Ladies and gentlemen, good day and welcome to the HealthCare Global Enterprises Limited Q1 fiscal year 2027 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suraj from CDR India. Thank you. Over to you, sir. Thank you, Sagar. Good afternoon, everyone. Thank you for joining us on HealthCare Global Enterprises Q1 fiscal year 2027 earnings conference call. We have with us Dr. Manish Mattoo, Executive Director and Chief Executive Officer, Mr. Sanjeev Kumar, Chief Financial Officer, Mr. Ravi Gothwal, Head Investor Relations. We would like to begin the call with opening remarks from the management, following which we will have the forum open for an interactive question-and-answer session. Before we start, I would like to point out that some statement made in today's discussion may be forward-looking in nature and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Dr. Manish to make his opening remarks. Management, please go ahead. Good afternoon, everyone. Thank you for joining us for HCG Q1 fiscal year 2027 earnings call. Before I begin, I would like to warmly welcome our new Chief Financial Officer, Mr. Sanjeev Kumar, who has recently joined HCG. Sanjeev brings more than three decades of experience across finance, strategy and business transformation. I'm delighted to have him as part of our leadership team. His experience will further strengthen our execution capabilities as we continue to build India's leading oncology platform. As we enter fiscal year 2027, our focus has progressed from laying the foundation to executing our strategy and delivering consistent operational and financial performance. Over the past year, we have achieved several important strategic milestones that strengthen our position as India's leading oncology platform. We sharpened our strategic focus through the successful divestment of our fertility business, which was completed at the end of June 2026. We also strengthened our balance sheet through a successful rights issue, expanded our leadership team, successfully commissioned our North Bangalore hospital and continue to advance our brownfield expansion pipeline and other growth initiatives. With these foundational initiatives in place our priorities are clear, delivering sustainable profitable growth, driving operational excellence, improving asset utilization, enhancing patient experience, building our clinical differentiation, optimizing our revenue mix while reinforcing our leadership in cancer care. I'm pleased to share that we have started fiscal year 2027 on a strong note. During the quarter, HCG delivered revenue of INR 6,951 million, representing approximately 13% year-on-year growth. Our newly operational North Bangalore hospital, which commenced operations in May 2026, contributed INR 67 million during its very first quarter. More importantly, growth was broad-based with 16 out of our 25 centers, excluding North Bangalore, delivering their highest ever quarterly revenues, reflecting sustained patient demand and improving execution across our hospitals. Revenue growth during the quarter was primarily driven by an 11% increase in patient volumes. ARPOB grew by 2%. ARPOB improvement driven by normalized highs and favorable care mix, partly offset by changes in case mix, including a lower contribution from high-value, low margin therapies. Our objective is not to merely grow faster but to grow with a better quality of earnings by treating more complex oncology cases, improving our patient mix, enhancing productivity and generating stronger returns on the capital we deploy. We believe this disciplined approach will create sustainable value for both our patients and our shareholders over the long term. I'm encouraged to see this strategy translating into visible outcomes. During the quarter, non-institutional business revenue grew by 17% year-on-year. As a result, our care mix improved with non-institutional contribution increasing from 67% in Q1 fiscal year 2026 to 69% in Q1 fiscal year 2027. This gradual improvement in revenue mix is an important driver of sustainable profitability and strengthens the long-term quality of our earnings. On the profitability front, reported EBITDA for the quarter stood at INR 1,223 million. Excluding losses from North Bangalore and one-off costs, adjusted EBITDA increased by 20% year-on-year to INR 1,339 million, with EBITDA margins improving to 19.4% from 18.2% in Q1 fiscal year 2026. This demonstrates that the underlying operational performance of the business continues to strengthen. Overall, our Q1 performance reflects healthy operating momentum across the network, supported by robust patient demand, improving operational execution and continued progress in enhancing our revenue mix. Let me now briefly touch upon the performance across our operating clusters. The South cluster delivered another strong quarter with the revenue growing approximately 16% year-on-year, supported by healthy growth in both patient volumes and realization. We also witnessed continued improvement in the cash and payer