Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q3 FY24 Earnings Presentation
45 slides from Max Healthcare Institute's earnings presentation, Jan 31, 2024
Slide 1: Exchange filing cover letter
January 31, 2024 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Symbol: MAXHEALTH Scrip Code: 543220 Sub.: Pre
Slide 2: Press Release: Key Highlights of Q3 Performance
PRESS RELEASE Max Healthcare reports yet another quarter of stellar performance Network1 Revenue grew by 14% YoY to INR 1,779 Cr, Operating EBITDA grew by 12% YoY to INR 471 Cr and PAT for the quarter grew by 26% YoY to INR 338 Cr Key Highlights of Q3 Performance • Gross Revenue stood at INR 1,779 C
Slide 3: Press Release: Financial and Operational Highlights
PRESS RELEASE Max Shalimar Bagh, which saw a capacity expansion of 122 beds, reported a YoY Revenue & EBITDA growth of 36% & 42% respectively with an average occupancy of 74%. International patient revenue grew by +25% YoY. In Q3 FY24, the share of international patient revenues stood at 9.4% of the
Slide 4: Press Release: Clinical Update
PRESS RELEASE Clinical Update: • Till date we have performed 2,600+ Liver Transplants, ~3,890 Kidney Transplants & 1,750+ Bone Marrow Transplants • Collaborated with ImmunoACT to launch CAR-T cell therapy, NexCAR19, for B-cell malignancies at Max Hospital Vaishali. The collaboration shall soon exten
Slide 5: Press Release: About Max Healthcare
PRESS RELEASE About Max Healthcare: Max Healthcare Institute Limited (MHIL) is one of India’s largest hospital chains (considering only income from healthcare services) in fiscal 2023. It is committed to the highest standards of medical and service excellence, patient care, scientific and medical ed
Slide 6: Safe Harbour Disclaimer
PRESS RELEASE Safe Harbour Disclaimer This release 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”) future business develop
Slide 7: Earnings update – Q3 & 9M ended Dec'23
Earnings update – Q3 & 9M ended Dec’23 January 31, 2024
Slide 8: 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 9: Notes to Network Consolidated Financials
Notes to Network Consolidated Financials 1. Max Healthcare Institute Limited (“MHIL”), its subsidiaries and deemed separate entities (i.e. silos for managed healthcare facilities) constitute MHIL Group under IND AS 110 . MHIL Group also has long term contracts with certain societies, who own and ope
Slide 10: Content
Content Q3 FY24 Highlights 05 9M ended Dec’23 Highlights 20 About the Company 28 4
Slide 11: Q3 FY24 Highlights
By MAX Healthcare Q3 FY24 Highlights
Slide 12: Executive Summary: Q3 FY24 (1/2)
Executive Summary: Q3 FY24 (1/2) Gross revenue was INR 1779 Cr compared to INR 1,559 Cr in Q3 FY23 and INR 1,827 Cr in Q2 FY24; reflecting a growth of +14% YoY and -3% QoQ. YoY growth of +14% is mainly driven by increase in ARPOB +15% while OBDs fell by 1%. QoQ growth in revenue was impacted due to
Slide 13: Executive Summary: Q3 FY24 (2/2)
Executive Summary: Q3 FY24 (2/2) International patient revenue was INR 157 Cr in Q3 FY24 compared to INR 126 Cr in Q3 FY23 and INR 158 Cr in Q2FY24, reflecting a growth of +25% YoY and was flat QoQ ; accounting for ~9.4% of the hospital revenue ARPOB1 for Q3 FY24 stood at INR 76.8k versus INR 66.8k
Slide 14: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +14.1% +12.5% 1,827 1,779 497 471 1,559 -2.6% 419 -5.3% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Margin1 (%) Q3 FY23 : 28.3% | Q2 FY24 : 28.7% | Q3 FY24 : 27.9% Operating EBITDA per bed2 (INR Lakhs) Pre-tax ROCE3 38% +1
Slide 15: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Inpatient Volumes2 +15.0% 60,343 74.6 76.8 56,901 56,616 66.8 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 ALOS3 (in days) Outpatient consults (‘000) +3.2% 4.2 4.1 4.2 649 574 592 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 (1) ARPOB calculat
Slide 16: Speciality Profile
