Shalby Ltd (NSE: SHALBY) Q3 2025 Earnings Call dated Feb. 05, 2025
Corporate Participants:
Kashish Thakur — Moderator
Jigar Todi — Investor Relations Contact
Amit Pathak — Chief Financial Officer
Deepak Ananthakrishnan — Global Chief Business Officer
Nishita Shukla — Chief Operating Officer
Unidentified Speaker
Analysts:
Rohan Vora — Analyst
Yash Darak — Analyst
Unidentified Participant
Bino Pathiparampil — Analyst
Tanya Kothari — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Shelby Limited’s Q3 and Financial Year ’25 Earnings Conference Call, hosted by Elara Securities Private Limited. As a reminder, all participant 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 100 on your touchstone phone. Please note that this conference is being recorded.
Kashish Thakur — Moderator
I now hand the conference over to Mr Kashish Thakur from Elara Securities. Thank you, and over to you, sir. Thank you, Mana. Good afternoon, everyone. We welcome all the participants to the Shalby Limited Q3 FY ’25 earnings call hosted by Elara Securities. Today, we have with us senior management representatives from Shalby. We will start with performance highlights from Mr Amit Patak, CFO; and Mr Deepak Anand, Global Chief Business Officer. After that, we will open the floor for question-and-answer for all the participants.
I will — I will now hand over the call to Mr Jigar Todi for important disclaimers regarding any forward-looking statements that may be made in today’s call. Thank you, and over to you,.
Jigar Todi — Investor Relations Contact
Thanks, Kashish. Good afternoon, everyone. Our investor presentation is uploaded on the stock exchange website and our company website, We do hope you have already had the opportunity to go through the presentation. Please note that some of the statements made in today’s call may be forward-looking in nature and may involve risks and uncertainties. Kindly refer to Slide number 2 of the investor presentation for a detailed disclaimer.
Now, I would like to hand over the call to CFO, Mr Amit for his opening remarks. Thank you and over to you, sir.
Amit Pathak — Chief Financial Officer
Yeah, hi. Good afternoon, everyone., pleased to welcome you all to the quarter three FY ’25 earning Call. Now I will walk you through the financial performance of your company for the 3rd-quarter of FY ’25. Consolidated revenue of INR281 cred in the current quarter versus INR221 crores in the quarter three of the last year, we have been grew by 27.4% on Y-o-Y basis. EBITDA of INR39.3 crores in this quarter versus INR46.8 crores in the similar quarter of the last year with a margin of 14% in the current quarter versus 21.2% in the quarter three of the last year. And it has been down by around 16.1%, mainly because in the current quarter last year, we don’t have the PK Healthcare where we have continued with the EBITDA loss. And another thing, we have taken certain extraordinary hit on this implant business of around INR4.8c. PBT of INR12.4c in-quarter three of this current year versus INR30.8 crore in the quarter three of the last year with a margin of 4.4% in this quarter versus 14% in the last quarter three of the last year.
Now revenue for — on the overall business for the nine months is INR844 crores versus INR704 crores in the nine months of the last year and we have grew by 19.9% on the Y-o-Y basis. We have continued to maintain the strong balance sheet with a low gearing ratio even with the higher infusion of the working capital in our implant. And currently, we at around 0.27x, which is within the normal debt-equity ratios. Now I will running you through the standalone performance of the hospital business. Standalone revenue of INR227 crores in the current quarter versus INR200 crores in the quarter three of the last year. We — and we have been grown by 13.3% on a Y-o-Y basis. EBITDA of INR48.48 crores in the current quarter versus INR48.4 crores in the quarter three of the FY ’24 with a margin of 21.5% in the current quarter versus 24.1% in the quarter two of the last financial year and we had grew by around 0.8% on the absolute number.
PBT of INR35.8 crores in the current quarter versus 38.5 in the quarter three of the last year with a margin of 15.8% in the current quarter versus 19.2% in the quarter two of the last financial year. At a standalone level, we continue to maintain the strong balance sheet with a positive net cash balance of INR66 crores. With the operating leverage kicked-in and growing with asset-light approach, our standalone ROCE resulted to 15% in the current quarter on an annualized basis. ARPO and analyst has shown the improvement of 42,704 and 3.62 respectively compared to 37,342 and 3.79 in the same-period of the previous year. ARPU on Y-o-Y basis has grown by around 14.4%.
The number of occupied beds, we are operating at around 46 numbers in terms of the occupied bed in the current quarter versus 5.90 in the quarter three of the last year and it has increased by 10% on the Y-o-Y basis at occupancy rate of 46% in the quarter three of the current year. The payer mix for the current quarter is in-line with the historical trade and we are maintaining 35% of the sales pace, 42% for the insurance and 23% for the government and others. The revenue of for the current quarter is INR24 crores versus INR25.74 crores in the last quarter of the current year with a marginal decrease of 6.3% on the quarter-on-quarter basis. The RFO loss of Sanar is 85,529 and a loss is 3.54, respectively in the quarter three of the current year.
Sanar is presently operating at 24% on the occupancy level and it will increase gradually in coming quarters. The current quarter, 55% of the contribution of Sanar has been come through the international business. The overall given international business is remained at INR16.7 crores. The contribution from is 13.3 and the other hospitals are 3.43 crores in the current quarter. At, our undivided focus has been demonstrated our clinical excellence through successful execution of many diverse critical surgery in several of our hospital units. We also take price that has successfully completed 26 transforms, which include 11 kidney, 10 levers, five BLT during the quarter three of the current year. In January 2024, the Tissue Bank has successfully integrated our Minister of India, Mr Amish Shah.
