Max India Limited (MAXIND) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Max India Limited Q1 FY '24 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of the future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rajit Mehta, Managing Director of Max India Limited. Thank you, and over to you, sir.

Thank you. Namaste, and good evening to all of you on the call on behalf of Max India Limited. A warm welcome to all of you for this Q1 FY '24 earnings call. For those of you who have been in this journey with Max, thank you very much for your support and for all the new ones who are joining for the first time, you have our special welcome. I have with me my colleague, Ajay, who is the CFO for Antara Senior Living; and also the Head of Investor Relations, Ishaan Khana, who is the CEO Antara Assisted Care; Sandeep Pathak, who is the CFO for Max India and Ankit Kalra, who is the CFO of Antara Assisted Care, Ishaan from the Investor Relations team, and of course, SGA, our Investor Relation advisers. We already uploaded the investor earnings on the exchanges, and I hope everybody had an opportunity to go through the same. I would like to first start with sharing with you that our expansion plans are on track, and we are making investments in several strategic initiatives, which will help us accelerate growth, and we're quite glad with that traction. For example, on the residential side, I've shared with you earlier, we are already planning three new communities. Dehradun and Noida, as you know, have already been sold out. We have been looking at Noida Phase 2, liaison with authority and data for commissions and approval. Already signed the term sheet with Gurugram and Bangalore developers. Development agreements are currently under negotiation. It will be closed. And hopefully, in the next few months or so, we will also start filing for approvals for these communities. On the Care Home side, as I shared last time, we were looking at Bangalore as a possible location. We actually already identified 150 to 200 beds in three parts of Bangalore. These are mostly build-to-suit option. Therefore, will take a few months to operationalize, but they are in a very good locations, near health care facilities and large facilities. And so sometime by Q3 FY '24, they should be operationalized. Papers are also underway to add 75, 80 beds in NCR. As a result, our overall debt capacity that we had promised of 350-odd, we will definitely be able to meet by end of FY '24. On Care at Home, apart from steady growth in NCR, which you may have seen from the investor deck, further acceleration is planned by launches in new geographies, which is Bangalore and Chennai. On MedCare, we are constantly, consistently both expanding our SKUs as well as our offline and online presence with channels. We already launched sometime this month diapers, under the brand Wear easy by Antara and a power wheel chair as well. So we'll continue to expand both mobility, Ig, respiratory categories as we go along. I had mentioned briefly last time, a new physical, a new platform we are developing to address chronic diseases for seniors. We are pleased to inform that we are very close to that date of long. This is essentially a digital platform, which will help seniors do self-care protocols for chronic conditions, which bother them, which don't need hospitalization but do need care. We have already done extensive research from one of the top consulting firms in India. User testing has already been completed, and the building blocks are now being assembled in order to go live. This will be available in pivotal, which means digital journey as well as infrastructure available for seniors to come to us. In the initial phase, we plan to offer products and services for two conditions in two cities under this platform. So that's how we are progressing, as you can see, our growth journey on multiple access. Now shifting to the financial performance for Q1 FY '24. On a consolidated basis, our revenues remained flat at INR [ 46 ] crores, obviously, because the inventory in Dehradun, we only have one left, Noida is all gone. And the new projects we are investing into will take time to come up. That's the reason it's flat. Our consol EBITDA loss stands at INR 7 crores as against a gain of INR 1 crore, which reflects all the investments that we are making in the growth journey. Our treasury and monetizable assets had a healthy number of INR 520 crores as of June '23. The company has a strong balance sheet position with consolidated net worth of INR 532 crores as of June end. On the residency side for Dehradun, as I said, all except one unit, and that's where our doctors are staying, all of which have been sold. As of July '23, the cumulative sales collection now stands at INR 646 crores in June as against INR 552 crores in June '22, which signifies a 17% growth. On Noida Phase 1, all units sold within March '23, we have achieved a cumulative collection of INR 284 crores, which is a INR 1.3 crores over last year. And our collection efficiency continues to be very healthy at 97%. During Q1 FY '24, we have sales collection of INR 32 crores. And in terms of construction, we are on target. The top row slab for all the three towers in Noida have been completed and interiors are underway as well. For Antara Assisted Care, the overall net revenue increased by 30% to INR 4.2 crores in Q1 compared to same period, INR 3.2 crores in Q1 FY '23. The Care Homes net revenue remained flat at INR 1.3 crores in Q1 FY '24 in spite of a higher realization of 7% because of doctor occupancy, as you know, some of our care homes were inoperative in that quarter, which impacted both the contribution and the occupancy. Otherwise, we would have done much better on the Care Homes front. On Care -- but temporary, as you know, in the next two quarters or so, this impact will be neutralized. On Care at Home, our net revenue increased by 43% to about INR 1.7 crores in QY FY '24 compared to same period last year Q1 FY '23 INR 1.2 crores led by higher-margin service offerings. Our contribution margin has improved to 17% from 7%, with 17% in Q1 FY '24 from 7% in Q1, FY '23. On MedCare, the net revenue increased by 71% to INR 1.2 crores in this quarter compared to INR 0.7 crores in Q1, FY '23 and contribution margin also has moved up to 1% from 0.4% in same period last year. I hope you may have joined the call for the first time. I just want to reiterate that Antara is the only branded organization, which is attempting to create an integrated care ecosystem for senior, which means whatever disease they have, different stages of their life and depending on the medical conditions, we will be able to offer them product, services or solutions because we have