Shalby Limited (SHALBY) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Shalby Limited Q4 FY '21 Earnings Conference Call hosted by Elara Securities Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Param Desai from Elara Securities Private Limited. Thank you, and over to you, sir.

Thank you, Tehzab. Good afternoon to all the participants in the Shalby Limited Q4 FY 2021 Earnings Call, hosted by Elara Securities. Today we have with us from the Shalby management Dr. Vikram Shah, Chairman and Managing Director; Mr. Shanay Shah, President; Dr. Nishita Shukla, Group COO; Mr. Prahlad Inani, CFO and other senior management from Shalby. I will hand over the call to Mr. Mahesh who is a part of the Corporate Strategy and Investor Relations team. Over to you, Mahesh.

Thank you, Mr. Param. Good afternoon, everyone. Our earnings presentation is uploaded on the stock exchange website, and our company website shalby.org. We do hope you have already had the opportunity to go through the presentation. Please note that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. Kindly refer to Slide #34 of the earnings presentation for a detailed disclaimer. Now, I would like to hand over the call to Dr. Vikram Shah, Chairman for his opening remarks. Thank you and over to you, sir.

Good afternoon, everyone, and welcome to Shalby quarter 4 2021 earning call. I hope you and your families are staying safe amidst the ongoing second wave of the pandemic. I will first brief overview of the company's performance during the quarter side, and then hand over call to CFO Sri Prahlad Inani to discuss financial performance, and then operating performance in number of patients and operations, our Group CEO Dr. Nishita will speak. First of all, I want to mention that during the COVID time, actually last quarter was not the COVID time, and only 9% of the revenue of -- the total revenue is of the COVID. And there was a normalization of economic and business activity during this quarter, and there was a huge decline of COVID patients there during end of the second quarter -- third quarter only. So we had a huge jump on a year-on-year earning of quarter 4, revenue earning as well as initial earning as well as net profit earning, year-on-year, quarter-on-quarter. Now I would like to hand over phone to Mr. Inani. He will make points aware.

Thank you, Dr. Shah. Good afternoon, everyone. I'll discuss the financial performance and key indicators of the company for the fourth quarter. On a standalone basis, the company registered total revenue of INR 1,440 million in Q4 FY'21 compared to INR 1,160 million, same quarter last year, registering a growth of 24% on a year-on-year basis and 9.3% on quarter-on-quarter basis. EBITDA for the quarter is INR 346 million compared to INR 129 million in quarter 4 FY 2020, a significant growth of 168% on year-on-year basis. EBITDA margin was 24% as compared to 11.1% in Q4 FY'20. The margin improvement is primarily driven by cost optimization initiatives that are being implemented during the year. Net profit was INR 110 million for the quarter compared to a loss of INR 169 million in Q4 FY'20. PAT margin for the quarter stood at 7.7%. Due to increase in surgery count, revenue contribution from the arthroplasty specialty increased to 40% as compared to 17% in the previous quarter. And ARPOB also increased to INR 33,225, as compared to INR 26,660 in Q3 FY'21, the preceding quarter. Total number of beds occupied was 481, representing an occupancy level of 40%, as presented in the -- our presentation also. We continued to operate, strong cash flow and maintaining a strong balance sheet with net cash flow of INR 903 million at the end of March 2021. Thank you very much, and I hand over few details for our operating sites to Dr. Nishita Shukla.

Hello, everyone. Good evening. And I would just like to brief you about the number of surgeries we did in quarter 4. We did good number of surgeries, and the total number was 5,472 elective surgeries were performed, during this quarter, and it is an increase of 78% on QoQ basis, out of which 50% was arthroplasty but we also did good on oncology, NaPro and cardiac surgeries. We also did a lot of non-COVID critical medicine work with ICU patients, for post-COVID treatments and post-COVID surgeries also. And with the opening of -- as COVID was less in quarter 4, and patients started traveling and opening of everything, we saw an increase of the 53% of significant jump in outpatient OPDs also. Our quarter 4 outpatient OPD is were around 1 lakh patients, wherein IP patients were 8,665 and our OP daycare patients were 5,829. In total, if you see in quarter 4 we have treated and we have consulted patients of more than 119,000. About the COVID part, Shalby remains committed to serve COVID patients. Our all hospitals were treating COVID patients, and we have allocated 1,500 beds overall at group level to COVID patients, and we treated 770 patients in quarter 4. Overall, the year growth of COVID -- total COVID patients treated for the year are 6,640, out of which, quarter 4 we treated 770 patients.

