Global Longlife Hospital and Research Ltd Management Discussions

OVERVIEW OF INDIAN ECONOMY

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. Indias appeal as a destination for investments has grown stronger and more sustainable because of the current period of global unpredictability and volatility, and the record amounts of money raised by India-focused funds in 2022 are evidence of investor faith in the "Invest in India" narrative.

The Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges. The Indian economy has consolidated its post-Covid recovery with policymakers - fiscal and monetary - ensuring economic and financial stability. Nonetheless, change is the only constant for a country with high growth aspirations. For the recovery to be sustained, there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues such as trade, investment and climate.

Strong economic growth in the first quarter of FY23 helped India overcome the UK to become the fifth-largest economy after it recovered from the COVID-19 pandemic shock. Nominal GDP for FY25 is estimated at Rs. 33.10 lakh crore (US$ 3.8 trillion) with growth rate of 9.9%, compared to Rs. 30.12 lakh crore (US$ 3.5 trillion) in FY24. Strong domestic demand for consumption and investment, along with Governments continued emphasis on capital expenditure are seen as among the key driver of the GDP in the second half of FY25. In FY25, Indias exports stood at Rs. 37.31 lakh crore (US$ 433.56 billion), with Engineering Goods (26.88%), Petroleum Products (13.86%) and electronic goods (8.89%) being the top three exported commodity. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

For a resilient economy, the health sector is vital. A sound healthcare system is interconnected with long-term factors responsible for inclusive growth, such as ensuring the quality of human capital and labour productivity, higher household savings, avoiding the poverty trap due to catastrophic health expenditure, and building the capability to withstand any health shocks such as COVID-19. In that spirit, the Indian health system has been consistently revamped.

The Government is committed to ensuring sound health and well-being of all ages through a preventive and promotive healthcare orientation in all developmental policies and universal access to good quality healthcare services. To this end, the Government is implementing various schemes and programmes and initiatives such as:

1. Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY) (2018)

2. PM Jan Aushadhi Kendras

3. AMRIT (Affordable Medicines and Reliable Implants for Treatment)

4. Ayushman Bhav Campaign (Sep 2023)

5. Ayushman Bharat Digital Mission (ABDM) (2021)

6. eSanjeevani (2019)

(Source: Economic Survey and IBEF)

OUTLOOK

Healthcare innovation in India, currently a US$ 30 billion opportunity led by pharma services and healthtech, is seeing increased investment in medtech and biotech. With rising consumerization of health, global value chain changes, and regulatory support, this innovation opportunity is projected to reach US$ 60 billion by FY 2028, alongside ecosystem shifts like consolidation and new partnerships.

The World Banks Logistics Performance Index (LPI) CY23 has ranked India at 38th position (out of 139 economies), recording an improvement of 6 positions. As of FY24, the Indian healthcare sector is one of Indias largest employers as it employs a total of 7.5 million people. Progress in telemedicine, virtual assistants, and data analytics is expected to create 2.7-3.5 million new tech jobs. A recent research report predicts that the integration of Artificial Intelligence (AI) within the Indian healthcare sector will create nearly 3 million new jobs by 2028. The number of allopathic doctors with recognised medical qualifications (under the I.M.C Act) registered with state medical councils/national medical council increased to 1.3 million in November 2022, from 0.83 million in 2010. As of 2023, the number medical colleges in India stood at 706.

(Source: IBEF, CNBC, Economic Times)

1. 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 private players.

Indias healthcare delivery system is categorised into two major components - public and private. The government, i.e., 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 majority of secondary, tertiary, and quaternary care institutions with major concentration in metros, tier-I, and tier-II cities.

Indias competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe. The low cost of medical services has resulted in a rise in the countrys medical tourism, attracting patients from across the world. Moreover, India has emerged as a hub for R&D activities for international players due to its relatively low cost of clinical research.

