Healthcare Global Enterprises Ltd
NSE:HCG
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Healthcare Global Enterprises Ltd
Earnings Call Analysis
Summary
Q1-2025
HealthCare Global Enterprises (HCG) reported its highest ever quarterly revenue of INR 526 crores in Q1 FY'25, reflecting a 17% growth year-over-year. Excluding the Fertility business, revenue hit INR 511 crores, driven by increased volume and better realization. A standout performer was the Kolkata center, with a 73% revenue surge. HCG's EBITDA rose 21% to INR 93 crores, aided by operational efficiencies. The acquisition of MG Hospital in Vizag further strengthens HCG's position, promising 46% market share in the region. The company is on track for improved EBITDA margins of 19-20% this year and maintains a positive outlook for continued revenue and PAT growth.
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Ladies and gentlemen, good day, and welcome to the Q1 and FY '25 Earnings Conference Call of HealthCare Global Enterprises Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements cannot be guarantees of the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. [Operator Instructions].
I now hand the conference over to Dr. B. S. Ajaikumar, Executive Chairman of HealthCare Global Enterprises Limited. Thank you, and over to you, sir.
Thank you very much, and good morning. [Technical Difficulty]
I'm sorry to interrupt, sir. You voice is not audible.
Can you hear me now?
It's a little bit muffled, sir.
Hello? How about now?
Yes, now it's better.
Better? Okay. good morning, and a very warm welcome to everyone on the Q1 FY '25 Earnings Conference Call for HealthCare Global Enterprise. Today, I'm very pleased that we are joined by Mr. Raj Gore, our CEO; Ms. Ruby Ritolia, our CFO; and our senior management team, along with our Investor Relations advisers SGA.
We have commenced FY '25 as planned marked by robust operational and financial performance across our network. Our centers are performing as expected or even better, reflecting our commitment to medical excellence. I am confident that this momentum will sustain our growth trajectory in the years to come.
A key milestone during the quarter was expansion of our footprint through acquisition of Vizag-based Mahatma Gandhi Center Hospital & Research Institute. This center under the leadership of Dr. Murali K.V., a distinguished oncology surgeon in Andhra Pradesh has established a strong brand in the region. Vizag will undoubtedly play a key role in shaping our growth types, particularly since you already have a center, good center running there. We consolidated our presence to become the single largest player in the region.
On the industry front, there has been a lot of discussions in the past. And of course, we saw health care allocation to the budget, which was rather minimal, but there were some -- in terms of the drugs, there were some a leeway given for the customs duty, which may be helpful for some of our cancer patients. But more importantly, there has been some circular, which I read yesterday on the, government has done away with the requirements for clinical investigation for new drugs, and by this regulatory approval in U.S., U.K., Japan, Australia, Canada, you saw all that is needed. So this is a very important milestone because new drugs can channel to India very quickly. That is one of the things we were lacking in the past.
So with this, there is a clinical trial waiver. And because of this, hopefully, as oncologists for us, we will have access to new drugs, which will certainly help to give a better outcome to our patients. In this regard, I would like to add that every 3 months, there has been change in the how we manage cancer patients, new drugs, targeted drugs, antibody conjugate drugs, and so many developments are happening in personalized medicine.
Certainly, we are at a crossroad to become one of the major centers in the world to treat cancer patients. And HCG has taken a lot of initiatives, as some of you are already aware, in research, in academics, conducting tumor boards across our 27 centers. And also, I'm happy to say we're truly become a destination. I am extremely proud of it with nearly 400 oncologists what we have.
And we are also into innovation. We are doing a lot of computational work this Accenture as our partner to identify what really the way to treat a specific patient with a specific and the idea is to treat the patients the first time the right way, and we are truly excelled in it.
[indiscernible] data suggests we are equal or better than some of the best centers in the world. And I am immensely proud of HCG team. It is a collective effort over every HCG, and that a subset to serve the larger cost of our ultimate stakeholders who are our patients with conviction and credence.
