Q3 FY24: Max Healthcare Institute PAT jumps 26% to Rs 338 crore

Max Healthcare Institute Ltd. announced its financial and operating results for the three months ended December 31, 2023.

Network gross revenue was INR 1,779 Cr, reflecting a growth of +14% YoY. Increase in ARPOB (+15% YoY) majorly contributed to the revenue growth while Occupied Bed Days (OBD) were lower by 1% due to decline in admissions of patients suffering from vector borne diseases in Q3 FY24 compared to corresponding period last year.

Network Operating EBITDA stood at INR 471 Cr compared to INR 419 Cr in the corresponding quarter last year (Q3 FY23), reflecting a growth of +12% YoY. Operating EBITDA margin stood at 27.9% for the quarter, compared to 28.3% in Q3 FY23 and 28.7% in Q2 FY24. EBITDA per bed during the quarter improved to INR 75.6 lakhs, registering a growth of +13% YoY and +1% QoQ.

Profit after tax (PAT) for the quarter stood at INR 338 Cr compared to INR 269 Cr in Q3 FY23 and INR 338 Cr in Q2 FY24.

Cash flow from operations stood at INR 226 Cr during the quarter, of which INR ~137 Cr was spent on capacity expansion projects and INR 97 Cr was distributed as dividend. Net Cash surplus at the end of Dec 2023 stood at INR 1,295 Cr, compared to INR 1,303 Cr at the end of Sept 2023.

Max Shalimar Bagh, which saw a capacity expansion of 122 beds, reported a YoY Revenue & EBITDA growth of 36% & 42% respectively with an average occupancy of 74%.

International patient revenue grew by +25% YoY. In Q3 FY24, the share of international patient revenues stood at 9.4% of the hospital revenue.

Max Lab (non-captive pathology vertical) reported gross revenue of INR 34 Cr during the quarter, recording a growth of +20% YoY.

Max@Home gross revenue during Q3 FY24 was INR 44 Cr, a growth of +24% YoY.

The group executed a share purchase agreement to acquire healthcare undertaking consisting of 550- bedded Sahara Hospital located at Gomti Nagar, Lucknow, UP on a slump sale basis. This inorganic expansion will further strengthen Max Healthcare the most populous and fast-growing state of Uttar Pradesh. The group expects to consummate the transaction in Q4 FY24.

Nine Months ended December 31, 2023
For the nine months ended Dec 2023, the Network gross revenue stood at INR 5,325 Cr representing a growth of 16% YoY over the corresponding period last fiscal.

Network Operating EBITDA during the period grew by 17% YoY and stood at INR 1,404 Cr. Further, the Operating margin for the period was 27.8% compared to 27.5% in corresponding period last year.

Commenting on Q3 results Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd., said, “We continue to witness positive trends on all parameters like ARPOB, EBITDA per bed, etc. even during this quarter, translating into revenue and profitability growth, despite expected softness in occupancies due to festive season. Further, our entry into central UP through acquisition of Sahara Hospital will strengthen our presence in Northern India and will act as a stepping stone in growing presence in the region.”

Financial and operational highlights

Clinical update:

• Till date we have performed 2,600+ Liver Transplants, ~3,890 Kidney Transplants & 1,750+ Bone Marrow Transplants.
• Collaborated with ImmunoACT to launch CAR-T cell therapy, NexCAR19, for B-cell malignancies at Max Hospital Vaishali. The collaboration shall soon extend to all major Max Hospitals.
• Successfully performed an open heart congenital cardiac surgery thus saving the life of a 34 year old patient with extra heart chamber (DCRV) at Max Hospital Patparganj.
• Performed the World’s 1st Desensitization Protocol for Infant ABOi (ABO incompatible against the blood group) Living Donor Liver Transplantation at Nanavati – Max
• Successfully implanted Cardiac contractility modulation (CCM) device to manage the poor heart pumping at Max Hospital Gurgaon

Research and academics:

• Published 90 articles in high impact journals during Q3 FY24
• MoU signed with the IIT Delhi and BITS Pilani for exploring and implementing evidence based innovative solutions to address healthcare challenges
• ~120 clinical trials and 22 grant studies ongoing across the Network Hospitals
• ~70 MBBS students currently pursuing a two-year clinical rotation in collaboration with Lincoln American University and BIU
• Total DNB residents across the network is ~500 currently

MB Bureau