mix across our Bangalore Center of Excellence and the Vizag cluster. As a reminder, the South cluster numbers include the newly commissioned North Bangalore Hospital, which contributed INR 67 million of revenue. The West cluster reported a growth of 9%, led by the Maharashtra region, which grew by over 14%, while growth in the Gujarat remained relatively moderate during the quarter. Overall growth was led by volume, which grew 11% year-on-year, and ARPB remained broadly stable during the quarter. The benefits of an improving pay mix were largely offset by changes in case and service mix, including a higher share of medical oncology patient profiles, which typically carry a lower average revenue per patient. Furthermore, institutional business in West cluster declined by more than 16% year-on-year, which moderated overall revenue growth of the cluster. This is consistent with our strategic focus on improving the quality of revenues, and we expect this business to be progressively replaced by higher-value cash and non-institutional patients over time. East cluster delivered strong 22% revenue growth during this quarter, driven by robust volume growth across the region. Despite temporary moderation in ARPB, healthy patient volumes continued to support strong top-line momentum. We remain confident that a significant increase in patient throughput provides a strong foundation for future growth. This provides us with adequate financial flexibility to fund our expansion pipeline while maintaining a disciplined approach to capital allocation. Looking ahead, I am particularly encouraged by the initial performance of our North Bangalore hospital, one of our most important strategic investments. In the very first quarter, the hospital recorded over 550 new patient registrations, more than 300 admissions. While the hospital is still in the stages of its ramp-up, these early operating metrics reinforce our confidence in the long-term potential of this asset. We expect utilization to improve steadily over the coming quarters as insurance empowerments are completed, onboarded physicians ramp up their practices, and awareness and brand recall in the surrounding catchment continues to increase. Our capacity expansion continues to progress well and remains an important growth driver over the coming years. During the quarter, we added 121 operational beds across the network, including 61 beds in the South cluster, 27 beds in West, and 26 beds in East cluster, and seven beds in our Kenya unit. Looking ahead, we have plans to add additional 65 beds in fiscal year 2027, 520 beds in fiscal year 2028 and fiscal year 2029, and 230 beds in fiscal year 2030. Nearly 60% of our planned capacity expansion continues to come through brownfield projects, enabling faster execution and low CapEx, whereas three greenfield projects are in the pipeline, and we will share more details once finalized. Please refer to slide 12 of the presentation for more details. Alongside bed expansion, we continue to strengthen our clinical capabilities by investing in advanced technologies. During the quarter, we commissioned a new LINAC in Rajkot, completing its transition into a comprehensive cancer center. We also enhanced our robotic surgery capabilities with the addition of two surgical robotic systems, a new installation at Nashik, and a replacement at our Bangalore COE. Center of excellence remains at the heart of HCG's clinical reputation. During the quarter, our team successfully managed several highly complex oncology cases across surgical, medical, and radiation oncology. These included advanced CAR T therapies for relapsed hematological cancers, rare anatomical cancer surgeries, first-of-its-kind minimally invasive thoracic procedures, and complex organ-preserving oncological surgeries. Such cases reflect the depth of our multidisciplinary expertise and reinforce HCG's position as a referral destination for complex cancer care across India. Overall, we are encouraged by the momentum we are seeing across the business. The strategic actions undertaken over the past year have significantly strengthened HCG's platform. We believe the company is well-positioned to deliver consistent, sustainable, and profitable growth while further consolidating its leadership position in oncology care. With that, I would like to hand the call back to the operator. I will be happy to take your questions. Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press Star and then One on their touch tone phone. If you wish to remove yourself from the question queue, you may press Star and then Two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press Star and then One now. Participants, you may press Star and then One to ask a question. Your next question, sorry, your first question comes from the line of Sumit Gupta from Antique. Please go ahead. Hello, am I audible? Yes sir, you're audible. Good afternoon. First of all, congrats on the good disclosure in the PPT. I have two questions. Firstly, how is the performance in the various buckets of the performance revenue where in last quarter PPT you highlighted some buckets. More than INR 10 crore of revenue for one month and then INR 5 crore-INR 10 crore. How is the performance in those buckets this quarter? We are not sharing a quarter. Sorry. Hello. Sorry, repeat the first question again. The lines are bad. Yes, sir. Basically, my question is on the performance of the various buckets of the revenue. Basically in the more than 10 crore per month revenue and then 5 crore- 10 crore. How is the performance in those buckets this quarter? Hello. Yeah, you mean you're referring to the revenue buckets that we have alluded to in the presentation. Yes. This quarter you have not edited that. How has that performed? Yes. That's right. We believe it will be an annual disclosure. However, since you've asked that question, the bucket with more than INR 10 crore per month revenue, we've got from last year's four hospitals, we moved to seven hospitals. We've added three new hospitals to that. The bucket with INR 5 crore-INR 10 crore per month revenue, that number has gone down from 14 to 11. We are seeing more and more hospitals moving up that ladder of higher revenue numbers per month. The last category with revenues of less than INR 5 crore per month, that number has gone from six to seven with the addition of North Bangalore to that group. Okay. What will be the likely growth in those buckets? Hello? I don't have that number. Yeah, I don't have that number right now, but I can offline connect with you and give you that. Understood, sir. Understood. Sir, second question is, like in the trend presentation that you have highlighted, in fiscal year 2028 and 2029, there are 180 beds on the Greenfield site. When do you expect these projects to be formed? These 180 beds will obviously come from two Greenfield projects. One of them is in our South cluster in Whitefield, the other one is in Maharashtra, in our West cluster. I think the likelihood of the first one to operationalize is somewhere at the end of fiscal year 2027-2028, and the other one in the subsequent year. Understood, sir. Thank you. All the best. Thank you. Thank you. We take our next question coming from the line of Chinni, an individual investor. Please go ahead. Yeah. Am I audible? Yes, sir, you're audible. Okay. My question is, can you paint a picture on the plans in reducing the borrowings? What's the strategy of the company in reducing the financial expense? Sorry, could you come again, please? Yeah. What is the strategy of the company in reducing the financial cost? If the company, going forward, would have a strategy to reduce the borrowings so that the profit would be evidently visible in the financial sheets. Sorry. Hi, Sanjeev this side. As you actually see that the interest cost has come down during this quarter because of the proceeds that we had raised from the rights issue that has been used for the purpose of repayment of some of the loans, almost amounting to INR 170 crore. We will actually continue to fund our growth through a mix of debt as well as internal accruals. Based on which, the interest cost will actually fluctuate from year to year. Certainly as of time in this year, we expect it to be moderated from the last year perspective as compared to last year. Thank you. I'll wait in the queue. Thank you. Before we take the next question, a reminder to all the participants, you may please press star and then one to ask a question. Your next question comes from the line of Aditya Chheda with InCred Asset Management. Please go ahead. Hi, good afternoon. As per the slide in investor presentation on bed expansion, the bed expansion compounds at a 8% CAGR from 2026- 2029 against our outlook of a mid-teens revenue growth. Would like to know your outlook on the same center growth, case mix, higher occupancy, et cetera. How this mix will contribute towards the overall outlook that you have on revenue growth. How are you looking at this internally? That's my first question. We remain confident of delivering the mid-teen growth from the existing centers, including the new ones that we are getting through the greenfield and brownfield expansion. Put together, as I said earlier also, we remain confident of delivering mid-teen growth, and there is no change in that outlook. Our focus will remain on margin improvement, which will improve progressively on the back of improvement in payer mix, high complexity of clinical work, paring down of the losses from the new hospital and better operating leverage coming from existing centers. I think it's going to be a mix of mid-teen growth and focus on increasing our margins. Right. Next question is on your outlook on the expected loss from the greenfield facility for fiscal year 2027. Also, now that the ESOP plan is approved, how do you expect the quantum to be charged going forward? Yeah, these are the two questions. Aditya, can you repeat your second part of the question? The ESOP plan that was approved, how do you expect the charge to sort of hit