unique competencies of knowing how to operate health care, hospitality and real estate, all available to work under one roof. In terms of market the market continues to evolve very rapidly. We have new players coming in. There is some funding coming into this sector as well, a new format. So people are trying tech this format, somebody is putting up an online platform where employers can hire seniors and secondary. The government is getting active in terms of policy. Two days before, we saw news at BMC in Maharashtra or in Mumbai is setting up data centers for seniors. So the shape complexion and size of this market is going to change as it evolves, but continues to be a $10 billion to $12 billion market. A very interesting study done by [indiscernible] recently pointed out that if you look at top 30 cities in India, and [indiscernible] in terms of income cuts -- that's about INR 1.6 crores of our target addressable market. And we are spending -- and these people are spending already INR 48,000 to INR 50,000 on non-hospital related expenses, which means the pool of INR 40,000 crores is available to us for tapping through our integrated ecosystem, particularly through the new business platform that we are creating. We already done it in NCR. In Bengaluru, we have already started operations, taken on an office, signed up the Care at Home capacity, non-for Care at Home services and MedCare. And we are also looking at Chennai very shortly. Just to reiterate, we have four business verticals for seniors who are independent but want to live with like-minded people in a safe and secure environment, or businesses for seniors, which is the Dehradun resort-style option or the Noida condominium-style option. And we will look at similar options in Gurugram, Bangalore and similar places. For seniors, who can't be maintained at home because they varied issues in terms of mobility, medication, daily monitoring or have gone through an intense medical episode, we offer them assisted living or what is called Care Home in our apartment facility. And people who have cognitive neo-disorders, dementia, Alzheimer's or Parkinson's, we also offer a memory Care Home option. For those that require the same for Care at Home, we are offering more and more services to the Care at Home, critical care, physiotherapy, diagnostic, nurse at home, care given at home, pathology, about 16 service lines. And if they require products for their convenience, their recovery, their comfort like wheelchairs, commode chairs, diapers, walkers, walking sticks, hospital beds. We offer them through our MedCare vertical. We're also listed, as you know, on Amazon and Flipkart for some of our products. And now if you in ion these verticals, along with digital platform, we'll be able to appreciate when we say we're creating an integrated care ecosystem for seniors that is coming through. Now if you look at the aspiration of creating 8 to 10 communities, which is about 5,000 units. So let's say, 10,000 people who stayed with us in our communities. These are, in one sense, captive customers for us when it comes to either MedCare equipment, Care at Home services or anything else they need in terms of primary venue of solutions. We have commenced, as you know, our journey 2013 with Dehradun and slowly, we have expanded. We have done well both from saving collection perspective. Dehradun continues to be a debt-free cash and PBT positive, in fact, is generating surplus cash, which we shared with you about INR 100 crores from the community. There are about 180 residents already staying in the community, enjoying our facilities in a very serene environment and the resident satisfaction scores continue to be about 90%. And one indication of the product is that 50% of our sales actually come from referrals from residents. We leverage the learnings of Dehradun when we built our same community in Noida, launched in 2020 as the joint development model already been sold out. And the important thing to remember the last price realization was 50% higher than launch price. So there is some secondary sales happening now, which also there is an indication of the premium that we command in the marketplace. Quite eager to launch Noida Phase 2, which will be about 240 units, just waiting and working with Noida and Dehradun authorities for approval. I shared with you is repeating it again, all [ trillion ] key terms for development of residences at Gurugram -- odd 250, 300 units and at Bangalore, we got 500 to 700 units already who have been signed. The Bangalore facility is actually a very good, very strategically located facility about 10, 12 minutes from the new airport part of a 200-acre development. There are already two civil living communities operating there and will be the third one, right? We've already signed the initial agreement, and now we are completing the two divisions. The Gurugram location is on the Dwarka Expressway, Sector 36A, again, a part of a very large community and this is our first of 10 that are [intergenerational] community. The Max estate will construct normal residences and they will construct senior residences for us. and actively housing for opportunities now in Pune Goa, Chandigarh, Chennai, Hydrabad, et cetera. The entire [indiscernible] cash profile so far we have heard about 14,000 patients since inception. We expanded our hospital and collision tie-ups to about 18 in Q1 FY '24. On the medical equipment side, now we have a virtual store in Amazon about 1,100 SKUs during the current quarter. Two new SKUs were added, adult diapers and power wheelchairs. We're also fully working with IT Delhi to be able to, based on customer insights on seniors, do small innovations on our products, so they're able to find value. In [Ardas], Assisted Care, our customer voice and feedback continues to be 93% plus on satisfaction and 70% renewal, which again is approved of the belief that customers have in our service and products. Just to summarize, we are pushing for growth across all verticals, including building a new digital platform. Our growth vision remains to create 8 to 10 communities. We'll have 4,000 to 5,000 units, about 8,000 to 10,000 residents in the future, over 2,000 beds in terms of Care Home, Memory Care Home. Our platform with both physical and online presence in 8 to 10 cities across north, west and south west in the next 5 years. And obviously, all the customers who'll stay with us in the communities in months and I repeat our captive customers to whom we can cross-sell. And therefore, we'll be able to reap synergies, reduce our cost of acquisition of customers as we build these synergies. This is all I had from my side. Thank you very much, and happy to answer any questions that you might have.