Further, our FOC franchisee business delivered a adequate performance in the current quarter. The total revenue from the business is INR2.57 crores, which has grown by 82% on Y-o-Y basis and is around INR0.71 crores, which has then grew by 4.4% on a Y-o-Y basis. Now if we talk about our home care business, we served around 7,217 patients in the current quarter versus INR6,840 patient in the quarter three of the last year, which has been grew by around 5.5% in terms of the patient count. Revenue from the home care business is INR3.6 crores in the current quarter versus INR3.4 crores in the quarter three of the last year. This has been grew by 4%. As a part of our social commitment, we continue to spread awareness about the importance of health and well-being through various social media platforms and created 110 plus MCL videos.
We also conducted more than 310 plus campus and 120 plus talks across all our units during the last quarter as a part of our various community outlets program. Also take price in young talents through Academy vertical, the 1,000 plus registered in various healthcare program during the quarter three of the current year. We would like to inform that for Academy has successfully completed 200 plus enrollment in — for team Indors and 50 product enrollment for the team Javalpur in team. Total for the current year is 385 plus enrollment as on December 2024. So-far 87 students, 35 through AATA and course Ahmedaba. Trail 30 plus D Pharma for one month students at various under various centers the of general physician with a collaboration with School of Pharmacy Gandhi.
Now for our implant business, our implant United the US has delivered an EBITDA profit of INR74 lakh in the current quarter due to the high sales and low-cost. Our operational efficiency has improved quarter-on-quarter basis with the optimization of the procurement costs. We Advanced Technology US has delivered a revenue of INR26.8 crores in the current quarter versus INR21.5 crores in the quarter three of the last year, with a growth of 25% on a Y-o-Y basis.
Now I will hand over the call to Deepak for share insight about the implant business. Over to you, Deepak.
Deepak Ananthakrishnan — Global Chief Business Officer
Thank you,, and good afternoon to everyone. Let me start saying that the — during the 3rd-quarter of this financial year, our implant business made significant progress. MedTech Limited generated a revenue of INR22.6 crores, which is up by 58% on a year-on-year on consolidated basis. Advanced Technologies generated revenues of INR27 crores, which is up by about 25% year-on-year basis with contributions from US and OUS at 33% and 67% respectively. Like Amit mentioned, the EBITDA of Advanced Technologies in-quarter three is INR7.4 million INR, which is 74 lakhs versus was INR19 lakhs in-quarter three of financial year ’24, which grew by 290% year-on-year. The total construct sold has grown by 16% from 2,637 units to 3,071 units in-quarter three and grown by 56% from 6,227 units to 9,715 units on a Nine-Month basis.
The average COGM that is cost of goods manufactured per component excluding material has decreased by 15% quarter-on-quarter basis and 44% year-on-year basis. Global Technologies Private Limit PTE Limited generated a revenue of INR3.4 million from the Indonesian market. The components purchased and sold is 160 units in-quarter three financial year ’25. We are actively focused on bolstering our team with skilled professionals, transitioning our sales mix to retail customers from wholesale, enhancing operational capacity and efficiency, expanding our product pipeline through extensive research and development efforts and significantly reducing procurement costs.
The reception of our Advanced technology implants and hospitals across all markets that we have launched has been highly positive and we’ve been receiving additional orders from the Indonesian market. With our key strategies firmly in-place, our team is fully dedicated to executing these plans flawlessly. Is well-positioned to achieve double-digit growth with sustainable profitability, while also expanding and deepening our presence by opening up new geographies. These efforts will ultimately drive the creation of sustainable value for all stakeholders at. The four different pillars that we focus for this whole year was sales. Like we spoke a little bit about Shalby Advanced Technologies sales growth at 25% over last year quarter three. Indonesia, we have sold over 1,200 units in this year with a revenue of INR30 million in the nine months of this year.
Response has been great and we’ll be adding more surgeons into the city. India is growing at 253% over last year and 28 growth — 28% growth over the previous quarter. We have added more than 18 sales members in India across geographies and five new distributors in this quarter. US business, five new surgeons doing their first case in this quarter and we have onboarded seven new distributors in this quarter. As we speak right now, we are looking at Latin-America in five countries, Russia, Iran, Malaysia as actively as our next growth phase with expansion in Japan. Our second pillar was COGS reduction. Our COGM has gone down by 16% over the previous quarter and we are currently at $65 against the $77 of last quarter. This has been done by changing — change in the vendors of raw materials and increasing our capacity in the plant. Capacity increase in dual supply-chain system is three.
Our plant manufacturing has grown significantly from manufacturing 2,700 components in April to 7,500 plus components in September. This has allowed us to produce more to take care of the demand as well as drive the COGS down. Looking at more new vendors for raw materials coming on-board in-quarter four, we will have a good capacity soon to expand for global business. The last pillar being new products. The team has been working for today next year as well as two years down the lane. Yes. SAT India has been established and we have hired about — we have hired more than 15 engineers. We received two weeks back the US-FDA approval for the well well-awaited PKS tin win, which will be called as the Duranium and we are on-track to launch many products soon.
Just 24 to 36 hours back, we’ve also received the CDSO approval for launching robotic surgeries in India. We also received our bone cement approval in the previous quarter and we have successfully launched our product in the Indian market. 15 plus engineers have been hired across the globe to get started on multiple new product initiatives. That’s it from the implant business.
Over to you Amit we lost you are you audible?
