Max Healthcare reported its fiscal fourth quarter profit at Rs 251.54 crore, marginally higher than Rs 250.92 crore recorded during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 1422.90 crore, up 17.2 per cent as against Rs 1214.51 crore posted during the fourth quarter of FY23.
The company recommended a final dividend of Rs 1.5 per equity share (15 per cent of face value of Rs 10 each), out of the profits of the financial year 2023-24, which shall be paid/ dispatched within 30 days from the conclusion of the ensuing Annual General Meeting.
The firm’s network gross revenue was at Rs 1,890 crore, reflecting a growth of +15 per cent YoY. Increase in ARPOB on a like-to-like basis was +10 per cent YoY. Network Operating EBITDA stood at Rs 503 crore, reflecting a growth of +15 per cent YoY. On a like-to-like basis, Operating EBITDA margin stood at 28.4 per cent for the quarter, compared to 28.2 per cent in Q4 FY23. EBITDA per bed on a like-to-like basis during the quarter improved to Rs 78.5 lakhs, registering a growth of +12 per cent YoY.
For FY24, the network gross revenue stood at Rs 7,215 crore, representing a +16 per vent growth over the corresponding period last fiscal. This is largely driven by an increase in ARPOB (+12 per cent).
Max Lab (non-captive pathology vertical) reported gross revenue of Rs 39 crore during the quarter, recording a growth of +26 per cent YoY. Further, Max Lab services are now available across 41 cities, the company said. Meanwhile, Max@Home gross revenue during Q4 FY24 was Rs 46 crore, recording a growth of +25 per cent YoY, driven primarily by critical care and physio & rehab verticals.
Max Healthcare said that the free cash flow from operations stood at Rs 412 crore during the quarter. Further, Rs 1,341 crore were used for acquisition of two hospitals and Rs 168 crore was spent towards purchase of land at Lucknow. In addition, an amount of Rs 176 crore was deployed on the ongoing capacity expansions project. Net Cash surplus at the end of Mar 2024 stood at Rs 22 crore, compared to Rs 1,295 crore at the end of Dec 2023.
Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd, said, “We are happy to consummate two long drawn inorganic deals during the quarter. These transactions add significant capacity going forth and allow for additional brownfield opportunities in the fast growing markets of UP & Maharashtra. The existing hospital network is consistently improving its performance and generating stable cash flows, enabling us to look for more inorganic opportunities while we expand the existing capacities.”
Clinical updates
Max Healthcare said that it performed approximately 2,770 liver transplants, ~4,000 kidney transplants and 1,800+ bone marrow transplants till date. Max Hospital Mohali, it said, successfully commissioned the bone marrow transplant unit, during the quarter. Max Smart Hospital Saket cured a 30-year-old female patient, found to have a 5 cm renal tumor arising from the left kidney using multi-quadrant surgery by multidisciplinary robotic surgeons utilizing DaVinci robot through 6 small holes. Further, Nanavati- Max treated a a 71-year-old male patient suffering from a complex case of mono metastatic paraduodenal lymph nodal mass with endoscopic ultrasound guided radiofrequency ablation.
Investments towards expansion
Max Healthcare board approved an overall spend of upto Rs 1038 crore towards the construction and equipment cost etc. of a 525 bedded Max Super Speciality Hospital on 5.26 acre parcel of land, allotted by Haryana Shehri Vikas Pradhikaran in Sector 56, Gurugram earlier in October 2022.
It also approved an overall spend of upto Rs 366 crore towards the construction & equipment cost etc for expanding capacity of the existing Max Super Speciality Hospital – Mohali, Punjab which will add 155 beds to the existing bed capacity of 220 beds. The Hospital is run and operated under a PPP arrangement with Government of Punjab, under the aegis of Hometrail Buildtech Private Limited, a wholly-owned subsidiary of the Company.