the P&L going forward? On your first question, Aditya, we are very excited about the way North Bangalore is starting to ramp up. As I mentioned earlier, we've done nearly INR 17 crore in the first quarter itself. For a comprehensive cancer center, that's a good ramp-up. And we are very excited by the quality of clinicians that we have on board. We have South India's second, and perhaps India's most modern MRI-Linac which gives a very sharp clinical differentiation. We are among the very few hospitals in this part of the country that have organ-specific surgical teams and we've got very good response from the community so far. Very excited about the ramp-up and how the early traction has been. We have onboarded key doctors. That process is completed. MRI-Linac commissioning happened in July. Most of the cost has been incurred and now we are focusing on creating awareness in the market through related campaigns. That process is on. As I think most of the costs have been built in, I think we've reached the peak EBITDA loss in this quarter. From here on, we feel as we ramp up clinician practices, insurance entitlements happen, and revenue goes up meaningfully, I think the losses will come down quite reasonably in the next few quarters. That's our projection for North Bangalore. And on the second question, the ESOP policy is undergoing final stages of approval and that charge will impact the company's P&L in quarter two. Okay. One last question was about the likely impact of the discontinuation of some of the chemo drugs. How much of the impact are we expecting in the current financial year from those? That's it from my end. The impact in Q1 has been about 1.5% on our top line, and that's why I think if we were to plow that back, the top line would have been around 15%. But having said that, we have discontinued those drugs because while they were high value, they were low margin. So while the impact is about 1.5% of the top line, it has been margin accretive for us, which is reflected in our margin expansion on a like-to-like basis. Thank you. All the best. For the next few quarters, it will remain in the same vicinity. Margin may come down also as it gets replaced by higher margin cashers. Okay, thanks. Thank you. Participants, if you wish to ask a question, you may press star and then one. The next question comes from the line of Jyothish Vijayan with Moat Financial Services. Please go ahead. Good afternoon. My question is on the operation excellence side. On the page three of your investor presentation, you mentioned that there are some key initiatives are underway. The first one is cost optimization and the second one is driving productivity improvement and the third one is enhancing the patient experience. Could you please add some color on what kind of initiatives are undergoing in the cost optimization side? On the cost side, we feel there is an opportunity across all the cost line items today. The work is happening both on manpower costs and other fixed costs across centers. We have been using a lot of automation and data analytics on that. As far as patient experience is concerned, cancer is a very serious illness and I think there is never enough that we can do to make our patient experience better in our hospitals. We have set up a dedicated team to look into areas where we can make the experience inside the hospital better when it comes to infrastructure, the services we are delivering. While many of our hospitals are doing a great job, I think there is still headroom for us to improve that. The third piece is around productivity. We are looking at both the clinical and the non-clinical productivity. How do we assist our clinicians with better technology and sales and marketing accelerated efforts to improve their practices? That's one part. The other part is the non-clinical productivity that will come through better conversion and plugging the revenue leakage. All that work is happening across the organization, which will be evident at the end of the day. More importantly, I think the big piece is that how do our patients, how does their experience inside our hospitals become significantly better. Okay, got it. My second question on the revenue growth side. How much the reduced revenue contribution from the ARPOB increase or the patient product mix increase or the volume increase? Could you please break down that also? The growth will be in line with our inflation. I think that's all the projection that I can give you today as of now. Are you there or not? Yeah, I'm here. Sure. Go ahead. Go ahead, please. On the last question from my side is, in this quarter, you completed the strategy exit from Milann. You mentioned that strategy exit will sharpen the focus on core oncology and enhance the management focus and execution. How that exit will guide or what will be the strategy for that or what was the exit from Milann? The focus is on building our technology, our clinical capabilities, starting new programs like CAR T-cell therapies in our major centers, starting