HQ Team
February 2, 2023: Max Healthcare, one of India’s largest private hospital chains, reported a 7% rise in profit after tax, on revenue of INR 15.6 billion, as average per occupied bed and international patient revenues jumped.
Network gross revenue rose 13%, and EBITDA per bed during the quarter improved to INR 66.9 lakhs, registering a growth of 12% year-on-year and four per cent quarter-on-quarter.
Profit after tax for the quarter stood at INR 2.69 billion compared to INR 2.52 billion in the third quarter that ended December 2022.
despite an increase in ESOP expenses.
“Increase in ARPOB (+10% y-o-y) and occupied beds (+3% y-o-y) contributed to the revenue growth,” according to a BSE filing.
Annual price revision
The year-on-year growth in average revenue per occupied bed and operating EBITDA was driven by improvement in payer mix, case mix, increase in outpatient footfalls and annual price revisions, and efficient cost management.
Cash flow from operations rose to INR 3.32 billion during the quarter, of which INR 1.02 billion was spent on capacity expansion projects.
Net cash surplus at the end of December 2022 stood at INR 3.7 billion compared to INR 4 billion at the end of September 2022.
International patient revenue grew by 62% YoY and was flat QoQ. This represents 110% of pre-covid average income.
Max Lab (non-captive pathology vertical) reported gross revenue of INR 280 million during the quarter, recording a growth of 46% year-on-year.
Max@Home gross revenue during Q3 fiscal year 2023 was INR 360 million, a growth of 30% year-on-year.
INR 42 billion in NCDs
The management of Max Healthcare has accorded in-principle approval for raising funds up to an aggregate amount of INR 42 billion through non-convertible debentures or other debt securities.
The fundraising will be done in one or more tranches on a private placement basis. The board, which met on February 2, has authorised the existing Debenture Committee to take all necessary steps in this regard, including finalising the terms of issuance of NCDs or other debt securities.
The Company has engaged the services of L&T for the execution of its 600-bed brownfield expansion plans at Nanavati Max Hospital, Mumbai, on a turnkey basis.
The project is being executed in two phases. Phase 1 of the project is underway and is expected to be completed by Q4 FY25.
Max Healthcare, mainly operating in north India, have performed more than 1,980 liver transplants, about 3300 kidney transplants more than 1,600 bone marrow transplants.
It has a memorandum of understanding with Anuva Biotech to undertake genomics-based research in breast cancer, lung cancer, diabetes, cardiac disease, kidney disease, drug-resistant tuberculosis and others.