Market Size

The government has allocated Rs. 99,858 crore (US$ 11.50 billion), which is 1.9% of GDP in the Union budget 2025-26 for the development, maintenance, and enhancement of the countrys healthcare system, reflecting a 9.78% increase from the previous allocation of Rs. 90,958 (US$ 10.47 billion) crore in FY25.

Healthcare has become one of Indias largest sectors, both in terms of revenue and employment. The industry is growing at a tremendous pace owing to its strengthening coverage, service and increasing expenditure by public as well private players. The health-tech sector is set for significant expansion, with hiring projected to rise by 15-20% in FY24, reflecting the increasing demand for innovative healthcare solutions and the integration of technology in medical services.

The healthcare profit pools will grow at a 4% CAGR from US$ 654 billion in FY21 to US$ 790 billion in FY26. The total industry size is estimated to be at US$ 372 billion in FY23. The Indian healthcare market, which was valued at US$ 110 billion in 2016 is now projected to reach US$ 638 billion by FY25.

The e-health market size is estimated to reach US$ 10.6 billion by 2025. In FY24, DNA Wellness announced a Rs. 200 crore (US$ 23.98 million) investment to establish over 100 cervical cancer screening labs across India by FY27. They have exclusive rights to the CERViSure DNA Ploidy Test, a quick and non-invasive cancer detection method. The first lab opened in Ahmedabad, with more planned in Vadodara, Rajkot, and Surat by October 2024. This initiative aims to improve access to cervical cancer screening, addressing the significant health burden of approximately 130,000 new cases and 80,000 deaths annually in India.

Road Ahead

The healthcare sector, as of 2025, is one of Indias largest employers, employing a total of 7.5 million people. The demand for Indian healthcare professionals is expected to double nationally and globally by 2030 due to a shortage of healthcare workers in India, where there are only 1.7 nurses per 1,000 people and a doctor-to-patient ratio of 1:1,500 nationwide.

The Government aims to develop India as a global healthcare hub. Public health surveillance in India will further strengthen the health systems. The Interim Budget 2024-25 emphasizes healthcare infrastructure by increasing the allocation for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) from Rs. 2,100 crore (US$ 251 million) to Rs. 4,108 crore (US$ 492 million), alongside plans to establish more medical colleges utilizing existing hospital infrastructure.

(Source: IBEF)

2. OPPORTUNITIES AND THREATS

The Indian medical devices sector has witnessed remarkable growth in recent years and is expected to reach Rs. 4,34,350 crore (US$ 50 billion) by FY31 driven by increasing demand for quality healthcare, advancements in technology, and favorable government policies. Start-ups in this sector have been instrumental in fostering innovation, improving accessibility, and reducing costs.

On January 6, 2021, Dr. Harsh Vardhan, the Minister for Health & Family Welfare, released INDIA REPORT on Longitudinal Ageing Study of India (LASI) Wave-1. He stated that this report will be used to further improve and expand the reach of the ‘National Elderly Health Care network and contribute to the implementation of a spectrum of preventive and healthcare services for the elderly and vulnerable population.

Additional three million beds will be needed for India to achieve the target of 3 beds per 1,000 people by FY25. Also, India will have one doctor to every 800 patients by FY30. India currently holds the fourth position in attracting VC funding to the health-tech sector, with investments of US$ 4.4 billion between 2016-21, with US$ 1.9 billion invested in 2021 alone. DocPlix, a health-tech startup, raises Rs 1.2 crore (US$ 0.14 million) in a bridge round led by Inflection Point Ventures (IPV), aiming to digitize health records for Indias 1.4 billion population and enhance healthcare accessibility.