Amit Pathak — Chief Financial Officer
Yeah, yeah, I’m audible. I said — that’s it from my end and over to you. Okay. Yeah. Thank you. So we also like to share a couple of clinical excellence. So Dr will share with in the. Over to you, Dr. Hello,
Nishita Shukla — Chief Operating Officer
Good afternoon all. I am Dr Nishita, and I will be happy to share some clinical excellence and procedures done in-quarter three at Group level. The clinical updates and research during quarter three FY ’25. Our commitment towards augmenting Shelby medical programs has made notable strides in advancing our growth initiative for single specialty to multi-specialty by various brand awareness campaign and to digital platforms. To share we have been purchasing high-end equipment with equipment like which is an which is copy for lung cancer, huge test and inflammation. Some of the excellent thing for rare surgeries we have done is one we have found out with a donor is AEND blood group, a 20 years-old male donor presented with a rare AE&D blood group, which previously diagnosed as an O-negative blood group outside.
A pedigree analysis was done and then the sample was sent to Australia for molecular confirmation and then it was discovered as AE AEND blood group. AE&D is a very rare subtype of A blood group, meaning its incidence worldwide is less than 1% of the population and in India, it is less than 10% till now. Other than that, we have been doing lot of interventional surgeries where the surgical procedures are avoided and they are done through international invention. So 122 international surgeries took place in-quarter three that 34 international surgery took place in as the 24x Sura and Hospital. Highest procedures done by Tumba machine which we have recently purchased are Microwave, uterine angiography, ambolism and radial procedure.
We have also operated a patient with CD back where with a smallest infusion, 2.5 centimeters minimal Englished incision was done and the procedure was done post-operative, the patient was walking in four hours. As already informed, we had the 26 transplant and for the clinical research trial also, we have done 13 ongoing research and 10 upcoming research for the quarter three. Thank you. Thank you, Dr Nishita. So now we can open the forum for the Q&A. Thank you.
Questions and Answers:
Operator
We will now begin the question-and-answer session, anyone who wish to ask a question may press star and one on their touched on telephone. If you wish to withdraw yourself from the question queue, you may press. Participants are requested to use handsets only while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have our first question from the line of Rohan Vora from Envision Capital. Please go-ahead.
Rohan Vora
Hello. Thank you for the opportunity. So the first question was on Sanar. So basically wanted to understand the profitability on Sanar. So what was the EBITDA this quarter for the Nine-Month and what is the guidance on profitability for Sanar? Thank you.
Amit Pathak
Yeah, I think Mr Kapoor will be happy to take that question?
Unidentified Speaker
Hello, hi, good afternoon, everybody. Am I audible? Yes, sir. We can hear you. Okay. So EBITDA this time as Amit has earlier, the EBITDA was a slight reduction in revenue. That’s why the EBITDA losses still continue. And the slight reduction in revenue was due to some changes in the doctors profile because we got couple of doctors leaving and new doctors joining in case of them like liver transplant, bone-marrow transplant and medical oncology. So we have got three doctors in these three specialties getting changed in last quarter and we have got the new replacements and they will take about quarter or two to get stabilized as they have moved from large institutes to this place. And going-forward, we expect maybe from 4th-quarter onward or maybe first-quarter of next financial year, we should be able to competitive.
Amit Pathak
Yeah. And apart from that, as you was asked, the nine-month EBITDA loss is close to around INR4.3cr for this financial year. And you can see on the 25% of the operating level where we are operating, we clock around INR70 crores of the top-line in terms of the revenue from operations and where our — if you can see, if we are going to achieve another 10% to 15% on the occupancy level where we are right now around 25%, we are going to become the EBITDA-positive. So scenari we are going to see it will become the EBITDA-positive very shortly.
However, if we are talking about if we are talking about the EBITDA-positive strength for the, we are hopeful it will come in this quarter and next financial year. We are very sure that we are going to deliver the positive EBITDA because now everything has been streamlined as Dr — as Mr Kapoor has says due to the turbulence of the doctors, we have seen the lower revenue, which has hit the EBITDA. Another thing I just want to share from my side, on the PBT level, if you are talking about PBT level, we are at close to around INR24 crores of the loss in the nine-month basis. Basically, if you can see, there are two components which is coming around after the EBITDA. One is the depreciation, another is the finance cost. So depreciation is close to around INR11.6 crores for the nine months and finance cost is around INR8.6 crores.
Rohan Vora
Understood, sir. That was really helpful. And sir, just wanted to understand the overall the tax — effective tax-rate that we are looking at this year and the next year because on a positive PBT, we reported tax expenses and then loss. So just wanted to understand how that will transpire in future. Thank you.
Amit Pathak
So you’re talking for or entire consolidated number,
Rohan Vora
Sir, overall.
Amit Pathak
Yes. So look, overall, we are around 36% kind of tax-rate. If you look on the standalone hospital, we are close to on 36%. Overall basis, if you can see in the consolidation, the tax rates are more than 100% kind of thing on the PBT level. This is because we have taken a very conservative approach where we have stopped creating the deferred tax. We have stopped recognizing the deferred tax on the — currently on the loss-making entity, which is the shall be advanced technology, which is a kind of breakeven or PK Healthcare or you can say salaries also on the PBT level is a lot, shall be advanced technology, PK Healthcare and MMDL. So it’s a conservative approach. We don’t want to create the deferred tax and then after we reverse when they will start generating the profit in the next year and year thereafter. So that is the reason you will see very aggregated number in the tax that will continue for the couple of quarters. On the consolidated number, it will continue for the next two, 3/4 at least. However, if you can see for the standalone, it will be ranging between 36% kind of thing.
