Max Healthcare's PAT Nearly Doubles In Q4FY23, Records Revenue At Rs 1,637 Cr

Max Healthcare, the Indian healthcare provider headquartered in New Delhi has reported its earnings for the quarter that ended on 31st March 2023, the hospital chain has registered a rise of 26 per cent year on year in its consolidated revenue to be recorded at Rs 1,637 crores in the Quarter Four of Financial Year 2023(Q4FY23) up from Rs 1,296 crores in the corresponding quarter last year. 

The healthcare company recorded a 5 per cent jump in its revenues compared with the previous quarter (Q3FY23) where the company posted revenue of Rs 1,559 crores. The hospital chain stated in a statement that the revenues were aided by an increase in Average Revenue Per Operating Bed (ARPOB) which was up by 11 per cent YOY and occupied beds which were up by over 14 per cent  YoY. 

Max Healthcare's consolidated revenue for the financial year 2023 stood at Rs 6,234 crores, a rise of 18 per cent when compared with the revenues of last year which stood at Rs 5,272 crores.

The healthcare provider's net profit jumped by 85 per cent year on year (YoY) in Q4FY23, the company recorded a net profit of Rs 320 crores in the March quarter. The company saw an increase of Rs 148 crores from the earnings of the same quarter last year which stood at Rs 172 crores. Max Healthcare said that the profits for the quarter were supported primarily on account of improvement in the operating metrics in all the hospitals and reduction in finance costs. 

The company's net profit for FY23 came in at Rs 1,328 crores against Rs 752 crores in FY22, a jump of 77 per cent year on year.

Max Healthcare's Operating EBITDA was at its highest ever seeing a 44 per cent rise YoY in Q4FY23 to be recorded at Rs 437 crore against Rs 304 crore reported in the corresponding quarter last year. The hospital chain's EBITDA for FY23 came in at Rs 1,635 crores, a growth of 25 per cent YoY compared with Rs 1,305 crores recorded in FY22. 

The company's EBITDA margins for the March quarter came in at 28.2 per cent improving from 24.9 per cent recorded in the same quarter of the previous year. The healthcare provider's margins for FY23 stood at 27.7 per cent against 26.2 per cent in FY22.

Max Healthcare stated that its cash flow from operations stood at Rs 425 crore during the quarter, of which Rs 65 crore was spent on capacity expansion projects. Further, the cash generation was aided by a reduction in accounts receivables, receipt of tax refunds and an increase in trade payables. Net Cash surplus at the end of Mar 2023 stood at Rs 733 crores, compared to Rs 372 crores at the end of Dec 2022. 

“The Q4 results are in line with our plan and reflect the flawless execution of our strategy by the team on the ground. I am happy that we could deliver the first brownfield expansion on time and it has started to make positive addition to EBITDA and demonstrate operating leverage from the very first month. As other planned bed additions start to roll-in, we expect significant operating leverage," stated Abhay Soi, Chairman and Managing Director, Max Healthcare Institute.

Soi further said that the Indian healthcare provider major is actively but prudently evaluating inorganic growth opportunities. "While we continue to see great investment opportunities in the sector, happy to announce that Board has recommended a maiden dividend of 10 per cent for the financial year ended Mar 31, 2023," Soi added. 

The company board has recommended a final dividend of Rs 1 per equity share (at 10 per cent on Face Value of Rs 10 per share) for the year ended 31 Mar 2023. 

Growth Factors

The company's statement highlighted that the year-on-year growth in ARPOB and operating EBITDA was driven by improvement in the channel mix and speciality mix along with an increase in other operating income.

The hospital's international patient revenue grew by 43 per cent YoY and 10 per cent QoQ. In Q4 FY23, the share of international patient revenues stood at 9.1 per cent of the hospital revenue. 

Whereas the company's diagnostic business Max Lab (non-captive pathology vertical) reported gross revenue of Rs 31 crores during the quarter, recording a growth of 57 per cent YoY on a like-to-like basis (excluding Covid-19 related tests). The company's home healthcare arm Max@Home recorded gross revenue of Rs 37 crores during Q4 FY23, a growth of 26 per cent YoY. 

Taking the organic expansion route the hospital chain informed that Max Shalimar Bagh commissioned a new 92 beds oncology block in Mar 2023. With this addition, Max Healthcare is now a 3,500 beds hospital chain.

The company's stock closed 2.49 per cent lower on Tuesday at Rs 506.90 on BSE.