Board of Directors have recommended a final dividend of INR 1 per share also, a 10% dividend this time. Return on equity also improved by 5.2% in FY'21 as compared to 3.5% in FY'20. Now, thank you very much. We can open the call to any question you have.

[Operator Instructions] The first question is from the line of Sudhir Beda from Right Time Consultancy.

Congratulation on good set of number and strong operational cash flow. Sir, my questions are, now we are seeing -- I believe that you are now operating almost at 100% capacity, then in last quarter you operated at 40% capacity. So does it mean that your revenue will go higher according to their occupancy?

Absolutely right. We are going to have almost -- last 2 month we will have more than double the revenue of average amount last year. We are having 1,300 occupancy at this point of time, which was about 550 in the March.

So, it means here you are operating nearly at 100% capacity right, so your revenue will also flow according to your capacity?

Yes, absolutely. It is totally...

So can we expect that this quarter your revenue will be double of that of Q4?

Amount, yes.

And on the one hand, your surgery count will go down, I believe, because of the higher occupancy of COVID patient. Is it so?

I will explain you this in a proper perspective. All planned surgeries are not coming to the hospital, so it be cardiac surgery, so it be joint replacement, so it be spine surgery. Some of the cancer surgeries are happening. But overall if you see in this quarter, in this month, which is changing now -- now the -- slowly, the wave is coming down. And so, it will be still there in the month of May, but June will not be there. So first 2 months will be approximately double or more than the average month we have. Routinely, the ARPOB of surgical corporate hospital is INR 30,000, INR 35,000, INR 40,000 per bed, per day. With COVID, it is about INR 20,000, INR 22,000, so it is less. So the hospitals which are remaining full, as such are not benefiting from COVID. They will actually start making loss. But we had extra spacing in almost all hospitals other than 2 or 3. So we are having benefit because even ARPOB is 70% of normal, we will have a higher revenue. So our occupancy is nearly 2.5 to 2.8 times, but our revenue will double.

I guess, revenue per bed will come down slightly, but your -- since your occupancy is almost 2.5 times, the revenue will flow accordingly.

Yes, absolutely.

And how -- I believe that your EBITDA margins were higher in this time -- in COVID times so, margin will go up?

Yes, margin will go up, it looks like that, but I can't say anything at this point of time, as we are discussing the result of previous quarter rather.

And just can you throw light on your diagnostic revenue and vaccination drive, and what kind of revenue you can generate from these things?

Vaccination drive -- we have been doing approximately 200 vaccines per day in each unit before this COVID surge started. So January, February, March, we did 200 vaccines every day in almost all units. Some small units did 100 vaccines. And in the coming time, we are planning to do 200 to 400 in every unit minimum. So next 6 months, there will be huge vaccine drive. Government has allowed about INR 200 per vaccine, so it will be a huge net earning to the hospitals.

And can you throw light on your diagnostic segment, because you are not giving it separately?

Actually, we don't have it separate at this point of time, because it is part of the package to the patient. So we have not separated out that particularly the diagnostic part, because all operations are also...

Are you doing COVID test also?

Yes, we are doing COVID test, but COVID revenue of last quarter was 9% only. It was surgical and routine briefing, and those are packages, so all investigations are part of package.

Thank you. Mr. Beda, may we request that you return to the question queue for follow-up questions?

Yes.

The next question is from the line of Ashish Thavkar from Motilal Oswal.

Sir, you said in this quarter, the COVID business was focus 9% of the total sales. But since we are already 2 months into the next quarter, how is this business looking up now?

I just said that it is double the revenue than last quarter, it looks like.

Okay. And sir, how would you take a call on the core business? Do you feel that because more number of COVID patients are coming in, you're finding it difficult to accommodate the normal patients?

You know what happens in these times. See, we have to stand by our people. You don't think about your work or my work. People are dying on the street. We have opened up our doors and we are treating 1,400 patients on a continuous basis day and night. We have said -- we are actually treating highest number of COVID patients in Ahmedabad, in Gujarat and in Western India all. We have treated highest number of patients, and we have treated highest number of patients in home care also. That has become also a huge business now. Whenever such epidemic comes, the old work has to go down, and what -- when this wave goes down, the old what will come back, because people are waiting. We are doing huge number of e-consultation on on-net and those patients are waiting. Once this wave will go down, they will start coming in. So we'll do double the work, we don't mind doing hard work.

