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Shalby eyes ₹130-150 crore revenue from implant business in FY25

Ahmedabad-based multi-specialty hospital chain Shalby expects its implant business to achieve positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) this year.

In an interview to CNBC-TV18, Shanay Shah, President of Shalby, said the implant business is expected to generate revenue between ₹130-150 crore in 2024-25 (April-March), with margin of around 8-10%.

The company’s April-June 2024 revenues were at ₹279 crore, an over 18% increase year-on-year.

Despite the revenue growth, margins decreased to 16.2% from 18%, and profits dipped to around ₹17 crore from ₹21 crore last year.

Shah said there is pressure on profit margins due to the acquisition of Sanar International Hospitals. However, it was also anticipated because the hospital is relatively new with revenue of around ₹24 crore in the quarter.

Shalby acquired an 87.26% stake in Sanar International Hospitals, Gurugram (PK Healthcare) in January this year for ₹102 crore.

The newly operational unit has performed exceptionally well over the past one and a half years, Shah said, adding that based on its current growth rate, it is expected to generate between ₹120 to 150 crore in revenue this financial year and become EBITDA positive.

Shah anticipates that the unit will start contributing to the earnings per share (EPS) in the next financial year.

The average revenue per occupied bed (ARPOB), Shah said will remain above ₹43,000 this year.

Shalby has managed to grow its ARPOBs by 5-6% in recent time, successfully managing to pass through these increases.

Shalby currently has a market capitalisation of ₹3,103 crore. Its shares have gained 61% over the last year. CNBCTV18

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