Yatharth Hospital & Trauma Care Services Limited (NSE: YATHARTH) Q3 2025 Earnings Call dated Jan. 28, 2025
Corporate Participants:
Aashita Jain — Analyst
Yatharth Tyagi — Whole-Time Director
Pankaj Prabhakar — Chief Financial Officer
Amit Kumar Singh — Group Chief Executive Officer
Analysts:
Ritika Khandelwal — Analyst
Parth Kotak — Analyst
Hiten Boricha — Analyst
T. Ranvir Singh — Analyst
Mohit Mehra — Analyst
Sumit Gupta — Analyst
Runit Kapoor — Analyst
Arpit Shah — Analyst
Prolin Nandu — Analyst
Abhishek Maheshwari — Analyst
Devang Patel — Analyst
Presentation:
Operator
Hello ladies and gentlemen, good day and welcome to Yatharth Hospital Q3 FY ’25 Earnings Conference Call hosted by Nuvama Wealth Management 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 the star then zero on your touchstone phone. Please note that this conference is being recorded.
Let me draw your attention to the fact that on this call, company’s discussion will include certain forward-looking statements, which are predictions, projections or other estimates about future events. These estimates reflect management’s current expectation about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause company’s actual results to differ materially from what is expressed or implied.
I now hand the conference over to Ms. Aashita Jain from Nuvama Wealth Management Limited. Thank you and over to you.
Aashita Jain — Analyst
Thank you, Steve, and good day, everyone. I, Aashita Jain from Nuvama Wealth Management welcome you all to Q3 FY ’25 earnings conference call of Yatharth Hospitals & Trauma Care Services.
From the management, we have with us today Mr. Yatharth Tyagi, Whole-Time Director; Mr. Amit Kumar Singh, Group Chief Executive Officer; Mr. Nitin Gupta, Chief Operating Officer and President, Finance; Mr. Pankaj Prabhakar, Chief Financial Officer; Mr. Neeraj Vinayak, Head, Strategy and Investor Relations; and Mr. Sonu Goyal, Financial Controller.
I now hand over the conference call to Mr. Yatharth Tyagi for his opening remarks and we will then open the floor for question-and-answer session. Over to you, Mr. Tyagi. Thank you.
Yatharth Tyagi — Whole-Time Director
Good afternoon, and a very warm welcome to Yatharth Hospitals and Trauma Care Services Limited Earnings conference call for the quarter ended December 31, 2024.
We’ve uploaded our presentation on the exchange and the company website and hope you all might have received and have had an opportunity to go through it. I’m pleased to report that Yatharth Hospitals has achieved robust growth in revenue, surpassing 30% year-on-year Y-o-Y and EBITDA surpassing 20% year-on-year growth for the nine months ended FY ’25. Our expanding network of super specialty services alongside the successful integration of the Greater Faridabad hospital has been instrumental in driving this momentum.
I’m glad to share that we have completed payments for two newly-acquired hospitals in New Delhi and Faridabad, adding approximately 300 and 400 beds, respectively. Our focus now remains on operationalizing these hospitals by the next quarter. We are intensifying our efforts towards the procurement of state-of-the-art medical equipments and advanced robotics systems. This strategic initiative is designed to elevate the quality of care provided and to ensure that our facilities remain at the forefront of medical innovation.
In tandem with these advancements and with the addition of new beds, brand is now attracting leading doctors and specialists across NCR region reinforcing our position as a trusted healthcare provider. A key notable achievement this quarter with our hospitals was a successful kidney transplant facilitated through one of its kind transfer of a kidney from Faridabad to our hospital in greater in just 20 minutes and 40 seconds by a creation of a 46 kilometer green corridor. Our commitment to clinical excellence is demonstrated by several other noteworthy cases. We performed the first cochlear implant surgery on a 5.5 year-old girl with the case of bilateral hearing loss from Turkey.
A female patient from Africa with complex heart conditions, including severe mitral stenosis, severe traffic regularation, a sinus venosis, RTL defect and a partial pulmonary venous connection where severe pulmonary artery hypertension and a right heart failure. After intense medical operation, she successfully underwent surgery which involved replacing the mitral wall, repairing the walls as well as closing the arterial septal effect and rerouting the whole right pulmary vein through the expertise of a surgeons.
In another scenario, our team conducted a coronary R3 bypass grafting procedure where three bypasses were put on the heart targeting LAD, PDA and the Rampus intermedius in case of a dressless syndrome. These cases reflect the high standard-of-care and the hospital’s advanced capabilities in handling integrate medical cases at hospitals. This is in-line with our vision to continuously introduce the most cutting-edge technology for our hospitals, we have this quarter added interlaminal spinal endoscopy in nodextension and started therapeutic nuclear medicine and radiothernostic therapy at GitHar Hospitals. This cutting-edge therapy integrates diagnostic imaging and target therapeutic solutions providing a highly effective treatment for certain cancers such as neuroendocrine tumors and prostate cancer, where all therapy fails, these therapies will enable Hospitals oncology department to offer high-end oncology specialization services.
I’m happy to share that our focus on patient-centric high-quality healthcare combined with strategic acquisitions and investments have helped us achieve an ARPOP of INR30,614 in nine months financial year ’25 with Extension Hospital registering the highest ARPO at INR37,608, up 12% Y-o-Y, while Greater Noida Hospital 34,584 is up 21% Y-o-Y. Our newest Greater Faridabad hospital has ramped-up very well and has been successfully integrated in the seven months of being operationalizing. It has the revenue growth contribution to 5% of our overall group’s revenue and has an ARPO of INR34,365 for Q3 FY ’25 in initial days of hospitals commensuration.