In this, we have definitely called out as I said, a destination of world-class entity in our country. I would like to now express my gratitude to all of our stakeholders for their continued support in this wonderful journey.
I would like to now hand over the call to Mr. Raj Gore, our CEO, who will provide insights into our strategies moving forward and share the operational performance of the quarter. Raj?
Thank you, Dr. Ajai. A very warm welcome to all the participants on the call. We are very pleased to report another quarter of strong financial and operational performance. Our revenue for Q1 FY '25 is all-time high at INR 526 crores, reflecting a growth of 17% adjusted for discontinued center at MSR in Bangalore. HCG centers, excluding our Fertility business also recorded an all-time high revenue of INR 511 crores, reflecting 18% year-over-year growth adjusted for discontinued center at MSR in Bangalore, resulting from strong volume growth and improved realization.
Our consistent effort on operational efficiency has resulted in the reduction of a loss from 2.13% to 1.98%, thereby creating additional capacity and higher ARPOB, which has increased by 12% year-on-year.
Let me highlight some recent reclassifications of our established and emerging centers. We have now classified only three centers as emerging, two in Mumbai, Borivali and Colaba, and one in Kolkata. The rest have been reclassified as established centers after a detailed assessment. We believe these reclassified centers are approaching established status. The centers in Mumbai and Kolkata are still evolving, and we have implemented multiple initiatives to enhance their revenue growth... [Technical Difficulty]
I'm sorry to interrupt, sir. You line is breaking. Now it's better, sir. You go ahead, sir.
Okay. The centers in Mumbai and Kolkata are still evolving, and we have implemented multiple initiatives to enhance their revenue growth and margin profiles. Notably, the Borivali and Kolkata centers have shown robust growth trajectories.
This quarter, the Kolkata center also has performed exceptionally well, having a revenue growth of 73% year-on-year, turning from PAT in terms of profitability, resulting in group EBITDA of [indiscernible] compared to the same quarter margin. We expect substantial states in these centers as the revenue revenues grow resonating into better EBITDA margin in the next 12 months.
Another key highlight for this quarter is our proposed acquisition of an 85% stake in MG Hospital in Vishakhapatnam at an enterprise value of INR 414 crores. Established in 2005, MG Hospital is the leading private comprehensive cancer care providers in Vizag, holding approximately 30% market share. It boasts a robust oncology-focused infrastructure with two LINAC machines, one Pet CT, one robotics surgery system, and a dedicated bone-marrow transplant unit and 200 beds. Since its inception, MG Hospital has performed over 30,000 radiation therapy treatment. 150,000 chemotherapy sessions, 400 plus robotics surgeries, and more than 20,000 complex cancer surgeries. It has a strong financial track record with revenue growing at CAGR of 15% over the last 10 years.
The hospital has consistently delivered an EBITDA of over 30% with an EBITDA margin of 35% for FY '24. It is a net debt free company with a pretax ROCE of over 30% and approximately 70% cash flow conversion from EBITDA.
Going forward, we'll leverage the HCG brand to enhance our revenue profile through improved procurement, operational efficiencies and synergies in overhead expenses. We will also cross-deploy learnings across our hospitals to further drive business efficiencies. We believe that the acquisition of MG Hospital will consolidate our market share in Vizag, positioning us as the undisputed leader in the region with a combined market share of 46%, promising significant synergy and growth potential ahead. We are extremely delighted and happy to launch our customer app.
Some of the unique functionalities are first of its kind in the industry and goes in sync with our vision of adding lives to years when it comes to cancer care. In the first quarter of rollout, we have been able to extend cancer care through our app to almost 8,000 [indiscernible].
In our journey to provide value, we have also moved ahead in e-pharmacy model for our patients as committed in the beginning of the year. We have been able to service 58,000-plus orders on e-pharmacy platform. These are the early green shoots and the responses have been very encouraging. Overall reach for our app download stands at 8,000 plus at the end of Q1 FY '25 and has exceeded our expectations.
