apollo gleneagles hospitals ltd Management discussions

APOLLO GLENEAGLES HOSPITAL LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL PERFORMANCE: Financial Highlights: (Rupees in Millions) Particulars Year ended 31 Year ended 31 March 2006 March 2005 Turnover 830.39 685.23 Profit/(Loss) before Interest, Depreciation 146.47 43.72 & Taxation (PBIDT) Interest 109.20 100.52 Profit/(Loss) before Depreciation & Taxation 37.27 56.80 (PBDT) Depreciation 98.04 95.55 Deferred Revenue Expenditure Written Off 26.50 26.50 Profit/(Loss) Before Tax (PBT) (87.27) 78.85 Reversal Of Impairment Loss/Fringe Benefit Tax 0.84 18.36 Profit/(Loss) After Tax (PAT) (88.11) (160.49) The Hospital has improved its revenues this year by 19% with an all round increase in revenues in all major specialities and diagnostic services at the Hospital & its diagnostic center in the city. During the year total revenues increased by 21% as compared to the last year ending 31 March 2005. The Hospital has incurred a net loss after tax of (Rs.88.11) Million, which is on account of depreciation & deferred revenue expenditure amounting to Rs.124.5 Million. At EBIDTA (Earnings before interest, tax and depreciation), the Hospital has shown an EBIDTA of Rs.37.27 Million as compared to a loss of (Rs.56.80) million in the previous year The Company has further infused capital of Rs.39 Million during the year for purchase of high end medical equipments to upgrade the services at the hospital. MATERIAL CHANGES SUBSEQUENT TO THE BALANCE SHEET DATE: There are no material changes subsequent to the balance sheet date. OPERATIONAL REVIEW: During this year, the average occupancy of the Hospital has increased to 217 in 2005-06 as compared to 204 in 2004-05, resulting in growth of 6.3%. Revenue per Bed Day has this shown a growth of 8.8% in this year as compared to last year. The Hospital now provides world class treatment in all the tertiary care specialities The key speciliaties in which the Hospital has excelled and has become the choice of patients in West Bengal are Cardiology, Gastroenterology, Orthopedics, Neurology, Neurosurgery, Renal Transplants and Critical Care. A whole new range of facilities have been added during the year which includes 64 slice CT Angio, Comprehensive Paediatric Plastic Surgery Clinic, Complete Tertiary Neuro Muscular Rehabilitation Clinic, Laser Clinic, Kidney Stone Clinic, Urology Clinic, Audiology Clinic. 64 slice CT Angio system was inaugurated at the diagnostic center on 16th February 2006 by Honourable Mayor of Kolkata in the presence of Chairman Dr. Prathap C. Reddy and other dignatories. In the international front, the Hospital continues to receive foreign patients and during this period, has treated 850 patients in 2005-06. Several initiatives have been implemented with governments of neighbouring countries to improve the inflow of foreign patients to the Hospital. The hospital has commenced services on clinical trial with various agencies. During the year one trial has been completed and several are in progress. A full fledged clinical trial department is now established and the hospital hopes to generate more revenues from this segment in the coming years. The critical care facility of the Hospital is a benchmark of international standards and continues to be a referral unit for several nursing homes and district hospitals, mainly due to the quality of treatment provided. Keeping in line with the continuing medical education program for the consultants in the Hospital and the doctors at large and also with the public, several programs were conducted all through the year. The hospital also conducted talks and screening camps on the International Womens day; World Kidney Day; Diabetic fair. The hospital has received DNB certification for the medical specialities in family medicine & Gastroenterology. Several other specialities have been applied for and are in process. These sub committees meet on regular basis and address the relevant issues as governed their respective policy framework. The MAC also works towards achieving Hospital and patient care objectives and to meet the West Bengal Establishments Acts licensing requirements. ACE Model: The Apollo Clinical Excellence (ACE) Model is used by Apollo Gleneagles Hospitals to ensure the best quality standards among the Apollo Group hospitals. Industry defines a hospital as a set of complex processes. Through the control of certain parameters, the quality standards of these processes can be monitored and improved World Class Nursing Care - Nursing is the backbone of any hospital and is the key ingredient in the success of any healthcare provider. The hospital is focussing on all areas of nursing and is working towards making this a benchmark for the best nursing in the whole of Eastern Region. In future, it also has plans to start its own nursing and paramedical college. CORPORATE SOCIAL INITIATIVES: Respect to the elderly: The hospital has organized health talks for retired persons in salt lake through the Indian Association of Retired Personnel. The hospital offers discount of investigations done by senior citizens. Care For the Child During Travel: The hospital has arrangements for child care in the place sponsored by the Airport Authority of India at the international terminal building since May 05. The child care room is well equipped with attendants. Emergency Trauma Care Workshop: The hospital organized for a workshop in Nov. 05 at the British Deputy High Commission on emergency trauma care An emergency set up has been created at the Videocon Cricket Academy to treat emergencies for budding cricketers School Programs - Counselling Session has Hone at the Delhi Public School and health check up was conducted at Scotishchurch College & Hindu School. Apollo Gleneagles Hospital Educational Trust: The Hospital through this trust is planning to reach the poorer sections of the society to offer various health care services at affordable costs. The trust is also in the process of plaining a nursing college in the Hospital complex During the year, the trust has met medical expenditure of some poor patients who were referred to the hospital. PROSPECT: The management is optimistic about the performance of the Hospital in the year 2006-07 The Hospital is now in the process of commencing the Phase III expansion which will have exclusive day care facilities such as keyhole surgeries and laser treatment in addition to speciality wise consultation suites. Architects and contractors have been finalized and the work is expected to commence in May 2006. For and behalf of the Board Place: Kolkata Dr. Prathap C. Reddy Date : 16th May, 2006 Chairman