Dhanvantri Jeevan Rekha Ltd Management Discussions

Management Discussion and Analysis Report as required under regulation 34 read with Schedule V of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, is as under:

GENERAL OVERVIEW ON INDIA?S HEALTHCARE SERVICE LANDSCAPE

As of 2025, India?s healthcare sector has become a major driver of economic growth and employment, projected to reach $638 billion, with the pharmaceutical industry alone expected to grow to $120 billion by 2030. The system is managed jointly by the central and state governments, complemented by a rapidly expanding private sector, though challenges like faculty shortages and regional disparities remain. Rising life expectancy, chronic diseases, changing lifestyles, and increasing insurance coverage are driving demand, while medical tourism and international collaborations continue to grow. Technological advancements, particularly AI, are enhancing diagnostics, treatment, and accessibility, contributing significantly to the economy. Government investment has increased to 1.84% of GDP, with a 2025 budget allocation of 95,957.87 crore, supporting infrastructure, digital health, and workforce expansion. Overall, the sector is evolving rapidly, creating jobs, improving quality, and moving toward more equitable healthcare access across India.

SEGMENT WISE/COMPANY WISE PERFORMANCE

Dhanvantri Jeevan Rekha Limited, established in 1993 at 1 Saket, Meerut, has evolved into a leading healthcare provider in the region. With a commitment to delivering advanced and high-quality patient care, the hospital has expanded its services to include a wide range of specialties such as Cardiology, Neurology, Orthopedics, Radiology, Gastroenterology, General Surgery, Urology, and General Medicine. The facility is equipped with state-of-the-art medical technology and offers comprehensive services, including 24-hour emergency care, outpatient and inpatient services, and diagnostic facilities. Additionally, Dhanvantri Jeevan Rekha Limited is empaneled under the Ayushman Bharat – PMJAY scheme, providing cashless and paperless treatment to eligible patients across various specialties. The hospitals dedication to excellence has made it a trusted name in healthcare for the people of Meerut and its surrounding areas.

OUTLOOK AND COMPANY OVERVIEW

Healthcare is set to remain a major driver of India?s economy, with policies, innovations, and investments shaping the sector and contributing to overall economic growth. The increasing adoption of digital health solutions, telemedicine, and other technological advancements is creating new avenues for growth and improving accessibility. The government aims to raise public health spending to 2.5% of GDP by 2025, supporting the growing demand for tertiary care and specialty hospitals. Dhanvantri Jeevan Rekha Hospital, one of the first comprehensive multi-specialty setups in Western Uttar Pradesh, offers state-of-the-art diagnostic and therapeutic services under a single roof. Committed to excellence in personalized care, the hospital delivers efficient, patient-centric services in a clean, friendly environment at affordable rates, continually evolving to meet the needs of the community.

OPPORTUNITIES

In India, the private sector is the primary driver of healthcare spending, unlike in many countries where the public sector dominates. The government?s plan to raise healthcare expenditure to 2.5% of GDP by 2025 is expected to spur the development of new facilities and the expansion of existing ones, particularly through strengthened partnerships with private providers to improve access in rural and underserved areas. The sector is witnessing rapid adoption of digital health solutions, including electronic health records, mobile health apps, and remote patient monitoring systems. Rising demand for home healthcare services, driven by an aging population and the growing burden of chronic diseases, is projected to grow at a CAGR of 19.2%, reaching $21.3 billion by 2027. Simultaneously, India?s focus on self-reliance in medical device manufacturing is set to expand the market from $11 billion in FY 2019-20 to $49.5 billion by 2025, lowering costs and making advanced medical equipment more accessible for hospitals. Within this evolving landscape, Dhanvantri Jeevan Rekha Hospital, one of Western Uttar Pradesh?s first comprehensive multi-specialty setups, continues to provide state-of-the-art diagnostic and therapeutic services under one roof, offering patient-centric care in a clean, friendly, and affordable environment while leveraging these industry advancements to enhance service quality and accessibility.

THREATS

Rising Costs: Although out-of-pocket healthcare spending by individuals has decreased from 62.6% in FY 2015 to 47.1% in FY 2020 (Ministry of Health), input costs in healthcare continue to rise. Minimum wage revisions across various manpower categories, escalating real estate prices, and higher import costs for medical equipment and consumables due to fluctuations in the INR/USD exchange rate are key challenges. Increased competition has also raised compensation expectations for skilled professionals.

Human Resources:

Effective human resource management is critical to ensuring a competent and motivated workforce while addressing the needs, aspirations, values, and dignity of employees, along with socio-economic concerns of the community. As of March 31, 2025, the hospital employed 98 staff members, underscoring the importance of workforce planning, retention, and skill development. Regulatory Interventions: The intrinsic value of healthcare services goes beyond input costs. Any regulatory attempt to cap prices without accounting for the comprehensive cost of delivering high-quality care could compromise service standards and patient outcomes.

RISKS & CONCERNS

Lower Healthcare Spend: India?s healthcare expenditure remains low at approximately 3% of GDP, compared to 19% in the United States. This translates to just US$ 57 per person annually, versus US$ 11,702 in the US, limiting infrastructure expansion and overall service accessibility.

Increasing Burden of Non-Communicable Diseases: Non-communicable diseases (NCDs), including cardiovascular diseases, cancer, diabetes, and chronic respiratory illnesses, account for around 38 million (68%) of global deaths and approximately 5.9 million (60%) of deaths in India. Rapid urbanization and lifestyle changes have accelerated this epidemiological transition, posing significant health and economic challenges for the country.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The internal control system has been designed to commensurate with the nature of business, size and complexity of operations and is monitored by the management to provide reasonable assurance on the achievement of objectives, effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations. The Company has institutionalized a robust process and internal control system commensurate with its size and operations. The internal control framework is supplemented with an internal audit program that provides an independent view of the efficacy and effectiveness of the process and control environment and through its observations provides an input to the management to support continuous improvement program. The internal audit program is managed by an Internal Audit function directly reporting to the Audit Committee of the Board.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the period under review, the Operating Income of the company increased to 2,265 Lakhs as of March 31, 2025, up from 2,046.97 Lakhs in the previous financial year. The company reported a profit this year, despite higher expenditures on repair and maintenance of hospital equipment, renovation of the building, and increased costs of medical consumables. The hospital has also made significant additions to its facilities and amenities. The Board of Directors is pleased to inform shareholders that the company continues to remain debt-free. During the year, the hospital expanded its services by launching a Dialysis unit in the Nephrology Department and establishing a Gastroenterology Department, further strengthening its multi-specialty offerings and commitment to comprehensive patient care.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

We acknowledge the contribution of all our employees in our journey towards touching a large number of lives. We understand the value of diversity in culture, language, religious beliefs, genders and have been a key supporter to nurture the same in the company. Therefore, the group strives to build a conducive work environment which embraces diversity and fosters inclusion. Human resource continues to be the backbone of Dhanvantri Jeevan Rekha hospital. The Company lays strong emphasis on attracting and retaining the best talent. Personal developmental initiatives including training, both technical and managerial, are regularly conducted to enhance human potential

CAUTIONARY NOTE

Statements in this Management Discussion Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could alter your Company?s performance include increase in material costs, technology developments and significant changes in political and economic environment, tax laws and labour relations.