As part of our strategy, we have also invested in expanding our Medical Tourism business, focusing on attracting international patients. Our hospitals in major cities like Mumbai, Bangalore, Kolkata, and more recently, Ahmedabad, provide us with a location -- locational advantage in attracting medical tourism patients. This segment is particularly valuable, and which reflects on the confidence international patients have on HCG as cancer care destination.
In Q1 FY '25, our international business generated INR 20 crores, highest for any quarter. This segment has been growing rapidly, and we are optimistic about maintaining this momentum moving forward. Over the years, we have established strong local market leadership in each of our locations. This has been achieved through a steadfast commitment to excellence, continuous innovation and deep understanding of the unique needs of the communities we serve.
Lastly, I would like to highlight that we are witnessing higher revenue growth momentum in the current year compared to the last year reflected in HCG's revenue growth of 16.7% in Q1 FY '25 compared to 13.7% overall growth in FY '24 adjusted for our discontinued center at MSR in Bangalore. Initial month's performance in Q2 is healthy too and is expected to be better than our expectations.
With this, I hand over the call to Ruby to take you through operational and financial highlights. Thank you.
Thank you, Raj. Good morning, everyone. I am delighted to share our performance for the quarter, which shows a strong 14% year-on-year growth, meeting our top line to INR 526 crores for the first quarter of FY '25. Our HCG centers, excluding Milanns, have delivered an impressive 15% year-on-year revenue growth, driven by consistent volume increase across all modalities.
This solid performance is reflected in our key operating metrics, which have shown significant improvement across the board this quarter. OPD footfalls increased by 10%, complemented by a rise in patient inquiries and intake through our digital channels. We achieved the 17% year-on-year growth in chemo therapy sessions, a critical were for our medical oncology offering. Even with the addition of 4 million relapse compared to the previous period, we have successfully maintained LINAC capacity utilization at 65%. Our pay-per-use model continued to provide flexibility of quicker installation with minimum capital expenditure. [Technical Difficulty]
I'm sorry to interrupt, ma'am. Ma'am, your voice is breaking, ma'am.
Is that better?
Yes. Now it's better.
With higher volumes and a solid 61% utilization of operational beds, we are witnessing improvement in both volume and realization across all modalities. Revenues from Milann stood at INR 144 crores, a dip of 12% on account of discontinued operation in our Delhi center.
Regarding the performance of our established and emerging centers, we continue to deliver market leading growth with established centers growing by 14% and emerging centers by 33% year-on-year for the quarter. Our focused approach to enhancing the performance of our Kolkata center has ended positive results. Over the last 4 quarters, we have seen increased revenue at our Kolkata center with operating leverage playing a significant growth. Kolkata grew by about 73% in revenue in quarter 1 Y-o-Y. And based on this, achieved a double-digit EBITDA margin of 14% in quarter 1 of FY '25. Our South Mumbai center is also on track to break even this year.
Some of the other highlights during the quarter includes an ARPOB of INR 44,340 reflecting a 12% increase year-on-year. Increased operational efficiency, reducing the ALOS for patients less than 2 days also enabling the growth in ARPOB. [Technical Difficulty]
Your voice is not audible, ma'am.
Is it better?
Yes. Now it's better, ma'am. Can you just repeat.
You may want to switch of your radio.
Our EBITDA for quarter 1 FY '20 was INR 93 crores compared to INR 77 crores in quarter 1 of FY '24, marking a 21% growth. Supported by robust growth EBITDA increase is led by a high degree of operational leverage in our business with rising revenues supported by us to splendid performance in the month of July, we anticipate that margin will grow at an even faster pace moving forward. While salary revisions and other ancillary costs typically impact the first quarter, we expect higher operating leverage in the coming quarter on higher revenue growth as evidenced in the previous years.
Our EBITDA for emerging centers has also now stabilized and is growing. We have maintained positive EBITDA for these centers for over 4 quarters and are optimistic about increasing margins on a quarter-on-quarter basis. PAT for the quarter was INR 12 crores, up from INR 7.6 crores a year ago, representing a 59% growth. With increased revenues leading to higher EBITDA impact, we believe we will continue to enhance our PAT performance.
