Max Healthcare Institute

For quarter ending June 2024, consolidated Net sales (including other operating income) of Max Healthcare Institute has increased 20.07% to Rs 1542.95 crore compared to quarter ended June 2023.Operating profit margin has declined from 26.26% to 25.11%, leading to 14.83% rise in operating profit to Rs 387.41 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 21.27% to 21.34%.   Employee cost decreased from 17.64% to 17.47%.   Other expenses rose from 34.77% to 36.14%.   Consultancy Management service cost rose from 21.15% to 21.18%.   

Other income fell 16.07% to Rs 34.68 crore.  PBIDT rose 11.46% to Rs 422.09 crore.  Provision for interest rose 23.16% to Rs 23.88 crore.  

PBDT rose 10.83% to Rs 398.21 crore.  Provision for depreciation rose 37.76% to Rs 76.9 crore.  

Profit before tax grew 5.87% to Rs 321.31 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 85.04 crore, compared to Rs 63.41 crore.  Effective tax rate was 26.47% compared to 20.89%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 1.59% to Rs 236.27 crore.  

Promoters’ stake was 23.74% as of 30 June 2024 ,compared to 23.76% as of 30 June 2023 .  

Full year results analysis.

Net sales (including other operating income) of Max Healthcare Institute has increased 18.49% to Rs 5406.02 crore.  Operating profit margin has jumped from 27.19% to 27.60%, leading to 20.28% rise in operating profit to Rs 1,492.12 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 20.47% to 20.70%.   Employee cost decreased from 17.68% to 17.28%.   Other expenses fell from 34.75% to 34.42%.   Consultancy Management service cost fell from 21.55% to 20.66%.   

Other income rose 27.89% to Rs 178.07 crore.  PBIDT rose 21.05% to Rs 1670.19 crore.  Provision for interest fell 28.58% to Rs 59.89 crore.  Loan funds rose to Rs 1,298.95 crore as of 31 March 2024 from Rs 688.96 crore as of 31 March 2023.  Inventories rose to Rs 79.84 crore as of 31 March 2024 from Rs 76.23 crore as of 31 March 2023.  Sundry debtors were higher at Rs 462.69 crore as of 31 March 2024 compared to Rs 336.12 crore as of 31 March 2023.  Cash and bank balance declined from Rs 1,468.07 crore as of 31 March 2023 to Rs 1,099.27 crore as of 31 March 2024.  Investments rose to Rs 2.12 crore as of 31 March 2024 from Rs 0.51 crore as of 31 March 2023 .  

PBDT rose 24.26% to Rs 1610.3 crore.  Provision for depreciation rose 5.51% to Rs 244.98 crore.  Fixed assets declined from Rs 4,836.47 crore as of 31 March 2023 to Rs 3,754.11 crore as of 31 March 2024.  Intangible assets increased from Rs 2,454.66 crore to Rs 5,582.62 crore.  

Profit before tax grew 28.35% to Rs 1,365.32 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was debit of Rs 307.68 crore, compared to credit of Rs 39.79 crore.  Effective tax rate was 22.54% compared to negative 3.74%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 4.16% to Rs 1,057.64 crore.  

Equity capital increased from Rs 970.92 crore as of 31 March 2023 to Rs 971.91 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 23.75% as of 31 March 2024 ,compared to 23.77% as of 31 March 2023 .  

Cash flow from operating activities decreased to Rs 1,121.80 crore for year ended March 2024 from Rs 1,284.13 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 778.78 crore, compared to Rs 335.61 crore during the year ended March 2023.  

Other Highlights

The company approved setting up a 250+ bedded build-to-suit hospital at Zirakpur, Punjab. The proposed construction of hospital premises is expected to be completed in 48 months.

The company Started commercial operations of 303-bedded Max Super Specialty Hospital located in the heart of South West Delhi (Dwarka) on July 2 2024, (Max Dwarka).

In Q1 FY25, Max Healthcare Network Hospitals operated at a capacity utilization of 75%.

Bed occupancy in Q1 FY25 stood at 76.6%. During the quarter, overall OBDs grew by 14% YoY.

ARPOB (Average Revenue per Occupied bed) improved 7% YoY to Rs 80.1k in Q1 FY25.

In Q1 FY25, oncology contributed 25.2% of total revenue, Cardiac sciences 10.8%, Neuro sciences 9.2%, Orthopedics 12%, Renal sciences 9.2%, Liver and biliary sciences 3.4%, Internal medicine 6.7%, OBGY and pediatrics 5.4%, MAS and general surgery 5.7%, Pulmonology 3.2% and Others  9.2%.

Management Comments :
Mr. Abhay Soi, Chairman and Managing Director, Max Healthcare Institute, said: “With launch of Max Super Specialty Hospital, Dwarka, we have added over 900 beds to our capacity so far and have successfully supplemented the momentum of growth in revenues and profitability before augmentation of bed capacity through brown field expansion plans in FY26. In the meanwhile, consistent performance in existing hospitals and encouraging response to our offerings at new units is providing us with confidence to further pursue growth opportunities including newly entered built-to-suit arrangement in Mohali.”

Max Healthcare Institute : Consolidated Results

Quarter ended Year ended Particulars 202406 202306 Var.(%) 202403 202303 Var.(%) Net Sales (including other operating income) 1,542.95 1,284.99 20.07 5,406.02 4,562.60 18.49 OPM (%) 25.11 26.26 -115 bps 27.60 27.19 41 bps OP 387.41 337.38 14.83 1,492.12 1,240.53 20.28 Other Inc. 34.68 41.32 -16.07 178.07 139.24 27.89 PBIDT 422.09 378.70 11.46 1,670.19 1,379.77 21.05 Interest 23.88 19.39 23.16 59.89 83.86 -28.58 PBDT 398.21 359.31 10.83 1,610.30 1,295.91 24.26 Depreciation 76.9 55.82 37.76 244.98 232.19 5.51 PBT 321.31 303.49 5.87 1365.32 1063.72 28.35 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 321.31 303.49 5.87 1365.32 1063.72 28.35 EO Income 0 0 - 0 0 - PBT after EO 321.31 303.49 5.87 1365.32 1063.72 28.35 Taxation 85.04 63.41 34.11 307.68 -39.79 PL PAT 236.27 240.08 -1.59 1057.64 1103.51 -4.16 Minority Interest (MI) 0 0 - 0 0 - Net profit 236.27 240.08 -1.59 1057.64 1103.51 -4.16 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 236.27 240.08 -1.59 1057.64 1103.51 -4.16 EPS (Rs)* 2.43 2.47 -1.59 10.88 11.35 -4.16 * EPS is on current equity of Rs 971.91 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database