Max Healthcare Discloses Operating Results For Q1

Max Healthcare Institute, the healthcare services company in India, announced results for the three months ended June 30, 2021, today. 

The network gross revenues rose to Rs 1,385 crore during the first quarter reflecting a growth of 124 per cent YoY and 19 per cent QoQ. This includes Rs 136 crore from vaccinations and related antibody tests post inoculation during the quarter. 

The Network Operating EBITDA improved to Rs 360 crore versus Rs (22) crore in Q1 last year and Rs 263 crore in the previous quarter (Q4 FY21). This is the highest ever quarterly Operating EBITDA and represents the third consecutive quarter of EBITDA growth both in absolute and margin terms. The Operating EBITDA margin stood at 27.2 per cent for the quarter, up from (3.9%) in the corresponding quarter in FY21. This is 309 bps higher than 24.1 per cent of the previous quarter. The PAT grew to Rs 205 crore from Rs (375) crore in Q1 last year and Rs 109 crore in Q4 FY21. 

Financial performance improved over trailing quarter despite drop in ARPOB by 8.2 per cent. Margin expansion was driven by high overall occupancy, improvement in direct costs ratios and significant uptake in COVID-19 vaccination in initial 6 weeks post-launch on May 1, 2021, which touched a high of ~48,600 vaccinations/day. The significant improvement in Operating EBITDA is also attributed to the gains from augmentation of clinical programs and structural cost savings undertaken in the last two fiscal years. 

~11,000 COVID-19 patients were treated in the in-patient department at network hospitals during the quarter. COVID-19 admissions increased significantly in the first half of the quarter, followed by rapid reduction in the second half. 

Consequently, Q1 FY22 average occupancy stood at 80.8 per cent, while June 21 occupancy dropped to 69.4 per cent, with only ~60 COVID-19 patients under treatment at network hospitals as on June 30, 2021. Simultaneously, non-COVID admissions have been ramping up. 

The revenue from international medical tourism remained low during the quarter and declined by 18 per cent over Q4 FY21 due to the imposition of air-travel related restrictions post onset of second wave of COVID-19 infections. However, it was still 2 fold of that reported in Q1 last year. 

Max Lab (non-captive pathology business vertical) revenue grew by 2.4 times YoY and stood at Rs 35.9 crore. Regular (non-COVID) business growth YoY and QoQ stood at 189 per cent and 25 per cent respectively. During the quarter, Max Lab has added ~60 new collection centres taking the count of active partner network to ~480. Further, Max lab is offering its services across 14 cities now.

Max @Home also reported improved performance with gross revenue of Rs 27.1 crore representing a growth of 150 per cent YoY and 17 per cent over Q4 FY21. ~600 strong team of front line and support staff served ~49,000 patients during the quarter including ~1,100 COVID-19 patient at their homes.  

Announcing Q1 results, Dr Abhay Soi, Chairman and MD, Max Healthcare Institute, said, “Having commenced our journey with a combined EBITDA of Rs 348 crore between Radiant Lifecare and Max Healthcare for FY19, we are delighted to report Rs 360 crore EBITDA for Q1 of FY22 itself. This is our best performance thus far, despite challenging times. We are proud of the role our doctors and paramedical staff have played in the fight against COVID-19 including accelerating the inoculation drive in the country. Overall, we believe we are well placed to deliver consistent growth by adhering to the highest standard of clinical excellence.”