Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q2 FY24 Earnings Presentation
46 slides from Max Healthcare Institute's earnings presentation, Nov 6, 2023
Slide 1: Exchange cover letter: Press Release and Presentation on Earnings Update
November 6, 2023 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: Max Healthcare reports robust quarterly financial performance
PRESS RELEASE Max Healthcare reports robust quarterly financial performance Network1 Revenue grew by +17% YoY to INR 1,827 Cr, Operating EBITDA stood at INR 497 Cr, +21% YoY PAT2 for the quarter grew by +26% YoY to INR 338 Cr • Gross Revenue stood at INR 1,827 Cr for Q2 FY24, +17% growth YoY & +6% g
Slide 3: Press Release
PRESS RELEASE Max Lab (non-captive pathology vertical) reported gross revenue of INR 39 Cr during the quarter, recording a growth of +32% YoY and +15% QoQ on a like-to-like basis1. Max@Home gross revenue during Q2 FY24 was INR 42 Cr, a growth of +23% YoY and +8% QoQ. For the six months ended Sep 202
Slide 4: Press Release
PRESS RELEASE • MSSH-Dehradun became the 1st hospital in tri-city to successfully perform Full Thickness resection of Locally Invasive Rectal Carcinoma on a 78-year-old patient • Nanavati Max successfully performed a complex liver transplant on a 5-year old patient, with the donor being just 2-years
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: Q2 & H1 FY24 – Earnings update
Q2 & H1 FY24 – Earnings update November 06, 2023
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 Q2 FY24 Highlights 05 H1 FY24 Highlights 20 About the Company 29 4
Slide 11: Q2 FY24 Highlights
By MAX Healthcare Q2 FY24 Highlights
Slide 12: Executive Summary: Q2 FY24 (1/2)
Executive Summary: Q2 FY24 (1/2) Gross revenue was INR 1,827 Cr compared to INR 1,567 Cr in Q2 FY23 and INR 1,719 Cr in Q1 FY24; reflecting a growth of +17% YoY and +6% QoQ. YoY growth of +17% is mainly driven by increase in ARPOB +13% and OBDs +3% Operating EBITDA for Q2 FY24 was INR 497 Cr compare
Slide 13: Executive Summary: Q2 FY24 (2/2)
Executive Summary: Q2 FY24 (2/2) ARPOB1 for Q2 FY24 stood at INR 74.6k versus INR 66.0k in Q2 FY23 reflecting, +13% YoY. This is flat compared to Q1 FY24 due to seasonal factors Improvement in ARPOB over Q2 FY23 was witnessed across all specialities and hospitals. Increase in share of Oncology did c
Slide 14: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +16.6% +21.2% 1,827 497 1,719 1,567 +6.3% 410 436 +14.1% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Margin1 (%) Q2 FY23 : 27.7% | Q1 FY24 : 26.8% | Q2 FY24 : 28.7% Operating EBITDA per bed2 (INR Lakhs) Pre-tax ROCE3 38% +
Slide 15: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupied Beds +3% +13.0% 2,528 2,474 2,606 74.8 74.6 +5.3% 66.0 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 ALOS2 (in days) Outpatient consults (‘000) -0.2days +13.9% 4.3 4.1 4.1 624 649 570 +4.0% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q
Slide 16: Speciality Profile
Speciality Profile Q2 FY23 Q2 FY24 Others Others Pulmonology 9.4% Pulmonology 9.6% Oncology* Liver and biliary Oncology* sciences 3.0% Liver and biliary 25.3% 3.7% 22.7% 3.6% sciences 4.0% OBGY and OBGY and pediatrics 5.6% pediatrics 5.9% MAS and Gross IP revenue MAS and 5.5% general surgery 5.1% Gr
Slide 17: Payor Profile
Payor Profile Share of Revenue* Q2 FY23 Q2 FY24 17.9% 16.0% 33.4% 36.5% 8.6% 9.3% 38.8% 39.4% Self Pay TPA & corporates International Institutional # Note: *Excludes revenue from SBUs and other operating income 11 #The institutional revenue share has improved YoY despite reduction in bed share, due
Slide 18: Network P&L Statement: Q2 FY24
Network P&L Statement: Q2 FY24 Figs in INR Cr Q2 FY23 Q1 FY24 Q2 FY24 Amount % NR Amount % NR Amount % NR Gross revenue 1,567 1,719 1,827 Net revenue 1,482 100.0% 1,629 100.0% 1,732 100.0% 1 Direct costs 575 38.8% 650 39.9% 667 38.5% Contribution 907 61.2% 979 60.1% 1,065 61.5% Indirect overheads2 4
Slide 19: Q2 FY24: Memorandum Consolidation of Network P&L
Q2 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 Sep’23)^ 1,106 Delhi 1,047 2,079 962 202 387 Uttar Pradesh 184 157 147 289 Maharashtra 140 134 145 312 Punjab 145 131 74 213 Uttarakhand 66 59 64 94 Haryana 57 53 Q2 FY24 Q1 FY24 Q2 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 Sep, 2023) +14% 63 38 435+ 54 0 33 0 Partner-run 47 46 48 1 30 28 29 1 collection centres 2 1 0 1 0 0 63 38 45 45 47 53 29 27 29 33 32% 23 YoY Company owned collection centres (CoCC) Q2
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 Sep, 2023) +8% 139 40 42 14 +54.3% 110 36 37 Specialised 35 Service Lines 76 70 61 23% 27 YoY ~1,250 10 Strong Team* FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q2 Q3 Q4 Q1 Q2 FY23 FY23 FY23
Slide 23: Clinical and Research & Academics update
Clinical and Research & Academics update 17
