Mr Raj Gore, CEO, Healthcare Global Enterprises Ltd

14 Nov 2022 , 12:35 PM

Mr Raj Gore, CEO, Healthcare Global, interacts with Ankur Chandra of India Infoline1. Your PAT in September quarter grew sharply y-o-y. Can you explain more specifically what are the factors that caused such a sharp increase?

Our PAT has grown in line with revenue growth and operating profit. Compared to last year the revenues have grown by 28% , excluding covid vaccination, with EBITDA margin of c18%. This operating performance is largely reflected in the strong PAT given that we are fairly stable in our capital structure with Debt to Equity being 0.8x.

2. You have mentioned the cost rationalization efforts that you are making. What are some of the specific ways in which you are rationalizing costs?

We have been working on our structural cost optimization and efficiency enhancement programs. We have been able to evaluate multiple areas for enhancing workforce productivity and optimize staffing accordingly in a scientific manner. We are also leveraging technology wherever applicable to improve operational efficiency and rationalize costs. Additionally, we are also working on some other fixed overheads like housekeeping, Security, Maintenance contracts as well.

3. You have mentioned about use of Artificial Intelligence in cancer therapy.  A number of other industries that are using AI are now realizing its limited utility. Is AI actually having any substantial impact on improving cancer therapy outcomes?
Though these are early days for AI enabled diagnostic and therapy in cancer care but it definitely appears to be promising. It makes sense in cancer care primarily because it is the fastest evolving field compared to other specialties. We practice evidence-based medicine and evidence is substantiated by data which is used by AI to bring all the intelligence on the table. We have been the early adopters of technology in cancer care. We have recently launched India’s first adaptive radiation therapy machine. This technology is Ethos from Varian, and it helps perform adaptive radiotherapy. Adaptive radiotherapy is something which continuously probes deep into the tumor, and intelligently adapts the treatment to the tumor configured using an AI platform. We can use the actionable information generated from it in the treatment of subsequent patients

4. What are your expansion plans with regard to expansion to other Indian cities?

Currently we are executing our greenfield projects in Bangalore and Ahmadabad to expand our capacity and increase our reach in these key geographies. In addition, we are also scouting for opportunities to expand inorganically to further fortify our market leadership position. In India there is large demand supply gap in certain pockets primarily central and Eastern India which remains geography of interest to us. Our history of successful partnerships and upscale of the acquired business over a period gives us confidence to pursue this strategy.