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Max Healthcare Q2 results: Net profit falls 39.5%; revenue up 19%

International patient revenue also grew by 25 per cent Y-o-Y

Max Healthcare

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Sanket Koul New Delhi

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Healthcare service provider Max Healthcare Institute reported a 39.5 per cent year-on-year (Y-o-Y) fall in consolidated net profit for the September quarter (Q2 FY24) at Rs 276.68 crore, down from Rs 457.35 crore recorded for the same period last year, according to data posted on the Bombay Stock Exchange (BSE). The fall has been attributed to the impact of a one-time reversal of deferred tax liability amounting to Rs 244 crore. Max’s revenue from operations rose to Rs 1,363 crore, a 19 per cent Y-o-Y increase.

Quarter-on-quarter (Q-o-Q) PAT grew by 15.2 per cent, while revenue grew by 6 per cent. Max Healthcare stock was up 2.96 per cent on BSE on Monday.

A Max Healthcare official 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," the official 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 September quarter grew by 26 per cent to Rs 338 crore, while the revenue from operations rose to Rs 1,827 crore, a 17 per cent Y-o-Y jump, thanks to a 13 per cent jump in average revenue per occupied bed (ARPOB) during the quarter.

Max Healthcare noted that ARPOB improved to Rs 74,600 in Q2 FY24 versus Rs 66,000 in Q2 FY23. Meanwhile, the bed occupancy also increased by 3 per cent Y-o-Y to 77 per cent in the September 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 25.3 per cent from 22.7 per cent in Q2 FY23.

International patient revenue also grew by 25 per cent Y-o-Y, taking its share in revenue to 9 per cent this quarter. Both in-patient occupancy and out-patient consultations grew in Q2.

Speaking on the results, Abhay Soi, Chairman and Managing Director (CMD), Max Healthcare Institute Limited, said that the Q2 results were in line with the expectations and reflect the continuous focus on execution at the grass-root level. “We are well-poised to absorb the addition to network bed capacity in the coming years, while we evaluate mergers and acquisitions (M&A) targets for inorganic growth,” he added.

The hospital’s total expenses increased by 16 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.

On further expansion, Soi said that Max Dwarka has applied for an occupancy certificate and the company looks forward to operationalising the hospital in Q4 FY24. “We continue to see attractive opportunities for significant investments in the sector,” he added.

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First Published: Nov 06 2023 | 7:11 PM IST

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