Results     01-Nov-22
Analysis
Max Healthcare Institute
Net sales up 11.67%
For the quarter ending Sept 2022, consolidated net sales (including other operating income) of Max Healthcare Institute has increased 11.67% to Rs 1137.12 crore compared to quarter ended sept 2021. Operating profit margin has jumped from 23.47% to 28.05%, leading to 33.41% rise in operating profit to Rs 318.92 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.29% to 20.00%.   Employee cost decreased from 20.46% to 17.26%.   Other expenses rose from 32.96% to 34.73%.   Consultancy Management service cost rose from 20.57% to 21.48%.   

Other income fell 17.53% to Rs 25.82 crore.  PBIDT rose 27.51% to Rs 344.74 crore.  Provision for interest fell 18.93% to Rs 21.84 crore.  Loan funds declined from Rs 1,003.27 crore as of 30 September 2021 to Rs 769.13 crore as of 30 September 2022.  Inventories declined from Rs 69.48 crore as of 30 September 2021 to Rs 62.46 crore as of 30 September 2022.  Sundry debtors were lower at Rs 354.70 crore as of 30 September 2022 compared to Rs 427.08 crore as of 30 September 2021.  Cash and bank balance rose to Rs 836.67 crore as of 30 September 2022 from Rs 728.93 crore as of 30 September 2021.  Investments stood at Rs 0.51 crore as of 30 September 2022 to Rs 0.51 crore as of 30 September 2021.  

PBDT rose 32.65% to Rs 322.9 crore.  Provision for depreciation rose 7.07% to Rs 57.68 crore.  Fixed assets increased to Rs 4,692.83 crore as of 30 September 2022 from Rs 1,767.35 crore as of 30 September 2021.  Intangible assets declined from Rs 4,844.25 crore to Rs 2,454.66 crore.  

Profit before tax grew 39.92% to Rs 265.22 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was credit of Rs 192.13 crore, compared to debit of Rs 36.97 crore.  Effective tax rate was negative 72.44% compared to 20.36%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 216.18% to Rs 457.35 crore.  

Equity capital increased from Rs 965.95 crore as of 30 September 2021 to Rs 969.68 crore as of 30 September 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 23.80% as of 30 September 2022 ,compared to 60.91% as of 30 September 2021 .  
  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Max Healthcare Institute has increased 9.16% to Rs 2203.39 crore.  

Operating profit margin has jumped from 23.94% to 26.47%, leading to 20.70% rise in operating profit to Rs 583.28 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.02% to 20.29%.   Employee cost decreased from 19.84% to 17.91%.   Other expenses rose from 30.38% to 35.34%.   Consultancy Management service cost rose from 18.65% to 21.85%.   

Other income rose 0.10% to Rs 57.33 crore.  PBIDT rose 18.52% to Rs 640.61 crore.  Provision for interest fell 17.63% to Rs 44.2 crore.  Loan funds declined from Rs 1,003.27 crore as of 30 September 2021 to Rs 769.13 crore as of 30 September 2022.  Inventories declined from Rs 69.48 crore as of 30 September 2021 to Rs 62.46 crore as of 30 September 2022.  Sundry debtors were lower at Rs 354.70 crore as of 30 September 2022 compared to Rs 427.08 crore as of 30 September 2021.  Cash and bank balance rose to Rs 836.67 crore as of 30 September 2022 from Rs 728.93 crore as of 30 September 2021.  Investments stood at Rs 0.51 crore as of 30 September 2022 to Rs 0.51 crore as of 30 September 2021.  

PBDT rose 22.50% to Rs 596.41 crore.  Provision for depreciation rose 6.85% to Rs 114.81 crore.  Fixed assets increased to Rs 4,692.83 crore as of 30 September 2022 from Rs 1,767.35 crore as of 30 September 2021.  Intangible assets declined from Rs 4,844.25 crore to Rs 2,454.66 crore.  

Profit before tax grew 26.94% to Rs 481.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was credit of Rs 148.58 crore, compared to debit of Rs 79.9 crore.  Effective tax rate was negative 30.85% compared to 21.51%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 116.13% to Rs 630.18 crore.  

Equity capital increased from Rs 965.95 crore as of 30 September 2021 to Rs 969.68 crore as of 30 September 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 23.80% as of 30 September 2022 ,compared to 60.91% as of 30 September 2021 .  

Cash flow from operating activities increased to Rs 574.82 crore for YTD ended September 2022 from Rs 372.65 crore for YTD ended September 2021.  Cash flow used in acquiring fixed assets during the YTD ended September 2022 stood at Rs 113.01 crore, compared to Rs 110.92 crore during the YTD ended September 2021.  


Full year results analysis.

Net sales (including other operating income) of Max Healthcare Institute has increased 56.97% to Rs 3931.46 crore.  Operating profit margin has jumped from 16.12% to 23.97%, leading to 133.39% rise in operating profit to Rs 942.56 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 23.31% to 23.62%.   Employee cost decreased from 23.64% to 19.29%.   Other expenses fell from 36.84% to 33.16%.   Consultancy Management service cost fell from 21.40% to 20.55%.   

