The year has indeed been an exciting one for our Company. It has been over a year sincewe got listed with the stock exchanges; and this phase of our journey has been anenriching experience.
The Company's growth has kept us extremely focused on building infrastructurecommencing new centres and augmenting the talent bandwidth required for each of thesecentres. We continue to evolve and evaluate new opportunities for growth and we pursueour goal with a passion in winning over cancer through our onco philosophy of treatingcancer the right way the first
In our voyage in winning over cancer I am happy to report that we have receivedprofound appreciation for our hub-and-spoke model. To understand the success of our modelwe have had leadership teams from clinical and management from the US Latin AmericaSouth East Asia Africa as well as China who visited us to gather insights into ourhub-and-spoke model. This demonstrates that we have truly made cancer care accessible andaffordable and this is in harmony with our vision to take our recognized model toemerging markets.
Looking back at the way cancer care has evolved in the country it is encouraging tonote that the quality of life after cancer has immensely changed for the better. This isdue to increased awareness early diagnosis easy accessibility to cancer care centresexpertise cutting-edge technology and affordable cancer care. Our Company has played acrucial role in changing the ecosystem of the cancer burden and these outcomessynchronize with our mission of adding life to years where we ensure to improve thequality of life by managing the disease the right way.
Today we stand at the cusp of a paradigm shift in cancer care itself. There is a movetowards precision medicine' which is highly an individualized therapy designed toobtain better success rates and less side-effects. Precision medicine also describes howgenetic information about a person's disease can be used to diagnose their medicalcondition leading to more effective treatment strategies tailored to the genetic profileof each patient's condition.
To individualization of therapy may involve genetic mapping of the individual as wellas analysis of complete data known as predictive analysis. When we combine the two thetreatment is highly specific to the person for that particular disease. In the futureinstead of an organ-specific disease like breast or colon cancer therapy for cancer wouldbe genomics-based. This can revolutionize the understanding of cancer therapy and couldresult in better outcomes increasing the longevity.
While this could be the future we are happy to inform shareholders that the future isnow for HCG. We have been at the forefront of genomics and have moved ahead bycommissioning a Next-Generation Sequencing (NGS) lab bioinformatics and biorepository. Weare developing various models for our patients as we take leadership role in preventiveoncology and genetic counselling.
In terms of oncology care we continue to maintain leadership position not onlyrecognized in India but also globally. We are proud to be the only cancer care group thathas taken its model successfully to Tier 2 and Tier 3 cities in India. By 2020 we expectnearly 8 million people living with different kinds of cancer in India alone. This is anobvious challenge which can be met only by proper analysis and planning for which yourCompany is well positioned with the existing cancer care centres and the expansionprogramme being charted out for India and abroad.
With regard to the financial performance for the year ended March 31 2017 theconsolidated income from operations for FY17 was INR 7001.1 million as compared to INR5841.7 million in the previous fiscal year reflecting a growth of 19.8%. OperatingEBITDA in FY17 was INR 1050.0 million as compared to INR 847.6 Million in FY16reflecting a year-on-year increase of 23.9%. EBITDA margin for the year was 15.0% ascompared to 14.5% in FY16 reflecting an increase of 50 basis points. PAT in the fiscalyear was INR 221.7 million as compared to a loss of INR 14.6 Million in FY16.
The revenue growth was driven by a 19.2% growth from HCG Centres (which includes cancercare centres and multi-specialty hospitals) while the Milann centres grew at 27.8%. HCGCentres constituted 92% of the consolidated revenues for the Company and the remaining 8%was contributed by Milann centres.
The key takeaway from these financial results is that your Company has demonstratedstrong growth in revenues EBIDTA PAT and margin improvements during the year.
Looking at the operations across centres in India Karnataka continues to report asteady increase in revenues from international patients. We added new units in BarodaVisakhapatnam and Kanpur during the fiscal year.
Gulbarga and Bhavnagar are exhibiting the fastest growth within the Company. Baroda acomprehensive cancer care hospital that started in May 2016 is performing well.Additionally we have many new centres in the pipeline. Under Milann we added new centresin Delhi Chandigarh and Mumbai in the current fiscal.
HCG by expanding and deepening its footprint of network hospitals has helped us touchan increasing number of lives during the year across the globe; the Company continues tostrive towards improving the value proposition for the patients and society at large.
While our growth has been exciting HCG continues to actively participate in awarenessprogrammes with a focus on the early detection of cancer as well as a long-term control ofthe disease. We are proud to say that we have published articles in leading publicationsas well as work on research in molecular genomics and clinical trials.
We have put together a talented and formidable leadership team across markets addingsignificant depth and bandwidth to our system. Our line-up of professionally respecteddoctors and clinical staff include some of the best available medical talent globally anasset few organizations in the medical delivery space can claim. We also have dedicatedteams to constantly monitor technological innovations and medical advances to keep abreastof the latest developments in cancer care globally. The Company has used technology tocreate tumour boards virtual tumour boards and multi-disciplinary clinics.
Our other area of expertise lies in managing infertility through Milann' our network of fertility clinics. Nearly 28 million couples seeking children in India areaffected by infertility. However only 1% of them are seeking treatment. In 2015 thetotal demand for IVF cycles primarily used for treatment of infertility was 100000 andis expected to touch 260000 by 2020 at a compound annual growth rate (CAGR) of over 20per cent. We recognized this need ahead of time and ventured into the fertility servicesunder the brand name of Milann. I am happy to report that during the reporting year thenumber of centres under Milann increased
We are working diligently to maintain and strengthen our leadership position inoncology and fertility. We are confident of doing so due to the clinical expertise wehouse in terms of our talent.
Our focus is clear: execute all our projects in a timely manner significantly upgradeour information technology infrastructure in order to enhance the quality of caredelivered to patients enhance our clinical best practices and strengthen our researchcapabilities. The future of oncology care will be high precision medicine and we are wellpositioned to be leaders in this.
Achieving all of this has been a dream come true. For HCG however the journey hasonly begun. We remain steadfast in our vision of making HCG a best-in-class cancer careprovider - an institution of excellence that operates on the principles of quality andethics; a network that leverages learning across geographies builds synergies to optimizecost and provides the finest medical service - to the ultimate benefit of the patient.This vision positions us as thought leaders in an industry where the gap between demandfor quality cancer care and the facilities to meet that demand remains enormous. Werecognize this opportunity and are working towards becoming the global institution ofchoice for cancer care. I am excited about the journey and what is in store for HCG. Ibelieve that HCG's best days are yet to come.
I wish to place on record our appreciation and acknowledge with gratitude the supportextended by our Board of Directors management team employees advisors bankersinvestors and other stakeholders at large medical fraternity and patients for theircontinued trust reposed in our institution.
On behalf of the entire Board of Directors of the Company I would like to thank you our valued stakeholders for the continuing confidence you have placed in theorganization.
Dr. B.S. Ajaikumar
Chairman & CEO