Finally, I would like to take this opportunity to provide an update on the income tax matter and addressing the recent market rumors. The IT department had conducted a search operation in 2023 and as part of their standard procedure, a certain amount was provisionally blocked by the department. Till last quarter, a majority of those funds, which were provisionally blocked have been released and have been unblocked. In the recent development, a new assistant commissioner assumed responsibility of a case, which was pending for two, three months in-between and had in the similar line, provisionally attached some of the company’s assets. The issue was informed to the stock exchanges after receiving notice from the authorities.
Further to our intimation during the QIP, an amount of 6.23 cr from the attached FDs were indeed allowed to be utilized by the company from the incompact authorities. We are actively cooperating with the authorities to expedite the resolution of this matter and do not anticipate any significant material financial or operational liabilities arising from these proceedings. Furthermore, Deloitte has already been appointed as an internal auditor since last quarter and the teams have been actively working towards their suggestions for strengthening our financial systems and risk controls.
Moreover, in-line with the previous communication regarding the appointment of a leading auditing firm as a statutory auditor, I’m pleased to inform you that we are on-track to finalize the top six auditing firm from the upcoming new financial year and the company will be having the new toxics auditor. We believe that Hospitals is well-poised and a focus on patient-centric, high-quality healthcare combined with strategic acquisitions and investments in medical field will drive long-term value for our stakeholders. The company remains on-track into fulfilling all the parameters and targets that is set for itself in the field of delivering high-end patient-care in the regions that we operate.
With that, I will now hand over the call to our CFO, Mr. Pankaj, for financial updates.
Pankaj Prabhakar — Chief Financial Officer
Good afternoon, everyone.
Hospitals has delivered growth in the both revenues and profitability for the quarter and nine months ended, 31, 2022. Let me first take you all through the results for the quarter. During the quarter, Japan Hospitals achieved a revenue of INR2,192 million, reflecting a substantial growth of 31% year-over-year and a growth of 1% quarter-over-quarter, driven by growth in our occupancy and ARPU. Notably, our Extension hospital registered highest-growth with a remarkable 43% Y-o-Y increase in revenue, now contributing 36% to our top-line.
Our in-patent volumes were up by 36%, while our outpatient volume were up by 12% Y-o-Y in the quarter. We have also made significant strides in advancing our tertiary and quarterly care services. Earlier this year, we introduced a new radiation pipeline at our Noida Extension Hospital and lower kicks across our Noida extension, Greater and Greater hospitals. These investments have significantly boosted our oncology revenue, which with oncology new now contributing to 21% to Noida revenue and 10% to Group’s overall revenue, a 150% increase from last year.
The shift towards high-value Super specialty services have driven a 4% Y-o-Y increase in our ARPU, which now stands at INR30,652 for quarter three FY ’25. Notably, Noida Extension achieved an ARPU of INR37,886, driven by a 70% contribution from our specialty services, reflecting our focus on high-end healthcare solutions. We remain optimistic about our Greater Faridabad facility, which now contributes about 5% to our top-line and its ARPOB contribution, evident from quarter three ARPOC number of 44,365.
Our EBITDA for the quarter improved by 18% Y-o-Y to INR549 million. However, our EBITDA margin this quarter were at 25.1% compared to 27.8% last year. The reduction in EBITDA margin for the quarter was on account of operational losses at our Greater Faridabad unit, which become operational in mid-May. Adjusting for Faridabad losses, our EBITDA margin would have been in the range of 26% to 27% this quarter. Overall, our profit grew by 3% Y-o-Y at INR305 million, a relatively slower profit growth recorded due to an increase in depreciation [Technical Issues]
Operator
Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go-ahead.
Pankaj Prabhakar — Chief Financial Officer
Our EBITDA for the quarter improved by 18% Y-o-Y to INR549 million. However, our EBITDA margin this quarter were at 25.1% compared to 27.8% last year. The reduction in EBITDA margin for the quarter was on account of operational losses at our unit, which become operational in mid-May. Adjusting for Faridabad losses, our EBITDA margin would have been in the range of 26% 27% this quarter. Overall, our profits grew by 3% Y-o-Y at INR305 million, a relatively slower profit growth recorded due to an increase in depreciation expense here in the quarter. In-line with our ambitious bed capacity expansion plan and addition of state-of-the-art medical equipment at our leading hospitals.
Coming to nine months number, our revenue grew by 32% Y-o-Y to INR6,487 million. Our inpatient volume were up by 32%, while our outpatient volume were up by 12% Y-o-Y in nine months. Our overall group occupancy also increased to 61% in nine months FY ’25 compared to 53% in the same-period last year. Notably, our and have shown impressive occupancy growth reaching 60% and 50%, respectively, compared to 42% and 20% in the same-period last year.
Our EBITDA for the nine months period stood at INR1,632 million, up 22% Y-o-Y, while EBITDA margin stood at 25.2% and our profit for nine months period stood at INR911 million, up 21% Y-o-Y. Our balance sheet continues to remain strong with a net cash position of INR5,605 million with the fund infusion from the QIP. We remain confident to not only sustain the growth momentum in revenue and profitability, but also towards capitalizing opportunities ahead to achieve operational excellence and expanding our presence in North India.
Thank you. With this, I would like to hand it over to the moderator for question-and-answers.
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 your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are request to be used handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
First question is from the line of Ritika [Phonetic] from [ Perpetuity Ventures ]. Please go-ahead.