[ ETR ] for the quarter was 28.2%, driven by reduced losses in subsidiaries mainly turnaround in Kolkata, Nagpur and Vadodara. We expect ETR from year onwards to be in the range of 30% to 32% for the rest of the year. CapEx for the year -- for the quarter was INR 80 crores, and we expect the CapEx to be in the same range, including investments in the new facilities like [indiscernible], North Bangalore during the year.
We have added INR 200 crores of ROE on account of the new facility in Ahmedabad, which we operationalized in the last quarter and as well as the up and coming North Bangalore opportunity. Additionally, we announced MG Cancer Center and Research Hospital acquisition in Vizag earlier, earlier this quarter, and we will be ready to consolidate post-completion of condition precedents, including the pro-forma EBITDA of MG Hospital, we have successfully surpassed the INR 100 crore mark in EBITDA for quarter 1 of FY '25. We have uploaded a detailed presentation for other operational and financial KPIs on stock exchange and company website, and we may request you to visit those for further details.
With this, I would like to open the floor for question and answers.
[Operator Instructions] The first question is from the line of Gautam Rajesh from EverFlow Partners.
I have two questions. My first question was what sort of margin profile you expect in the existing business for the full year, excluding the acquisition? Do you think we can still get a 20% EBITDA margin for the full year.
Yes. So the EBITDA margins, as Raj mentioned earlier in the call that we have reclassified some of our relatively newer centers to established bucket. They are still at a lower EBITDA margin. As revenues increase, we expect the EBITDA margin of these centers to the resulting into overall EBITDA margin expansion in our established bucket.
The question is what he asked was will you be close to 20% for the year.
Of the service centers.
Of the established centers. Am I right? That was your question, no?
Yes. For existing businesses, excluding acquisitions, do you think we can still reach the 20% EBITDA for the full year?
Yes, we should expect the similar rate.
Between 19% and 20% is what we expect for us.
Understood, understood. And my second question was, what sort of growth do you see in the existing hospitals or the established businesses for the full year, for full year perspective?
I think the growth trajectory will continue as it is, which was established around 13% to 15%. Our current growth is 14%, which has been that range. And it even increases that 13% to 15%.
[Operator Instructions] The next question is from the line of Nitesh from Crystal Capital.
So a couple of questions. So you mentioned that Q2 started on a positive note. So is it fair to assume that if you see a 15% Y-o-Y revenue growth in Q2 and possibility of INR 100 crores plus EBITDA?
So I mean, the early indications that we see, I mean, historically, our quarter 2 performance over quarter 1 has been almost about 5% to 6% growth, and we are seeing similar better growth what we have seen in the historical periods. And this should result and you were probably 14%, 15% growth as I as mentioned.
Understood. And when should this reflect in PAT growing to a meaningful level? Because right now, we are on a reported part of around INR 12 crores for this quarter. When should this flow down to our PAT numbers?
Some of -- for the PAT growth, some of our subsidiaries, which are lost within are currently pinning down the PAT growth. But now as they turn profitable, we are also able to take a benefit of better ETR. If you see our current year current quarter, ETR is about 28%, significantly down from the previous year, and we expect to maintain ETR at these levels. But of course, it will not be an immediate bump, but it is slowly and steadily moved in the right direction.
[Operator Instructions] The next question is from the line of Hemant Agarwal from Leo Capital.
So my first question is for Dr. Ajai. So there has been news in the market of private equity, promoter looking to be exit, right? So would the existing promoters, and management also be looking to exit as a part of that transaction?
No, I really would not like to comment anything. As far as I have made public statements at this point, I don't have any intention of exiting. And regarding our CVC exit also, they will be the ones to answer. But right now, our goal is to focus on the growth of HCG medical excellence, that's what we are doing. So I really cannot comment on those things.
Sir, my second question is, so has there been any increase in our competitive intensity for oncology hospital in Jammu, like multi-specialty hospitals seem to be in a very good upcycle with lifetime high margins, and our margins haven't yet reached 20% mark. So is there something from a market perspective, which is pulling down the growth and margins of our company.
