Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q2 FY23 Earnings Presentation
39 slides from Max Healthcare Institute's earnings presentation, Nov 1, 2022
Slide 1: Q2 & H1 FY23 – Earnings update
Q2 & H1 FY23 – Earnings update November 1, 2022
Slide 2: Disclaimer
Disclaimer This presentation contains certain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Max Healthcare Institute Limited’s (“MHIL” / “MHC”) future business developments and econ
Slide 3: Notes to Network Consolidated Financials
Notes to Network Consolidated Financials 1. Strictly applying the principles of IND AS 110, the financial results of MHIL Group consists of operating performance of MHIL, its subsidiaries and deemed separate entities (i.e. silos for Managed Healthcare Facilities). However, in order to present a fair
Slide 4: Content
Content Q2 FY23 Highlights 05 H1 FY23 Highlights 18 Network Balance Sheet 26 About the Company 28 4
Slide 5: Q2 FY23 Highlights
By MAX Healthcare Q2 FY23 Highlights
Slide 6: Executive Summary: Q2 FY23 (1/2)
Executive Summary: Q2 FY23 (1/2) Gross revenue for Q2 FY23 was INR 1,567 Cr compared to INR 1,434 Cr in Q2 FY22 and INR 1,473 Cr in Q1 FY23 Gross revenue (excl. Covid-19 vaccination) for Q2 FY23 was INR 1,567 Cr compared to INR 1,343 in Q2 FY22 and INR 1,471 in Q1 FY23, reflecting a growth of +17% Y
Slide 7: Executive Summary: Q2 FY23 (2/2)
Executive Summary: Q2 FY23 (2/2) ARPOB1 for Q2 FY23 stood at INR 66.0k versus INR 59.0k in Q2 FY22 (+12% YoY) and INR 66.0k in Q1 FY23 Increase in ARPOB over Q2 FY22 was led by improvement in payor mix and surgical mix, normalisation of OPD footfalls and annual price revision. Further, ALOS stood at
Slide 8: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +6.4% +11.0% 1,473 1,567 410 1,434 362 370 2 0 0 91 +16.6% 25 0 +21.8% 370 410 1,567 337 1,343 1,471 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Covid-19 vaccination & related antibody tests EBITDA Covid-19 vaccination & r
Slide 9: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) +4.0% pt 66.0 66.0 75% 78% 74% +2.8% pt 59.0 +12.0% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 ALOS2 (in days) Outpatient consults (‘000)3 +0.1 days +3.7% 4.3 4.2 4.3 577 550 570 -1.2% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY2
Slide 10: Speciality Profile
Speciality Profile Q2 FY22 Q2 FY23 Others Others 9.6% Pulmonology Oncology* 9.6% Oncology* Pulmonology MAS and 3.7% 22.7% 4.5% 21.9% general surgery MAS and 5.5% general surgery 6.2% OBGY and OBGY and pediatrics 5.9% pediatrics 5.4% Gross IP revenue Gross IP revenue INR 1,056 Cr INR 1,226 Cr 12.3% C
Slide 11: Payor Profile
Payor Profile Share of Revenue Q2 FY22 Q2 FY23 16.0% 22.8% 36.5% 38.2% 8.6% 3.6% 35.4% 38.8% Self Pay TPA & corporates International Institutional Note: Excludes revenue from Covid-19 vaccination & related antibody tests, SBUs and other operating income 11
Slide 12: Network P&L Statement: Q2 FY23
Network P&L Statement: Q2 FY23 Figs in INR Cr Q2 FY22 Q1 FY23 Q2 FY23 Amount % NR Amount % NR Amount % NR Gross revenue1 1,434 1,473 1,567 Net revenue 1,353 100.0% 1,393 100.0% 1,482 100.0% Direct costs 553 40.9% 551 39.6% 575 38.8% Contribution 800 59.1% 842 60.4% 907 61.2% Indirect overheads2 438
Slide 13: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue* (INR Cr) Operational beds (Q2 FY23) 962 Delhi 902 1,981 837 157 Uttar Pradesh 151 376 140 134 Maharashtra 122 281 109 131 Punjab 126 312 114 59 Uttarakhand 57 201 48 53 Haryana 50 92 42 Q2 FY23 Q1 FY23 Q2 FY22 *Excludes revenue from Covid-19 vac
Slide 14: Max Lab: Key performance indicators