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have the first question from the line of Kishan Toshniwal from Polar Ventures LLP.

I have 2 to 3 questions. Basically, the first question is what is the net cash that we have on the books as of 30th June? Is it the treasury on the other assets were INR [ 530 ] crores of what now [INR 700 crores] if I'm correct, if I'm looking at the correct sector?

You're talking about net cash available, right?

Yes, yes.

So we have about INR 263 crores in cash and cash equivalents and about INR 160 crores in monetizable assets.

INR 120 crores, you have?

Sorry.

Could you repeat?

About INR 263 crores of cash and cash equivalents, about INR 160 crores of monetizable assets in terms of real estate and land. And about INR 100 crores of surplus cash is lying on Tara Purukul.

Okay. And the second question is the quarter-on-quarter revenue -- year-on-year or the quarter-on-quarter revenue is flat, though our revenues are flat, but what the management is writing, looking at whatever you are saying, what we should expect from this company let's say, 2 years down the line, what is your focus and where you want to take this company to or which level you want to take this company to so that we can understand how to look about this company.

I can give indicative statements about the future, very difficult to say exactly. But the reason you find the revenue flat because I said we sold all the inventory already in Noida and in Dehradun. And we're investing into growth. So as we sign new projects and the sales start, the revenue starts picking up. So I guess in the next 3 to 4 quarters, you'll find a change in this trajectory because we would have started to sell the new projects that we've signed up, which is Gurugram and Bangalore. The Care Homes will be up and operational in Bangalore. We would have launched Chennai as well by that time, and the new digital platform that we're talking about will be operational. So the next 3 to 4 quarters, you find once again the revenue trajectory going up. The long-term aspiration I've already outlined 8 to 10 communities in the next 5 years, about 4,000 to 5,000 units, about 2,000-odd beds for Care Home and Memory Care homes, present in about 8 to 10 cities with a digital platform and with the Care at Home and MedCare as well -- equipment businesses as well.