Sir, would it be fair to say that this quarter you would have incurred higher expenditures because of the need to install more ventilators, oxygen supply lines?

To be very honest with you, our hospitals are fully made and fully prepared. Only thing we required to buy was some ventilators and some monitors to make some ICCU functional, otherwise everything was ready. We have not spent more than INR 8 crores in total in this quarter.

Okay. So finally, last question, any update on the Asha Parekh in the Nashik hospital? How is the status there, because it is COVID times. I understand?

Yes. It is -- the Nashik hospital -- the whole -- the [ most ] is ready, finishing is going on which will take 6 months to one year. And about Asha Parekh Hospital is concerned because of the continuous wave in Bombay. We have put the plant in passing, which the government is not able to take it through, because of the number of emergency measures they are in. We have our plans ready. Once the plans are passed, we can construct it in a couple of years, quickly.

The next question is from the line of Riddhesh Gandhi from Discovery Capital.

Congratulations on a great set of numbers. Just a couple of questions. On your return on capital employed, if you could give us some thoughts on how you're going to enhance your overall auto ROCES in the -- after COVID and effectively how do we expect the ramp-up occupancy and in turn increase our ROCE? And also if you could highlight -- give us the see the excess -- actually net cash on our balance sheet. And are there any acquisition plan, we are otherwise going to return it to...

I'm not able to understand the last part, what you are saying, Riddesh. I wanted to, first question I am answering it, then you ask your question later on. Okay? I will finish first. About return on capital employed, we are at 40% of occupancy and our ROCE is at about 8%. As our occupancy will improve our ROC will improve. And as we reach up to 70%, 80% of occupancy, our ROCE will be not only in double digit, it will be near 20%. That is the biggest advantage we have. Rest, compared to rest of the hospital chains, our ROCE had been always better and it is improving now. It is -- you know, we created more number of hospitals in a given year or 2, and that's why our ROCE came down, because we invested simultaneous at the time of public issue. But now as you see our ROCE is continuously improving, so it will improve further with the passage of time. And the way things are going now, I will not -- we'll not need to wait more than a year. Next year, by this time, we should have a double-digit ROCE.

And if you could also highlight the use of the cash that we have on the balance sheet, if we are looking at incremental acquisitions of greenfield or brownfield or with returning the CapEx with the shareholders. How we are thinking on that?

Yes, we are sitting on nearly INR 160 crore of cash on the balance sheet. With this cash, first of all, we are going to use it in Asha Parekh Hospital, Bombay, which we are creating, we are going to spend about INR 160 crore, INR 70 (sic) [ 170 ] crore, for the unit. And we will be spending about INR 20 crores - INR 25 crores in Nashik unit. So these are the 2 places where in hospitals, we are going to use our money. The second place is we are planning to acquire a company for backward integration, where we'll be spending about INR 80 crores to INR 100 crores, which would in turn improve our ROCE at a much higher level, because these businesses are usually run at 20%, 25% of ROCE. Our own internal consumption is so high, so our cost will go down and our ROCE will improve.

And so the backward integration, this is a -- this would be a devices company in [indiscernible] is it?

Can you speak little loudly, please?

I was just asking, in hospitals, how do we look at backward integration? Is it any devices which we have -- are we acquiring any devices [indiscernible] because is this not that effectively a completely a new line of business, effectively?

Well, it will not be very prudent to talk about it presently. Maybe I can talk to you in detail offline.

The next question is from the line of Jason Soans from Monarch Networth Capital.

Just wanted some details. I know you touched upon it, your occupancy rate in Q4, stands at 40%. Now, what I understood, and you also said that your hospitals are running full. So what should be the current occupancy rate in April, May? And also if some color if you can give on the ARPOB as well.

Basically the ARPOB, we have not calculated in detail, but rough ARPOB about INR 22,000. Our occupancy normally which remains at 530 to 540, which is now 1,350. Our all units are running at highest, we were occupancy, all ICCUs are full, no ICCU bed is available as on today, while I'm talking this. So all hospitals are full, all ICCU are full, number of units we're facing shortage of oxygen. So we have worked upon that also and we are able to work nicely and serve the society. And beyond this, we are doing huge amount of home care work. That would add on top line substantially not less than INR 15 crores to INR 20 crores next year.

Sir, just one thing, you said your number of beds occupied in Q4 was around 481. Now it stands around 1,000 to 1,200 plus, is it?

April was 1,350, May is growing at 1,250.