Rohan Vora
Sure, sir. And just in connection to this, when are we planning to move from this old — old tax rates to the new tax-rate?
Amit Pathak
So we are — currently we are under the mat, which is getting exhausted into the current financial year and then after we are going to take a call into the next financial year.
Rohan Vora
So then next year we’ll be in the 25% tax-rate for the —
Amit Pathak
Definitely that will be there.
Rohan Vora
Okay, sir. Thank you. I’ll get back-in the queue. On the standalone. Understood, sir. I’ll get back-in the queue.
Operator
Thank you. We have our next question from the line of Yash Dhara from RSP Ventures. Please go-ahead
Yash Darak
Sir, am I audible?
Amit Pathak
Yeah.
Yash Darak
So yeah, could you please provide a breakup of revenue from surgeries and revenue from non-surgeries on a consol basis, if it’s possible.
Amit Pathak
Look, we should not see the surgery on the consoled number because control standalone gives you the more appropriated numbers because in the control from the hospital front, if you can see we have just the PK healthcare. However, if you want a ballpark number, how much is the revenue from the surgery and the revenue from the non-surgeries business, we can give you the count. Right now, we don’t have the handy revenue from surgery’s number. So surgery count, if you can see, we have — the ARPO is close to around 3,123 and the is 43, 42. The overall surgery is 7,400. If you can ask me just to — for your interest, if I will see in terms of the revenue, if you are talking for the standalone INR220 crores of the business what we have, INR211 crores is coming from the defense specialty and the remaining revenues is coming from the pharmacy, which is around 4.8 and and. So usually the split between the surgical and medical revenue is two-third and one-third respectively.
Yash Darak
Okay, got it. Got it, sir. Secondly, if you could give — if I missed it, you could provide me revenue from Sanar and if you could — yeah, if you provide me revenue from Sanar and breakup of other expenses as the other expenses have been increasing, what will be the ongoing rate run-rate of the other expenses?
Amit Pathak
So revenue from Sanar, we have already mentioned that we are seeing for this quarter that is revenue from operation in is close to around INR23 crores kind of thing and revenue from the other hospitals, which are under the Shelby standalone, the revenue from operations are INR220 crores. If you have seen the other expenses, if you are talking about in terms of standalone entity, if you can see compared to the Y-o-Y basis where we had around other expenses of INR14 crores versus INR20 crore in this quarter, the reason for this is the auto trend event. You have — I think you have seen, we have conducted the major auto trend event in the current quarter, where we have spent close to around INR2.3 crores in terms of the expenses. Another thing is coming in terms of advertisement, marketing expenses, which has been increased by INR1.1 crore on the Y-o-Y basis. And third thing in terms of the repair and maintenance, which is close to around INR1.5 crores on a Y-o-Y basis on our different locations.
Yash Darak
So how much of this do we see as an ongoing run-rate? Is my question.
Amit Pathak
So Auto trend is a one-time event. So you have to factorize that expenses, which is into the quarter three. So that was INR2.3 crores, you are not going to see into the current for coming quarter?
Yash Darak
Okay. Thank you. My last question would be with regards to the structure of Shalbi business, that is MedTech. So that’s my doubt — that’s a doubt that the implant business is — be advanced technologies or it is — or is it shall be MedTech?
Amit Pathak
So Dipak, can you take this question?
Deepak Ananthakrishnan
Sure. Yeah. So the way the structure is, shall be medtech is the — is the parent company, which is the implant company and MedTech Limited is the parent company of Advanced Technologies, which is in the US. So Shalbi MedTech Company happens to be the parent implant company.
Yash Darak
Because when we report revenues from implant business, I think they are from Advanced technologies in the financials when we provide the segment information..
Deepak Ananthakrishnan
So correct.
Amit Pathak
We are reporting the number of the Advanced Technology US because that is the manufacturing unit.
Yash Darak
Okay. So the metric implant company, it also sells the implants and what does the Shelby Global tech do?
Amit Pathak
So the parent company imports the implant from the US entity that is a Shelby Advanced technology and they are selling into the Indian market.
Yash Darak
Okay, okay. Got it. Got it. Thank.
Operator
Thank you. We have our next question from the line of Agum Shah, a shareholder. Please go-ahead hello Argham, are you there?
Unidentified Participant
Hello, am I audible? Yes, just one question. The gross debt has been increasing reasonably on a frequent basis, if you would just give reasons with regards to reduction in debt out, how do you see the gross debt progressing here on?
Amit Pathak
So you’re not very clear. Can you just repeat your question again?
Unidentified Participant
So the gross debt has been increasing quite reasonably, if I’m not wrong, by INR50 odd crores, if you could give the reason for the increase in gross debt and the increase in finance costs and how do you see it progressing forward?
Amit Pathak
So look, the thing is gross borrowing, if you can see is mainly included increasing in our implant company, okay. As Deepak has just believed that we have got the approval for CKS Gold approval we have just received and there are couple of products which are also into the pipeline, which approval is pending. So as you can see, the implant business is expanding heavily. There is a — we are doubling our revenue. We are very aggressive in terms of the revenue forecast for the next year. We are investing into the inventory. So the major investment, if you can see for the Group point-of-view, hospitals per se, we don’t have the debt. We are the hospital business, the cash-rich, we are not borrowing anything for the hospital. But for the next couple of quarters, we have keep investing into our implant business.
Unidentified Participant
Okay, got it. Yeah. Thank you.