Max Lab: Key performance indicators Operational footprint Gross Billing Value (INR Cr) Net revenue (INR Cr) (as of Sep 30, 2022) 47 30 410+ 40 2 1 Partner-run 25 37 2 24 collection centres 34 35 22 22 2 4 6 5 5 4 3 38 45 24 29 60% 23 29 32 31 18 19 19 Company owned YoY collection centres (CoCC) Q2 Q
Slide 15: Clinical and Research & Academics update
Clinical and Research & Academics update 15
Slide 16: Clinical Update
Clinical Update MSSH Saket became India’s first centre to successfully perform a dual-split liver transplant from a domino donor Successfully performed BENTALL procedure, a challenging surgical intervention involving total aortic root reconstruction, on a 32 year old male at MSSH Mohali BLK Max achi
Slide 17: Research and Academics Update
Research and Academics Update National and international publications 111 scientific publications in high impact factor journals during Q2 FY23 Top high Index and high impact factor publications are from Cardiology, Oncology , Endocrinology & Orthopaedic departments 97 clinical trials are currently
Slide 18: H1 FY23 Highlights
By MAX Healthcare H1 FY23 Highlights
Slide 19: Executive Summary: H1 FY23
Executive Summary: H1 FY23 H1 FY23 Gross revenue1 at INR 3,040 Cr versus INR 2,819 Cr in H1 FY22 Gross revenue (excl. Covid-19 vaccination) for H1 FY23 was INR 3,038 Cr compared to INR 2,592 in H1 FY22, reflecting a growth of +17% YoY Covid-19 Vaccination revenue in H1 FY23 was INR 2 Cr compared to
Slide 20: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +7.9% +8.1% 3,040 2,819 780 2 722 227 +17.2% 0 85 +22.4% 3,038 780 2,592 637 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Covid-19 vaccination & related antibody tests EBITDA Covid-19 vaccination & related antibody tests revenue Margin1 (%
Slide 21: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) 66.0 55.1 +19.8% 78% -2% pt 76% H1 FY22 H1 FY23 H1 FY22 H1 FY23 ALOS2 (in days) Outpatient consults (‘000) 5.0 1,120 -0.8 days 4.2 +16.1% 964 H1 FY22 H1 FY23 H1 FY22 H1 FY23 (1) ARPOB calculated as gross revenue / total
Slide 22: Speciality Profile
Speciality Profile H1 FY22 H1 FY23 Others Others Pulmonology 9.4% Oncology* Oncology* 8.8% MAS and 3.5% 22.7% Pulmonology# 19.5% general surgery 9.7% 5.6% MAS and OBGY and general surgery 4.8% pediatrics 5.8% Gross IP revenue Cardiac Gross IP revenue OBGY and 4.5% 10.5% INR 2,385 Cr INR 2,077 Cr sci
Slide 23: Payor Profile
Payor Profile Share of Revenue H1 FY22 H1 FY23 16.7% 20.6% 36.8% 38.2% 8.2% 4.1% 37.1% 38.3% Self Pay TPA & corporates International Institutional Note: Excludes revenue from Covid-19 vaccination & related antibody tests, SBUs and other operating income 23
Slide 24: P&L Statement: H1 FY23
P&L Statement: H1 FY23 Figs in INR Cr H1 FY22 H1 FY23 Amount % NR Amount % NR 1 Gross revenue 2,819 3,040 Net revenue 2,675 100.0% 2,875 100.0% Direct costs 1,090 40.8% 1,126 39.2% Contribution 1,585 59.2% 1,748 60.8% Indirect Overheads2 863 32.3% 968 33.7% Operating EBITDA 722 27.0% 780 27.1% ESOP
Slide 25: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY23
Max Healthcare: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY23 Figs in INR Cr MHIL, its Partner Healthcare Facilities ("PHF") Financials Eliminations MHC Network subsidiaries & (IGAAP Unaudited)* & (Consolidated) Silos Adjustment(2) (Certified by an IND AS Balaji GM M
Slide 26: Network Balance Sheet
By MAX Healthcare Network Balance Sheet
Slide 27: Balance Sheet
Balance Sheet1 (Includes Managed & Partner Healthcare Facilities) Figs in INR Cr Mar 22 Sep 22 Shareholders' Equity 6,718 7,462 Gross Debt 918 815 Deferred/Contingent Consideration Payable2 425 446 Put Option Liability3 139 144 Lease Liabilities 202 137 Deferred Tax Liability / (Deferred Tax Asset)4
Slide 28: About the Company
