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Aster DM Healthcare Ltd.

BSE: 540975 Sector: Health care
NSE: ASTERDM ISIN Code: INE914M01019
BSE 00:00 | 28 Jan 184.80 -0.35
(-0.19%)
OPEN

188.20

HIGH

190.00

LOW

183.75

NSE 00:00 | 28 Jan 184.45 -0.40
(-0.22%)
OPEN

185.85

HIGH

190.00

LOW

183.50

OPEN 188.20
PREVIOUS CLOSE 185.15
VOLUME 37819
52-Week high 237.25
52-Week low 132.55
P/E
Mkt Cap.(Rs cr) 9,231
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 188.20
CLOSE 185.15
VOLUME 37819
52-Week high 237.25
52-Week low 132.55
P/E
Mkt Cap.(Rs cr) 9,231
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aster DM Healthcare Ltd. (ASTERDM) - Chairman Speech

Company chairman speech

Our new business vertical Aster Labs in India which is a NABLaccredited lab with ICMR approval for RT-PCR testing for COVID-19 saw a good momentum involumes."

Dear Shareholders

The last year has been one of the most challenging year in worldhistory and our commitment to provide quality healthcare at affordable cost has neverbeen of more importance to us and the countries and communities we serve. Since thepandemic struck each Asterian has been tenaciously working to ensure that we provide thebest possible healthcare to each patient.

We had to continuously rethink re-evaluate and redesign our strategiesin order to meet with changing conditions due to the pandemic. As Friedrich Nietzsche thegreat German philosopher said "That which does not kill us makes us stronger"the testing times also proved the resilience of our team and business model. Though we sawsome impact on our financials the effect was marginal and we are on a stronger footingthan before.

The year was extremely unsettling for everyone for us what was ofcrucial importance was to proactively provide sustainable healthcare to the society. Ourfirst and primary focus was to ensure continuity of business operations so that we couldensure best possible healthcare for our patients. We took multiple steps in thatdirection and adopted best possible practices formulated standardised and evidence-basedguidelines and developed SOPs through virtual meetings.

In terms of our domestic performance the initial number of patientfootfalls staggered and medical tourism sector stalled affecting the overall revenue.Notwithstanding the uncertainties we continued to serve the population and ramped up ourinitiatives to address the clinical complexities created by COVID-19. I am pleased toreport that two of our laboratories in Bangalore and Calicut are now accredited by ICMRfor doing the RT-PCR test. Besides we also adopted Telehealth as a new vertical todeliver and facilitate healthcare related services in departments like general medicinegastroenterology neurology cardiology and many more. Our Aster at Home initiative inthe homecare division also performed well in regions like Kerala and Bengaluru andgenerated additional revenues for our business. By the end of first quarter ourbusinesses in the GCC region also stabilized. We noticed a noticeable change in behaviourin GCC countries with more people approaching the hospitals for elective procedures. Withtime it further picked up and we saw a positive momentum in our collections. To weatherthe storms spurred by COVID-19 we implemented conservative financial management toenhance our cost efficiencies while staying true to our service levels. We criticallyanalysed overheads and expenditures and filtered all non-essential expenditure. In orderto reduce cost we made constant efforts to negotiate best possible terms with ourvendors and secured part rent payment deferment for our leased facilities in both GCC andin India. We also had to take some de-layering exercises and undertook some reduction ofthe payroll cost for both GCC and India employees. Speaking in terms of numbers in thelast FY our revenue from operations declined by 1% to RS. 8608 crore in FY 2020-21compared to RS. 8652 crore in FY 2019-20. Our PAT (post NCI) stood at RS. 148 croreduring the year under review. Our GCC operations continued to be major contributors to theoverall business accounting for 81% of the total revenue. Our employees are our realstrength and we remained focussed on guarding all Asterians against the COVID-19. Ourheart goes out to every healthcare hero who worked relentlessly to save lives and oftenhave risked his/her own lives in their line of duty. In the year under review we haveannounced 10-year salary support for families of employees who died of COVID-19. Thisshall be applicable to all employees of Aster in India and GCC who lost their lives due toCOVID-19 or those who may succumb God forbid to the disease in future. I feel happy toannounce that we have managed to fully vaccinate 84% of our employees till 15th June 2021.Looking ahead I believe Aster DM Healthcare is poised to embark on an exciting journey.With our hospital in the Caribbean we are expanding into the Western Hemisphere andunfolding a new chapter in Aster's history. In tandem with our strategy towardsachieving Vision 2030 we signed an agreement with Cayman Islands Government to buildAster Cayman Medcity a 150-bed Multispecialty Hospital over the next three years alongwith an Assisted Living facility and a Medical University in the long term. The projectwould cater to the entire Caribbean Region America & Canada and introduce the worldto Aster's world-class tertiary and quaternary care bolstered by our clinical andservice excellence.

With the advent of the second wave in the last quarter GCC operationsfaced multiple disruptions. Strict lockdowns night curfews travel restrictions and bansat international borders impacted our businesses particularly in UAE. But the positivenews however is that the vaccination drive in the UAE is proceeding at a rapid pace.Although it does not remove the possibility of infection it does provide significantprotection to a wider population and makes our future prospects better. On the domesticfront we remain dedicated to our expansion in India and see a strong potential forgrowth. In order to broaden our healthcare offerings for our patient base we areproactively developing Aster Labs and the pharmacy distribution network in India. Inalignment with the strategy of expanding presence through an asset-light model we startedour Aster Whitefield. Women & Children Hospital in Bangalore which caters to theunique healthcare needs of the children and women. In addition our division in Astervolunteers recently signed a MoU with Al Shifa Multi-Specialty Hospital in New Delhi tohelp set up a 50-bed field hospital to meet the increasing shortage of hospital beds intimes of crisis. To my stakeholders I would like to express my gratitude for being withus through these testing times for supporting us throughout and for believing in Aster.As a result of which we were able to come out smoothly from those difficult times. Evenas the second wave of COVID-19 continues to cause disruptions at Aster we are confidentto emerge out stronger backed by resilience and agility to guide us to a better tomorrow.

Dr. Azad Moopen
MD FRCP
Founder Chairman and Managing Director

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