Operator
We have our next question from the line of Raja Kumar with VidNathan shareholder. Please go-ahead.
Unidentified Participant
Yeah, good afternoon. Thanks for the opportunity. Yeah, I have three questions. So the first question is on the implant business. Why quarter-on-quarter it has shown only flat. There is no-growth at all and in the previous call, you mentioned that you are expecting significant jump-in revenue for Q3 and Q4. So if you can just give some color on this.
Deepak Ananthakrishnan
The implant business at a consol level has grown by 58% from previous quarter and it has also grown by 25% year-on-year. So I mean, if you can tell me exactly where-is the thing, I can come back to you because from a growth standpoint, there is a growth in the — in — no,
Unidentified Participant
I’m talking about the segment of revenue that you’re showing, manufacturing of implants, 267 million revenue in current quarter vis-a-vis 277 million revenue in September quarter.
Deepak Ananthakrishnan
Yeah, so that is not the — yeah, that is from. Okay. So that is standalone be advanced technology. So that’s primarily because of — in the US market, there is a — there are two things, the plant also had a little bit of low in terms of manufacturing because of Christmas holidays. The market was also — the US — in the US market, Christmas is usually a dull month. So that’s the reason why you see revenue, which will get picked-up in this quarter.
Unidentified Participant
Okay. And where do you stay — I think you gave like a five-year outlook of $100 million business from this business. Do you still stand to that number? Because that number looks very ambitious considering the current numbers.
Deepak Ananthakrishnan
It is ambitious, but I think we’re on the right path towards this. And I mean, it’s a very large market, it’s a globally $30 million market. So $100 million coming in from a $30 billion market is not that difficult. It’s just that the base needs to be strong. So right now, as an organization, what we’re doing is to build the right base, right? Our COGS have come down, coming down quarter-on-quarter, our revenues have started growing. We’re starting building our new portfolio. We have dual supply-chain system now in most of the places. So and, we don’t bring that up very strongly. Pressing the accelerator for scaling up may not be the right thing to do. I think we are on right track to build the base very strong in the next six to eight months’ time. And from there, I think acceleration can happen quickly if we get our act together. So what I’m saying is $100 million is still — it is an ambitious number, but it is still a possibility.
Unidentified Participant
Okay. And any path to breakeven because you continue to lose about INR8 crore of money every quarter. So what is the path for breakeven for this business?
Deepak Ananthakrishnan
So it is — so basically, if you look at it, the money is being spent majorly on three things, right? One is in terms of building inventory, we have to put up a decent amount of money on capital expenditure. We have to spend money on marketing. There is a good amount unless and until because this is not known to people unless and until we go out and tell people we are present there, it will not happen, right? So in this thing, it’s a function of only two things, just to keep decreasing the COGS and keep increasing the sales and we’ll match-up there. So I think that’s the track that we are, right? I mean, if you look at quarter-on-quarter, you will see the COGS going down. If you see quarter-on-quarter the sales going up and that’s the only way it will happen. This is a medical device business. So for — like any healthcare for people to start using it to for the patient to start feeling, unless they see those results, unless the surgeons start feeling those products, the takeoff will not happen. But the good part is that there is a lot of positivity on our product. People are happy, the surgeons are happy, they’re getting positive response from wherever — whichever countries, whichever markets that we’ve launched.
Unidentified Participant
Okay. So when do you expect this business to breakeven?
Deepak Ananthakrishnan
I think we will — we will touch end of next year close to solid single to double-digit EBITDA. And that’s what I think. Next year, same time, I should — I feel we should be in a good single to double-digit EBIT.
Unidentified Participant
Okay. Okay. Yeah. So the next question is on the hospital business. Sir, your performance for this current quarter, if I compare with the previous similar quarter, even we have not kind of matched with that performance. So would you like to give any color on that why our bottom-line performance is not in-line with the previous year quarter. Because last call you mentioned that you had some floods — because of the floods, many of the plant surgeries could not be executed in Q2 and you said you were expecting a significant bump-up in Q3, but that has not kind of played out. So if you could just give some color on this current quarter performance?
Amit Pathak
Sure. So before I will highlight the couple of things about the hospital, I just want to add couple of questions which you have asked for the implant, which have answered. So I will just touch upon two things where you are talking in terms of the segmental revenue for the implant also. If you can see on the nine-month basis, the revenue for advanced technology has improved from 54 cro to 79. So which is a substantial increase if you are talking in terms of the growth of the sales where we have just received the approval for our new products.
So you can understand once the new product registration will be there in India, from the next quarter of the next — I mean to say quarter — after the quarter one of the next financial year, we are going to see the leap in terms of the sales for shall be advanced technology. So that will be there, definitely we are going to see. And another thing, if you can see the profitability, definitely, you can see that we have the INR6 crores of the loss into the last quarter of the same financial year. This quarter, you can see the loss of INR8 crores. I have already given in my commentary that we have made a provision against certain implant, which is the slow-moving kind of thing, which is close to around INR4.8 crores. So you are going to see the impact around that also.
Now if coming to the hospital, if you can see hospital on the Y-o-Y basis because quarter three is always a seasonal business for us. So we have done INR195 crores of the top-line from the hospital business. And this quarter we have delivered INR220 crores. So there is a double-digit growth, which is historically we have given into the normal pace. So the pace has continued in terms of the growth in terms of the top-line. But where we are talking for the bottom-line, definitely 24% to 21% of the bottom-line, which is slightly has been reduced, which is mainly one thing is because of around 1.7% increase in terms of the cost, because of the peer mix and other things that has been increased.