The next question is from the line of Mulesh Savla from Shah & Savla.

Congratulation on a very great set of numbers. I have 2 questions. One is, sir, some light on the operations of hospital Vijay, our hospital at Vapi, and our hospital Zynova at Ghatkopar East -- Ghatkopar West. Because, as I see the contribution to the revenues from all these 3 hospital is very negligible or rather in case of Zynova, I think it is zero. So can you please give us some color on that?

First, of all Zynova hospital is actually what we are running it and operationally running it and we get 5% of revenue -- total revenue they are making. So it is somebody else's hospital, profit and loss belongs to them. We are getting 5% charge of that hospital. It is going as a corporate income and it is not seen separate. Is it clear?

Yes.

Number two, as far as Vapi hospital is concerned, Vapi hospital is doing well, and it has started doing well. We see this way that normal hospitals will cost you INR 100 crores, INR 150 crores. But as this has costed as about INR 12 crores, INR 15 crores. So naturally turnover will be less, the profit will be less. So we can't compare it apple to apple. But it is making good money, it is going great guns now. And as far as Vijay Shalby is concerned, it is our historical unit, it is our first unit from where we started before 27 years. And it is also doing very well in during COVID time and now, actually we are converting into the SOCE. SOCE full for is Shalby Orthopaedic Center of Excellence. What franchisee models we are developing all cross-country, and we will go outside country also in franchisee model, where we will give franchisee our orthopedic brand to others. And we have 2 models in that, FOFO and FOSO. Franchisee owned and franchisee operated, and franchisee owned and Shalby operated. And we have made this first unit as a FOSO model. So, actually we are soon going to start orthopedic -- exclusive orthopedic work in that hospital. Because of COVID we have delayed it for a couple of months. Now by June we will start that FOSO model with SOC at Vijay Shalby. Whomsoever comes from across country, they can see that this is the kind of franchisee we are going to run. And they can go and see the place and decide how they want to go about it.

So it's like -- would be a pilot project.

Yes. We already -- already we have done everything. We have not opened it as a SOC because of the COVID thing. We have already done infrastructure work and complete renovation has been contemplated.

And my second question is, sir, on -- if you can update us on our plans related to manufacturing of some medical equipment, and I think we were thinking about.

Well, it will be more futuristic, if we stick to last quarter, it would be nice. We can talk these offline if you want.

[Operator Instructions] The next question is from the line of Dixit Doshi from Whitestone Financial Advisors.

Congratulations for a good numbers and also would like to thank all of you at the hospital for doing the great work for the nation. Sir, I have one question. Let's say, in the current pandemic period, we are seeing a high occupancy, but low ARPOB. But let's say from FY'23 onwards, hopefully we will not have COVID in FY'23. How do you see the business shaping up in terms of ARPOB and average occupancy? For pre-COVID we usually used to have 36% to 38% occupancy rate. So how this can move up, because now gradually your newer hospitals are also getting older like 3 to 5 -- clearing the benchmark of 3 to 5 years. So how do you see it business from FY'23 onwards?

Minus COVID, we had been growing 15%, 20% every year, and at the same time we opened the hospitals so people could not see that high a growth in general. Having said this, we will continue to grow 15%, 20% minus COVID, and with COVID there will be a smaller or larger tailwind. Now, let me tell you that the Spanish flu of 1920 had 4 waves. So I'm not trying to make you people panic, but there will be third wave and there will be fourth wave also. So it is going to be around, it is not going to go away anywhere. Third wave will be smaller than this wave, and it may be around September, #1. #2, because of COVID, there are very high number of patients who get the complications related to steroid and other medicines, and even related to COVID itself, like permanent lung fibrosis, like fungal infection in nose and other places. And we have started getting huge number of those patients in our post-COVID ICCU. Even this mucormycosis surgery is we have -- we are doing daily 2 surgeries of mucormycosis. So these work will continue for coming 3 years, 5 years. Forget about this, because of the high doses of steroid, people are getting avascular necrosis of femoral head, and in a very high number. So in a fact -- the first wave who bought steroids are getting now AV of the is femoral head. And they are -- now we are doing total hip replacement for them. So all problems related to patients of COVID, we have survived, but who are not good enough will need some or other type of medical and surgical help for 3 to 5 years to come, and not less. So, our normal growth pattern had been 15%, 20%, but minus COVID, it will be 10% more, and with COVID it will be much more.

