you must see that similar to our company in other E commerce model, digital company model, they burn lot of money. But we are still sitting on the and I must tell you very very very unique preposition of our business that if you see the since launch of Sasa Sundar and how much capital will raise and invested in this money that capital along with the interest is, you know, treasury income only. So the business is building without any capital and that will continue to do so. So we want to build this innovative, impactful business with efficiency in our capital and for efficient consumer experience.
Unidentified Participant
Got it. Thank you so much.
operator
Thank you. As there are no further questions from the participants I would now like to hand the conference over to the management for closing comments.
B.L. Mittal
So my dear investors, I thank you so much for participating in it. And this I must tell you that this is my dream to solve this India problem. I firmly believe that in a developing a country which is going to be developed in a country which is going to be the third largest economy in the world, the 80 crore for people who are not getting access to affordable health care will seek for affordable health care. They will have more money in their pocket to spend on healthcare and particularly women who are Getting now practically 2,000 to 3,000 rupees every month in their bank account.
Substantial part will come into pockets of health care and the primary health care, which can address 99% of the problem sitting at home. The digital evaluation will be a great thing. And we are, we see this opportunity, a great opportunity. But, but this will require time, patience. And I’m, I must again advise you that if you are very much patienceful for next five years, if your mind and your calculation permit you not to see quarter to quarter to this model, please don’t invest. This carries huge scope of growth, huge scope of multiple verticals to play out.
But this carries huge scope of risk because we are a startup infant company. So be very optimistic, but be very careful. Thank you so much.
operator
Thank you. On behalf of Sasta Sundar Ventures limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.