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Shalby Ltd.

BSE: 540797 Sector: Health care
NSE: SHALBY ISIN Code: INE597J01018
BSE 00:00 | 02 Dec 149.40 -2.15
(-1.42%)
OPEN

152.00

HIGH

153.75

LOW

148.80

NSE 00:00 | 02 Dec 149.55 -2.00
(-1.32%)
OPEN

152.90

HIGH

154.00

LOW

148.75

OPEN 152.00
PREVIOUS CLOSE 151.55
VOLUME 17388
52-Week high 155.75
52-Week low 95.10
P/E 21.56
Mkt Cap.(Rs cr) 1,614
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 152.00
CLOSE 151.55
VOLUME 17388
52-Week high 155.75
52-Week low 95.10
P/E 21.56
Mkt Cap.(Rs cr) 1,614
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shalby Ltd. (SHALBY) - Chairman Speech

Company chairman speech

Dear Shareholders

In a year that continued to be characterised by the COVID-19 pandemicI am proud of the role Shalby has played along with many others in the Indian healthcaresector in coming together to fight the pandemic. The untiring and dedicated efforts ofour healthcare team enabled us to save lives and ensure continuity of patient care. Onyour behalf of the Board of Directors I would like to express my sincere appreciation fortheir contribution.

Your Company also played its part in supporting the nationwidevaccination program conducting camps in urban as well as remote areas of the country. Inaccordance with government guidelines we opened up our vaccination program for allsections of society. Anchored in the firm belief that ensuring the success of the COVID-19vaccination program is our society's collective responsibility towards building herdimmunity in the country and we set aside commercial considerations in our efforts in thisdirection. We have administered more than 175000 vaccines during the year and over235000 vaccinations to date.

The second wave of the pandemic in the country from mid-March toend-June 2021 was particularly traumatic with a surge in COVID-19 cases and the nationalhealthcare infrastructure stretched to the limit. In these testing times we stood firmlywith patients to provide high-quality health care services added beds to accommodate morepatients and converted a section of each of our hospitals into a COVID-19 centre. Whilethe COVID-19 wave re-surfaced in the fourth quarter due to the omicron-led variant thistime the impact on human lives was minimal with the nationwide vaccination program servingas the protective shield. During FY 2021-22 we treated 5100+ COVID-19 patients at ourhospitals.

With COVID-19 infections declining from the second quarter onwards ourhospitals witnessed a strong rebound in elective surgeries. The recovery was visibleacross all Key-specialties such as arthroplasty cardiac oncology nephrology andothers. We crossed the landmark of 20000 surgeries an increase of 70% on a year-on-yearbasis. Our strong recovery enabled us to deliver impressive results for the full financialyear. We delivered our highest-ever hospital revenue of ? 6598 million and generateddouble-digit EBITDA margins

of 21.6% which is among the highest in the industry. Our occupancylevels improved to 45% from 35% in the previous year. Moreover our homecare services werewell-received by patients. This growing reach and recognition of our homecare services isexpected to drive occupancy at our hospitals over the medium and long term.

Our franchise vertical of Shalby Orthopedics Centre of Excellence(SOCE) is also demonstrating a lot of potential from newer markets. Leveraging ourexpertise and branding across Arthroplasty and Orthopedics the SOCE with its asset- lightmodel allows for faster market penetration without significant additional capitalinvestment. We are focussing not only metro cities but going deeper into Tier 2 & Tier3 cities and strengthening Shalby's presence across India. Our target is to open 50centres across India by FY 2026. We have already signed agreements for five franchisees ofwhich the Udaipur unit was made operational in September 2021.

The backward integration into implant manufacturing with theacquisition of high-quality implant assets from Consensus Orthopedics based in the USshares strong synergies with our hospital and SOCE operations. Consensus Orthopedics nowrechristened as Shalby Advanced Technologies Inc. is being driven by a dedicated andprofessional team. Within a short span since the acquisition the production capacity hasbeen ramped up by 50%. Our vision is to achieve revenues of USD 100 mn by FY 2028. Towardsthe end of FY 2021-22 we received the approval for importing these implants into India.This will enable us to meet our captive demand for implants and also serve the needs ofother hospitals in India. The soft launch in India has received a promising response.

India is already the pharmacy of the world. The government is now inthe closing stages of rolling out the 'Heal in India' initiative to make India the medicalhub of the world. Over forty countries have been identified from where India sees higherfootfall for medical purposes. As part of this initiative the government will create amechanism to make the entire process hassle-free for overseas patients. This includesaccess to a one-stop tech-heavy portal that provides all the required information. Theplatform will also provide visa and language support. We believe that the government'sthrust on making India a medical hub holds considerable potential for Indian healthcareservice providers including Shalby to reach out to a wider patient base. Further there

is a huge potential in growing the domestic market in view ofincreasing access to insurance and efficient healthcare schemes.

Across Shalby we maintain a steadfast commitment to environmentalstewardship social responsibility and corporate governance. Responsible water managementimproving our energy efficiency and ensuring safe waste disposal as per environmentalregulations are core to our operations. Our people are central to our success and weremain focussed on improving the support we extend to them including through capabilitydevelopment engagement and review of rewards and benefits. Aligned with the largerobjective of wealth creation for all involved in the growth of Shalby we launched anEmployee Stock Option Plan (ESOP) during the year. Various community- focussedinterventions were also undertaken. A unique initiative in this regard was the launch ofKaushalya a program under which we educated and trained underprivileged youth inparamedical courses. The first batch of students comprised students from nomadiccommunities across Gujarat.

In conclusion I would like to thank all our stakeholders for theircontinued support. Shalby remains committed to providing patients with high-qualityservices for the best clinical outcomes and building a healthier world. Hopefully itappears that the world has emerged from the disruption that the pandemic has created forthe past two years. Bolstered by the improving macro environment we look forward toscaling our reach and delivering better value to our stakeholders and our great nation.

Dr. Vikram Shah

Chairman and Managing Director

.