We have the next question from the line of Sajal Kapura, he is an independent investor.

I have a slightly longer question. So beginning your pardon [indiscernible]. So those who trend the U.S. biotech sector would know that one in every three born today will have dementia -- at some point in their lifespan, thanks to factors such as rising pollution levels, unhealthy lifestyles and longer life span with 90 of the [indiscernible] average age and so on. Now we know that brain disorders are actively reported, assessed and treated and monitored in developed countries, U.S., U.K. as example, but in India, there is a significant underreporting of neurological disorders, including dementia. So it's a three-part question. Do you sell that in, a -- and do you believe that market from MedCare, which is underreported in India may continue to remain under reported due to cultural and social norms, but maybe 5 to 7 years out with education and awareness. And there may be a surge in demand that can surprise many. So that's one. And secondly, as we grow and scale up the captive customer base, positive referrals, the mind share of Max brand, coupled with the range of services we offer via our integrated solutions and all of that can capture a large share of that future growth, which may not be visible to many today. And finally, the third part of my question is, given the national and state level policy framework for care homes and home health care and -- so the NADA certification as an example, to filter out, there's been a non-compliant and low-quality players, the insurance industry coverage coming up and so on, as the majority of the cash flows on the services side, at least will be back-ended and current performance is not a good indicator to project the future perhaps?

Thank you very much, Sajal. I think these are great questions and very good observation, I must say. So let me respond one by one. You're absolutely right. Memory care is under diagnose and underreported. And this I can speak from my health care experience. So numbers are about [ 17 ]% of dementia. That number is quite different from what is being reported. You're absolutely right. Already, we are seeing movement. So for example, a not-for-profit alliance called Dementia India Alliance [DIA] got formed a few months back, led by Dr. Radha Murthy and Dr. [indiscernible] from Bangalore, my single medical trust. I'm on the governing board of that. And the aspiration is to be able to increase awareness set up at least or help set up one home per district because we know the problem is large. And some of us have personal experience as well in this -- in terms of family members being affected with it. So I think the stigma of memory care will soon in the next 2, 3 years, aside because the fact of the matter is handling such people at home is becoming reasonably difficult. Secondly, it starts to impact the caregiver. I have personal experience in this because my suffer from dementia and my dad has got impacted by their caregivers in the last few years. So from both perspectives, this will become a need that people will understand. They'll appreciate and therefore, facilities, which are more care-oriented because you can't cure, you can only provide quality care right? As compared to some of the facilities you've had so far, which were not that -- I could say up to the standard. Some of this will change. So most people who are into memory care today not only us are expanding, which is an indication of the acceptability of the product in the market. More and more doctors are appreciative that how proper care engagement can perhaps slow down the deterioration of this disease. So next 2, 3 years, you'll find a phenomenal change and all of these initiatives come together on the memory care. On active customers, that's actually our firm belief and hypothesis that the lifetime value of a customer or particularly of a senior can be captured if you are providing integrated services. Let me give you an active example. So in Dehradun, relatives were staying with us when they need checkups, the pathology tests or wheel chair, a nurse at home and adult diaper. Obviously, we're all -- we are there for them. They did not go outside, right? So we're able to capture whatever they need, and that's what will happen in the communities that we are. So whatever the seniors needs, we'll be able to provide them either ourselves or through partnerships. So we firmly believe in this concept of lifetime value of seniors. And if the experience is good, like we are finding in Dehradun or people who bought into Noida, the referrals come back to us. On policy framework, there is a positive movement on all accounts. [indiscernible] released medical assisted living facility policy, and the rules are now coming out, which will help establish care homes. When we went and met the additional Secretary in one of their's in Bangalore, we lost for a draft, which we are presenting for the same. Similar work is underway in UP in Lucknow as well. And MBS has already released a draft standards for care homes. They're under now discussion and will get finalized and released. QI already 35-carat home players, right? That's already framed up already there. On insurance, we were investing dialogue on with some insurance companies. I think the struggle that they have is of enough data being available for them to construct products, and that is something we are dialoguing. We're also going to approach [GPIO]. I'm saying that our other package already available under Ayushman Bharat, where you can look at covering seniors for at home services or when they stay in care homes for recovery because sometimes after recover of surgery in the hospital, they not stay for many days. They can recover in a care home. So I think all this positive movement is on, obviously, these things take time. but at least they are finding the government creating committees, associations like ASLI, like [indiscernible] stepping in to be able to become intermediaries to be able to dialogue with the government. So that's my answer to all these three questions, but thank you for the question. They are quite help.