I think when you look at us as a single-specialty hospital. And with the way we have navigated over the years, I think we believe as a single specialty, we have done very well with our margins reaching close to 20%, which I think is good for a single-specialty oncology focused group. I really cannot comment on what is the margins of multi-specialty. Best of my knowledge, they are in the low 20s also most of the centers.
And considering our new centers, which we opened several centers which are coming up to par and all, as we know, our Mumbai center Kolkata center are all doing good and decent acquisition of the Vizag center, and our overall growth of mature centers 15, we will continue to see improvement in the margin. And will with all -- with some of the things we have done in terms of our replacement CapEx and all they have done extremely well.
So we see a good growth going forward, and this will continue, but I cannot really say whether oncology is a better or multi-specialty better. But I do believe the other focus being only oncology and medical excellence, that is how we can seek it can, and we are really on the path to creating this as a destination with good, good margins, and you will see also in the coming years, a good return on capital investment will also happen as all these centers come to a mature level.
Right. So basically, we have lost much that in calendar.
This is Raj here. I just want to add what Dr. Ajai said. Look, I think with HCG's focus on cancer care, we have actually pioneered this field and showed the way, right? And the focus that other players have put in oncology, is not something that is happening this year or last year. It's been happening over the last few years.
If you look at our revenue CAGR for the last 4, 5 years, it's one of the best in industry in spite of increased focus on oncology. Multiple markets, multiple locations, we've been able to grow our market share in spite of increased interest from other players.
I think our focus is the way we have shown the way, the way we have pioneered the way in cancer care, we want to continue focus on giving the best possible care to our patients with the best possible outcomes, and we don't necessarily think or too much worry about competition, focusing on oncology.
What has worked for us we believe that we'll continue to work us even for us, with our focus on innovation and research, and we would stay focused on it.
The next question is from the line of Abdulkader Puranwala from ICICI Securities.
So could you throw some light on the lower tail off what we had in this particular quarter, any color as to what has driven this and is that something what we are targeting has been 2 days doing that as well?
No, I just want to say [indiscernible] what we always focus, how to reduce the ALOS and particularly with the number of days per surgery coming down, today, even complicated surgeries we discharge the patient in a matter of 2 days. And a lot of them are day surgery. And as we know, the radiation oncology is all day, and even chemotherapy now, admission for chemotherapy is done only for few diseases like treatment of colon cancer. But otherwise, most of it is a day.
So all is the trend moving towards limited admission required, our ALOS is coming down, which I think is very good. That is our target to be below 2. And I think we have achieved it, and we'll continue to pursue this matter this the way we have done. That is a mark of excellence in my opinion.
Raj, do you want to add? Raj?
No, I agree with Dr. Ajai. Over the last many quarters, we have continuously been reducing total -- is that clear? [Technical Difficulty]
Sorry, your line is not clear.
Is it clear?
No, sir. It's a little breaking.
Okay. I will speak slowly. Yes, I think if you look at our ALOS trend over last few quarters. We continued reducing our ALOS. It's a function of our focus on minimally invasive surgery, the robotic surgeries, better efficiency to minimize our patients stay in our hospitals. And I think we will continue to go in this direction going forward. It has created more capacity for us because of better efficiency and also has helped us to improve our pump by about 12% Y-o-Y this quarter. So I think we are moving in the right direction, and we'll continue to move in that direction.
Got it. And sir, second question is on this Vizag acquisition. So on consolidation, would you classify that as an established center?
Yes, yes.
Yes.
Yes, it will be an established center, and also it will be positive for us all around.
Understood. And sir, the guidance that you provided earlier on this call of 19% to 20% EBITDA, does that factor Vizag? Or you are talking about the existing beds, what is in the network?
That will include Vizag. It will not factor Vizag.
It did not, okay.
The next question is from the line of Dhara Patwa from SMIFS Limited.
Sir, can you throw some more light on this MG Hospital, like what could be the revenue which we would be expecting in the next 3, 4 years from this unit? And what kind of ARPOB this unit has.