Ritika Khandelwal
Hello. Can you hear me?
Yatharth Tyagi
Yes, we can. Yes, we can hear you.
Ritika Khandelwal
Thank you for the opportunity. So I had two questions. One was that the ARPAR growth was 4% Y-o-Y this quarter. So how is this projected to grow? And even the Noida cluster has seen a drop in revenue. So how is that like what is the major reason for this? And around the income tax, around the income tax thing. So what my understanding is if you have a provisional attachment, you can release it through bank guarantees. So is there any plans of that? And what is your maximum like what is the valuation of your provisional detachment?
Yatharth Tyagi
Right. So the first question on the ARPOP as the company has demonstrated good ARPOP growth year-on-year, significantly. Similarly, this nine months have shown good ARPOP growth. This is primarily due to increase in our super specialty business and specifically oncology is now contributing to a larger share driving this good ARPOP growth and also reduction in our government business, which we have selectively chosen, which is leading to a good ARPOP growth. And we feel the 10% ARPUR growth that the company has seen Y-o-Y for last year should be sustainable for the years to come ahead.
Similarly, your second question on the Noda cluster. So the Noda Extension hospital actually has shown good growth and continues to show good growth. Similarly, Noida, Great Noda have been increasing. If you look at the — over the quarter Q2 compared to Q3, Q3 has always been a leaner season for us in the past and across the industry. So it is in-line with that. But even then we have sustained and in fact increased a bit in the revenue. That is due to the addition of our — the newer hospital that is in as well as growth in our — some of the existing hospitals is concerned.
So coming to your third question on the income tax manner, so the — the provisional attachment of the assets, we do not require to submit any amount to get them released. We have been assured by the income tax department that they will be anyways being released very soon and we are in constant conversation with them regarding this provisionally unblock of the assets. Just like our provisionally block of the amount a year-ago had been released, we have been assured by the department that this provisional blocking of assets will also be released and we do expect a very positive outcome very soon from the department. And there are no plans to give any of FDs in exchange of this.
Ritika Khandelwal
Okay, so what is the lean amount currently?
Yatharth Tyagi
Sorry, what is the?
Ritika Khandelwal
Lean amount with the income tax department?
Yatharth Tyagi
It is close to INR60 crores.
Ritika Khandelwal
Yeah. Okay. Thank you.
Operator
Thank you. The next question is from the line of Parth Kotak from Plus 91 Asset Management. Please go-ahead.
Parth Kotak
Hi, sir. Thanks for taking my question. I have a couple of questions. The first being regarding recent acquisition models on Delhi and Faridabad. Could you elaborate on the projected timelines for achieving breakeven and payback for these hospitals? And how do you plan to ensure operational efficiency given the significant capex outlay of about INR220 crores for Delhi and about more than INR150 crores for Faridabad?
Yatharth Tyagi
So this is in-line with our strategy of expanding in our areas where we have a strong presence. The decision for acquiring another hospital in was the fact that this is the area that we have studied very well. We have already started a hospital in Greater Faridabad last year financial years last quarter. So, we understand the market and risk trying to replicate that we have already done in Noida. We expand from one part to another within the same city and become a leading that region. So that’s why the Faridabad upcoming hospital, which is a 400-grade hospital, which will have cancer treatment, something a greater hospital couldn’t have.
So we will leverage the brand completely in that area. Similarly, the Delhi Hospital also which is located strategically very well in model town. Both these two hospitals are planning to start from the 1st April, that is the first year of the new financial year. And we feel that in the past, our hospitals have been able to breakeven somewhere around 18 months-to two years’ time. And I think these two hospitals will also be in a similar timeline as far as that is concerned. And as far as the payback is concerned, usually it takes four to five years for our hospitals in the past to be — to have that payback. So we would assume that both these two hospitals will be similarly on those lines.
Parth Kotak
Thank you, sir. Thank you for the comprehensive reply. Sir, just one follow-up on the steps being taken to address the initial operating losses at Greater Hospital and when can we expect that to turn profitable?
Yatharth Tyagi
So I think Greater Hospital should be able to turn profitable in the next financial year — before the closing of the next financial year, somewhere between nine months ending of next financial year. In fact, we are quite happy with the progress of that hospital. You know already not just in Q2, but as we speak a — not just in Q3, but as we speak in Q4, that hospital is looking very promising because now we have all the that are required. We have recently received certain government in that hospital within the last few weeks, which are even adding more occupancy growth to it. And even the NABH inspection has been completed in past few weeks, which will impanel us to tie-in more government panels. So quite happy with the progress of the Greater Hospital and it should be able to breakeven somewhere in close to nine months of next financial year.
Parth Kotak
Okay. Perfect, sir. Sir, last question rather basic one. First of all, thank you for giving the beds capacity and sensors beds in current presentation. If you could just help us understand the difference between the two, that would be really helpful.
Amit Kumar Singh
Thank you. So the certain enough hospital, the certain beds are, we Call-IT day care beds. It’s like all emergency beds, all dialysis where patients comes and have a soft stay or probably only the day stay. So those beds are not considered in a census bed. So census bids — those bids, the new midnight occupancy you take where the patients are admitted is completely IPD. So any occupancy takes a midnight occupancy that patient is staying overnight, right? So that is the difference between the total beds and a spid.
Parth Kotak
Okay. Okay, perfect, sir. Thank you for addressing that question and that’s all from my side. I’ll join the queue if I have further questions.