bone marrow transplant program in major centers, improving the robotic surgical work that we are doing. The multidisciplinary clinical protocols that we have in our centers, how do we advance that in all the centers. I think it's going to be a mix of all that. The idea being how do we invest more in precision diagnostics, in precision oncology through targeted cell therapies, more advanced radiation therapy technologies. All that is aimed at giving our clinicians more tools so that they can perform better, more complicated procedures and deliver on better outcomes, which we are known for in any case. In that sense, these are focused on core oncology if you're referring to that in the presentation. Okay, got it. Okay, thank you. That's all from my side. I will be in the queue for the next question. Thank you. The next question comes from the line of Himanshu Binani with Anand Rathi. Please go ahead. Hi, sir. Thank you for taking my question. Sir, you have mentioned in your opening remark as well as into the press release in terms of there has been a record improvement or record quarterly revenues from 16 centers out of the 25 centers. Maybe if you can help us understand in terms of which bucket of the centers have actually moved up the value chain. What I mean is that the last quarter we used to report the INR 10 crore, INR 5 crore-INR 10 crore monthly revenue and below INR 5 crore bucket. Maybe if you can help us understand that. Actually, Himanshu, the growth has been broad-based across buckets. From the smallest size hospitals to the largest, most of the hospitals have done well. It's not restricted to any bucket. What has particularly happened is that three hospitals particularly have moved up from the INR 5 crore-INR 10 crore trajectory to INR 10+ crore trajectory. That's been a plus. You can see the quantum of growth that some of these three hospitals must have had. Again, just reiterating that the growth has been broad-based across regions and across the size of the hospitals. Okay. Sir, second, if you can elaborate on the fiscal year 2028, 2029 year 340 brownfield beds addition. If I actually look at the slide 12 of your presentation, the brownfield details which you have given, that is actually not adding up to 340 brownfield beds. Maybe what are the extra beds where you are adding up? This brownfield addition of 340 beds will be across our 25 centers. We have mentioned few of the centers, there are other additional centers where we have the capacity. We will operationalize more beds during the later part of fiscal year 2028 and 2029. Maybe if you can help the centers, most likely the beds can be added. Just to add to that, what Ravi has said, I think this is where the bed needs to be added is also an activity of assessment on an annual basis on the basis of the capacity and its utilization. That's the reason why we have actually that certain bed where there is a certainty capacity that is below. As a part of the annual exercise that we actually will undertake, let's say in the month of January to March quarter, we will actually again look at where are the other beds really required in various facilities, and we will take a conscious call to really add in those capacities. As far as the brownfield expansion is concerned, we know that there are a lot of facilities where brownfield capacity is available, which is indicated very clearly, that table is from a addition between the two years. In fact, this covers just six hospitals. These are the major meaningful additions in terms of quantum, but there are many other hospitals in this which are not mentioned here, like a Baroda, a Cuttack, a Ranchi, or many other hospitals which will have additions from 10 beds-15 beds which we haven't mentioned here. I think there's a long tail which as they improve their occupancy levels and all, and we'll have additions coming at the right time. Got it, sir. Thank you. Thank you. Participants, if you wish to register for a question, you may press star and then one now. The next question comes from the line of Devang Patel with Samiksha Capital. Please go ahead. My first question was on CapEx. How much did we spend in Q1? Apart from the CapEx mentioned in presentation, what would be our CapEx for maintenance and upgradation per annum? We have incurred a CapEx of approximately INR 750 million. As far as in particular is concerned, between the growth and the maintenance we have incurred almost INR 35 crore on account of growth CapEx and almost INR 40 crore in terms of the maintenance CapEx. Also, if you can indicate for the full year, what would be our spend on just maintenance and upgradation? On a year-to-year basis, if you look at the maintenance CapEx is likely to be approximately INR 100 crore in each year, that's what we are targeting to have. Okay. This is over and above the CapEx mentioned in for brownfield and greenfield CapEx, right? Yes. The CapEx that I mentioned is INR 35 crore, is actually growth and maintenance CapEx both. Okay. Our utilization level for