Broach Lifecare Hospital Ltd Management Discussions

This chapter on Managements Discussion and Analysis (“MD&A”) is to provide the stakeholders with a greater understanding of the Companys business, the Companys business strategy and performance, as well as how it manages risk and capital. The following management discussion and analysis is intended to help the reader to understand the results of operation, financial conditions of Broach Lifecare Hospital Limited:

Industry Structure and Development:

Healthcare has become one of Indias largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players.

Indias healthcare delivery system is categorised into two major components public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector provides the majority of secondary, tertiary, and quaternary care institutions with a major concentration in metros, tierI, and tierII cities.

Overview of the Company:

We operate our boutique Hospitals under the brand “Maple Hospitals” and provide dedicated roundtheclock services to patients with heart ailments consisting of noninvasive cardiology services such as, 2D Echocardiography, Electrocardiography, Tread Mill Test, Holter monitoring, Ambulatory Blood Pressure Measurement, Stress test, Dobutamine Stress Echocardiography. Subsequently, in the year June/July 2023 we ventured into interventional cardiac services such as, coronary angiography and stenting, percutaneous coronary intervention (“PCI”) and primary PCI for acute myocardial infarction as a division. We also provide Ballon mitralvalvuloplasty, permanent pacemaker implantation, cardiac resynchronisation procedures, implantable cardioverterdefibrillator (“AICD”) implantation and procedures for congenital ailments such as coarctation of aorta, stenting and posterior descending artery closure. We also offer a complete range of diagnostic and therapeutic options such as endovascular revascularization, deep vein thrombosis treatment and peripheral angioplasty.

OUR COMPETITIVE STRENGTHS:

We believe that we deliver cardiology & clinical excellence through quality healthcare service supported by a combination of experienced medical talent, strong clinical and

46 2nd Annual Report 202425

patient safety protocols and investments in new medical technology. We believe that our hospital provides comprehensive cardiovascular healthcare services in a stateof the art and ultraluxury facility at an affordable price. We believe our clinical excellence; competitive compensation packages and ethical practices enable us to attract not only patients but also quality doctors and medical support staff. We believe the experience and depth of our Promoter and management team to be a distinctive competitive advantage in the complex and rapidly evolving healthcare industry in which we operate.

OPPORTUNITIES:

To increase our service offerings: The Company is actively exploring opportunities to broaden its healthcare service portfolio by advanced treatment modalities, and patientcentric solutions. This will not only strengthen the Companys market positioning but also enable it to cater to a wider patient base with comprehensive healthcare solutions.

Medical Tourism: With India emerging as a costeffective and highquality medical destination, the Company sees significant opportunities in attracting international patients seeking advanced healthcare services.

Increasing our association and empanelment: The Company is consistently increasing its association with leading insurance providers, corporates, government schemes, and international healthcare facilitators. By expanding empanelments and partnerships, the Company aims to enhance patient accessibility, build referral networks, and create sustainable growth opportunities.

RISKS AND CONCERNS AND THREATS:

While empanelment with insurance companies, corporates, and government schemes increases patient access, it also exposes the Company to challenges such as delayed claim settlements, lower reimbursement rates, and complex compliance requirements, which can strain cash flows.

Insurance providers and government health schemes often negotiate stringent pricing, leading to reduced margins compared to selfpaying patients. This could impact profitability despite higher patient volumes.

The availability and retention of qualified doctors, nurses, and healthcare professionals remain a significant challenge. Rising manpower costs and talent migration can affect service quality and operational efficiency.

The sector faces increasing competition from established hospital chains, diagnostic centers, and emerging healthcare startups. Price competitiveness and the need for continuous investment in infrastructure and technology may exert pressure on margins.

Changing laws, rules and regulations in India and legal uncertainties, including adverse application of tax laws, in the jurisdictions in which we operate may adversely affect our business and results of operations.

Segmentwise or productwise performance:

The Company currently has only one segment of business i.e., Healthcare Services Outlook

The Indian healthcare industry continues to present significant growth opportunities driven by rising demand for quality healthcare, favorable demographics, and strong government focus on improving healthcare access. The Company is wellpositioned to capitalize on these opportunities through its strategic initiatives in expanding service offerings, strengthening empanelments, and tapping into the growing potential of medical tourism.

While regulatory challenges, competitive pressures, and operational risks remain, the Companys emphasis on service quality, patientcentric care, and adoption of advanced technologies provides it with a strong foundation for sustainable growth. By building robust partnerships with insurers, corporates, and international healthcare facilitators, the Company aims to enhance patient reach and diversify revenue streams.

Looking ahead, the Company remains confident of delivering steady growth, strengthening its market position, and creating longterm value for its stakeholders through a balanced approach of innovation, quality care, and prudent risk management.

Internal control systems and their adequacy

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all assets and resources are acquired economically, used efficiently and adequately protected.

Financial performance and operational performance

During financial year 202425, the Company continued its growth trajectory and registered improved performance in terms of revenue.

There is a significant change in the key financial ratios for the year 202425 which are as below:

SR. No. Ratios	Current Reporting Period	Previous Reporting Period	% of Change	Reason for variance
1 Current ratio	2.01	5.95	66.18%	Mainly on Acount of increase in Current Assets.
2 Debt Equity Ratio	0.11	NA	N.A	N.A.
3 Debt Service coverage ratio	0.81	NA	N.A	N.A.
4 Return on Equity Ratio	0.02	0.26	N.A	N.A.
5 Inventory Turnover Ratio	0.33	NA	N.A	N.A.
Trade 6 Receivables turnover ratio	1.76	17.07	89.66%	Mainly on Account of Increase in Sales.
7 Trade payables turnover ratio	1.19	203.08	99.41%	Mainly on Account of Increase in Purchase results in increase in creditors.
8 Net capital turnover ratio	2.08	2.38	12.47%
9 Net profit ratio	0.17	0.27	37.04%	Mainly on Account of Increase in Sales.
Return on 10 Capital employed	0.08	0.17	53.55%	Mainly on Account of Increase in Sales.
11 Return on investment	0.17	N.A.	N.A.	N.A.
12 Interest Coverage Ratio	28.06	N.A.	N.A.	N.A.
1„ Operating Profit Ratio	0.27	0.39	30.22%	Mainly on Account of Increase in Sales results in increase in Profit.
Return on Net 14 14 Worth	0.06	0.13	55.13%	Mainly on Account of Increase in Sales results in increase in Profit.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

We believe that our employees are the backbone of our organization. We are committed to provide equal opportunities to all our employees and it emphasizes on welfare of its employees and it strives to engage and retain talented workforce at all levels. There exist peaceful and amicable relations with our employees. As on 31st March, 2025, there were total 18 (Eighteen) permanent employees on the pay roll of the Company.

Cautionary Statement:

Statements made in this report describing the Companys objectives, projections, estimates, and expectations may be forwardlooking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied, depending on various factors beyond the Companys control.

For & on behalf of Board of Directors of

M/s. BROACH LIFECARE HOSPITAL LIMITED

Regd office:

501,5th Floor, Corporate House,

Above Bharuch Orthopaedic Hospital,

R K Casta, Bharuch, Bharuch,

Gujarat, India, 392001. Sd/

JAYKUMAR NARENDRA VYAS Date: 30/05/2025 DIN: 08736387

Place: Bharuch Managing Director

Sd/

SHACHI JAYKUMAR VYAS DIN: 09063799 Wholetime director