Operator
Thank you. The next question is from the line of Hiten Boricha from Sequent Investments. Please go-ahead.
Hiten Boricha
Thanks for the opportunity. I have a couple of questions related to this income tax matter. So first question is what was the total amount blocked at the time when it was blocked? And you mentioned the majority of this fund has been blocked now. So if you can contemplate what was the total amount block?
And second question is, also you were 10 shares of subsidiaries and fee of the company has been attached. So what is the value of the asset?
Yatharth Tyagi
So at the time when the income tax audit started, this is around you know, 12 months to 13 months back because the company had recently raised funds from the IPO. There was amount with the company that time in the form of FDs. So there was an amount. So that’s why it was provisionally blocked. Even after repaying of the bank loan that time, the company’s book had an amount very close to INR250 crores. So because it was the amount that the company has raised, it was on the books that time in the forms of FD. So there were provisional attachment on that. And slowly that all amount has been released and only a matter of INR50 crore INR60 crores right now, it’s provisionally blocked.
And second, as far as the blocking of the assets is concerned, right now, again, because when the new officer took over our case and reopened a file, that time there was no FDs with the company in the tune of what it was a few — a year back. So that’s why they provisionally block the assets. And I think the assets valuation is to see and can be seen from the NSE and the BSE depending upon the number of shares because we have earlier disclosed also the exact number of shares that are being attached. So the valuation can be taken from that.
Hiten Boricha
Okay. So only INR60 is blocked, right?
Yatharth Tyagi
Yes.
Hiten Boricha
And what was actual number? Actually your line was this — you are not audible properly, sir. What was the initial number and it was actually block?
Yatharth Tyagi
Close to 250 cr.
Hiten Boricha
250 CR okay. So what is the total monitoring? Hello?
Yatharth Tyagi
Because that — because that was the amount that was available on the company’s balance sheet that time as the FDs. So the whole amount was provisionally blocked that time. It was not it was a certain measure of this is what they want to block. There was no thought process that they would block this based on certain calculations nothing, it was just whatever FDs was there at that time at the company — the balance sheet was blocked and we had that FD because we just came out from the IP fundraise. So anything. Not provisionally attached. It was not frozen or seed.
Hiten Boricha
Okay, okay. So sir, can you quantify what is the total monetary demand or money which is demanded by the authority? Just to understand this matter clearly.
Yatharth Tyagi
There is — there is no demand of any money or authority so-far. See, for a company. If there was, it would have been the easiest thing for us to do. We would have just paid that penalty, it would have been a minute penalty and this closes matter for as early as possible. But because the case is going on and usually in any income tax matter in India takes two years of time. We are 13 to 14 months into it and we are quite hopeful and this is what we have been told that before the end of this calendar year, our matter will also be — will be closed.
Hiten Boricha
Okay, okay. Sir, and one last question on this matter. But yeah, yeah, yeah. Sorry.
Yatharth Tyagi
But before that, even the provisional attachment of the property, we are expecting that to be removed very soon. We are not waiting for that for many months, what we have been assured by the department that it would be released very soon. So we don’t need to wait for that for the end-of-the calendar year.
Hiten Boricha
Understood, understood. Thanks for the clarification. And just last question sir around this matter. So you mentioned something about QIP money. So we have utilized — they have allowed us to utilize INR6 crores something from QIP money. So just to just for the sake of clarification, is our QIP money also by the authority or we can utilize that money at any point of time?
Yatharth Tyagi
It is not at all provisionally blocked. In fact, when the company went to QIP, we even discussed with the IT department that we are planning QIP rule because we are expiring new hospitals, we want to expand and the IT department is completely okay with that. They gave ahead the permission to go-ahead, raise QIP and utilize it as per the objective of the company. If there was any issue from that side, they would have not allowed the company to take the QIP route or when the money was raised on the QIP, they could have also closed — provisionally block it, but they have not blocked it. In fact, from the QIP amount that the company has raised, company has already utilized maximum of that amount. The bank loan have been repaid, the acquisition cost has been paid-for both the two hospitals from the QIP money and we still have that money free-to be utilized.
Hiten Boricha
Okay. Okay, okay. No, sir, the reason I asked this question, you clearly mentioned something that INR6 crore was allowed to be used by authorities. So that was — that’s for the sake of clarification.
Yatharth Tyagi
That is — that is from the INR60 crore amount that was earlier been blocked. So post of that INR60 crore has also been released.
Hiten Boricha
Okay, okay. Understood, understood. Thanks for the clarification, sir. It was helpful.
Operator
Thank you. The next question is from the line of Ranvir Singh from Nuvama Wealth. Please go-ahead.
T. Ranvir Singh
Yeah. Thank you for taking my question and congratulations to management for showing good operating performance. My question was related to IT-related issues. I think mostly has been clarified. Sir, another question, during this quarter, the EBITDA include anything related to acquisition cost or in one-off cost in this quarter?
Yatharth Tyagi
No.
T. Ranvir Singh
Okay. And secondly, that INR50 crore liability — the tax liability, which currently is as per their assessment. So how confident you are whether ultimately you have to pay it or you are fighting it to reduce it to minimum level or how is the — your confidence level there?
Yatharth Tyagi
So just a clarification, the INR50 crores to INR60 crores that is provisionally blogged is not the type liability that has been asked from the company. It is provisionally blocked as earlier stated, but we do expect this also and the assets to be released very soon. The ultimate amount would be much, much less, which would be insignificant for the company’s operational performance and the financial aspect. And this amount is not the liability that the tax has ask for the company to pay.