the southern cluster was at 68% in fiscal year 2026. I know you put up a new hospital in North Bangalore, just your existing cluster, till what level of utilization can you take it without growth getting affected? The existing facilities can manage a utilization level up to 75%-80%. There is ample headroom for growth in our clusters across the board. Right. Yeah, my question was on marketing and promotion spends. One of our targets was to increase brand visibility. Have you seen a step up in the spends, a meaningful step up from earlier? Yes, definitely. We have doubled down on sales and marketing efforts because it's a specialty which relies a lot on these channels for bringing patient volumes. HCG enjoys a very strong brand recall in many markets, but it needs to be percolated down to all our consumers. We have doubled down on sales and marketing efforts and on branding efforts too, and you can see that in the spend. Could you give just a broad sense of how much percentage point increase has happened in the spends? Yeah. While we actually don't give the specific each and every expense. I can tell you that as far as sales and marketing is concerned, on a year-on-year basis, the expenses have increased by a meaningful more than almost 20%+. Okay. Just lastly, the new hospital opened at North Bangalore, you mentioned, you will break even in a few quarters. By what time period do you see that reaching full utilization or an optimum utilization? I think full utilization, I mean, very difficult to predict right now because it's dependent on many factors. I think the optimal utilization of 60%-65%, we should be anywhere between third year to fourth year of operations. Just to add to that, what we expect is the kind of form that we have got initially in our North Bangalore facility. We certainly expect to have a monthly breakeven in this year. Thanks. Just one last question. Now that we have the funds in the bag, is M&A also a part of our focus in the next 2 years, or that is something more beyond near term? No, definitely it is. Whenever we get a value-accretive opportunity which aligns with our values and helps to expand our presence in a new market or existing market, we'll definitely go for it. Okay. That's all from me. Thank you. Thank you. Participants, you may press star and one to ask a question. The next question comes from the line of Aditya Chheda with InCred Asset Management. Please go ahead. Right. Following the rights issue, what is the cash that was put in, how have you utilized that? The second question is, within the finance and depreciation, how much is attributable to the lease expense for this quarter? In terms of rights issue proceeds which we actually had, we have used INR 170 crore for the purpose of debt replacement, debt repayment, which is INR 170 crore. We also increased our shareholding in our Vizag facility from 51%- 85%. That also we used almost INR 150 crore. Almost INR 50 crore we actually used for the purpose of basically expenses, INR 95 crore were used for the purpose of general corporate purposes and specify in terms of the use of the rights issue proceeds. Right. On the depreciation and finance lease component within the total amount of roughly INR 110 crore. Could you please come again? The lease component that will be lying in the depreciation and finance cost for quarter one fiscal year 2027. What would be the lease component if you have to divide the depreciation into depreciation on assets and the lease component? I think in terms of the depreciation, if you actually look at during this particular quarter, the depreciation actually includes the depreciation on our new facility as well. Over a period of time this would also include the capitalization of certain recent growth investments that we have got as well as in future when we have the increased form of credits. Today it will be in the region of almost 9%, which has been there as a percentage. Okay. Got it. Thank you. A reminder to everyone once again, if you wish to register for a question, please press star and one. The next question comes from Devang Patel with Samiksha Capital. Please go ahead. In your comments, you mentioned in the West institutional share of revenues had gone down, pulling down overall revenue. Is it related to a particular state or a hospital? Is there a change in norm, or is that something, an effort that we have made from our side? As far as the concerned, when we have some of the growth which we may call the moderate growth, is largely on account of some of the reduction in the scheme business which is largely low margin immunotherapy therapies, and that has largely impacted the value growth. Maharashtra has actually grown well. It is only in Gujarat region which had a good high proportion of this kind of business, which we have deliberately cut down on and hence the growth. While the growth is muted, the margins are expanding. Right, sir. Thank you so much. Thank you. To ask a question, you may press star and one. The next question comes from Rajat