Max Healthcare Institute (MHIL), a private sector healthcare services provider, reported impressive financial and operational results for the first quarter ending June 2024.
The healthcare provider in a press statement on Friday informed that it has significantly advanced its growth strategy by launching a new 303-bed hospital, integrating additional beds from recent acquisitions, and executing a lease agreement for a new 250-bed facility in Mohali.
The press statement further informed that the healthcare provider reported gross revenue of Rs 2,028 crore for Q1 FY25, reflecting an 18 per cent year-over-year growth. Revenue from existing units grew by 12 per cent YoY, driven by higher Average Revenue Per Occupied Bed (ARPOB) and Occupied Bed Days (OBDs). The Network Operating EBITDA stood at Rs 499 crore, an increase of 14 per cent YoY, despite a pre-start-up cost of approximately Rs 6 crore for the new Max Dwarka facility.
The company also executed a lease agreement for a built-to-suit 250-bed hospital in Zirakpur (Mohali), which will be developed according to Max’s specifications by FY28. Additionally, Max Healthcare has successfully integrated over 600 beds from recent acquisitions, with new units reporting a 59 per cent occupancy rate, the statement from the company read.
Profitability remains strong with a Profit After Tax (PAT) of Rs 295 crore for Q1 FY25, a slight increase from Rs 291 crore in Q1 FY24 but a decrease from Rs 311 crore in Q4 FY24. The company achieved a free cash flow from operations of Rs 258 crore, allocating Rs 213 crore towards ongoing expansions and facility upgrades. Net cash at the end of June 2024 was Rs 66 crore.
Max Healthcare’s clinical achievements include performing complex liver transplants and innovative surgeries, with successful treatments of pediatric conditions and advanced cancer surgeries highlighting the network’s continued excellence.
In the realm of research and academics, Max Healthcare published 75 articles in high-impact journals and signed a Memorandum of Understanding (MoU) with the Mazumdar Shaw Medical Foundation. The network continues to enhance research and clinical trials through collaborations with prominent academic and industry partners.
Commenting on the results, Abhay Soi, Chairman and Managing Director of Max Healthcare, stated, “The launch of Max Super Specialty Hospital in Dwarka has significantly expanded our capacity. The consistent performance across our existing hospitals and the positive response to our new units affirm our strategy and growth potential. We are committed to pursuing further opportunities for expansion and enhancing our service offerings.”