Speciality Profile Q3 FY23 Q3 FY24 Others Others Pulmonology 8.9% Pulmonology 9.1% Liver and biliary Oncology* Oncology* 3.9% Liver and biliary sciences 4.0% 23.4% 25.8% sciences 3.5% 3.6% OBGY and OBGY and pediatrics 5.4% pediatrics 6.5% MAS and Gross IP revenue MAS and 5.2% general surgery 5.0% Gr
Slide 17: Payor Profile
Payor Profile Share of Revenue* Q3 FY23 Q3 FY24 18.3% 18.3% 33.3% 35.7% 8.6% 9.4% 37.5% 39.0% Self Pay TPA & corporates International Institutional Note: *Excludes revenue from SBUs and other operating income 11
Slide 18: Network P&L Statement: Q3 FY24
Network P&L Statement: Q3 FY24 Figs in INR Cr Q3 FY23 Q2 FY24 Q3 FY24 Amount % NR Amount % NR Amount % NR Gross revenue 1,559 1,827 1,779 Net revenue 1,478 100.0% 1,732 100.0% 1,689 100.0% Direct costs1 573 38.8% 667 38.5% 650 38.5% Contribution 905 61.2% 1,065 61.5% 1,038 61.5% 2 Indirect overheads
Slide 19: Q3 FY24: Memorandum Consolidation of Network P&L
Q3 FY24: Memorandum Consolidation of Network P&L 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 Modi Devki Devi IND AS ICA) Unaudited Society S
Slide 20: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue* (INR Cr) Operational beds (as at end of Dec’23)^ 1,072 Delhi 1,106 2,079 955 200 387 Uttar Pradesh 202 164 136 289 Maharashtra 147 132 150 312 Punjab 145 127 74 219 Uttarakhand 74 59 61 104 Haryana 64 52 Q3 FY24 Q2 FY24 Q3 FY23 *Excludes revenue
Slide 21: Max Lab: Key performance indicators
Max Lab: Key performance indicators Operational footprint Gross Billing Value (INR Cr) Net revenue (INR Cr) (as of Dec, 2023) +23% +21% 63 38 525+ 56 33 34 Partner-run 54 48 collection centres 46 28 29 23 Company owned collection centres (CoCC) Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY23 FY23 FY24 FY24 FY24
Slide 22: Max@Home: Key performance indicators
Max@Home: Key performance indicators Key Pointers Gross revenue (INR Cr) Quarterly Gross Revenue Trend (INR Cr) (as of Dec, 2023) +24% 139 42 44 14 +54.3% 110 40 Specialised 36 37 Service Lines 76 70 61 27 ~1,300 10 Strong Team* FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 Q4 Q1 Q2 Q3 FY23 FY23 FY24 FY24 F
Slide 23: Clinical and Research & Academics update
Clinical and Research & Academics update 17
Slide 24: Clinical Update
Clinical Update Collaborated with ImmunoACT to launch CART-T cell therapy, NexCAR19, for B-cell malignancies at MSSH Vaishali. The collaboration shall extend to all major Max Hospitals nationwide ~2,600 Liver Transplants, ~3,890 Kidney Transplants & 1,750+ Bone Marrow Transplants performed till date
Slide 25: Research and Academics Update
Research and Academics Update National and international publications 90 scientific publications in high impact factor journals during Q3 FY24 Top high Index and high impact factor publications are from Cardiology ( Nature Medicine : 24.69, NEJM : 26.02), Oncology ( Journal Clinical Oncology : 10.6,
Slide 26: 9M ended Dec'23 Highlights
9M ended Dec’23 Highlights 20
Slide 27: Executive Summary: 9M ended Dec'23
Executive Summary: 9M ended Dec’23 9M ended Dec’23 Gross revenue was INR 5,325 Cr versus INR 4,599 Cr in 9M ended Dec’22 ,reflecting a growth of 16% YoY. Growth was driven by 14% YoY increase in ARPOB and 2% increase in OBDs Operating EBITDA for 9M ended Dec’23 stood at INR 1,404 Cr versus INR 1,199
Slide 28: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +15.8% +17.1% 5,325 4,599 1,404 1,199 9M ended Dec’22 9M ended Dec’23 9M ended Dec’22 9M ended Dec’23 Margin1 (%) 9M FY23 : 27.5% | 9M FY24 : 27.8% Operating EBITDA per bed2 (INR Lakhs) Pre-tax ROCE3 +14.6% 35% 32% 74 64 9M en
Slide 29: Key Operational Highlights
Key Operational Highlights Inpatient Volumes ARPOB1 (INR/OBD) (‘000) +3% 75.4 66.3 +13.7% 1,67,708 1,73,472 9M ended Dec’22 9M ended Dec’23 9M ended Dec’22 9M ended Dec’23 ALOS3 (in days) Outpatient consults (‘000) 4.2 4.1 1,866 -0.1 days +10.2% 1,693 9M ended Dec’22 9M ended Dec’23 9M ended Dec’22