T. Ranvir Singh
Okay, okay, nice. And secondly, currently we have a fairly good level of cash, INR560 crore something. So how we are going to utilize it? Because two acquisitions we have already done. So within a year or do you have any timeline in your mind when you are looking for an acquisition and what kind of acquisition you are looking now?
Yatharth Tyagi
And so this amount — certain of this amount is already marked to the medical equipments that we will be putting into the two newer hospitals. So even though acquisition costing of both two hospitals has been paid, but new medical equipments will be deployed in both two hospitals as the — in the matter of next few months as we are planning to launch them very soon. So oncology machines, robots, so a lot of amount will go into those medical equipments. And the remaining amount is for the company to utilize as general corporate expenses, which we could utilize if there is an upcoming acquisition of another hospital or if there is a greenfield land acquisition that we want to do, but we have already marked to at all objects of the money that we will be utilizing from the amount raised in the QIP.
Amit Kumar Singh
So as of December, we have earmarked the amount, which will be reflecting the balance sheet, which has been subsequently being utilized for the mentioned in the QIP.
T. Ranvir Singh
Understood. So even after paying all amount because the third QIT also your balance sheet has been very strong. And so after utilizing all what you have planned, still I think you will have some cash surplus. Now here the question is that if we, you know, acquire a running hospital, obviously, the cost would be much, much higher. And if we acquire the hospital like Faridabad we have acquired, then it will take a time to actually reach a breakeven or to utilize — optimize this. You also need some you know if you just acquire just a building, then a lot of investment of that also is required. So this is some uncertainties are there in our mind. Now going forward, what we understand that after Q1 FY ’26, when we will be integrating these acquired hospitals, what would be the EBITDA look like with your assessment?
Yatharth Tyagi
So you know, as far as your previous question is concerned, the cash will also being utilized to fund a brownfield expansion, right? Right? So our Nord extension hospital, the Order hospital are also undergoing capacity increase. The Order hospital work has recently started also. So that is will company also do from their the books the money that the company already has in the books. We will not be acquiring any new funding or debt for that. And second, yes, when the newer hospitals start, there would be certain beta dip that the hospitals would be making. But then we do expect our existing running hospitals, especially of nod extension in Greater Noida to increase as far as EBITDA is concerned. So at a group level, we feel somewhere what we have delivered right now in this quarter of EBITDA margins should be sustainable in the coming years also.
T. Ranvir Singh
So in Greta Noda, we have already expanded them.
Operator
Mr. Ranvir, can you please come up in the question queue for Nesh.
T. Ranvir Singh
Okay. I think mostly I’m done. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Mohit Mehra from Guardian Capital. Please go-ahead.
Mohit Mehra
Hi, thanks for the opportunity. My first question is, what are the number of operational beds for?
Yatharth Tyagi
It is 200 bedded hospital and we are operationalized close to 100, 170 beds. That is the sensors bed in that.
Mohit Mehra
Okay. So the sensors beds are fully operationalized, almost.
Yatharth Tyagi
Yeah.
Mohit Mehra
Okay, got it. And the second thing is on this income tax matter. In 2Q notes, you had said that the amount attached was INR33 odd crores. And now it’s almost doubled. So what — and also assets have also been attached. So what’s going on there?
Yatharth Tyagi
No, so 33 and 50, these amounts are refer to separate FDs. So when we earlier mentioned that it was close to 250 at the time of the IPO that has been come down and it has come down since then. Similarly, as we have earlier mentioned that now because the case is — was pending for a few months, there was no officer to preside over our case. And when the new officer came, he reopened a file and had provisionally blocked the assets.
See, what’s more important is that as we earlier mentioned that the company is free-to utilize the money that we have on our books, whether it’s through QIP or the internal and we are quite — as earlier stated, quite hopeful that within few weeks, this attachment of the assets will also be released. This is by our communication to the income tax department. They are well in aligned with the company. They have supported RYP growth strategy and we are quite hopeful that not just this matter of attachment will be finished within few weeks, but even the whole income tax matter will be closed before the end of this calendar year.
Mohit Mehra
Okay. So that’s almost one whole year. So I don’t understand this, the money that was initially attached was that INR250 crores or INR70 crores because in the 4Q results, I think you had mentioned INR70 odd crores.
Yatharth Tyagi
Yes, but that INR70 was already after the release of the amount from the initial amount. See, again, at the time of the income audit, it was not that it was frozen or when it happened, whatever amount was on the balance sheet was provisionally blocked. It was not calculated. It was not measured. So with time as the goes on, as the paperworks happen, they keep on using a certain amount, which has been reflected by them in the last few quarters. And as per more important aspect that I mentioned that whatever provisional blocking is there, whether on the amount or on the assets will be provisionally unblocked within the matter of few weeks.
Mohit Mehra
Okay, got it. Thank you.
Operator
Thank you. The next question is from the line of Sumit Gupta from Centrum. Please go-ahead.
Sumit Gupta
Hello, am I audible?
Yatharth Tyagi
Yes.
Sumit Gupta
Hi, good afternoon. Thank you for the opportunity. Sir, just one thing on the other expenses. So if I look at this nine-month data, so it was close to around INR80 crores in nine months FY ’25 versus around INR60 crores in nine months FY ’24, so nearly more than 30% kind of. So what has led to that increase?