So see the current level of revenue -- I mean the current level of revenue, quarterly is close to about INR 30 crores plus, and that is regarding in the 35% EBITDA margin. We are not looking at our MG Hospital in isolation. As you all know, we do have an existing center in Vizag, and the center is also operationally is running very well for us. Together, we center -- together with MG, this would constitute almost about 46% of market share. And we expect in that market, we grow -- about 10% to 12% going forward.
So I understand the hospital had EBITDA margins of 35% despite being in cancer care, which is a highly capital-intensive industry. So could you share something, like what are they doing differently to get these kind of high margins? Is it the operating leverage which they are getting or maybe the low-cost doctors, which is now helping them to keep the cost in-check. Any color on that?
Yes. So as you rightly said, the scale at which Mahatma Gandhi Hospital is operating is helping them to result in to 35% EBITDA margin. We do have some of our centers, which is generating close to 30% margin, which is operating at a similar scale of what -- hospital is operating. Their operating cost is a little lower given that this is a stand-alone hospital and less corporate cost, which is resulting into a higher operating margin.
I think they're being a single center, so obviously, there will be no corporate costs or other costs associated.
And secondly, it has a surgeon Dr. Murali, who is running it. And we believe that is like what Ashutosh said, some of our centers like Bangalore, other center of excellence also is close to 30% margin. So it is in the range of what we established centers are, and that is why we feel it's a good acquisition for us.
Sure, sir. One last question. Will we be doing any additional CapEx on the equipment side on this Vizag unit? Or will it just start it as it is? Or do we need that more specialties or modalities should be added in this unit?
No, I think at this time, we are not thinking of adding any other exit CapEx at this point. It is fully done. They have a robotic unit also. So they have all the necessary PET scan, linear accelerators, everything. We are actually adding a linear accelerator to our Vizag center. So together, we will be very good in about at least four linear accelerator, two PET scan, and one robotics. So you will then capitalize, combine together for next several years.
[Operator Instructions] The next question is from the line of Nitesh from Crystal Capital.
My question is on the Ahmedabad phase 2. So how is the phase 2 ramping up? And have you commenced operation as the expected date of operation on Slide 36, states Q1 FY '25?
Go ahead, Raj, please.
So we are very happy that the project is almost complete. It's a beautiful infrastructure, very modern, very advanced. We have already moved our OPD services to that hospital. Towards the end of first quarter we have moved out daycare services. Very soon, we'll be moving out -- moving our inpatient services. So we are well on -- hit or revenue growth in Gujarat market.
Okay. Another question is our finance costs have gone up in Q1 around INR 8 crores year-on-year, and INR 7 crores Q4 to Q1. What's the reason for this increase in finance costs? And is there other any one-offs over there?
Yes, sure. So the finance cost, if you see, one, there is an ROE that got added in the current quarter as well as last quarter. This includes the ROE that we created in Ahmedabad, in North Bangalore, and we also added previously in Kolkata when we renewed our [indiscernible]. So there is an impact of that. Plus in the current quarter also, we have funded about INR 50 crores got into CapEx as we did around INR 80 crores of CapEx in the current quarter and of that INR 50 crores, [ 300 ] through which there is an increased finance costs on that account, which is coming in.
Secondly, there is a positive impact in the previous quarter when we did a [indiscernible] statement went we had to both. There is a INR 2.5 crores of benefit in the previous quarter, which is quarter 4 of FY.
[Operator Instructions] The next question is from the line of Viraj Shah from Shah Investments.
How are you seeing our international business as we have seen a good growth this quarter. Can you throw some light over there? Any outlook front or something like that?
Yes. So as we said, this has been our highest ever quarters. We -- at the current run rate, we are almost 2x of what our pre-COVID international business was. As you know, as earlier stated, we have four cities that we focus on as destinations for inbound international patients. Bangalore, which has always been with lion's share, Mumbai two hospitals, beautiful advanced infra, Kolkata with close proximity to Bangladesh, Myanmar, and Nepal, and Ahmedabad with some deeper connections in Eastern Africa.
