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Scandent Imaging Ltd.

BSE: 516110 Sector: Health care
NSE: N.A. ISIN Code: INE146N01016
BSE 00:00 | 26 May 13.03 0
(0.00%)
OPEN

13.03

HIGH

13.03

LOW

13.03

NSE 05:30 | 01 Jan Scandent Imaging Ltd
OPEN 13.03
PREVIOUS CLOSE 13.03
VOLUME 16
52-Week high 13.23
52-Week low 6.73
P/E 31.02
Mkt Cap.(Rs cr) 42
Buy Price 13.03
Buy Qty 1.00
Sell Price 13.03
Sell Qty 1520.00
OPEN 13.03
CLOSE 13.03
VOLUME 16
52-Week high 13.23
52-Week low 6.73
P/E 31.02
Mkt Cap.(Rs cr) 42
Buy Price 13.03
Buy Qty 1.00
Sell Price 13.03
Sell Qty 1520.00

Scandent Imaging Ltd. (SCANDENTIMAGING) - Chairman Speech

Company chairman speech

Dear Shareholders

My warm greetings to you!!

I look forward to this time of the year to eagerly share the company's annualperformance. It is an occasion to share on the achievements and goals of your companyalong with the vision and course which has been set for its growth. Over the last twofinancial years the Indian healthcare industry has undergone major transformations due toa slew of regulatory measures and requirements. Your company has leveraged these changesfor its growth strategy and is now positioned to positively benefit and grow our businessin these thrilling times.

Your company has now set its foot firmly in the healthcare service delivery segment ofhospital care and service management. The business is operated in the brand name“Family Care” and is aimed to provide absolute value for money services forpatients with a world class service quality and best in class breed of committed doctors.

Your company now has an able leadership team to guide and deliver on this vision. Withthe right business experience a unique business strategy and a collaborative businessmodel in place your company is set to achieve its goals in a meaningful yet advantageousmanner. Your company over the next few years aims to be amongst the largest healthcareservices provider in the Mumbai Metropolitan Region (MMR) and is working on a businessplan execution and financing strategy to achieve on the same. The company is now on a pathto have a bed capacity of 5000 beds through a combination of acquisition and/or managementof existing set-ups and is trying to ensure that its average per bed costs are at amongstthe lowest as per industry standards.

Your company seeks to build on the domain competency and knowledge of the healthcarebusiness to generate a value added and sustainable business model for all itsstakeholders. These are early days of experience for your company and we are in theprocess of building up the required management and business expertise to deliversustainable growth in this segment.

Your company is on an investment mode. On the hospital business it provides integratedrange of services to almost tertiary level care and support for patients. Your company isworking on a hub and spoke model to deliver on the intent to build a chain of hospitalsacross MMR.

Your company continues to be the unchallenged leader in the independent third partyCBCT imaging centre networks across Western India and is creating social impact at scaleswhich are large for this particular segment. The same is operated under the brand name of“Scandent”.

Your company continued to be invested in the consolidating and growing healthcareservices business. Your company during the fiscal has remained grounded to its core dentaldiagnostics sector with advancement into integrated hospital management services.

Review of FY 2018-19 Performance

Total revenue of your company rose by 180% in the current year from Rs 519.93 lakhs inFY2018 to Rs 1418.84 lakhs in FY19. This growth has been primarily driven by the incomefrom the hospitals business. Your company now has a gross bed capacity of 150 across threehospitals 9 independent CBCT Scan Centres 1 partner CBCT Centre and 22 partner OPGCentres. Your company over the years is glad to share that it has served to more than150000 unique patrons and is set to expand this customer base with right serviceofferings.

EBIDTA for the current year fell from Rs 1.44 Crores in FY18 to Rs 0.99 Crores forFY19 due to the planned investment and expenses for the build-up of the hospitalbusiness. Your management expects these investments to help build a strong and robustfoundation for the building of a stable and scalable hospital business. The operatingmargins were thus at 7% for FY19 versus 28% the previous fiscal. It is important to notethat your company has been able to make an EBIDTA breakeven for the company at an enhancedrevenue size and increased service offerings.

Consequent to the reduced EBDITA your company reported a modest net profit of Rs 0.02Crores for FY2019.

Cumulatively your company has invested over Rs 20 Crores in Fixed Assets and businessincubation expenses. These business expansions and expenses are being funded throughinternal accruals trade balances and by borrowings from related group companies.

Business Outlook FY 2018-19

The healthcare industry in India has grown rapidly in recent years driven by higherinvestments by the private sector. With a plethora of opportunities available andliberalised FDI policies global players too continue to show growing interest ininvesting in Indian healthcare sector. To achieve the ambitious goal of universal healthcoverage the Indian government has pledged to increase the public expenditure onhealthcare from 1.1% to 2.5% GDP in the next four years and 5% in the following fiveyears. The budgetary allocation for the health sector for FY 2019-20 fiscal stood at'61398 crore the highest in the last two financial years and a 16% increase over theprevious year's allocation of '54302.50 crore. Previously under the New Health Policy2017 the Government expressed its commitment to plug gaps in service for its 1.2 billionpeople through 'strategic purchasing' of care from private facilities and clinics. This isbeing undertaken to improve not only the access but also the affordability and quality ofservice.

Another important Government intervention towards reshaping healthcare services is thelaunch of Ayushman BharatPradhan Mantri Jan Arogya Yojana (PMJAY). The largestGovernment-funded healthcare programme in the world PMJAY seeks to provide free andcashless insurance coverage of up to Rs 5 lakh per family per year to over 10 crore poorand vulnerable families for secondary and tertiary care hospitalisation at the empanelledpublic and private hospitals. With the Government changing its role from a provider to apayer there lies considerable potential of higher demand for private healthcare services.The robust growth of the private healthcare insurance space in India has also increasedthe demand for quality healthcare services. The sector has been witnessing a strong growthof 20% per annum with considerable promise of further growth and penetration as disposableincomes increase and service expectations expand. This expansion of health insurancecoverage in India augurs well for our healthcare industry.

Your company is choosing to selectively expand on its business backbone by using acombination of service delivery innovation partnerships standardizations and customizedsales strategy. Our growth strategy is based on plans to invest and acquire nonprofit orstressed assets and doctor/hospital practices and help them to restructure turnaround andgrowth these centers.

Our interest in acquiring existing set-ups across a certain region along withrebranding of the same under “Family Care” and consolidating their operationsand increasing our business efficiencies could be our way ahead in this business. Weintend to continue to deepen our learning in this business. We would be continuing ourexpansion of the OPG imaging networks this fiscal as well.

As we look ahead we have excellent visibility on our growth and are excited about ourfuture. Focused to be a quality and affordable service provider in the healthcarebusiness we would like to earn the trust and confidence of all our stakeholders and be apositive catalyst for the change India needs in terms of care and service.

I would like to take this opportunity to extend my deepest gratitude to each and everydoctor nurse and healthcare and medical professional and all of our employees who havesupported our most important priority - to provide highest quality patient care. Theentire team is committed and passionate about what we are doing and it is our passionthat is at the heart of our perfection and performance. I'm proud of our accomplishmentsand assure you that we will continue working towards redefining healthcare services andbuilding long-term value for our shareholders.

Thanking you.

Dr. Gautam Deshpande

Managing Director

DIN:00975368