Amit Kumar Singh
So for your voice, okay, good. So basically, did this includes a major increase in the doctor payoff. So we have added several doctors. As we already mentioned by Mr, we have added new facility in. So doctors share also increase in also. Overall, we have added specialties and doctors in all our hospitals. That is a major impact. If you’ve seen quarter-on-quarter it’s 18 CR for last year and now coming 23 CR — 234 CR, sorry. From 178 CR to 34 CR, yeah. Major addition due to the doctors doctor.
Sumit Gupta
So going-forward also we would be we can expect this consider we are adding new beds.
Yatharth Tyagi
Your voice is not very clear.
Sumit Gupta
Hello.
Yatharth Tyagi
Can you repeat the question?
Sumit Gupta
Hello? Is it fine now?
Yatharth Tyagi
Yes. Yes, it’s better, yeah. Can you please…
Sumit Gupta
Going forward also, we can expect this to increase considering we are — we have done two acquisition.
Amit Kumar Singh
No, no. See, even at the is hospital and all this assume that initially the important is about acquiring a doctors, right? So that homework is already been done. We started the hospital in the month of May. So suddenly that one month all doctors have been joined. Solely — so all these things now that the doctor’s recruitment is completed. Yes, the new hospitals definitely the another and Delhi one, we will start equipment very soon. But as far as existing concern, I think this is I think optimally we are doing it.
Sumit Gupta
No, I’m talking from a new hospital which are for Delhi and only. So from that point-of-view, I was asking that there might be some increase.
Amit Kumar Singh
Definitely. Yes. So the and the Delhi, yes, the recruitment will start. But at the same time, see the existing one is also growing, right? The old greater will start giving us the income and probably whatever the investment in terms of recruitment which we have done two, three months back that will start giving us results, right? But yes, overall, I would say, so we understand that what has to be the percentage in terms of the doctors payout and other this thing. So it will not be in-line with that. Since we are growing organization 1% or 2% here and there, but I think it will be very much in-line with what industry practices are.
Sumit Gupta
Understood. And sir, what is the doctor strategy for the Delhi hospital and like I just want to understand because it’s a high-growth market and there’s a lot of competition for in that particular market. So just want to understand your strategy.
Amit Kumar Singh
See, the Delhi one, as we had mentioned in the last earning calls as well, these hospital, this is 300-bed facility going to be absolutely tertiary care facility is going to provide. So definitely, we will have you know those skill-set doctors in our facility because we believe that this area where we are in, that’s a very-high in society is there. It’s a very old area of the Delhi and around 10, 15 kilometers, yes, there are other big players out there. So we’ll have to be definitely in-line with that strategy and we are going ahead accordingly.
Sumit Gupta
Okay. So do you plan like for the point-of-view, so how do you see that panning out over the next one year or two years.
Amit Kumar Singh
See, so initially the impairment is going to take time, the initially five, six months you will spend on the impairments, but there’s a process since this is — see this hospital was temporarily set for three, four months only, right? So we don’t have to do much of it. So all the paperworks are being done and then the respective wherever the impediment we have to get it done, the processes are being done now. So as mentioned it, from the April onwards, our OPD and IPT are going to start from this hospital.
Sumit Gupta
Okay. Okay. And sir, finally, like what is the….
Operator
Mr. Sumit, can you please fall back in the question queue for further questions?
Sumit Gupta
Okay. Thank you.
Operator
The next question is from the line of Runit Kapoor from Elara Capital. Please go-ahead.
Runit Kapoor
Yeah. First of all, congratulations on the strong revenue growth. So I had two questions. So your top-line growth has been quite strong, but I think the bottom-line — the bottom-line has been muted relatively because I think depreciation has more than doubled on a year-on-year basis. So can you give future guidance on the future deposition as I think a significant capex is still expected in your medical equipment and you are using the written-down value depreciation, right? So a lot of depreciation would hit in the initial years. So can you give guidance on that?
Yatharth Tyagi
Yeah. So you know, depreciation is the reason why this quarter it — the bottom line shows not that much of a growth. But then going-forward, yes, even though there would be new medical equipments that are being planned, but the depreciation increase will not be that much significant as it was especially this quarter.
Amit Kumar Singh
Further, basically our existing hospital has been stabilized with the capital expansion or the medical equipment. So yes, for the future expansion, there is an increase in depreciation, but not that too much. And also the current depreciation, if you see, there is an increase by 2.5% on account of depreciation that leads to a decline in the PBD percentage by 3%.
Runit Kapoor
Yeah. So what would be like quarterly depreciation run-rate like if I say like it’s INR17 crore INR18 crores or significantly higher on the current levels, right? Quarterly run.
Amit Kumar Singh
Depreciation rate, it will be something around INR17 crore, INR17 crores is quarterly depreciation.
Runit Kapoor
Okay. And another question was like what is the — what’s your payer mix for this quarter and like — and another thing is like your ARPUB gap is like significant as compared to your peers. So that gives us a strong growth potential in. Like I understand like there would be a discount compared to your peers who are much more established. But can you give a guidance on like how — how much ARPUA can grow year-on-year, so the gap can be narrowed to a large extent?
Amit Kumar Singh
So you know, as you had mentioned last-time also, so there is a certain strategically call which we had taken to reducing the — our government business. And that’s what you see and the result of it in particularly Noda and Hospital, though the occupancy will see a bit lesser, that’s because of that. But you see the — both the hospital has done a really good in terms of the ARPOB and also reducing the LOS. That’s a result of it, right?
And coming to the second question, as we had mentioned, that’s a 10% growth, that’s what we are expecting in a couple of years. Year-on-year, we will be maintaining 10% growth in. And see the group, barring this Faridabad, if you see — sorry, barring the Ramraja Hospital, our ARPO with all these hospitals is close to, 34,000 35,000. So this is quite remarkable.
