Afya Limited (NASDAQ:AFYA) Q3 2023 Earnings Call Transcript

Virgilio Gibbon: Lucas, so that’s a very good question. That’s our opinion here. So in my opinion, I think the Ministry of Education, they will expect the final decision from the Supreme Court in order to evaluate and give the final word if that process that we analyzed and through the injunctions, we will follow or not. So what — if you read this new ordinance, they expect that they will follow the process. They will visit these institutions. But by the end of the process, they still have a final world from Ministry of Education in order to approve or not that new medical institution. So I think with that measure, the Ministry of Education is waiting for the final word coming from the Supreme Court in order to analyze what they are going to do with all this process coming from injunction. So I think that’s the main point. We are — I think we are not going to see any approval before the decision coming from the Supreme Court.

Renata Couto: Maybe if I may add, Lucas, this [indiscernible] Virgilio is saying, it’s after what we are seeing since [indiscernible] give his decision on beginning of August. And since then, while this normative was not released yet, we were not seeing a float of seats being released because of that because they were not in the municipalities as they mentioned. So we don’t see a big risk here as Virgilio said.

Virgilio Gibbon: Yeah. By the end of the day, they still have to follow the Mais Medicos requirements that they have to have the hospital beds, they have to follow the social demand and how critical is for that region for that city to open new medical school and also to follow all the academic and also the necessity that they have to pay to the municipality and the health secretary in order to approve the new medical school. So that is — when we analyze that and apply for all the regions that they are trying to open this new Mais Medicos, these new injunctions, I think the impact on overall demand will be much lower than the overall process that we are seeing being analyzed by the Ministry of Education.

Lucas Nagano: It’s very clear. Thank you, Virgilio and Renata.

Virgilio Gibbon: Thank you, Lucas.

Renata Couto: Of course, since we do not see any other questions here, I appreciate you all participating, and we, from Investor Relations, we are available if you still want any follow-up question. Thank you and have a nice night.