with Tata Mutual Fund. Please go ahead. Yeah. Hi, am I audible? Yes, sir, you're audible. Yes. Yeah. Hi. Manish, my first question is that now that you have already spent close to one year or maybe more than one year in the system, I just want to understand from you that do you think things so far have progressed in line with what you would have expected, or has that been a little slower, both on the top-line front and on the margin expansion front? That's my first question. My second question is, now that you spent a decent amount of time, do you think that at the consol level, HCG can at some point in time, let's say two to three years down the line, this business model can operate at a 23%, 24%, 25% sort of margin level? Yeah, those are my two questions. Yeah, thanks. A very interesting question. I would say, I think we could have done better on both fronts, particularly on the top line, where we did face a couple of headwinds on the price capping and couple of those factors. I think on margin expansion, our trajectory has been quite good, I must say. To navigate those challenges and still grow at 13%, 14% so far, I would say reasonable growth, but definitely we could have done better. To answer your second question, we are very confident that with the deal set that we have in place, the opportunity that lies within the oncology segment across markets, the fact that we are present in so many markets across the length and breadth of country, we have a good opportunity to leverage on the centers which are maturing now and the clinical differentiation that we have and the patient trust that we have earned over these years. I think we are in a very good position to meet the 24%, 25% EBITDA margins in the next few years. Sure. Just to understand, can you tell us that out of the 25 hospitals you have right now, how many hospitals would be actually closer to that 25% margin level? Hello. Yeah, we have refrained from giving center-specific details the past also. I would say that I think definitely the number has increased over the last year. The fact that our key business, the institutional business has come down by 200 basis, has meaningfully added to our EBITDA margins at a center level also and overall at a consol level too. About 50% of our centers today, more than that actually, are in that range of 24%, 25%. Got it. Lastly. Sorry, 20%. I calculate. Okay, got it. Lastly, on the operating cash front, can you tell us what was the cash generation during this quarter? That's my last question. Thanks. Okay. In terms of the cash generation that actually we have got, we have almost got healthy generation when we really convert from EBITDA to actually cash generation. We almost had an operating cash flow before the working capital changes. If we look at almost INR 125 crore. INR 125 crore. INR 125 crore? Yeah. INR 125 crore of operating cash flow before the working capital changes. If we look at the overall net cash flow from operating activity, it will be in the region of INR 70 crore or so. INR 70 crore. Yeah, it will be approximately INR 70 crore from operations. Yeah, INR 70 crore from what? From operations. Okay. Sure. Thanks. Thank you. Your next question comes from Aryan Jain, an individual investor. Please go ahead. Yeah. Hi, am I audible? Yes, sir, you're audible. Please. Yeah. Sorry, I joined the call late, so I'm not sure if this was discussed earlier. In this presentation, you've disclosed that almost 30% of your revenue has come from government business. I just wanted to ask you how much of this would be attributable to the CGHS patients. The reason for asking this is that I just wanted to know if there was any impact from the CGHS price revision. Yeah, we answered this earlier. The impact was about 1.5% on the top line because of the price capping, but there was a positive impact on the margins. Will you be able to quantify this, the margin impact? Not right now, but we can get it often, but not right now. Okay, understood. The second question was, what steps are we taking to improve our case mix considering that our ARPOB this quarter were mainly impacted by the case mix? Thank you. These are my questions. The case mix is being driven by infusion of technology in many of our centers, whether it's in, for example, MRI-Linac we've got in North Bangalore, as well as the TomoTherapy, the surgical robots that we are getting in some of the centers, establishing the CAR T-cell therapy programs in several other centers, building the bone marrow transplant program, setting up genomics, again, a part of the precision oncology overall ecosystem or enabling our systems hospitals to have precision diagnostic capabilities. All these will add to improving the case mix. Aryan, sir. Yes. Those are all the questions. Thank you. Thank you so much. The next question comes from the line of Sumit Gupta from Antique. Please go ahead. Yes, sir. Thanks for the opportunity. Just want to understand, what were the utilization levels in all the three clusters? Can you repeat the