The next question is from the line of Mr. Harsh Kundnani from Infina Finance.

Actually it's Harsh Kundnani from Aionios Alpha. Just a couple of questions from my end. I wanted a detailed update on the Noida Phase 2 project as to what are the time lines you are seeing for the launch -- and when do we expect to start selling units from this project? And my second question is that I want to understand the reason of the decline in the Gurugram of care home unit. And also, you guys had mentioned that in Q4, there was some impact on the occupancy levels in the Care Home business because of the fire incident. Is that episode behind us?

Sure. For Noida, as I said, we had initially filed for approval for RERA. They have come back to us saying that we need regional information, and that is currently being filed under discussions. So we are hoping in the next 90 days or so we should hear positively on that. By the way, some part of the construction activity for Phase II have already begun because as we start to get ready to have our position sometime next year to [indiscernible] in Phase I to be conscious of how much construction activity we have to complete before that particularly timing work, which could cause some damage to the foundation. So that growth is already begun in anticipation that we get the approval. But in the next 90 days, we should be able to give you a more definitive answer as we hear back from the government authorities. But you may have seen the news, some positive movement happening on Sector 150 in terms of pro constituting our PAC and committees to look into those matters. So we are hoping in the next 90 days, we should hear back from the government. On the Gurugram contribution decline, yes, that is primarily because of change in mix of channel. So in the first quarter and second quarter, we had muted our business campaigns on care home due to the incident. And therefore, more and more rectal came through doctor channel. And therefore, there was an expense on that, which caused the dip is purely temporary and the episode is behind us. And therefore, in the next two quarters, we find a little bit of reversal efforts to happen on this side. Also in the first two quarters, the rent was going for the inoperative care home, which will also come off as the leases get terminated and therefore, contribution restore positive movement upwards.

[Operator Instructions] The next question comes from the line of Nitin Gandhi of EnQuest Advisers Private.

Yes. Can you hear me?

I can't hear you, please. Nitin, we can't hear you.

Is it just clear now? Hello. I'm in network, and also handset-mode only.

Much better now. Please go ahead, Nitin.

Okay. So can you please share Noida aggregate receivables and the construction cost yet to be spent for Phase 1?

The Phase 1 construction cost to be spent is approximately INR 200 crores. And we have a receivable of approximately INR 100 crores, but we have a cash surplus also available which is INR 100 crores. And we have a credit line also which has from ABFL amounting approximately INR 35 crores. So we are sufficiently funded for Phase 1. Our only challenge that is happening because some of the expenses for Phase 2, we'll have to do for Phase 1 without which we would have planned to expand only when we have got the Phase 2 registration, that will be an overall expenditure for which we'll be funding to put in.

Yes, that would be just initial fee funding and we may start selling they'll start coming. So that's a part and parcel. So out of INR 565 crores cash on hand, INR 100 crores is to be spent for the Noida first, that's the way I'd some it up. Right?

No. The INR 565 crores is pure treasury of Max India. The INR 100 crores which I mentioned, which is [indiscernible] line in content, which is the SPV, where the funds of Noida project is lying at the collection, and we have not touch that money for any others.

The next question is from the line of Rohit, he is an individual investor.

Yes, sir. Yes, please. So I have two questions. First is in our Care at Home segment, we are providing health care workers for nursing at home, right? So what I have seen and this is a very common factor is that the health care worker will try to make a deal with the customer and work for them directly by eliminating the middle agency or the service providing agency. So what are we doing to tackle this problem?

