Max Healthcare’s Record-Breaking Quarter: Revenue and EBITDA Surge

Max Healthcare Institute Ltd. (MHIL), one of India’s largest private sector healthcare services companies, reported its highest-ever quarterly revenue and operating EBITDA for the fourth quarter of the fiscal year ending March 31, 2024. The network’s gross revenue surged to Rs 1,890 crore, reflecting a year-on-year growth of 15%. Operating EBITDA grew in tandem, reaching Rs 503 crore, also a 15% increase year-on-year. These results underscore the company’s robust financial health and its effective strategies in expanding its operational footprint.

Strategic Acquisitions and Capacity Expansion

In Q4 FY24, Max Healthcare consummated two significant M&A transactions, adding approximately 750 beds to its capacity. The acquisitions included the 200-bed Alexis Hospital in Nagpur, effective February 9, 2024, and the 550-bed Sahara Hospital in Lucknow, effective March 7, 2024. These acquisitions contributed Rs 42 crore to the gross revenue and Rs 3 crore to the operating EBITDA for the quarter, net of deal expenses. The integration of these hospitals into Max Healthcare’s network is expected to further bolster its revenue and profitability.

Financial Performance Metrics

Max Healthcare’s financial metrics for Q4 FY24 highlight its strong performance:

Year-End Financial Overview

For the fiscal year ended March 31, 2024, Max Healthcare reported a gross revenue of Rs 7,215 crore, a 16% increase over the previous fiscal year. The network operating EBITDA for FY24 stood at Rs 1,907 crore, marking a 17% growth. The operating margin for FY24 was 27.8%, slightly higher than the 27.7% recorded in FY23. These figures reflect the company’s strong operational efficiency and its ability to generate substantial revenue growth. Profit after tax (PAT) came in at Rs311 crore, down slightly from Rs 320 crore in Q4 FY23. This minor dip can be attributed to a lower effective tax rate last year and net losses incurred at newly acquired units.

Operational Highlights and Clinical Achievements

Max Healthcare has also made significant strides in clinical operations and research. The company performed approximately 2,770 liver transplants, 4,000 kidney transplants, and over 1,800 bone marrow transplants till date. Notably, Max Hospital Patparganj became the first in India to perform an Artificial Heart Impella supported PTCA Stent on a 79-year-old male patient.

Additionally, the company has published 100 articles in high-impact journals during Q4 FY24 and received provisional accreditation from the Royal College of Obstetricians & Gynaecologists (RCOG) UK for four hospitals to start RCOG MHC OBGYN Training Programmes. These achievements underline Max Healthcare’s commitment to clinical excellence and advanced medical research.

Financial Health and Future Prospects

Despite significant expenditures on acquisitions and capacity expansion, Max Healthcare’s financial health remains strong. The company reported free cash from operations of Rs 412 crore for Q4 FY24, and its net cash position stood at Rs 22 crore as of March 31, 2024. The acquisitions and ongoing integration of new hospitals are expected to drive further revenue and EBITDA growth, positioning Max Healthcare for continued success.

Shares of the company closed today at Rs 843.80, up 1.04% from its yesterday’s closing price of Rs 835.15. The shares have delivered 22.6% return for the year till date.

Conclusion

Max Healthcare’s impressive financial and operational performance in Q4 FY24 and the fiscal year highlights its strategic acumen and robust growth trajectory. The company’s successful acquisitions, coupled with strong revenue and EBITDA growth, underscore its position as a leading player in the Indian healthcare sector. As Max Healthcare continues to expand its capacity and enhance its clinical capabilities, it remains well-positioned to deliver sustained value to its shareholders and stakeholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.