Results     17-May-23
Analysis
Max Healthcare Institute
OPM jumped by 577 bps
For the quarter ending March 2023, consolidated Net sales (including other operating income) of Max Healthcare Institute has increased 29.60% to Rs 1214.51 crore compared to quarter ended Mar 2022.  Operating profit margin has jumped from 22.26% to 28.02%, leading to 63.19% rise in operating profit to Rs 340.34 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 20.92% to 20.73%.   Employee cost decreased from 18.16% to 17.18%.   Other expenses fell from 38.55% to 34.23%.   Consultancy Management service cost fell from 23.48% to 21.45%.   

Other income rose 52.23% to Rs 40.22 crore.  PBIDT rose 61.96% to Rs 380.56 crore.  Provision for interest fell 11.83% to Rs 19.53 crore.  Loan funds declined from Rs 913.38 crore as of 31 March 2022 to Rs 688.96 crore as of 31 March 2023.  Inventories rose to Rs 76.23 crore as of 31 March 2023 from Rs 61.36 crore as of 31 March 2022.  Sundry debtors were lower at Rs 336.12 crore as of 31 March 2023 compared to Rs 385.36 crore as of 31 March 2022.  Cash and bank balance rose to Rs 1,468.07 crore as of 31 March 2023 from Rs 499.31 crore as of 31 March 2022.  Investments stood at Rs 0.51 crore as of 31 March 2023 to Rs 0.51 crore as of 31 March 2022.  

PBDT rose 69.64% to Rs 361.03 crore.  Provision for depreciation rose 3.29% to Rs 60.35 crore.  Fixed assets increased to Rs 4,836.47 crore as of 31 March 2023 from Rs 4,714.04 crore as of 31 March 2022.  Intangible assets stood at Rs 2,454.66 crore.  

Profit before tax grew 94.75% to Rs 300.68 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 49.76 crore, compared to Rs 30.66 crore.  Effective tax rate was 16.55% compared to 19.86%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 102.80% to Rs 250.92 crore.  

Equity capital increased from Rs 969.61 crore as of 31 March 2022 to Rs 970.92 crore as of 31 March 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 23.77% as of 31 March 2023 ,compared to 50.64% as of 31 March 2022 .  

Full year results analysis.

Net sales (including other operating income) of Max Healthcare Institute has increased 15.90% to Rs 4562.6 crore.  Operating profit margin has jumped from 24.07% to 27.19%, leading to 30.91% rise in operating profit to Rs 1,240.53 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 23.59% to 20.47%.   Employee cost decreased from 19.27% to 17.68%.   Other expenses rose from 33.11% to 34.75%.   Consultancy Management service cost rose from 20.52% to 21.55%.   

Other income rose 13.88% to Rs 139.24 crore.  PBIDT rose 28.96% to Rs 1379.77 crore.  Provision for interest fell 16.86% to Rs 83.86 crore.  Loan funds declined from Rs 913.38 crore as of 31 March 2022 to Rs 688.96 crore as of 31 March 2023.  Inventories rose to Rs 76.23 crore as of 31 March 2023 from Rs 61.36 crore as of 31 March 2022.  Sundry debtors were lower at Rs 336.12 crore as of 31 March 2023 compared to Rs 385.36 crore as of 31 March 2022.  Cash and bank balance rose to Rs 1,468.07 crore as of 31 March 2023 from Rs 499.31 crore as of 31 March 2022.  Investments stood at Rs 0.51 crore as of 31 March 2023 to Rs 0.51 crore as of 31 March 2022.  

PBDT rose 33.73% to Rs 1295.91 crore.  Provision for depreciation rose 5.01% to Rs 232.19 crore.  Fixed assets increased to Rs 4,836.47 crore as of 31 March 2023 from Rs 4,714.04 crore as of 31 March 2022.  Intangible assets stood at Rs 2,454.66 crore.  

Profit before tax grew 42.22% to Rs 1,063.72 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was credit of Rs 39.79 crore, compared to debit of Rs 133.85 crore.  Effective tax rate was negative 3.74% compared to 18.11%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 82.38% to Rs 1,103.51 crore.  

Equity capital increased from Rs 969.61 crore as of 31 March 2022 to Rs 970.92 crore as of 31 March 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 23.77% as of 31 March 2023 ,compared to 50.64% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 1,209.18 crore for year ended March 2023 from Rs 740.52 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 335.61 crore, compared to Rs 553.34 crore during the year ended March 2022.  

Other Highlights

Board recommended final dividend of Re 1 per equity share (10% of face value of Rs 10 each), out of the profits of the financial year 2022-23.

In Q4 FY23, gross revenue grew 26% YoY to Rs 1637 crore.

Cash from Operations was Rs 425 Crore in Q4 FY23, of this Rs 65 Crore was spent towards ongoing capacity expansion projects.

Bed occupancy in Q4 FY23 stood at 77%. Company commissioned 92 beds for new Oncology block at Max Shalimar Bagh in March 2023.

ARPOB improved to Rs 70.7k in Q4 FY23 compared to Rs 63.5k in Q4 FY22. The YoY growth in ARPOB and Operating EBITDA was driven by improvement in channel mix specialty mix along with increase in other operating income.

In Q4 FY23, the share of international patient revenues stood at 9.1% of the hospital revenue. International patient revenue grew by 43% YoY.

In Q4 FY23, oncology contributed 23.8% of total revenue, Cardiac sciences 12.6%, Neuro sciences 9.4%, Orthopedics 10.2%, Renal sciences 8.6%, Liver and biliary sciences 3.6%, Internal medicine 6.9%, OBGY and pediatrics 5.9%, MAS and general surgery 4.8%, Pulmonology 5.2% and Others  9%.


Management Comments :
Mr. Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd., said: “The Q4 results are in line with our plan and reflect the flawless execution of our strategy by the team on the ground. I am happy that we could deliver the first brownfield expansion on time and it has started to make positive addition to EBITDA and demonstrate operating leverage from the very first month. As other planned bed additions start to roll-in, we expect significant operating leverage. In addition, we are actively but prudently evaluating inorganic growth opportunities. While we continue to see great investment opportunities in the sector, happy to announce that Board has recommended a maiden dividend of 10% for financial year ended Mar 31, 2023.”

 



Max Healthcare Institute : Consolidated Results
 Quarter endedYear ended
Particulars202303202203Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,214.51937.0929.604,562.603,936.5515.90
OPM (%)28.0222.26577 bps27.1924.07312 bps
OP340.34208.5563.191,240.53947.6530.91
Other Inc.40.2226.4252.23139.24122.2713.88
PBIDT380.56234.9761.961,379.771,069.9228.96
Interest19.5322.15-11.8383.86100.87-16.86
PBDT361.03212.8269.641,295.91969.0533.73
Depreciation60.3558.433.29232.19221.125.01
PBT300.68154.3994.751063.72747.9342.22
Share of Profit/(Loss) from Associates00-00-
PBT before EO300.68154.3994.751063.72747.9342.22
EO Income00-0-9.03-
PBT after EO300.68154.3994.751063.72738.943.96
Taxation49.7630.6662.30-39.79133.85LP
PAT250.92123.73102.801103.51605.0582.38
Minority Interest (MI)00-00-
Net profit250.92123.73102.801103.51605.0582.38
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations250.92123.73102.801103.51605.0582.38
EPS (Rs)*2.581.27102.8011.366.3180.18
* EPS is on current equity of Rs 971.09 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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