With our efforts over the last 2, 3 years to have more information centers in -- geographies, have more institutional tie-ups with insurance companies. [Technical Difficulty]
Sir, you're not audible.
Can you hear me now?
Yes, yes.
Yes. So with our continuous efforts over last 2 to 3 years to develop more markets, more countries in SARC, in Middle East, in Africa, doing more activities, taking our doctors there for more frequent visits, doing CMEs, outreach efforts, having more institutional tie-ups in this market with insurance companies, institutions. [Technical Difficulty]
Sir, you're not audible.
Hello? Sir?
Can everyone hear me?
Very loud and clear, yes.
If I'm not clear, maybe Ashu can expect it from there.
Yes, there was one more question. So any outlook on further inorganic opportunities in medium term?
For international. Are you asking for international?
Yes.
No, inorganic opportunities.
On international front.
You're talking about inorganic.
Yes, yes. Inorganic opportunities.
We are evaluating inorganic opportunities. We continue to do so. However, there is nothing which is very mature at this point of time.
At this point with the two [indiscernible]. At this point, with acquisition, we have Vizag and Indore. We are trying to consolidate. Of course, we will be looking at some inorganic -- if we strategically see we need to do. And as and when it happens, of course, we'll inform the markets.
The next question is from the line of Ashish Sriram from JM Financial.
So, sir, this wisdom -- vicinity in a lot in hospitals, which are coming on who are aware that we target oboes. And obviously, fair to assume that. [Technical Difficulty]
We can't hear you. Hello? We can't hear you. What is the question? We can't make up. Hello?
Yes, sir.
We lost the contact.
So the connection is established.
Hello? Sir, can you hear me? Ajai sir, can you hear me?
Operator, he is on mute.
Hello? Sir, can you hear me? Hello?
Hello.
Yes. Sir, can you hear me?
I think we lost him.
Sir, can you hear me? We have connected with the management lines. [Operator Instructions] The next question is from the line of Shah from Equity Analyst.
I kind of missed the comments about CapEx in the initial remarks. Can you just give me a guidance for the next 2 years?
For the current year for the current quarter, we did a CapEx of about INR 80 crores. And for this particular year, we will maintain a similar range in the current year for the rest of the quarters also. And this is on the back of some of our brownfield facilities and the new facilities which are coming up.
[Operator Instructions] The next question is from the line of Dhruv Shah from Dalal & Broacha.
Sir, just one question on your debt reduction plan. So from where do we can expect -- start coming down.
Yes. As you know, our debt once the acquisition of Vizag is completed, will go up initially by INR 200 crores. And later on, there is another INR 150 crores after 18 months to complete the 85% acquisition.
We have already internally, we have decided that we -- at the right time, we will be seeking the Board -- and the Board has been informed and at the right time, we'll be seeking approval for primary, which will bring down the debt significantly. And we will, of course, convey at the right time what will be the size of the primary.
Our intention is to certainly keep the debt to equity ratio at a certain range so that it is within the -- what we internally we accepted.
Ashutosh, do you want to comment on that, you think?
Nicely said. Internal benchmark per [indiscernible].
Sir, can you speak a little louder.
So what we were saying was that internally, we have decided to keep our and debt-to-EBITDA level to around 2.5x on a previous level basis. And the same was communicated in the market early on. With this [ debt ] levels, we will be seeking primary -- will be increasing primary in the future as the privates.
That was the last question for the day. I now hand the conference over to the management for closing comments. Over to you, sir.
So thank you once again for joining us, and thank you for your interest in HCG. As mentioned earlier, we've had a fantastic performance in first quarter of this year. We've accelerated our growth, top line and bottom line compared to last year. We've seen good momentum in the second quarter in the first month of second quarter, and we are very confident that we will continue in this growth trajectory going forward for the remaining year.
We request you to keep in touch and join us for -- during the next quarter. Thank you so much, and have a good day.
Thank you. On behalf of HealthCare Global Enterprises Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.