Slide 24: Clinical Update
Clinical Update Signed MoU with Intuitive to establish Southeast Asia’s 1st Total Program Observation (TPO) Centre, located at MSSH-Saket, to drive enhancements in patient care using robotic-assisted surgery 2,400+ Liver Transplants, ~3,800 Kidney Transplants & 1,740+ Bone Marrow Transplants perform
Slide 25: Research and Academics Update
Research and Academics Update National and international publications 107 scientific publications in high impact factor journals during Q2 FY24 Top high Index and high impact factor publications are from Cardiology, Oncology, Endocrinology, Internal Medicine and Gastro 103 clinical trials and 22 gra
Slide 26: H1 FY24 Highlights
By MAX Healthcare H1 FY24 Highlights
Slide 27: Executive Summary: H1 FY24
Executive Summary: H1 FY24 H1 FY24 Gross revenue was INR 3,546 Cr versus INR 3,040 Cr in H1 FY23,reflecting a growth of 17% YoY ARPOB grew by +13% and OBDs were up by +3%, other operating income was up by 1% Operating EBITDA for H1 FY24 stood at INR 933 Cr versus INR 780 Cr in H1 FY23, registering a
Slide 28: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +16.6% +19.6% 3,546 3,040 933 780 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Margin1 (%) H1 FY23 : 27.1% | H1 FY24 : 27.8% Operating EBITDA per bed2 (INR Lakhs) Pre-tax ROCE3 +15.2% 36% 32% 73 63 H1 FY23 H1 FY24 H1 FY23 H1 FY24 (1) Margi
Slide 29: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupied Beds +3% 74.7 66.0 +13.1% 2,467 2,540 H1 FY23 H1 FY24 H1 FY23 H1 FY24 ALOS3 (in days) Outpatient consults (‘000) 4.2 4.1 1,273 -0.1 days +13.7% 1,120 H1 FY23 H1 FY24 H1 FY23 H1 FY24 (1) ARPOB calculated as gross revenue / tot
Slide 30: Speciality Profile
Speciality Profile H1 FY23 H1 FY24 Others Others Pulmonology 9.4% Pulmonology 9.4% Oncology* Oncology* MAS and 3.2% MAS and 3.5% general surgery 25.2% 22.7% general surgery 5.2% 5.6% OBGY and OBGY and pediatrics 5.4% pediatrics 5.8% Gross IP revenue Gross IP revenue INR 2,385 Cr Internal INR 2,733 C
Slide 31: Payor Profile
Payor Profile Share of Revenue H1 FY23 H1 FY24 18.1% 16.7% 33.7% 36.8% 8.2% 9.1% 38.3% 39.0% Self Pay TPA & corporates International Institutional# Note: Excludes revenue from SBUs and other operating income #The increase in institutional share is driven by increase in ARPOB, a part of which is due
Slide 32: P&L Statement: H1 FY24
P&L Statement: H1 FY24 Figs in INR Cr H1 FY23 H1 FY24 Amount % NR Amount % NR Gross revenue 3,040 3,546 Net revenue 2,875 100.0% 3,361 100.0% Direct costs 1,126 39.2% 1,317 39.2% Contribution 1,748 60.8% 2,043 60.8% Indirect Overheads1 968 33.7% 1,110 33.0% Operating EBITDA 780 27.1% 933 27.8% ESOP
Slide 33: H1 FY24: Memorandum Consolidation of Network P&L
H1 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 34: Network Balance Sheet
Network Balance Sheet1 (Includes Managed & Partner Healthcare Facilities) Figs in INR Cr Mar 23 Sep 23 Shareholders' Equity (Incl. corpus) 8,070 8,623 Gross Debt 682 606 Deferred/Contingent Consideration Payable2 440 463 Put Option Liability3 150 84 Lease Liabilities 139 147 Deferred Tax Liability /
Slide 35: About the Company
By MAX Healthcare About the Company
Slide 36: 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 ~3,530 beds 17 ~82% ~77% NCR Facilities Beds in metros Q2 FY24 Occupancy 402 Shalimar Bagh 516 402 387 BLK Patparganj 13% 41% ~38% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ Q
Slide 37: 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 38: State-of-the-art infrastructure
State-of-the-art infrastructure Robotics 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 fusion and provide a
Slide 39: Strong Focus on Research and Academics
Strong Focus on Research and Academics Research: Academics: Significant strategic partnerships including Imperial College Max Institute of Medical Excellence (MIME) is the education division London, Ashoka University, IIT Bombay, IIIT Delhi, Pfizer Inc and of MHC for medical education & training Dea
Slide 40: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY21 FY22 FY23 H1 FY24 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 3,881 5,509 6,236 3,546 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 3,361 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 1,317 39.2% Contribution 2,121
Slide 41: 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 ~697 Cr in H1 FY24 • ~2,600 beds addition via brownfield expansion
Slide 42: 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 43: Network Holding Structure
Network Holding Structure (As at end of Sep’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 44: 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 45: 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 46: 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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