Lotus Eye Hospital & Institute Ltd Management Discussions

Industry Structure and Development:

The most populated country in the world has seen health care sector grow leaps and bounds. Eye care sector being a pivot of the health care sector has seen exponential growth during the 5 years. The financial year 2024-25 has seen an allocation of 87657 crores marking a 12.59% increase compared to the previous year. The advent of new technological innovation has further reduced the complexities involved in erstwhile eye care services and the sector is witnessing increased adoption of digital technologies like telemedicine and digital health solutions, particularly in rural and underserved areas, to improve accessibility and efficiency.

The financial year 2024-25 has seen a rampant increase in availability of health care services in rural areas and underserved areas because of digital innovation, skill initiatives and various healthcare schemes brought by both central and state government. This expansion has helped all those in penury to have access to affordable health care services.

Overall, the Indian healthcare sector is experiencing a period of growth and transformation, driven by increased government investment, technological advancements, and a growing emphasis on preventive care and digital health solutions.

Opportunities and Threats

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.

The significant contribution of health care sector to the GDP and the increasing population has attracted the focus of investors considering the health care as an attractive investment platform were in higher returns are assured in the years to come. The private equity and venture capital investments surpassing US$ 1 billion in the first five months of FY24, marking a 220% increase from the previous year is a clear example of the confidence reposed on the health care sector

The innovative trends that have insinuated their way into the Healthcare sector are:

Artificial Intelligence and Cloud, innovation in the healthcare is nothing new, but what have revolutionized is the intrusion of Artificial Intelligence into the healthcare sector, which has turned heads all over and has become the new route to success for the healthcare industry.

- Need for Transparency, there has been an urgent need felt to include and interpolate more transparency in the working, adoption and disposal of the healthcare companies, the awareness and the need of knowledge amongst the consumers have enforced the law makers to develop and instigate laws that proclaim and bring forward more transparent way of working amongst the industry.

Increase in Competitive intensity due to new entrants, Increased cost of resources, discontinuation of leases, lower contribution by the Government etc. are some major threats associated to the healthcare industries.

A significant shortage of ophthalmologists, particularly in rural areas, remains a challenge, highlighting the need for increased training and a more equitable distribution of eye care professionals.

Segment wise or product-wise performance

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

Sector Outlook

The Indian eye care sector is experiencing significant growth, driven by factors like rising awareness of eye health, increasing incidence of vision-related disorders, and the growing availability of affordable eye care products and services. The market is expected to expand from USD 2,409.90 million in 2024 to USD 3,081.79 million by 2033, with a projected CAGR of 2.80% from 2025-2033.

Increased internet access and digital penetration are creating opportunities for the growth of over-the-counter (OTC) eye care products and services, particularly in urban areas.

The Indian eye care sector is poised for continued growth, with opportunities for both established players and new entrants. Addressing the challenges related to workforce shortages and access to care will be crucial for realizing the full potential of the market and ensuring that eye care services are available to all segments of the population.

Risk and Concerns

I. Competition:

The competition from the un-organized sector would be met by delivering quality eye care services at par with international standards which the un-organized sector lacks in view of constraints in investment to create a quality eye hospital.

Because of increased opportunities, many private players are entering into this sector. 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.

ii. Shortage of skilled manpower:

Increasing demand for health care services combined with the aggressive expansion by the Indian private health care players is expected to significantly increase the demand for medical professionals. Similarly there is a shortage of medical and para-medical staff. We have a talented and skilled manpower in terms of Doctors, Nurses and para-medical staff. We continue to attract talented and skilled medical professionals.

iii. Investment:

The health care sector is a capital intensive sector and need significant funding to grow.

iv. Regulatory Risk

The evolution of the global regulatory environment has resulted in increased regulatory scrutiny that has raised the minimum standards to be maintained. This signifies the alignment of corporate performance objectives, while ensuring compliance with regulatory requirements.

v. Increased cost of resources

Failure to acquire resources at fair and reasonable rates and increase in operating expenses may impact the Companys growth and financials.

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 system, 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.

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 348 numbers of permanent employees on the rolls of the Company as on 31.03.2025. 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.

	For and on behalf of the Board
Place: Coimbatore
Date: 29.05.2025	(sd)
	Sangeetha Sundaramoorthy
	Managing Director