And during the quarter, I’ve already highlighted we have already have around INR2.3 crores of the offward trend event. If that will not be there, then our OpEx has not increased by 1%. So that delta of 2% to 3% is because of that. So totally, what is the amount of one-off you have in this quarter as for the hospital segment?
Unidentified Participant
For the hospital segment, what is the total amount of one-off that is dragging the bottom-line?
Deepak Ananthakrishnan
So one-off would be in the range of INR6 crores to INR8 crores in this — in this particular quarter. See, I think what is important to note is that for the implants business, what we did in the full financial year of FY ’24 in terms of the revenues, in terms of the constructs sold, all of these have been able to — we’ve been able to achieve in the first-nine months of this year. And this quarter — the additional quarter is going to bring in additional 35% to 50% kind of growth on last year’s number in the implant business.
On the hospital front, as Amit by mentioned, we are looking at — I mean, we’ve already achieved a 15% kind of growth if you look at any parameter, whether it is inpatient growth, whether it is outpatient growth, whether it is the surgery count. And if I include the acquisition, the growth is more than 18% a year-on-year basis. So that is that. The numbers, of course, because of the losses of Sanar Hospital in terms of EBITDA, as Mr Amit mentioned earlier, essentially, you know, it’s a INR3 crore EBITDA loss for the quarter and a total of INR9 crore loss at the PBT level. So all these numbers of Delhi have been affecting the total hospital performance for us. But we are expecting — we are expecting that in the coming few quarters, as Mr Kapoor mentioned, we should be able to come out of this.
Unidentified Participant
Okay. Great, sir. Sir, lastly, this slide number 19, which you have given maturity wise hospital performance. So this is a very good slide, sir. My only request is if you could also give comparative number for the previous call easier for investor to understand how the progress is made in each of the buckets because now is standalone. So we can’t say what is — and are we improving or you know, so the comparative slides you had given that would be helpful.
Amit Pathak
Sure, we will.
Unidentified Participant
Yeah. And lastly, this ROCE number which you are giving, again, you’re giving only for the standalone hospital business. So again from an investor standpoint, we are looking at overall business. So it would be better if you give the ROCE performance also on a consol basis.
Amit Pathak
You can refer our slide, we are giving for the consolidated also. Even the five-year strength on the ROCE is also given for consolidated as well as standalone basis in our investor presentation.
Unidentified Participant
No, the written on capital employed is given only for standalone, it’s not given for consol
Amit Pathak
So I will suggest you to go to Slide number four. The ROCE is given for the quarter. If you go to Slide number 5, you can see the ROCE for the last five years, six years have been given there.
Unidentified Participant
Okay. Okay, sir. I’ll go to it. Maybe I missed it. Okay. Thank you, sir.
Operator
Thank you. We have our next question from the line of Pino Pathi Parampil from Elara Capital. Please go-ahead.
Bino Pathiparampil
Hi, good afternoon. A couple of questions thing. One on this profitability and the EBITDA margin on the standalone business, you made a few comments. So going-forward, should we look at this 21% 22% as the sustainable levels?
Amit Pathak
Yeah. So we are going to sustain the profitability. As I mentioned, there is a one-off kind of opex has been there in terms of the trend event. And apart from that, as an organization, we are always going ahead with lot of cost optimization process where we are optimizing in terms of the cost and other things. So you are going to see the improvement going-forward also.
Bino Pathiparampil
Yeah, okay. And sir comment on further bed expansion plans, anything look-forward to?
Deepak Ananthakrishnan
Yeah. So expansion plan, I think there are you know, I’m sure the question is around what are the potential growth areas for us. And the potential growth areas really are, you know that in the existing bed capacity, you know, we are going to be able to nearly double — more than double the top-line. We have that kind of capacity within the existing facility with a very minimal capex of between INR50 crores to INR100 crores, we will be able to generate this kind of revenue in the coming years. And so we are expecting a double-digit growth going-forward for the next four to five years. And you know, as I said, increasing our in-house capacity will give us that growth on the hospital side.
On-top of that, we are adding two bunkers, one in our facility in Ahmedabad, another one in our facility in Surat. So again, they will be, you know, providing high-end radiation within the oncology segment. That is another area of growth that we are expecting. The third is we are also planning and we are already working on introducing high-end bone barrow transplants in some of our other units outside Delhi. So that is going to be another area for us. Besides that, you know, as we have announced earlier, we have the potential to expand in our existing facility in Delhi.
So the works on that are going on in terms of how much of FSI is left and what can be used on that. And essentially, we are optimistic we’ll be able to add significant capacity from the existing setup. And of course, the last one is, you know, the Asha Hospital in Mumbai, which is — which has been announced earlier and basically the works for that are also going on. So that is another one on the hospital side. As I mentioned earlier during the commentary, we have launched our Bank, which was inaugurated by the Honorable Home Minister of India, Mr Amit Shah, in January this year, essentially that is going to be another major area for us in terms of growth.
The reason being that today in India, largely doctors are using the synthetic bones and these are not only expenses, but also imported into the country and with much lower clinical outcomes compared to the natural bone which is preserved. So this is a very high-end bone bank that we have set-up. It is the largest bond bank in India and it is the most comprehensive bone bank of Gujarat. And with this, we will not be — we will not only be supplying and working with our other units, but we’ll be partnering with a lot of institutes in India as well. So these are the potential growth areas for the hospitals business. I’m sure Deepak wants to add-in terms of how we are going to be looking at growing the implants business because there are a lot of initiatives we’ve taken as he has mentioned. But over to you, Deepak.
