Max Health gross revenue at lifetime high in Q2FY23 on improved occupancy

International patient revenues up 16% during quarter, 110% of pre-Covid average; PAT grows 29% on like-to-like basis

Max Healthcare Institute (MHIL) has posted a profit after tax of Rs 511 crore for the second quarter of the 2022-23 fiscal, as its revenues grew nine per cent to Rs 1,567 crore. This is Max Healthcare’s highest ever gross revenue.

The growth in Q2FY23 revenue and Operating EBITDA was driven by higher occupancies, improved payor mix. International patient revenue grew by 16 per cent QoQ and reflected around 110 per cent of pre-Covid average.

PAT for the quarter stood at Rs 511 crore, compared to Rs 207 crore in the corresponding quarter last fiscal.

“This includes a one-time impact of Rs 244 crore due to reversal of deferred tax liability (net of capital gains tax) relating to Intangible Assets transferred to MHIL pursuant to voluntary liquidation of Saket City Hospital Limited and distribution of its business undertaking in August 2022,” the company explained.

PAT grew by 29 per cent over the corresponding quarter last year on a like-to-like basis, it added. On a like to like basis the network gross revenue grew by 17 per cent YoY.

Abhay Soi, Chairman and MD, Max Healthcare Institute, said, “The performance for Q2FY23 is as per our expectations and reflects the focus on execution across the organisation in line with our articulated strategy.” He added that the healthcare sector in general and Max healthcare in particular are making significant investments over the next 4-5 years.

At the end of Q2FY23, the Net Cash surplus stood at Rs 42 crore, compared to Net Debt of Rs 217 crore at the end of Q1FY23.

The Network Operating EBITDA stood at Rs 410 crore compared to Rs 362 crore in corresponding quarter last year (Q2FY22) and Rs 370 crore in the previous quarter (Q1FY23).

“This reflects a growth of 22 per cent YoY and 11 per cent QoQ on a like-to-like basis,” MHIL said. Correspondingly, the Operating EBITDA margin stood at 27.7 per cent for the quarter, EBITDA per bed during the quarter improved to Rs 64 lakh, registering a growth of 17 per cent YoY and 4 per cent QoQ.

Max Lab (non-captive pathology vertical) added over 65 channel partners during Q2FY23, taking the overall active clients to 920 spread across 34 cities. The vertical posted gross revenue of Rs 30 crore during the quarter, recording a growth of 21 per cent QoQ on a like to like basis (excluding Covid-19 related tests).

For the half year, the Network gross revenue stood at Rs 3,040 crore representing a 17% growth on a like-to-like basis over the corresponding period last fiscal. The Network Operating EBITDA grew by 22 per cent on a like-to-like basis over H1FY22, and stood at Rs 780 crore. Further the Operating margin for H1FY23 was 27.2%, compared to 26 per cent in H1FY22 on a like-to-like basis.