And secondly, in terms of -- during the first wave of COVID, our ARPOB was same, around INR 20,000 to INR 22,000. But that time the consumable cost was very low. Do you think the same will be the scenario now, or now the serious patients are more, so there may be more consumable, and the cost might go up?

Well, as I said earlier also, that COVID ARPOB is about INR 20,000 to INR 22,000, and material used is less, so our profit margin remains well, because our cost structure is made very well. Having said this, our normal ARPOB is INR 30,000 to INR 34,000 because of our high number of surgical cases. Now onwards what we will see is a mix of both, because now old work is also going on, it is up and down, but it doesn't become zero. So we will start seeing a kind of mixed picture in the coming time, in different quarters, that ARPOB will be in between, and consumables and other will be in between. It will not be pure COVID or pure non-COVID.

Just one last question from my side. You said that, we also doing the vaccination program. Is there any additional cost to us in vaccination or usual our normal doctors are occupied there and therefore most of the revenue is, you can say a profitable business?

Yes, yes, yes. It is -- not even 10% is the cost of doing this work. So this is 100% gross profit business, vaccination is.

The next question is from the line of [ Saranudeep Sen ] from [ Monks and Happiness ].

My question is from a long-term perspective. Given in 2020, India's average median age was around 26.8 years, and by 2030 it is expected to be 38 years. As the country ages, do we see growth of Shalby will be exponential in the coming decade as orthopedic surgeries as I understand, will be prevalent more in the 40 plus year old category?

Well, to be very honest with you, if we see the newspaper and media, as such we are less of good quality beds in this country. People are dying on the road. As such, we need more number of hospitals, as such we need more number of doctors, as such we need more paramedical site -- staff. Need is immense, only thing is you have to run it well, and you cant just make profit like software companies. But if you can make a decent profit, you can make decent ROCE, and you can do really very well, which we had been doing for 27 years. But because return on investment is low in this business, not many people are interested. And the same thing is with us that we are now going for a franchisee model, whereby we will be doing our business in somebody's premises so we don't have to spend for the real estate. That's what we are doing now onwards. So that will improve our further ROCE also. As far as the age is concerned, we are doing nothing. Actually, we are doing about 150,000 knee replacement and 150,000 hip replacement in a year. India will be doing nearly 3 million knees and hips in 10 years to come, and we are on the top of it. We are number one in the entire globe as far as joint replacement are concerned. We can grow 10 times in 10 years, even only in joint replacement. Same is with the spine surgeries. Spine surgery can grow 20 times from here in 10 years. These surgeries can grow exponentially if the facilities are there, if the surgeons are trained, you have -- basically we are using our all main hospitals as a training center. We have one of the largest Learning and Development Center. We have Mr. Thomas who is our CHRO. I want you to have a word with you people that, what work we are doing in learning and development, which is our backbone of -- entire backbone of our entire business. Just give me a minute.

This was regarding the learning and development activities we are performing, which is the backbone of all service sector, especially hospital. And that has actually immensely helped us during this pandemic period, to skill gap training programs we arranged. And very fortunately, recent -- last year we were able to set up a simulation lab and an experiential learning center in one of our Ahmedabad Center, which has catered to more than 200 fresh nursing staff and paramedical staff during last 6 months. And it has immensely helped us to cater to the patients who have -- when there was a spike. We were able to cater to all the patients who have come in. And with only 10% of the increase in the number of resources, paramedical and nursing staff, we were able to cater to 3x of the patients that came into our facilities without any complaint, and with the same customer experience that we were able to offer. So a huge, huge work we are doing in learning and development set up.

[Operator Instructions] The next question is from the line of Jainis Chheda from Dimensional Securities.

Congratulations for good set of numbers, and also thank you for helping the whole nation out in such times. I have a couple of questions. #1, 9% of COVID revenue you said. Does that include the vaccination revenue as well?

No, it is only IP patients. And the 9% is also from 15th March to 31st March. Actually, if you ask me, first 2 1/2 months, there were almost nil patients.

Okay. And the OPD number, which you have given of 1 lakh, does that include the vaccination?

No. These OPD numbers are new cases and old revisit. Vaccinations are totally differently handled.

Okay. So the numbers does not have vaccination count anywhere.

No.

[Operator Instructions] The next question is from the line of Sudhir Beda from Right Time Consultancy.