(Source: IBEF)

3. SEGMENT-WISE / PRODUCT-WISE PERFORMANCE:

The company operates in the single segment i.e. Health Care and Hospital. The total revenue from operations is ? 57.73 lakhs in FY 2024-25 as compared to ? 1351.45 lakhs in FY 2023-24. The Profit before interest and taxes is ? 9.92 lakhs in the FY 2024-25 as against loss of ? 226.59 lakhs for the FY 2023-24

4. OUTLOOK FOR FY 25-26

• We plan to expand our network into markets;

• We intend to maximize our operational efficiency by achieving greater integration and by implementing a stronger supply chain management.

5. RISK AND CONCERN

The Companys ability to foresee and manage business risks is crucial in achieving favourable results. Risk management at Global Longlife Hospital and Research Limited is an integral part of the business, focusing to mitigate the adverse impact of risks on business objectives. The Company has laid down a well-defined risk management procedure covering the risk identification, risk exposure, potential impact and risk mitigation process. The Board periodically reviews the risks and suggests steps to be taken to control and mitigate the same through a properly defined framework.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUECY

The Company has an adequate internal control system adopted for operating procedures, policies and process guidelines. The guidelines are well-documented with clearly defined authority limits corresponding with the level of responsibility for each functional area. Further, the Company has budgetary control system to monitor expenditure against approved budgets on an ongoing basis. The Companys robust internal audit programme which works to conduct a risk-based audit not only tests the adherence to laid down policies and procedures but also suggests improvements in the current processes and systems.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Financial performance of the company during the FY 2024-25 as compared to FY 20232024 is as under:

(Rs. In Lakhs)

Particulars	2024-2025	2023-2024	% of Increase/Decrease
Gross Revenue from operations	57.73	1351.45	-95.73
Profit Before Tax	9.92	(226.59)	104.37
Profit after Tax	19.87	(218.81)	109.08

Operational Performance

The Company continued to focus on improving operational efficiency leading to better returns for the shareholders. Further, the company has significantly enhanced its operational performance by establishing prudent risk management framework.

8. MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONSHIP FRONT, INCLUDING NUMBER OF PEPOLE EMPLOYED

Human resource practices and policies at Global Longlife Hospital and Research Limited ensure that all employees, wherever they work, whatever their role is, are always treated equally, fairly and respectfully. We maintain consistent and transparent diversity policies.

Our human resource team believes in personnel management, which involves planning, organising, directing and controlling of the recruitment and resource management, training & development, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and social goals.

People power is one of the pillars of success of company. As on 31^st March, 2025 the Company employs 06 employees. Going ahead, the Company aims to retain and develop the existing employees and align their goals with the common business vision and mission.

9. THE DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

During the financial year, the details of significant change in the key financial ratios i.e. change of more than 25% as compared to the previous year along with the detailed explanation is summarized below on standalone basis:

Sr. No. Key Financial Ratios	F.Y. 2023-24	F.Y. 2024-25	Changes in %	Reasons for change
1. Debtors Turnover Ratio	1.65	0.31	18.79	Change in credit sale
2. Inventory Turnover Ratio	1.95	2	102.56	Due to change in inventory
3. Interest Coverage Ratio (in times)	-1.95	1.36	-69.74	Due to increase in profit
4. Current Ratio	0.32	405.24	126637.50	Due to Fixed Asset convert to current asset & reduce current liability
5. Debt Equity Ratio (in times)	11.75	0.053	0.45	Due to decrease in liability
6. Operating Margin (in %)	0.19	-2.74	-1442.11	Due to decrease in operating income
7. Net Profit Margin (in %)	-16.11	3.55	-22.04	Due to increase in profit

10. The Return on Net Worth during the FY 2024-25 was 18.92 % as compared to -208.39 % in FY 2023-24. The changes in the return on Net Worth is mainly due to increase in profit in the FY 2024-25.

11. CAUTIONARY STATEMENT

Statement made in the Management Discussion and Analysis describing the various parts may be “forward looking statement” within the meaning of application securities laws and regulations. The actual result may differ from those expectations depending upon the economic conditions, changes in Government regulation and amendments in tax laws and other internal and external factors.