[Ishaan] here. So what we do, Rohit, is that we have a team leader visit every week. So the service goes on for 2 weeks we have a team leader who is the senior health care supervisor working with us. If he visit or he or she visits the home where the service is being provided and make sure that there is no misalignment and we also constantly stay in touch with the patient and the family.

We [indiscernible] process that if you would do a deal directly with the nurse, then any coverage on absentees, any repression training and any oversight of supervision and any escalation, which can be handled by a doctor, all the services go away. So at least a little bit of a risky situation.

Okay. And also, I have seen that the local players don't provide any emergency services or any like medical equipment at home. So since we are doing that, I think customers won't make a deal with the health care worker directly because they don't have those service, right?

Correct. We have a doctor supervision as well and we also have a tie-up with critical care doctor for any escalation, which don't -- with other people, they don't have.

Okay. Got it. So my second question is, again, this is also a very common practice that health care workers look up to the Care at Home services as part-time jobs. And meanwhile, they keep searching to get a job at the hospital. So what kind of attrition are we seeing in the Care at Home segment?

So when we started off the attrition was very high. But what we started doing is we started building a pool of the nurses or patient caregivers as we call them. And we've seen an overall reduction in addition from 140%, which has started off to now less than 70%. And at a cumulative basis, in the first 4 months of the year, our attrition has been 24%. So this has been with the fact that we try to give them more services, which means that they should be satisfied with their earnings from us itself. And we build a pool where we ensure that based on the geography, location, we don't make them travel too much. So therefore, our attrition over the last 2.5 years has dropped significantly.

And we have almost 70% of the team at on road. They are our own employees.

[Operator Instructions] We have the next question from the line of Dharmesh Dharia, he is an individual investor.

I have just two questions. In the financial statement, I see the employee benefit expense has gone to INR [ 18.5 ] crores. That's almost 80% jump some this quarter. Is it because of the impact?

You are comparing it from the quarter of previous Q1 '22 or comparing from March?

From March, from March.

From March, I have seen some annualization of the variable pay. So we have been providing the variable pay as per a 100% MOS. But then in 31st of March of our internal calculation, the MOS were not met 100%. So there was a reduction in provision of MOS, that's one effect; second, although VP the sector has been debited at this quarter plus the [ESOP] expenditure has been added. That's the reason for the difference. so -- if you'll compare from our June '22 quarters that amounts to be pretty straight to March and March '23 and June '23 has the space.

Okay. And one last question. In the presentation, you have mentioned that efforts are underway to add 75 to 80 beds in NCR. So this is additional 75 to 80 or total 75 to 80 in NCR?

Incremental, incremental.

Incremental, okay.

The next question is from the line of [Videsh Sangwan], he is an individual investor.

I have questions on the digital front, actually. There is one platform which has been talked about. So can you give some idea about it, like what it is all about? Is it going to be just for the engagement perspective? Or will there be -- are there some revenue potential as well from there?

No, no. This is a digital platform addressing chronic conditions for seniors. It's very specific. It's not for building a community or engagement or interaction is addressing chronic disease, for example, a meeting, for example, hypertension in the future, et cetera. So these are solutions that we offer. It's a combination of products and services. And therefore, there is definitely a revenue model, which comes from both products and services. I'm not able to say more than this since we are very close to launch. But in the next earnings call, we'll find far more details. So we're launching the first two conditions very soon in two cities. As I said, it's a combination of things available virtually as well as the physical infrastructure we are creating that people can walk in and also look at solutions for their chronic diseases.

Got it. So is it some kind of subscription model?

No. It's all paper use.

Okay. Okay. Sure. So we will wait for the launch of it, official launch of it. And another -- like it's about -- so it's a question as well as a suggestion. On the social media, what I have seen like when this GK incident happened for the fire. So I appreciate like everywhere, some disclosure was made like there has been an incident. And in fact, on Twitter, it is still a trending post. But then it was never ever updated with the outcome of it. So since we are in beginning, we are just launching into new cities, it's a suggestion like if you can update that. So is that because any new person which looks at our brand, the person looks at this major incident. And if that person does not go to the conclusion of what has happened, that might be a bit negative, I would say. On the question, I was referring in your website on the Care Homes. Earlier, there were other sites mentioned like Jasola, Delhi, but now it's just the Gurugram. So has there been some reductions in some sites?