Unidentified Speaker
Thank you, Shanai. From a growth standpoint, multiple things. One, it’s going to be driven through a lot of sales and marketing activities with our current portfolio that we have, but we have just launched our bone cement about two months back into the market, getting really good response for that from the Indian market. We are also looking at some partnerships which are country-specific, whether it is to do with Indonesia and with India where we can introduce some products, which can generate revenue, profitability as well as go-to-market faster, which could be our cementless stem, cemented stem, some the robotic as well as power tools and dual mobility. Having said the same thing, we also just received a week back our US-FDA for the awaited CKS thin bin knee, which is going to be branded as duranium.
So that has the — that would drive a lot of growth for us at a global level in almost every country. So we’re pretty, pretty what lies in the future, including ambition Knee ready for launch by end of this year. So yeah, so pretty, pretty much kicked up. So a lot of growth across geographies, across products — across markets are going to come our way in the implant business.
Bino Pathiparampil
Understood. Thank you hello,
Operator
Thank you. We have our next question from the line of Ankur, an individual Investor. Please go-ahead.
Unidentified Participant
Yeah. Good afternoon to everyone. Hello, good afternoon. Audible? Yeah, you are. Yeah. Good afternoon, sir. Good afternoon. Yeah. Sir, my first question is that what kind of growth can we expect in the financial year ’26, sir. In terms of revenue and profit and EBITDA?
Amit Pathak
Yeah. Look, as I earlier mentioned, we continue to deliver the double-digit growth for our hospital business. So the trend will continue because apart from that, there’s lot of activities which we have founded that we are going to start in terms of the radiation and other things. So we are very optimistic we’ll continue to deliver the double-digit growth in terms of the hospital. Implant, as we mentioned, we are good at growing very fast and with this approval of this CKS, it is going to deliver the multifold growth in terms of the implant business into the next financial year.
Unidentified Participant
Okay. So as of now, what is the debt level, sir? And any plan to reduce the debt?
Amit Pathak
So debt level is around 0.27 on the consolidated basis, which is well within the reasonable level. As I mentioned, the debt, we are not going to expand the debt except the two things. For the radiation, we have already taken the line-of-credit of close to around INR40 crores, which will come into the — at the end-of-the quarter one. Apart from that for this implant, we keep investing in terms of the working capital. So that will continue on the trend what you have seen into the earlier quarter that will continue for the couple of one or two-quarter more.
Unidentified Participant
So can we expect sir now EBITDA level will improve in coming quarters?
Amit Pathak
Yes. So that is not impacting the EBITDA also. So EBITDA will definitely improve into the coming quarters and we are going to see the growth in terms of the reduction of losses in terms of the PBT level for our implant business into the next financial year.
Unidentified Participant
Okay. Thank you, sir.
Operator
Thank you. We have our next question from the line of Rohan Vora from Envision Capital. Please go-ahead.
Rohan Vora
Hello, sir, thank you again. So sir, I was just looking at the absolute occupied beds. We are at 646 beds for this quarter. We were at 690 in the second-quarter. So how do we see this number? I mean the volume basically of number of beds occupied, which has degrown sequentially. Thank you.
Deepak Ananthakrishnan
So the way we would want to want you to look at it is, you know is what really has been the outpatient count growth, what has been the inpatient count growth and essentially, if you look at that, we have delivered double-digit growth on both fronts. So depending on the specialty, what happens is that the average length of stay differs. So it could be from one day-to 10 days, sometimes 20 days as well. So occupancy would be driven by all those factors. The way I would — we would request you to look at it is what has been the inpatient growth, the outpatient growth, the number of surgeries growth. And in our case, it has been double-digit, plus if you look at — if you include acquisition, it is higher double-digit.
Unidentified Participant
Got it, sir. And going-forward, you said that we look to grow at double-digit. So what — how much of it would come from ARPOP growth and how much would come from increase in occupancy? What would be the ballpark breakup there?
Deepak Ananthakrishnan
What happens is that ARPOP growth the — is usually on an annual basis, we are seeing that the ARPOP growth is between 3% to 6% and then the volume growth is another 8% to 10%. Usually this is what we see, but this could differ based on any particular year. Right, sir.
Unidentified Participant
So on a longer-term, we can expect this occupancy to grow at 8% to 10%. I understand it would differ on quarter-to-quarter and year-on-year basis, but on a longer-term, this can grow by 8% to 10%?
Deepak Ananthakrishnan
Yeah. The inpatient count and the outpatient count, you can expect double-digit growth on those numbers. Yes.
Unidentified Participant
Okay, sir. Thank you.
Operator
Thank you. We have our next question from the line of Tanya Kothari from Ohm Capital. Please go-ahead.
Tanya Kothari
Yeah. Good afternoon, everyone. I appreciate the insights shared so-far by the management and lovely to see the progress in key segments like oncology and joint replacement. I have just couple of questions. With oncology surgeries that shall be increasing by 32%, how do you see the exemption of basic custom duties on 36 lifesaving drugs and government plans to establish around 200 cancer day care centers? In fact, the Oncology segment will these initiatives create new growth opportunities for the company?
