Max Healthcare Q1 results: Net profit drops 1.6%, revenue up by 20%

Max to invest Rs 230 crore to set up 250 bed hospital in Mohali

Delhi-based Max Healthcare Institute on Thursday reported a 1.6 per cent year-on-year (Y-o-Y) dip in consolidated net profit for the first quarter of financial year 2024-25 (Q1FY25) at Rs 236 crore, down from Rs 240 crore recorded for the same period last year.

According to data posted on the Bombay Stock Exchange (BSE), Max’s revenue from operations rose to Rs 1,543 crore, a 20 per cent Y-o-Y increase from Rs 1,285 crore reported in Q1FY24.

The company has also approved to invest Rs 230 crore to set up a 250-bed hospital in Mohali’s Zirakpur in Punjab. The company will enter into a long-term lease arrangement with Silicon Constructions for setting up a build-to-suit hospital, according to its exchange filing.

On a sequential basis, the company exhibited a 6.3 per cent drop in net profit, while its revenue grew by 5.1 per cent, from Rs 252 crore and Rs 1,468 crore reported in Q3FY24 respectively. 

The company has previously highlighted that the above figures do not include three of its partner healthcare facilities.

Financials of Max Balaji Hospital (Max Hospital, Patparganj), Max Smart Super Speciality Hospital and Max Saket Super Speciality Hospital (East wing) are not included in the consolidated financial statements. 

After considering the above three financials, the revenue for the whole entity stands at Rs 1,931 crore and net profit will be Rs 295 crore, according to the company’s investor presentation.

Max Healthcare noted that their overall average revenue per occupied bed (Arpob) stood at Rs 77,100, a 3.1 per cent Y-o-Y rise from Rs 74,800 reported for the same period last year. 

While Arpob for existing units improved by 7 per cent on-year to Rs 80,100 in Q1FY25 from Rs 74,800 in Q1FY24, Max’s new units reported an Arpob of Rs 45,300.

Improvement in revenue per bed was mainly driven by better speciality and patient mix.

The Oncology department, including chemotherapy and radiotherapy, increased its share in Max’s revenue to 25.2 per cent from 25.1 per cent in Q1FY25. Similarly, orthopaedics and renal sciences (including dialysis) improved their share in revenue to 12 per cent and 9.4 per cent respectively.  

International patient revenue also grew by 11 per cent Y-o-Y to Rs 158 crore in the June quarter, compared to Rs 143 crore in Q1FY24, accounting for around 8.3 per cent of the hospital revenue.

The company also announced that its 303-bedded new unit, Max Super Specialty Hospital, Dwarka has commenced its operations on July 2 this year.

The company approved providing financial assistance to Muthoot Hospitals, for its operational and capital expenditure requirements in relation to Max Super Speciality Hospital, Dwarka. Additionally, the healthcare services company approved buying an additional stake in Starlit Medical Centre for a consideration of up to Rs 150 crore.

Commenting on the Q1 results, Abhay Soi, Chairman and Managing Director, Max Healthcare Institute said that with launch of Max Super Specialty Hospital, Dwarka, the company has added over 900 beds to its capacity so far and has successfully supplemented the momentum of growth in revenues and profitability before augmentation of bed capacity through brown field expansion plans in FY26. 

“In the meanwhile, consistent performance in existing hospitals and encouraging response to our offerings at new units is providing us with confidence to further pursue growth opportunities including newly entered built-to-suit arrangement in Mohali,” he added. 

On Thursday, Max Healthcare Institute’s stocks were up by 0.24 per cent, ending the day’s trade at Rs 924.25 apiece on the BSE.