This time, I would like to congratulate to you for doing great service to the nation. Sir, my question is we have now 3 to 4 streams like vaccination and then home care and then COVID and then operation. Now, situation is where we are 100% occupancy, but average revenue per bed in case of COVID is down to INR 22,000, and when -- for the rest of the business, like surgeries and all, we are still continue with INR 33,000. So what kind of blended margin we see for the next 2 to 3 quarters?

Well, blended margins will be -- we always have remained at 20% to 24% of EBITDA margins, and we will stay there. I don't think we will -- there will be much of a difference, because it will be a...

It will not go up, Sir? It will not go up because of one it is 100% occupancy, and second, we have less expenses as far as COVID patients are concerned.

See, it is double just now, this month is INR 80 crores, last month was 80 crores. But it will go down also. So June will be INR 45 crores a day. So it will be a mix. And yes, margin will remain same or little, more but total profit will be double.

So margin -- more or less you expect the same EBITDA margin of 24%...

No, no, no. But we have never gone down below 20% in our history.

[Operator Instructions] The next question is from the line of Jainis Chheda from Dimensional Securities.

Yes, I just one follow-up question. The increase in number of surgeries count and number of OPD patients, which is huge QoQ, like 77% and 53%, so that was because of pent-up demand?

No, actually, what happens is, you take quarter 2 of last year, it was 100% COVID -- 90% COVID. Quarter 2 was 50-50. Sorry, quarter 3 was to 50-50, COVID and non-COVID. And the fourth quarter was 90-10, 91% and 9%. Quarter 3 was a mix of both COVID, non-COVID and quarter 4 was largely non-COVID. So the -- there is a definite larger increase you can see in surgical and OPD count.

But it is, I guess, one of the highest ever since for you, right?

It is highest ever in last 27 years. Yes.

So what was the reason for that jump?

That's just because people are meeting at home. And for 3, 4 months then because of COVID and now suddenly they feel safe, so they start coming. Even now as our COVID graph is going down, people have started coming in for other surgeries, now. We can see from this deal.

Okay. So on steady state basis, you can expect 5,000 approx surgeries, non-COVID times?

Yes, yes, yes. And another thing, the movement the fear goes down, people do come for operations and surgery, because now people have started learning to live with this, because even they don't want to wait. They just do come and -- daily we are doing 4, 5 surgeries for joint replacement, we have this from this week. So people have started coming out saying that, okay, this is going to be with us only, why we want to wait for our normal work to be sorted out.

Okay. And any revenue from international tourism, during the quarter?

So for [ tourism, ] we have started, not full-fledged, we have started getting some patients from Kenya, Tanzania, Mozambique and one patient came from Cameroon. But not big numbers yet.

In terms of percentage of revenue, if you can give some light.

Not much really, this [indiscernible].

Less than 1%. Okay.

The next question is from the line of Sanjay Shah from KSA Shares and Securities.

Doctor, my question was regarding that we have specialized the knee replacement and other orthopedic surgeries and treatments. To grow from here, do we see any prospects of growing in other verticals or other treatment of quaternary, octogenary treatment and so on?

We are doing lot of work in cancer. We are doing, lot of work in cardiology. We are doing, lot of work in neurosurgery. So we are doing lot of work in a number of branches, actually we do lot of radiation oncology, also. We have top doctors in these all different branches. We do kidney transplant. We do liver transplant. So we do everything. And that's the reason we are able to treat COVID patients. So, yes, we do lot of joint replacement work because I'm there. And my trained people are there in all 10 hospitals across the country, but that doesn't mean that we know only these things. We do lot of other things, but we do a lot of orthopedics, yes. I will not deny that. But we have been received well. When we started our first corporate hospital in 2007, at SV Road, opposite Karnavati Club, it was 100% orthopedic hospital. From there we have went journey to reach 50% orthopedic and 50% rest of the specialty. So we are doing lot of orthopedic work, but we have developed other branches, and they are growing faster than orthopedic, because the orthopedic base is so large, other branches are able to grow faster percentile than orthopedics.

And sir, what about our Diagnostic Center? Do we plan any satellite unit or increasing therapies over there or going third party test and all?

No, we are actually planning Shalby Orthopedic Center of Excellence, where we will be -- not be investing in real estate, and we'll be giving our branding, our expertise, and we'll train their people to do the business there. And we'll have such good number of centers across India, to start with.

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

Okay. Thank you, ladies and gentlemen for joining earnings call. If you have any further questions, please feel free to connect with our Investor Relations and please continue to stay safe. Thank you for being with us.

Thank you.

Thank you. Ladies and gentlemen, on behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.