Yatharth Tyagi
And as far as your first question on the pay mix percentage, so we feel that in 2.5 years’ time, our government payer mix should be close to not more than 25%. That’s what we are targeting and moving towards. And even ARPU growth as Mr. Amit mentioned, should continue to be 10% yearly of at least three to four years and bridge the gap between some of our peers. And see, another reason was certain new therapeutic areas, which are high ARPU booster were not having much volumes for us earlier. So oncology, we started recently transplant program like liver transplant, bone mark transplant, these are high ARPOP therapeutic areas. So as their volume mature, our ARPOP is bound to increase much more and that gap will be bridged in the year to come.
Runit Kapoor
So your current government exposure is how much?
Yatharth Tyagi
It was close to 40% last year. For the nine months, I think it should be close to 35% and we — that’s where we hope to-end this full-year.
Runit Kapoor
Okay, thank you. That’s it from my side.
Operator
Thank you. Ladies and gentlemen, please limit your questions to two per participant as there are several participants waiting for their turn. The next question is from the line of Arpit Shah from Stallion Asset. Please go-ahead.
Arpit Shah
Hello. Am I audible?
Amit Kumar Singh
Yes, please go-ahead. Yeah, please go-ahead.
Arpit Shah
Yeah. I just wanted to congratulate the management team for a 31% growth, probably one of the highest in this space. And more surprisingly, if I see the growth excluding the internal medicines, your growth has been around 47%, which is super from the super execution from the management team. I just had a couple of questions. What has been our receivables number for end of 21st December? What is that number if you can share that absolute number?
Amit Kumar Singh
So receivable numbers, we are at around 270 cr and with days around 110.
Arpit Shah
Got it. And has the government revenues in this quarter declined on a Y-o-Y basis, if you can share any insights on that?
Amit Kumar Singh
Yes. So as I said, this was our strategic call, which we’ve taken it. So that is what particularly Noda and Hospitals, we have reduced a bit of dependency on government. So definitely it has been reduced, which you can see it even figure it out with the — on our occupancy as well.
Yatharth Tyagi
And also just to add here, the newer hospitals that we have started, government business is not even 15% in those hospitals. And that’s how at the overall group level is how we will achieve 25% in next 2.5 years because now all these new hospitals that we are starting, so Greater Faridabad Hospital or the new hospital in Delhi in Faridabad from day-one because we have super specialties now. We have — we will be having start-off so with the requirement or dependence on the government business, which is sometimes good to have in the beginning, it’s very less for us now. We can go all-out and do the expenses from day-one, unlike few years back. So that’s why the government business is even very less in the new hospitals that we have started or will be starting?
Arpit Shah
Got it. And if you can give any kind of guidance for FY ’26 because you’re going to be operationalizing almost 50% more capacity in FY ’26 going from almost 1,600 beds to 2,300 beds, what kind of revenue numbers you are targeting for FY ’26?
Yatharth Tyagi
See, I mean we — as you said that we have delivered in the past few quarters, industry-leading growth as far as Y-o-Y is concerned, I think I think we should be on track for that. And the company is on track and has always delivered upwards of 30% year Y-o-Y growth for last few quarters and we are quite hopeful for sustaining it and increasing it also in the future.
Arpit Shah
Okay. Do you expect any change in seasonality in your business given you’re adding a lot of capacity in newer areas? So any change in seasonality is expected happen?
Amit Kumar Singh
No. And as we said in Northern India, particularly, you see the Q1 and Q3 is the weakest quarter. Q2 and Q4 is a bit better, particularly Q4 is the strongest quarter. So this was a seasonality impact. That’s all I believe.
Arpit Shah
So that’s a good thing, right, because Q3 sequentially has been higher for us, like Q2 was lower and Q3 has actually been higher for us. Yes.
Amit Kumar Singh
Yeah, having the weakest quarter Q3 still we had maintained our numbers, which is quite significant for us and definitely we are quite hopeful for the last quarter.
Arpit Shah
Got it. Got it. Thank you. Thank you so much. Best of luck. Super execution.
Operator
The next question is from the line of Prolin from Edelweiss Public Alternatives. Please go-ahead.
Prolin Nandu
Yeah. Hi, Yatar. So a few questions, right. On this census bed, so when you calculate the denominator for utilization, is it fair to assume that census bed is the denominator number that you take? And is there any regulation which you have to follow as to how much day care and non-day care bed you have to keep?
Yatharth Tyagi
So yes, it is — the denote is always-on the sensors bed as far as occupancy is concerned across the hospital industry. And you will…
Amit Kumar Singh
Rather than say there is no such — norms as such legal norms. But that’s when you start a hospital, you do understand — you plan your beds accordingly. You understand these many beds you needed for a daycare and these are the for IPD and these many beds for your critical care. So this all goes with the business sense. You do the and mathematics and depends on which area you are, which what type of population you’d be catering. So there that’s a bit of percentage change here and there, but generally, these are the norms in the hospital industry, everyone practices it.
Yatharth Tyagi
And occupancy is always calculated on the sensor.
Prolin Nandu
Thank you for that. And now coming to your — you know, the acquisitions that you made in Delhi and Faridabad, you mentioned that 300 and 400 beds in Delhi and Faridabad will become operational from Q1 FY ’26. So in this, how would be the mix between senses, nonsenses? And also how — how will the ramp-up happen, right? Would it be similar to how it happened in Greater? And what could be the average ARPU that one can expect in Delhi and Faridabad?