Slide 30: Speciality Profile
Speciality Profile 9M ended Dec’22 9M ended Dec’23 Others Others Pulmonology 9.2% Pulmonology 9.3% Oncology* Oncology* MAS and 3.4% MAS and 3.7% general surgery 25.4% 22.9% general surgery 5.1% 5.5% OBGY and OBGY and pediatrics 5.4% pediatrics 6.0% Gross IP revenue Gross IP revenue INR 3,605 Cr Inte
Slide 31: Payor Profile
Payor Profile Share of Revenue 9M ended Dec’22 9M ended Dec’23 18.2% 17.2% 33.6% 36.4% 8.3% 9.2% 38.0% 39.0% Self Pay TPA & corporates International Institutional# Note: Excludes revenue from SBUs and other operating income #The increase in revenue share of institutional despite marginal drop in bed
Slide 32: P&L Statement: 9 Months ended Dec'23
P&L Statement: 9 Months ended Dec’23 Figs in INR Cr 9M ended Dec’22 9M ended Dec’23 Amount % NR Amount % NR Gross revenue 4,599 5,325 Net revenue 4,353 100.0% 5,049 100.0% Direct costs 1,699 39.0% 1,968 39.0% Contribution 2,653 61.0% 3,081 61.0% Indirect Overheads1 1,454 33.4% 1,677 33.2% Operating
Slide 33: 9M ended Dec'23: Memorandum Consolidation of Network P&L
9M ended Dec’23: Memorandum Consolidation of Network P&L 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 Modi Devki Devi IND AS ICA) Unaudited S
Slide 34: About the Company
By MAX Healthcare About the Company
Slide 35: 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 ~3,550 beds 17 ~82% ~73% NCR Facilities Beds in metros Q3 FY24 Occupancy 402 Shalimar Bagh 516 402 387 BLK Patparganj 13% 41% ~34% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ Q
Slide 36: 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 37: State-of-the-art infrastructure
State-of-the-art infrastructure Da Vinci Robotic System Ortho Robotic System Spine Robotic System Advanced robotics provides high precision Robotic-assisted surgery for knee It allows surgeons to perform and enables minimal invasive surgery replacement incorporates the placement precise spinal fusio
Slide 38: Strong Focus on Research and Academics
Strong Focus on Research and Academics Research: Academics: Significant strategic partnerships: Imperial College London, Ashoka Max Institute of Medical Excellence (MIME) is the education division University, IIT Bombay, IIIT Delhi, IIIT D iHub Innovation Center, IIT of MHC for medical education & t
Slide 39: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY21 FY22 FY23 9M FY24 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 3,881 5,509 6,236 5,325 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 5,049 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 1,968 39.0% Contribution 2,121
Slide 40: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilization & improve process efficiencies operations • Optimize payor mix INR ~924 Cr in 9M ended Dec’23 • ~2,600 beds addition via brownfield ex
Slide 41: Awards and Accolades
Awards and Accolades Operational Clinical Safety Service Quality Others Excellence Patient Safety Award Forbes India Economic Times Certified Great Place to by FICCI ‘Entrepreneur Of The Healthcare Award 2022 Work by Great Place to Year’ 2023 Award under five categories Work Institute Diamond Award
Slide 42: Network Holding Structure
Network Holding Structure (As at end of Dec’23) Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Max Panchsheel Max Healthcare Institute Medical Service Agreement Immigration centre (Lajpat Nagar) Max Saket (West) Limited (MHIL) Devki Devi Society SBUs (MIME, Max@Home)
Slide 43: 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 44: Definitions
Definitions Term Description ALOS Average Length of Stay: discharged patients stay in the hospital, basis admission and discharge time Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 ARPOB vaccination & related antibody tests and Max L
Slide 45: 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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