Other income rose 11% to Rs 127.36 crore.  PBIDT rose 106.31% to Rs 1069.92 crore.  Provision for interest fell 43.79% to Rs 100.87 crore.  Loan funds declined from Rs 1,101.41 crore as of 31 March 2021 to Rs 913.38 crore as of 31 March 2022.  Inventories rose to Rs 61.36 crore as of 31 March 2022 from Rs 53.80 crore as of 31 March 2021.  Sundry debtors were higher at Rs 385.36 crore as of 31 March 2022 compared to Rs 365.89 crore as of 31 March 2021.  Cash and bank balance declined from Rs 652.92 crore as of 31 March 2021 to Rs 499.31 crore as of 31 March 2022.  Investments stood at Rs 0.51 crore as of 31 March 2022 to Rs 0.51 crore as of 31 March 2021.  

PBDT rose 185.74% to Rs 969.05 crore.  Provision for depreciation rose 27.01% to Rs 221.12 crore.  Fixed assets increased to Rs 4,714.04 crore as of 31 March 2022 from Rs 4,108.65 crore as of 31 March 2021.  Intangible assets stood at Rs 2,454.66 crore.  

Profit before tax grew 353.15% to Rs 747.93 crore.  Share of profit/loss were nil in both the periods.  Extraordinary items were increased to Rs -9.03 crore.  Provision for tax was expense of Rs 133.85 crore, compared to Rs 45.85 crore.  Effective tax rate was 18.11% compared to negative 50.00%.

Minority interest was nil in both the periods.  

Equity capital increased from Rs 965.95 crore as of 31 March 2021 to Rs 969.61 crore as of 31 March 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 50.64% as of 31 March 2022 ,compared to 70.46% as of 31 March 2021 .  Promoters pledged stake was 51.15% as of 31 March 2022

Cash flow from operating activities increased to Rs 748.49 crore for year ended March 2022 from Rs 117.86 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 561.31 crore, compared to Rs 118.42 crore during the year ended March 2021.  

Other Highlights

In Q2 FY23, Network gross revenue grew 17%, on YoY basis.

Bed occupancy in Q2 FY23 stood at 78%. Only 1% of total occupied beds were used for Covid-19 patients.

Occupancy for H1 FY23 stood at 76.0% versus 78.0% in H1 FY22.

In Q2 FY23, Institutional patients (relatively a lower ARPOB channel) bed share dropped to 28% compared to 37% in Q2 FY22 and 30% in Q1 FY23 in line with company’s plan.

International patient revenue improved by 16% QoQ.

In Q2 FY23, oncology contributed 22.7% of total revenue, Cardiac sciences 11.7%, Neuro sciences 9.6%, Orthopedics 10%, Renal sciences 8.7%, Liver and biliary sciences 4%, Internal medicine 8.6%, OBGY and pediatrics 5.9%, MAS and general surgery 5.5%, Pulmonology 3.7% and Others  9.6%.

In H1 FY23, oncology contributed 22.7% of total revenue, Cardiac sciences 11.9%, Neuro sciences 9.5%, Orthopedics 10.6%, Renal sciences 9.1%, Liver and biliary sciences 4%, Internal medicine 8%, OBGY and pediatrics 5.8%, MAS and general surgery 5.6%, Pulmonology 3.5% and Others  9.4%.


Management Comments :
Mr. Abhay Soi, Chairman and MD, Max Healthcare Institute Ltd., said: “The performance for Q2 FY23 is as per our expectations and reflects the focus on execution across the organisation in line with our articulated strategy. Healthcare Sector in general and Max healthcare in particular are making significant investments over the next 4-5 years leading to huge employment opportunities and a multiplier effect on GDP. The impetus provided by the government through its focus on healthcare and Heal in India initiatives will provide a watershed moment for the industry.”



Max Healthcare Institute : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202209202109Var.(%)202209202109Var.(%)202203202103Var.(%)
Net Sales (including other operating income)1,137.121,018.3311.672,203.392,018.509.163,931.462,504.6756.97
OPM (%)28.0523.47457 bps26.4723.94253 bps23.9716.12785 bps
OP318.92239.0533.41583.28483.2420.70942.56403.86133.39
Other Inc.25.8231.31-17.5357.3357.270.10127.36114.7411.00
PBIDT344.74270.3627.51640.61540.5118.521,069.92518.60106.31
Interest21.8426.94-18.9344.2053.66-17.63100.87179.46-43.79
PBDT322.90243.4232.65596.41486.8522.50969.05339.14185.74
Depreciation57.6853.877.07114.81107.456.85221.12174.0927.01
PBT265.22189.5539.92481.6379.426.94747.93165.05353.15
Share of Profit/(Loss) from Associates00-00-0-23.05-
PBT before EO265.22189.5539.92481.6379.426.94747.93142426.71
EO Income0-7.93-0-7.93--9.03-233.796.14
PBT after EO265.22181.6246.03481.6371.4729.65738.9-91.7LP
Taxation-192.1336.97LP-148.5879.9LP133.8545.85191.93
PAT457.35144.65216.18630.18291.57116.13605.05-137.55LP
Minority Interest (MI)00-00-00-
Net profit457.35144.65216.18630.18291.57116.13605.05-137.55LP
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations457.35144.65216.18630.18291.57116.13605.05-137.55LP
EPS (Rs)*4.721.56202.946.503.07111.626.320.99536.96
* EPS is on current equity of Rs 969.68 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


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