Yatharth Tyagi
So you know for those both those two hospitals, the 400 bed and the 300 beds. Census bed would be close to 90% of both those two hospital beds are concerned. And as far as the ramp-up is concerned, we are quite hopeful that what we have replicated in, we can also replicate in because we understand that market better now. We are able to attract more star doctors with this being a bigger hospitals now there are lot of star doctors who want to join us and become heads for both the Greater Faridabad and the Faridabad Hospital because they would be somewhere around 15 kilometers away from each other.
So very different markets of region catering to you know drainage of the nearby villages and cities correcting the Faridabad highway from both the sides as well as Delhi. So the ramp-up that we have seen in the Gate of, we expect it to be even better in both these two hospitals because these two are bigger hospitals having radiation oncology, the Delhi hospital will also have liver transplant, something the Greater Hospital was not having. So we do expect even a better ramp-up in these two hospitals than the Greater hospital. And also the ARPO for these — both these two hospitals is also expected to even be better than the greater hospital because the Delhi area pricing as well as their focus are much more on superspecialties and low government business. So ARPU will also be even quite good for both these two hospitals.
Prolin Nandu
Okay. Okay. So then it will be upwards of at least 31,000, 32,000 that you are routing for greater Faridabad side for both these hospitals.
Yatharth Tyagi
No, this hospitals, it could be even upwards of 35,000 more.
Prolin Nandu
Okay, okay. And when we look at the nine months margin, right, you mentioned that had there not been the ramp-up of Faridabad, the margins could have been between 26% to 27%, which means that there is a 120 bps odd drag due to Faridabad ramping-up. Now when we enter next year, while this drag will not be there, but there would be a ramp-up drag of the acquisitions that we have made, right? So should the margins from, let’s say, where you end this year FY ’25 be higher in FY ’26 or this drag will probably pull the margin lower or how should one think about margin?
Yatharth Tyagi
Yes. So it will not be lower because what also happens then the Nord extension hospital and the Great Hospital will also be contributing next year to a larger margins because occupancy will also ramp-up here much more given the increase in the oncology volume, given the increase in the international patients in Greater Noida as well as transplant program. So the drag will not be lower and the EBITDA margins will be sustainable next year from where we end this financial year.
Prolin Nandu
Okay. Okay. And one last clarity, Yatharth…
Operator
I’m sorry to interrupt. Can you please fall back in the question queue for further questions?
Prolin Nandu
Sure. Sure. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Abhishek Maheshwari from SkyRidge. Please go-ahead.
Abhishek Maheshwari
Yeah. Thank you so much. Almost all questions are answered. Just one thing. What’s January — what has January been like considering that we are coming out of a lean season?
Yatharth Tyagi
Yeah. So January is being very promising. In fact, December is one of the most leanest months as far as North India and Delhi NCR is concerned, there was a lot of fog visibility. OPD volumes were quite less in December. And as soon as January starts, school reopens here, patients come back from our stations and we do have seen increase in the OPD volumes. And this is why in the past also, we have seen Q4 has been the strongest quarter in company’s history and we think we have every reason to believe that same will be the scenario this financial year.
Abhishek Maheshwari
Okay. Thank you so much, Hithat. All the best.
Operator
Thank you. The next question is from the line of Devang Patel from Sameeksha Capital. Please go-ahead.
Devang Patel
Yes, hi. Firstly, what is the target for receivable days, although it’s been inching down or the absolute amount keeps rising quarter-on-quarter and what are we doing to reduce receivable days other than reduce government share?
Yatharth Tyagi
So I think somewhere at the end of this financial year, if we close it close to 110 days, that’s what I think would be a good reduction from the start of the year, even though we are quarter-on-quarter increasing the revenue. So government business is also increasing. So on a larger-scale, the receivable days being reduced is what we are expecting, so close to 110 days. And it’s just not that government business reduction is the only way we are able to do it. Quarter-on-quarter, we have done it this year. There are other aspects also. So last year was anyways an exception.
So this year, we were anyways expecting a larger receivable from the government and we have been receiving that. There have been certain recovery teams that have been established heading — headed by the Group CEO himself, who is constantly being engaged in recovery of these amounts as well as we have outsourced certain of the recovery channels to certain specialized agencies deal with you know, recovery from not just even the government, but even the private insurances. So that’s what the company has been deployed and we are hopeful of closing this year close to 110 days.
Devang Patel
Just a quick follow-up. What is the reasonable days we are targeting on a steady-state basis? And for Jasi, what is the share of government business?
Yatharth Tyagi
The share in government businesses, Jasi because of Aishman card having there is higher than the group average. So it is upwards of or I would say, upwards of 36% there. But — and as far as your first question was concerned, as far as the steady-state, I think see, in 2.5 years’ time, we expect our receivable days to be somewhere close to 75 to 80 days in 2.5 years’ time. And this is what we are working on. And quarter-on-quarter, we are seeing a decline in our receivable days and we are quite hopeful with the reduction of government business, this is where we should be and 2.5 years.
Devang Patel
Okay. Thank you so much for taking my question.
Operator
Thank you. Ladies and gentlemen, due to time constraint, this was the last question. I now hand the conference over to the management for their closing comments.
Yatharth Tyagi
Thank you, everyone, for taking out your time and joining our earnings call. As discussed, we hope that our team is able to answer and clarify all your queries and thank you, Nuvama for hosting this call.
Operator
On behalf of Nuvama Wealth Management Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.