 "Abhay Soi, chairman and MD, Max Healthcare")
Abhay Soi, chairman and managing director of Max Healthcare, provides an overview of the company’s performance in FY24 in a telephonic interview with Sanket Koul. Edited excerpts:
What is the reason for the 3 per cent Y-o-Y drop in PAT for the March quarter?
The minor drop in PAT is due to the lower effective tax rate last year and the net loss at our new units in Nagpur and Lucknow.
How do you assess the company’s performance in FY24?
For FY24, we have had a 16 per cent year-on-year (Y-o-Y) growth in the revenues and 17 per cent growth in Ebitda (earnings before interest, taxes, depreciation, and amortisation). We have also hit a milestone in the March quarter by crossing the Rs 500 crore mark in Ebitda margin. This is the first time we have done it. Going forward, this should be the new norm for us. We also consummated two long-drawn inorganic deals, for the 200-bed Alexis Hospital in Nagpur and 550-bed Sahara Hospital in Lucknow this year.
What are your expansion plans for FY25?
We are looking at big capacity additions over the next year. We will also be adding 300 operational beds in Dwarka by June this year, and another 200 beds by December 2024 in Lucknow in our existing hospital. In early FY26, we will be adding beds in Nanavati Hospital and our Saket facility by Q1FY26. So, we are looking to add close to around 1,000 beds by early FY26.
How do you see Tier-II cities playing a role in this growth?
We are now seeing more consumption and demand for quality healthcare from Tier-II and Tier-III cities. We already have hospitals in Tier-II cities such as Chandigarh, Mohali, Bathinda, and Dehradun, which operate at high occupancy levels.
I think that Tier-II and Tier-III cities have come of age and are using a lot of advanced technology for improvement.
You have mentioned that the aim is to be known as the most well-regarded healthcare provider in India. How do you plan to achieve it?
This is our rally cry that we want to be known as the most well-regarded healthcare provider, as far as our customers and patients are concerned, both in terms of outcomes and patient satisfaction.
We wish to be regarded as the best, whether it is the highest level of transparency or the highest level of professionalism. We have won the awards for the best place to work, and we are the only healthcare company to be awarded that title here. We believe that we have the privilege of serving many people during the moment of need, following it up with quick success.
With the acquisitions, are we going to see a bigger share of the high profit-specialty profiles like oncology and cardiac sciences coming into play?
I think we are seeing more and more incidents of high-end diseases in specialities like oncology and cardiac. There are more strokes, an increased demand for transplants, as more people have become susceptible to high-end diseases.
Max Healthcare Q4 net falls 3% to Rs 311 crore
Max Healthcare Institute reported a 3 per cent year-on-year (Y-o-Y) drop in consolidated net profit for the March quarter (Q4 FY24) at Rs 311 crore, down from Rs 320 crore reported for the same period last year, according to data posted on the Bombay Stock Exchange (BSE).
Its revenue from operations rose to Rs 1,890 crore, a 15 per cent Y-o-Y increase from Rs 1,637 crore recorded in Q3FY23. On a sequential basis, the company’s profit after tax (PAT) fell by 8 per cent, while revenue rose by 6 per cent.
Max Healthcare highlighted that the above figures, include revenues from three of its hospitals - Max Smart Super Speciality Hospital, Max Saket Super Speciality Hospital (East wing), and Max Balaji Hospital (Max Hospital, Patparganj), which are not a part of the listed entity.
