Results     08-Aug-23
Analysis
Max Healthcare Institute
OPM jumped by 142 bps
For the quarter ending June 2023, consolidated Net sales (including other operating income) of Max Healthcare Institute has increased 20.44% to Rs 1284.99 crore compared to quarter ended June 2022.  Operating profit margin has jumped from 24.84% to 26.26%, leading to 27.32% rise in operating profit to Rs 337.38 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 20.58% to 21.27%.   Employee cost decreased from 18.60% to 17.64%.   Other expenses fell from 35.98% to 34.77%.   Consultancy Management service cost fell from 22.24% to 21.15%.   

Other income rose 33.81% to Rs 41.32 crore.  PBIDT rose 28% to Rs 378.7 crore.  Provision for interest fell 13.28% to Rs 19.39 crore.  

PBDT rose 31.37% to Rs 359.31 crore.  Provision for depreciation fell 2.29% to Rs 55.82 crore.  

Profit before tax grew 40.26% to Rs 303.49 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 63.41 crore, compared to Rs 43.55 crore.  Effective tax rate was 20.89% compared to 20.13%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 38.91% to Rs 240.08 crore.  

Promoters’ stake was 23.76% as of 30 June 2023 ,compared to 50.64% as of 30 June 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 2,225.63 crore as of 31 March 2023 from Rs 2,058.31 crore as of 31 March 2022.  Intangible assets declined from Rs 5,110.39 crore to Rs 5,065.50 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

In Q1 FY24, Network revenue grew 17%, on YoY basis.

Bed occupancy in Q1 FY24 stood at 74% and Occupied Bed Days (OBD) grew by +3% YoY.

ARPOB (Average Revenue per Occupied bed) improved to Rs 74.8k in Q1 FY24 vs. Rs 66.0k in Q1 FY23.

In Q1 FY24, International patient revenue grew by +31% YoY. The share of international patient revenues stood at 9% of the hospital revenue during the quarter.

In Q1 FY24, oncology contributed 25.1% of total revenue, Cardiac sciences 12.3%, Neuro sciences 9.1%, Orthopedics 11.6%, Renal sciences 8.6%, Liver and biliary sciences 3.8%, Internal medicine 6.4%, OBGY and pediatrics 5.2%, MAS and general surgery 5.3%, Pulmonology 3.4% and Others  9.4%.


Management Comments :
Mr. Abhay Soi, Chairman and Managing Director, Max Healthcare Institute, said: “I am happy that despite the traditionally weak Q1, we could deliver our highest ever quarterly revenue and improve profitability at bed level. While our installed capacity increased by 4% on y-o-y basis, we maintained our occupancy levels with higher occupied beds across the Network. In the past year, we have significantly strengthened our projects and digital teams to reinforce our thrust in both these areas, which is intrinsic to our growth going forward. I am proud of the success and positive feedback received for our Max MyHealth app which has now been fully rolled out.”



Max Healthcare Institute : Consolidated Results
 Quarter endedYear ended
Particulars202306202206Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,284.991,066.9020.444,562.603,936.5515.90
OPM (%)26.2624.84142 bps27.1924.07312 bps
OP337.38264.9927.321,240.53947.6530.91
Other Inc.41.3230.8833.81139.24122.2713.88
PBIDT378.70295.8728.001,379.771,069.9228.96
Interest19.3922.36-13.2883.86100.87-16.86
PBDT359.31273.5131.371,295.91969.0533.73
Depreciation55.8257.13-2.29232.19221.125.01
PBT303.49216.3840.261063.72747.9342.22
Share of Profit/(Loss) from Associates00-00-
PBT before EO303.49216.3840.261063.72747.9342.22
EO Income00-0-9.03-
PBT after EO303.49216.3840.261063.72738.943.96
Taxation63.4143.5545.60-39.79133.85LP
PAT240.08172.8338.911103.51605.0582.38
Minority Interest (MI)00-00-
Net profit240.08172.8338.911103.51605.0582.38
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations240.08172.8338.911103.51605.0582.38
EPS (Rs)*2.471.7838.9111.366.3080.18
* EPS is on current equity of Rs 971.42 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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