question, Sumit? What were the utilization levels in all the three clusters, South, West, and East? We actually don't give the utilization levels at this point in time, and this is only an analysis site, and certainly we would be giving this information when presenting the March 27 financials. Okay. Directionally, can you highlight has it improved or what the occupancy has more or less been at the same level? Just want to understand, at least from the qualitative aspect. Yes, definitely they have improved sequentially also and vis-à-vis last quarter too. Sumit, you need to look at the volume growth. As we have highlighted, 7% is the overall volume growth. That's also an indicator that the assets are performing better utilized. No, that's fine. Within that, obviously, South would be discussing more or I presume West should be having higher rate of improvement in West versus South. Is this understanding correct? Cluster wise, it will be difficult to give right now, Sumit, but overall at a company level, suffice to say that both the utilization levels, occupancy levels have improved. Understood, sir. Cool. Thank you. Thank you. The next follow-up question comes from the line of Jyothish Vijayan with Moat Financial Services. Please go ahead. My question is on the EBITDA margin side. Despite a nearly only 2% growth in ARPOB, the adjusted EBITDA margin nearly expands 180 basis points to 90.4%, and which is mostly driven by favorable volume and revenue recognition policies. As the North Bangalore hospital ramps up and the company executes a significant expansion over the next three years, what do you believe is the sustainable EBITDA margin range over the next two to three years, and which will reverse that expectation? I think we've already stated our long-term aspiration is to get past that 21%-22% and reach the 24%-25% EBITDA margin. Given our performance in Q1, we are confident that we'll get there. In this, we're very confident that we are on track to hit those numbers. May I know the number? It's 21%-22% or 23%-24%? I said in the next two years, we are looking at a 21%-22% EBITDA margin. For the next four to five years, we are confident of clocking the 25% margin number. Okay, got it. The next question is on the marketing spend. How much is right now the marketing spend as a percentage of revenue? Is there any target that you need to set out for the marketing spend? Because of the North Bangalore launch, we're obviously doubling down on marketing in that place. It's gone up by 20% vis-à-vis last quarter. It's today at 2.9% of our sales. We want to keep it around that mark given the nature of our specialty and the competitive intensity in several markets that we operate in. You are keeping the same 2.9% for the longer term also, right? It will be in the 2.5%-2.6%. Okay, got it. Thank you. Thank you. Your next question comes from the line of Vedant Nilekar with ICICI Securities. Please go ahead. Hello, am I audible? Yes, sir, you're audible. Thank you for the opportunity. Congrats to the management for great numbers. I have just one question on the long-term margin guidance that the management just mentioned. What would be the levers for the margin expansion here in the next four to five years? The big piece will come from improvement in our payer mix. That's the biggest lever, and we've already seen that happen consistently over the last couple of quarters. Particularly in this quarter, we've changed the payer mix by 200 basis points positively, and I think it's going to improve in the subsequent quarters from here. The other piece is investing in the right clinical and technology to improve our clinical work, the complexity of clinical work. Whether it's installing TomoTherapy units like we've done or the Halcyon or the surgical robots that have come this quarter and will continue into subsequent quarters as well, or in the right clinical talent. In the last quarters, in the last four, five months, we've onboarded about 20 oncologists. I think investing in all those things will definitely help us improve the case mix on back of the payer mix improvement. Of course, the better operating leverage that will come in from the existing centers as they mature. We have seen that happen as EBITDA growth is outpacing the revenue growth because of that leverage. A couple of the other factors that I mentioned. This year particularly as the North Bangalore losses come down, as it matures next year, that will be another lever for margin expansion for us. Got it, sir. Thank you so much. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference call over to the management for closing comments. Thank you so much. Thank you, everyone, for joining the call. If any of your questions remain unanswered, please feel free to reach us on the email ID and the number provided on the back of this presentation. Thank you, everyone. Thank you. Thank you. Thank you, members of the management. On behalf of HealthCare Global Enterprises Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines. Thank you.