Medplus Puts Capex Plans On Hold | Took Investor Feedback And Arrived At The Decision, Says Company

[00:00:08]Okay. Well, uh, Med Plus is in focus. As I was telling you earlier, uh, there is a, uh, there is change of plans with regards to the CPEX which was announced yesterday. Remember, we had the management first here before markets opened yesterday. Uh, they announced capital expenditure in a into a wellness venture health center in Hyderabad. uh the stock was down sharply after market hours as we understanded uh that plan has been put on hold. Mr. uh Gangadi Madukar Redd's MD and CU at Med Plus Health Services, he's with us. Mr. Ready, thank you very much for joining us on the program. Prashant here could you tell us what has been the change?

[00:00:47]Um obviously Brashant uh you know while we look at the u long-term interest of the company we also take feedback from the shareholders and all and uh the market reaction was not what uh not quite what we expected. Uh so we have taken the feedback we are going back to the board we have uh for temporarily we put it on um uh hold but it will only be formalized after we go to the board and we'll discuss it. Um I yeah well >> but you said that you yesterday in the morning you said that you're investing 100 crores to set up a health center in Hyderabad right uh >> so this is not happening anymore >> uh so this as I said uh and as I uh said on the investor call yesterday we actually uh have um you decided to keep it on hold uh for now but it's uh has to be formalized by the board we will be discussing it in the board meeting in there.

[00:01:43]>> Will you revisit this Mr. Mr. Ready? Hi, good morning Nigel on this side. Good to see you. When so you have taken the feedback and for the time being I put it on hold but will you revisit this plan at some stage?

[00:01:55]>> I cannot really speak about that right now Nigel because um you know it is obviously a board decision um the strategy part. So we did decide that it is going to be a good something good for the company's long-term interest and all but uh you know we will revisit it and then think about it at a later date >> right Mr. Ready obviously uh and let's put out what you know Mr. Redd is saying we'll have the flashes come up uh Mr. is ready. So, obviously this there was opposition, right? I mean, you heard from investors and you've been responsive to the feedback that you've gotten since uh through the course of the day yesterday, I'm assuming.

[00:02:34]>> That's right. Yes.

[00:02:35]>> Right. Uh and what what what exactly was the uh was was the apprehension? I'm just trying to understand what you heard from uh uh from investors and and and what made you take the step?

[00:02:50]Uh I I don't want to go into that. Um so see this is always a I would say um nothing is like 100% this way or that way.

[00:03:03]There's two um you know sides to almost everything.

[00:03:06]>> Uh we took the very strong feedback and decided that we should basically look at it once again and hence we are revisiting it. Any other changes that you're any other changes that you're making uh apart from uh apart from this?

[00:03:20]>> Uh no no nothing else.

[00:03:23]>> All right, Mr. Ready, one final question before we let you go. The stock has pulled back considerably and yes, you took a harder knock. Your market capitalization is around 8,000 crores.

[00:03:31]You have cash in books of a good amount, right? What is it?

[00:03:36]>> I I think we probably have an around 600 crores.

[00:03:38]>> 600 crores, right? Is the probability because of the kind of carnage I've seen in the stock price go ahead and maybe do a bit of a buyback. Is that something that you could consider?

[00:03:48]>> No, I don't want to talk about it right now. Then this is not the forum for it.

[00:03:52]Um before we have >> we'll wait by for that then sir. Thanks a lot for joining in telling us and clarifying as of now this plan is on hold right now. You're sitting on a good cash in books that's closed around 8% of your current market capitalization.

[00:04:04]We'll wait by to see whether or not there is some kind of buyback or some kind of announcement that's comes about to support the investor interest. But we appreciate you speaking to us first on CNBC.

[00:04:13]>> Nigel talking about company promoters doing uh different things. If you remember we had uh this about a year and a half ago maybe two years back policy bazar fintech [clears throat] announced that they're going to invest in hospitals >> and I remember the conversation with Yashish when we had him he said well you know the investors but it's it's as I think Mr. Ready also I don't know if you're Mr. ready or there are you there sir?

[00:04:34]>> Yeah, I am.

[00:04:35]>> I mean I'm just I'm just narrating this.

[00:04:36]Uh you know this is I don't know if you know uh uh >> I I I of course know the story. Uh I I >> no I you know what what what he what what was said what I remember what he said Yashish D I was the one of the founders of policy buzz. He said well you know the early investors all made money with me betting on me and what I was I would be able to create on the insurance marketplace. So now I think uh this is a great idea. this is a great business so why wouldn't they back me here you know uh so they took a bet bet on me this is what I think will do well and I think it's it's it's got a great opportunity so yeah I mean you know but as as you said this it's not this or that anything you want to add there Mr. ready.

[00:05:18]Uh see um the only thing one could basically say about what we wanted to do against it is it is not exactly pharmacy right it is healthcare it is a adjacency but yes strictly speaking you could say it is a diversion uh a long-term thought could be uh this is where the entire healthcare is going to go which is you know everyone will become horizontal At some point of time you want to seed some of these things and you know build yourself up so that you are ready for the future but at this point of time if you look at it strictly it will definitely look like it is a digression from your path. M you know I I remember yeah I I remember uh you know asking you many years ago whether you want to be like the Walgreens of how that operates in the US right thousands and thousands of stores and I think you you answer in the affirmative you said yes but this model as you said you know doing everything but without being in hospital does this model exist outside do these companies in the US for example I'm not saying you model after them but you >> no no no we don't necessarily have to just follow the overseas models. This is where I think the entire industry will head eventually. But the thing is if you look at CVS, CVS has got the key clinics >> uh the minute clinics. I think CVS also is there in wholesale, distribution, retail, is there in insurance, is there in several other things and that's what actually makes them a much more stronger company out there. Uh so um I guess um um one could also argue that you know they did it after their market cap went through the roof after they've been in business for several years much longer than Metress has. So maybe Metris is not quite there. Uh or maybe it is that's something which we can you know which um is you could argue about. Um but for now um I think based on the investor you know kind of feedback it is going to be a pause but we're going to you know uh kind of discuss it in the board meeting and then decide later.

[00:07:26]>> Got that u well appreciate you joining us Mrs. Ready uh and and we wish you all the best of luck uh and and you know these things happen in the course of a company and the corporate journey. Thank you very much uh for being here. Three and a half odd% higher uh this morning.

[00:07:41]So the reaction is coming through in terms of a bit of a recovery and by the way it's not an easy day for the broader market. It's a tough day. So 717 on Med Plus.

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