By MAX Healthcare About the Company
Slide 29: Max Healthcare: India's Second Largest Hospital Chain
Max Healthcare: India’s Second Largest* Hospital Chain in terms of revenue, EBITDA and market capitalisation Current capacity 3,400+ beds 17 ~85% ~76% NCR Facilities Beds in metros H1 FY23 Occupancy 280 Shalimar Bagh 540 402 378 BLK Patparganj 12% 59% 32% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ H1
Slide 30: Vision: To be the Most Well Regarded Healthcare Provider in India
Vision: To be the Most Well Regarded Healthcare Provider in India To be the most well regarded healthcare provider in India committed to the highest standards of clinical excellence and patient care supported by latest technology and cutting edge research Quaternary care facilities World class infra
Slide 31: State-of-the-art infrastructure
State-of-the-art infrastructure Robotics TrueBeam Stx LINAC System Cath Lab – Artis Zee Pure Advanced robotics provides high precision and Provides a variety of treatment techniques Artis zee floor-mounted system with enables minimal invasive surgery across such as HyperArc and RapidArc to address a
Slide 32: Strong Focus on Research and Academics
Strong Focus on Research and Academics Research: Academics: Significant strategic partnerships including Deakin University, Max Institute of Medical Excellence (MIME) is the education division Australia, Imperial College London, Ashoka University & Pfizer Inc– of MHC for medical education & training
Slide 33: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY20 FY21 FY22 H1 FY23 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue1 4,356 3,881 5,509 3,040 Net revenue 4,023 100.0% 3,629 100.0% 5,218 100.0% 2,875 100.0% Direct costs 1,715 42.6% 1,508 41.6% 2,103 40.3% 1,126 39.2% Contribution 2,308
Slide 34: Strong financial profile to support expansion plans
Multiple avenues for future growth • Optimise Payor mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilisation operations • Focus on tower specialities INR ~524 Cr in H1 FY23 Strong financial profile to support expansion plans • 2,300 beds addition via brownfield e
Slide 35: Awards and Accolades
Awards and Accolades Operational Clinical Safety Service Quality Others Excellence Patient Safety Award EY Entrepreneur Of The Best customer service Ranked Best Multi by FICCI Year 2021 India Award in in Healthcare Specialty Hospital in Delhi Business transformation by Outlook Health 2022 Diamond Aw
Slide 36: Network Holding Structure
Network Holding Structure Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Medical Service Agreement with Society Max Panchsheel Immigration centre (Lajpat Nagar) Max Saket (West) MHIL Devki Devi Society SBUs (MaxLab, Max@Home) (Max Saket East, Immigration centre (Mohal
Slide 37: List of Network Healthcare Facilities
List of Network Healthcare Facilities Name Location Description Max Super Speciality Hospital, (West Block) Saket Delhi Hospital Max Super Speciality Hospital, (East Block) Saket Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital BLK-Max Super Speciality Hospital, Rajendra Plac
Slide 38: Definitions
Definitions Term Description Amount billed to the patients/customers as per contracted/rack rates, as applicable, including the patients from the economically weaker section (EWS) on discharge basis; Also includes movement in unbilled revenue at the end of the Gross Revenue period for patients admit
Slide 39: About Us
About Us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, please visit It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. www.maxhealthcare.in MHIL has major c
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