At HCG we have not only weathered multiple storms during theseturbulent times including internal debt issues and macro-environmental challenges butalso emerged stronger as a visionary leader in the oncology domain.
It gives me great pleasure to present to you our annual report for thefiscal year 2020-21. Amid the widespread disruption of lives and livelihoods caused by theCovid-19 pandemic the healthcare ecosystem has shown admirable resilience in itsrelentless battle against a fast-mutating virus. At HCG we have not only weatheredmultiple storms during these turbulent times including internal debt issues andmacroenvironmental challenges but also emerged stronger as a visionary leader in theoncology domain.
HCG has carved a niche as a leading hospital chain providing qualitycancer care ceaselessly and seamlessly employing advanced procedures and state-of-the-arttechnologies to deliver exceptional patient outcomes. Despite the pandemic we maintainedthe quality and reach of our services as also continuity of care for our patients.
Cancer is a leading cause of death and a significant impediment toincreasing life expectancy around the world even today. According to WHO research reportscancer is among the foremost causes of death in 112 out of 183 people aged below 70. Basedon existing statistics the National Cancer Registry Programme (NCRP) has estimated thatIndia would see close to 15.7 lakh cancer cases by the year 2025. Although cancer therapycontinues to evolve access to affordable care is yet a formidable challenge in emergingeconomies like India. HCG's oncology hospitals uniquely address this gap by offeringaffordable and quality treatments ensuring that the patient avails of quality cure andcare but is not burdened with excessive medical bills.
In FY21 we generated net revenues of H 101343 lakhs compared to H109564 lakhs in FY20. Revenue from international patients reduced considerably due torestrictions on movement in the wake of the COVID-19 pandemic. HCG's South Mumbai andNagpur centres are now on the verge of achieving break-even at EBITDA levels recording91.9% and 97.7% y-o-y growth respectively. Our overall operating EBITDA* stands at H 1266lakhs.
Amid the pandemic-infused uncertainties we transformed ourselves onall fronts. We restructured our operations and rescheduled capital expenditure thatcollectively improved our performance and cash flows. Even though our reproductivemedicine arm Milann was severely impacted during Covid given that IVF is an electiveprocedure we witnessed strong recovery and momentum around the end of last fiscal andcontinue to be upbeat on the future prospects and strength of our brand and business.Strand Lifesciences in which HCG holds a 38.2% stake achieved sustained profits duringthe year under review.
A sustainable organisation
Being a patient-centric organisation we consistently work towardsimproving the quality of healthcare by investing in advance treatment technologies andexpanding our reach to ensure quality care for a maximum number of patients. We have builta sustainable organization that creates consistent value for all stakeholders. During theyear under review we successfully completed a preferential share allotment to CVCCapital a marquee private equity investor with a proven track record in global healthcareinvestments. Bearing testimony to the quality productivity and sustainability of HCGassets and leadership across the oncology domain CVC now holds approximately 53% stake inour company also having categorized themselves as 'Promoters'. We have strategicallyutilised these funds to reduce our long-term debts and improve the strength of our balancesheet. During the year we also acquired additional stake from the exiting founder inMilann to consolidate our position in a promising healthcare segment. We also witnessedstrong recovery in registrations for IVF cycles at eight reproductive medicine clinicsacross the country.
Accomplishments amid adversity
The year under review was marked by sterling operational achievements.Our new centres in Kolkata and South Mumbai have achieved a healthy scale and are now inramp-up mode. We have provided dedicated beds for COVID-19 patients across our hospitalsand addressed all possible challenges to serve a growing patient base during thesedifficult times. Our multispecialty hospital had commenced COVID-19 treatment and wouldsoon host vaccination camps. In a pathbreaking collaboration with Karnataka Government andCOVID India campaign we have launched Karnataka's first-of-its-kind Plasma bank to combatCOVID at our Bangalore-based Center of Excellence. The Plasma bank will enable us toimprove patient care across various disease segments in the long-term. In what was a majormilestone HCG has emerged as a leading private oncology player in the state ofMaharashtra while majority of other centres are also generating healthy revenues. Weintend to further enhance our facilities and strengthen our capacities to deliversustained value to stakeholders across all HCG verticals.
Our Frontline Heroes
People are the key differentiators of our business model our principalpartners in progress. The versatile solutioncentric motivated experienced andresponsive HCG teams consistently worked together to sustain our business growth in afast-evolving environment. Throughout the pandemic our teams relentlessly continued ourcancer treatments while working round the clock to attend to Covid-19 infected patientsand expediting their recoveries. I would like to take this opportunity to thank our entireworkforce for their dedication commitment and contribution in the ongoing fight againstCovid-19.
In our endeavour to build a value- accretive company we are scriptingan epoch-making chapter in our corporate journey. I am delighted to welcome Raj Gore asthe new CEO at HCG. Given his impeccable track record and proven expertise in healthcaresector he is the ideal choice for leading our dedicated teams in the highly specializedhealthcare business. HCG is undoubtedly at an inflection point on the back of a strongturnaround witnessed across our new centres and growing brand equity as a quality andpreferred healthcare provider. Under Raj's stewardship we will further strengthen ourdominant position in the oncology segment and drive sustainable value creation for ourstakeholders.
Going forward I am confident that our commanding presence impeccablereputation and robust balance sheet will help us deliver the best healthcare facilitiesto patients in India and abroad. I would also like to take this opportunity to express mygratitude to our Board of Directors Management and above all our patients. Before Iconclude my address I would once again like to appreciate the untiring efforts of ouremployees. It is their spirited and selfless contribution that continues to shape the HCGof tomorrow in real time as in today day in and day out!
|Dr. B. S. Ajaikumar |
|Executive Chairman |