Lotus Eye Hospit Management Discussions


Indian Economy: 2022- 2023

Indian economy is seen as a bright spot among the world economies^ Even though many major economies are facing headwinds India has emerged as front runner among all the major economies. India pre-dominantly being a service-based economy the role of health sector in contributing to the GDP of our country shall be mammoth in the coming years. Indian economy has achieved an impressive growth rate of 7.2% during the financial year ended 31st March 2023 compared to the estimated 7%.The goal of achieving 5 trillion dollar economy is an ambitious target, considering our current position, the same can be attained without much heavy lifting. The credit flow from banks have smoothened thereby increasing more commercial activity and the improvement in non-performing assets is clear sign of the business picking up. All though there are some concerns but in total 2022-23 has been a positive fiscal year for India

Predicted future (in spite of slow down)

Considering the current situation with commercial activity picking up, credit to industries smoothening and improvement in Non-performing assets, the Indian economy is poised to grow in the fiscal year 2023-24 and in the coming fiscal years. The young population of India is one of the greatest advantages that can reap humungous dividends for our country in the future. The need for reliable and affordable health care has become the need of the hour considering the growth at which the population of our country is growing. The role of health sector will be touted to have contributed a major share in the growth story of India.

Eve care 2022 - 2023

The outlook for the eye care is on the upward trajectory and shall witness tremendous growth being in service sector

Global Industry Structure and Development:

The global "vision care market size" is expected to reach USD 192.85 billion by 2026, exhibiting a CAGR of 5.6% during the forecast period. Increasing awareness regarding ocular diseases in emerging nations is expected to aid the growth of the market. The increasing adoption of vision care products will boost the vision care market growth in the forthcoming year. In addition, the growing cases of cataracts will create growth opportunities for the market. For instance, according to the World Health Organization, 51% of the worlds blindness is caused by cataracts. In addition, the increasing risks of cataract incidence predominantly in developing countries will fuel demand for vision care.

Eye care products like lenses might become cheaper. With increase in life expectancy it is likely that population will have more old people. This would make it necessary to carry out more cataract and^. other eye treatments.

So overall, the eye care demand would grow. The profession and business of organized eye care would have a large need and necessity.

Public participated companies like ours with organized structure, delivering both basic and advanced eye care in many cities with a brand name, would help the patient very significantly and earn money for the investor very ethically.

This was the general economic, health care economic and eye care related economic scene in 2022 - 2023.

Our financial performance

Our general performance financially compared to 2021-22 in terms of both revenue and profit margin is promising. The Net profit before taxes has crossed 5 crore mark

On analysis of this we plan to concentrate more on expansion to increase our turnover and improve the profitability.

The most important part is that investors do not carry any risk due to non-existence of debt

Segment-wise or product-wise performance

Your Company operates in only one segment i.e. Eye Care and Related Activities.

Risk and Concerns

1. Competitors

There are large numbers of private practitioners in ophthalmology with their own ophthalmic diagnosis and treatment equipment. There are a few with small hospitals with more advanced equipments. Apart from these there are large ophthalmic hospitals both philanthropic and run as commercial business entities.

Your company can counter this challenge by providing focused eye care delivery and by deploying the state of the art equipments backed by panel of expert doctors.

2. Profitable and Proficient optimal use of Latest Technologies and Trends.

The biggest task of any organization is to harness the technological advancement taking place at every nanosecond and cultivate the same in such a manner that produces profitability for the organization and maximizes the shareholders wealth simultaneously.

We have time and then invested amount rationally in obtaining advanced equipments for providing better eye care services to our patients

3. Health Status Issues

The difference between rural and urban indicators of health status and the wide interstate disparity in health status are well known. Clearly the urban rural differentials are substantial and clearly impact the spending power and in turn the variety of high end options made available to them.

We plan to organize our centers with this fact in mind.

Future of Ophthalmology .

Future of ophthalmology health care is very bright

• Occurrence of cataract is common

• Diabetes is increasing

• Hypertension is increasing

• Majority of the population wishes to be lensfree

The following will be our future plans

a. Implementing innovative modes to generate revenues

b. COVID free treatment

c. Rational Investments keeping in mind the dynamic requirements

d. Insistence on latest and cutting edge technology at all hospitals.

Our Edge

Our edge lies on our investment in modern equipments, and excellent experienced consultants in all our centers, presence in many districts and COVID free, personalized care.

Internal control systems and their adequacy

Your company has established internal control systems to ensure optimum use in protecting its resources and ensuring adherence to its policies, procedures and statutes. There is proper and adequate system of internal control for the company and its branches. The company has appointed Internal Auditor to review the adequacy of the internal control systems, procedures and policies. The internal auditor evaluates the adequacy of the internal control systems by testing the control mechanism and gives their recommendations to the management. The Internal Auditor submits his report to the Audit Committee of the Board.

Discussion on financial performance with respect to operational performance

Financial performance with respect to operational performance has been dealt with in the Directors Report which should be treated as forming part of this Management Discussion and Analysis Report.

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

There were 313 numbers of permanent employees on the rolls of the Company as on 31.03.2023. During the year under review your company enjoyed cordial relationship with the employees at all levels.

Cautionary Statement

The Management Discussion and Analysis Report contains forward looking statements based upon the data available with the Company, assumptions with regard to global economic conditions, the government policies etc. Actual results might differ materially from those either expressed or implied.