This is Sandeep. So I would like to answer the question on the incident part. This matter is before the court and the investigation was going on by the police authority. However, we had made two or three disclosures on that sequentially, whenever there was an update on the same. So the last update was given in the first week of May as there was a charge sheet, which was filed by the police authorities upon completion of the investigation, and they have the matter before the trial court now against the accused who happen to be a relative of one of the deceased resident. This is because of his action that fire got triggered and the matters will go in the trial court now. So what we have chosen is that whenever there is any significant development in the matter, we keep on updating on these topics.

Let me be clear, the police chargesheet against grandson of the [indiscernible] Who was staying with us. In fact, in that charge sheet, we have been named as a victim.

Correct. Correct. Yes, that I understand. But See, there are two things like in investor community, I think, still is updated with what is happening. But I'm talking from the customer's perspective, the potential customers of Antara. So that community at least is not informed or they can still stay ill-informed.

Good suggestion, sir, we will take that up.

And my last part on that Memory Care Home, like only Gurugram is listed now?

So if you remember two, three calls back when we talked about trying to expand medical claim care by using what is called an operator model, where they have gone to existing guesthouse operators and said that why don't we take some rooms on rent from you. So you provide SMB and housekeeping services and we'll provide the care services, which is nothing or caregiver that the customers coming in might need, and we try to open these abilities near hospitals. However, [indiscernible] are very difficult to operate because the entire experience of the customer is not in our hands. All of it was being handled by the guest house operator and it's all very difficult to get the kind of quality and turnaround time we had expected. So we tried for a while, we didn't find traction. So the strategic shift we have said, okay, we now only operate full-service Care Home, which are totally operated 100% by us, by Gurugram. Therefore, all the new beds, we are now doing is 100% operated end-to-end by us. So that's the shift you find in locations.

Okay. So does it mean that we have [indiscernible] over Jasola one?

Yes, we have discontinued.

[Operator Instructions] We have the next question from the line of Rohit Mehra from SK Securities. There's no response from Mr. Rohit Mehra's line. We'll take the next question from the line of Mr. Dharmesh Haria. He is an individual investor.

Sorry. So just on the Care Home, which got fired, are we saying discontinued that facility or we have shifted it to somewhere else?

That's not looking for alternate side [indiscernible] was incremental. It has continued.

[Operator Instructions] We have the question from the line of Karan Mehra from Mehta Investments.

Sir, my first question is that in the intergenerational community that the company will develop -- so what will be the mix here? And how many towers are dedicated only for seniors and how many for others?

So approximately 33% of the total FSI would be coming to senior living. That would mean -- we are still in the marking stage, but in [indiscernible], there will be two towers, approximately 300 to 350 flats for seniors living, two towers for senior living.

Understood. And sir, what is the amount of surplus that will be coming from this Dehradun project annually?

So annually, we'll be having a billing. It as a steady state, I feel, once we are all sold out. And if I'm doing a steady sales billing, it would be approximately INR 20 crores of revenue, which will be coming on an annual basis. And if we feel that approximately 20% will also be a profit, we can expect the INR 3, INR 3.5 crores is profit, but at a steady state. Dehradun operational revenue would be breakeven by '26, '27.

Okay. Sir, I was just referring to our investor deck, which mentions that we are adding around 75 beds in NCR. Sir, I believe we already have Care home in NCR. So is there enough demand which we are looking to absorb, which will absorb the new capacity as our existing care homes are not running at 100% capacity, I believe.

That's true. As I said earlier, since we have discontinued the operator model and giving up those beds that we announced substituting back by full-service care home. And that's why we feel the need. Also, we're now looking at actively scouting Noida, which is a new location for us. So because we shut down the operator model, we need more beds now.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

So thank you very much, everybody. I appreciate both the questions and suggestions, and thank you for your support. As I said, we are committed to creating an integrated ecosystem for seniors, which is comprising of all the verticals I talked about, the residences for senior, the Care Home, Memory Care Home, Care at Home, MedCare and now the digital platform. I appreciate your support. And hopefully, in the next few quarters, you'll find more and more updates from us on a growth journey. So thank you for joining.

Thank you. On behalf of Max India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.