Max Healthcare Institute Ltd released its fiscal second quarter earnings report with profit at Rs 281.81 crore, registering a growth of 1.9 per cent in comparison to Rs 276.68 crore during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 1707.46 crore, up 25.3 per cent as against Rs 1363.16 crore during the same period of previous financial year.
Max Lab (non-captive pathology vertical) reported gross revenue of Rs 47 crore during the quarter, recording a growth of 21 per cent YoY, and is now available across 50 cities.
Max@Home posted gross revenue at Rs 53 crore, up 24 per cent YoY, driven by physio & rehab, critical care and pathology sample collection.
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Expansion and Acquisition
Max Healthcare acquired a controlling 63.65 per cent stake in Jaypee Healthcare Ltd (JHL) on October 4, 2024. JHL operates a 500-bed tertiary care hospital in Noida, covering 18 acres with a built-up area of 83,280 sqm, which contributes over 95 per cent of JHL’s revenue and all of its EBITDA. In addition, it has a 200-bed hospital at Chitta, Bulandshahr which mainly provides secondary care to the community.
Further, Max Healthcare said that MSSH Dwarka, a 303-bed greenfield hospital in South West Delhi, commenced operations on July 2, 2024. The hospital is a part of ~8.62 acre campus and is positioned to offer tertiary and quaternary healthcare services to 12 lakh+ residents in the area.
Also, the hospitals acquired in Q4FY24 i.e., MSSH Nagpur and MSSH Lucknow are now fully integrated into the Max Healthcare network. “The capacity augmentation and infrastructure upgradation activities are underway to improve the patient care, better outcomes and improved ability to cater to increasing patient footfalls,” it said.
The company recorded network gross revenue at Rs 2228 crore, reflecting a growth of 22 per cent YoY. YoY growth was driven by OBDs (+19 per cent) and ARPOB (+2 per cent). Acquired Units have been integrated in the network and significantly improved their revenue performance during the quarter, reporting a growth of 32 per cent QoQ, Max Healthcare said. Network Operating EBITDA was Rs 591 crore excluding Rs 18 crore loss at MSSH Dwarka, which commenced its operations on July 2, 2024, and Jaypee Hospital one-time transaction expenses of Rs 7 crore. Operating EBITDA margin for the Network stood at 26.6 per cent compared to 28.7 per cent in Q2FY24. Further, acquired units improved their EBITDA by +90 per cent QoQ, fuelled by procurement efficiencies, higher occupancies and enhanced clinical programs, it said.
Overall EBITDA per bed was Rs 74.5 lakh compared to Rs 75.0 lakh in Q2FY24 and Rs 70.9 lakh in Q1FY25.
Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd, said, “With the successful launch of MSSH Dwarka and acquisition of Jaypee Hospital, Noida, we have significantly augmented our capacity and capabilities to deliver high quality patient centric care in NCR. We are encouraged by the enthusiastic response and strong community support to our healthcare offerings in the new geographies, leading to exceptional performance at New Units. With the planned expansions coming on stream in FY26, we are set to further enhance our capabilities, widen our reach, and deepen our services to cater to the varied needs of our patients.”
Max Healthcare reported free cash flow from operations at Rs 464 crore during the quarter. Of this, Rs 217 Cr was deployed on the ongoing expansion plans and for upgradation of facilities at new units. Net cash surplus at the end of September 2024 stood at Rs 313 cr, compared to Rs 66 crore at the end of June 2024. This includes approximately Rs 146 crore earmarked for dividend to the shareholders.
Research and Academics:
Max Healthcare published 112 articles in high impact journals during Q2FY25. It also signed MoU with Boston University adding to the 15 ongoing partnerships with national and global academic and industry partners including Imperial College London, Deakin Uni, IIT Bombay, IIT Delhi, BITS Pilani, Ashoka University, RGCB, IIIT Delhi, Pfizer Inc.
From: financialexpress
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