Max Healthcare’s Q3 FY 22 Net Profit Is Rs. 252 Crores

On Saturday, 12 February 2022, Max Healthcare Institute posted a net profit of Rs. 252 crores in Q3 ended on 31 December 2021 ─ marking 87% YoY (year-on-year) growth led by normalisation of surgeries and improved payor mix.

This hospital chain generated Rs. 135 crores net profit during Q3 FY 20. Keep scrolling to get more details!

Know About Max Healthcare’s Revenue in Q3!

Revenue of Max Healthcare surged 20% YoY from Rs. 1,158 crores during Q3 FY 20 to Rs. 1,392 crores during Q3 FY 22. At the operational level, the company reached the highest ever EBITDA (earnings before interest, tax, depreciation and amortisation) worth Rs. 364 crores during Q3 FY 22.

The EBITDA margins for the third quarter stands at 27.6%, rising from 26.8% during Q2 FY 22 and 23.2% during Q3 FY 21. The per bed operating EBITDA surged by 9% QoQ.

The revenue of the entity from international medical tourism rises to Rs. 77 crores in Q3, establishing a 68% growth against Q2 FY 22. Due to continued restrictions in air travel, medical tourism revenues cannot achieve the pre-COVID margins.

How Is Max Healthcare’s Overall Performance in Q3?

The financial performance improved on a sequential basis with lower OPD footfalls, lower revenue through COVID-19 vaccination and a slight fall in occupancy. This is because of the dis-empanelment of certain institutional accounts at a few hospitals in Mohali and NCR and seasonal factors.

This quarter saw a significant drop in the volume of COVID-19 vaccination with a reduction of average daily inoculations to 350 in December. However, there has been a considerable jump of non-COVID admissions throughout all major specialities ─ surpassing pre-COVID margins. The bed share of institutional patients falls from around 37% in Q2 FY 22 to 31% in Q3 FY 22.

Further, the seasonally lean third quarter of FY 22 witnesses a return on capital employed (ROCE) of 32%. The company experiences a bounce back after an initial decrease in occupancies brought about by India’s Omicron wave in the December-January term.

Get an Insight into Max Healthcare’s Business!

Max Healthcare or Max Healthcare Institute Limited is one of the leading healthcare organisations in India. It regulates 3400+ beds (17 healthcare facilities) throughout Maharashtra, Uttarakhand, Punjab, Haryana and NCR Delhi. Nearly 85 per cent of its bed share is in Tier 1/Metro cities.

Besides hospitals, the entity also operates pathology and homecare businesses with brand names of Max Labs and Max@Home, respectively. Max Lab offers pathology facilities outside its network of hospitals, whereas Max@Home provides wellness and health facilities at home.

Wrapping Up

With innovative health programs of the network hospitals and medical tourism reviving to the pre-COVID margins, Max Healthcare will continue to flourish in the coming years. The company continues to focus on valuable inorganic growth options through its robust cash flows and strong balance sheet. It has already proposed 3 transactions that will increase the bed capacity by around 35 per cent in the near future.

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Frequently Asked Questions

1. Who is the Chairman of Max Healthcare?

Abhay Soi is the Managing Director and Chairman of Max Healthcare. KKR & Co. Inc., the iconic private equity company, co-promotes this health organisation.

2. When did Max Healthcare launch Max Institute of Cancer Care?

A committed cancer daycare centre, namely Max Institute of Cancer Care, opened in June 2016 at Lajpat Nagar.

3. Which hospital of Max Healthcare received JCI accreditation in 2017?

Max Super Speciality Hospital at Saket received JCI (Joint Commission International) accreditation in 2017.

4. What is the incorporation year of Max Healthcare?

Max Healthcare was incorporated on 18 June 2001 in Delhi and was originally named Infinitum Technologies Private Limited.

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