 "Max Healthcare Institute")
Delhi-based Max Healthcare Institute reported a 30 per cent year-on-year (Y-o-Y) rise in consolidated net profit for the December quarter (Q3 FY24) at Rs 289.34 crore, up from Rs 222.41 crore recorded for the same period last year, according to data posted on the Bombay Stock Exchange (BSE). Max’s revenue from operations rose to Rs 1,334 crore, a 16.9 per cent Y-o-Y increase.
Quarter-on-quarter (Q-o-Q) profit after tax (PAT) grew by 4.57 per cent, while revenue fell by 2.06 per cent. Max Healthcare stock was up 6.71 per cent on BSE on Wednesday.
Max Healthcare highlighted that the above figures do not include the revenues from three of its hospitals. "Three of our hospitals — Max Smart Super Speciality Hospital, Max Saket Super Speciality Hospital (East wing), and Max Balaji Hospital (Max Hospital, Patparganj) — are partner healthcare facilities and hence not part of the listed entity. The press release includes numbers of these partner healthcare facilities as well," it said.
If we add the revenues from these partner facilities, which Max has also included in its investor presentation, then the net profit for the December quarter grew by 26 per cent Y-o-Y to Rs 338 crore, while the revenue from operations rose to Rs 1,779 crore, a 14 per cent Y-o-Y jump. The jump is attributed to a 15 per cent jump in average revenue per occupied bed (ARPOB) during the quarter.
Max Healthcare noted that ARPOB improved to Rs 76,800 in Q3 FY24 versus Rs 66,800 in Q3 FY23. Meanwhile, the bed occupancy fell by 4 per cent Y-o-Y to 73 per cent in the December quarter.
Another reason for the rise in revenue is the better speciality and patient mix. The Oncology department, including chemotherapy and radiotherapy, increased its share in Max’s revenue to 25.8 per cent from 23.4 per cent in Q3 FY23.
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International patient revenue also grew by 25 per cent Y-o-Y, taking its share in hospital revenue to around 9.4 per cent this quarter. Both in-patient occupancy and out-patient consultations grew in Q3.
Abhay Soi, Chairman and Managing Director (CMD), Max Healthcare, 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 the festive season."
The hospital’s total expenses increased by 12 per cent in comparison to the same period last fiscal, with the main drivers being growing employee benefit expenses and the purchase of drugs, consumables, and implants.
Max Healthcare also announced the execution of a Share Purchase Agreement (SPA) to acquire 100 per cent equity of Starlit Medical Centre, which had entered into a Business Transfer Agreement with Sahara India Medical Institute Limited for the purchase of its healthcare undertaking consisting of the 550-bedded Sahara Hospital in Gomti Nagar, Lucknow, Uttar Pradesh, on a slump sale basis. The consummation of the transaction is expected in Q4 FY24.
On further expansion, Soi said, "Our entry into central Uttar Pradesh through the acquisition of Sahara Hospital will strengthen our presence in Northern India and will act as a stepping stone in growing Max Healthcare’s presence in the region."