Deepak Ananthakrishnan
Look, oncology is a fast-growing segment and one of the important specialties for the Group. And essentially, you know from a lower single-digit kind of revenue-share in terms of our total revenues, it is now, I would say, the highest after the joint replacement. So — and we are continuously investing in this segment across, you know the medical, the surgical as well as the radiation oncology part. So we have one of the strongest team in Western, Central and Northwestern India across all these three segments. And as I mentioned earlier, we are investing further in two more linear accelerators, you know, and the third one as well after this, which will make us — I mean, which will help us get to about 60 lakh machines across. So essentially, we are extremely bullish on the segment and what happens is that the coverage of whether it is the government or whether it is the private insurance companies, the coverage is therefore all the different kind of treatments across oncology. So again, you know, that will be an additional benefit for us and it will be a high-volume growth for us.
Tanya Kothari
Okay. So can you provide insights into the division of patients between domestic patients and international patients which are being serviced in like number of patients
Deepak Ananthakrishnan
Sorry, I didn’t get the question.
Tanya Kothari
Sir, I was asking the division of patients between domestic and international, like how many domestic patients are getting their treatment in as well as in international segment, like in quarterly basis and yearly
Deepak Ananthakrishnan
See in our Delhi hospital, the mix is very healthy. About 50% of the patients coming in are from outside India and the balance 50% are from — from within India from the — I mean among the rest of the hospitals that we run because of the lack of international flight connectivity, the numbers are not as significant as a proportion to the revenue. But I can tell you that, you know in all these different places like Ahmedabad or say Jaipur, we are being awarded every year-on the medical tourism hospital facilitator for the year. So we are doing the highest volumes for international business in Ahmedabad as well beyond Delhi
Tanya Kothari
Okay. And the last question that is like increasing adoption of robotic surgeries and specialized specialized treatment. What percentage of revenue is now derived from high-end procedure and how do you see this evolving?
Deepak Ananthakrishnan
Yeah, so I think there are a lot of developments across robotics, you know on the orthopedic front. I think Deepak will be able to throw some light on that.
Unidentified Speaker
On the robotics front, basically there are multiple robotics that are coming in, but from our side we are doing two things. We already have — I’ve got the approval to sell Robo in India, which is in partnership with a company in South Korea. So we have our first installation that is happening this week-in Hospital. In parallel to that, we are also on a — we initiated a clinical study with an American orthopedic robo company called Monogram Orthopedics. And that clinical study should get kick-started in this quarter and post that we would be looking at furthering our robotics. So what we are trying to look at is, there have been robotics in the market for a long-time, but as an organization, we are looking at new technologies in the robotic space to come in from there.
Tanya Kothari
Okay. That’s all from my side.
Operator
Thank you. We have our next question from the line of Viresh Tangwan from an individual investor. Please go-ahead.
Unidentified Participant
So hi, thanks for the opportunity. I have a question on our — the low-cost model, which is the shall be managed or operated. So what’s happening on that front? Like I have not — the initial plan was like very, I would say to take it the hospital count to around 40 plus, but there is nothing much happening on that front you can just tell like what’s happening there.
Deepak Ananthakrishnan
So we have five franchisees which are operational already and what we have shown, I mean, in our presentation is that there has been a growth on that facility. I mean in all these facilities. So there has been a significant growth, although at a much lower base. We are assessing certain things like, for example, we dealt with a couple of FOSM models earlier and we realized that for us to be able to keep a control on the quality, et-cetera, it is very important to go more on the franchisee on shall be operated models. So going-forward, our focus will be a lot more on that. And as a group, you know, as a kind of conservative group, we also want to kind of make sure that we consolidate what we have first before we venture out because we have a lot of underlying opportunities, but we will take them up as and when we are able to kind of get enough management bandwidth as well as you know kind of grow in the existing hospitals that we run.
Unidentified Participant
Okay, so nothing in pipeline in near-future. Is that correct understanding?
Deepak Ananthakrishnan
Couple of things in the pipeline, but no announcements to be made as of now.
Unidentified Participant
Okay, okay. And another question I had was on the devices business. I’m pretty, pretty new to Shelby, but just wanted to know like the — what I understand the company is US-based and we are importing the devices from there. But is there any possibility to start developing offshore at least for the South Asian regions — so is there a possibility? And if yes, are there any plans?
Deepak Ananthakrishnan
Yeah. So do you want to go yeah. So just to answer that, there are two, three things behind this. The first thing is the kind of quality and the precision that we have in terms of the manufacturing and our plant there and the quality systems as well as US-FDA approvals and stuff like that is very extremely important to build our credibility to ensure that the quality of the product is high because at the end-of-the day, we are in the business of healthcare, ensuring that the products are, I know top standard in terms of quality is our first fundamental belief, right? Having said the same thing, also the second part of it is the plant right now is now getting into its full capacity and there is still some way to go, right?
So if you look at the manufacturing that is happening month-on-month, quarter-on-quarter, we are increasing our components, which I mentioned and we still have scope to increase our capacity inside the plant by adding more ships, adding more labor. And unless we don’t get to that space where we have completely come out of that, we do not want to — we do not want to add another plant, which would just drive extra capex at this moment. So — but there are plants, but I think once we are able to streamline the whole thing, if we are able to manufacture quality at-scale, then we will have the same thing replicated in some part of our — of maybe India or some other country. But as of now, the plan is to maximize what we have and bleed all our assets to the maximum.
Unidentified Participant
Yeah. Makes sense. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. And I now — I now hand the conference over to the management for closing comments. Over to you.
Amit Pathak
Thank you everybody for joining the call. We will connect again into the next quarter. Apart from that, if you have any questions, you can reach-out to our investor email, ID. Thank you.
Deepak Ananthakrishnan
Thank you.
Unidentified Speaker
Thank you.
Operator
Thank you. Elara Securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.