Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q4 FY22 Earnings Presentation
43 slides from Max Healthcare Institute's earnings presentation, May 25, 2022
Slide 1: Earnings update – Q4 & FY22
Earnings update – Q4 & FY22 May 25, 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. Healthcare undertaking of Radiant Life Care Private Limited (“Radiant”) and residual business of erstwhile Max India Limited merged into Max Healthcare Institute Limited (“MHIL” or “the Company”) through a NCLT approved Composite Scheme of Amalgamation and
Slide 4: Content
Content Q4 FY22 Highlights 05 Covid-19 Update 19 FY22 Highlights 22 About the Company 31 4
Slide 5: Q4 FY22 Highlights
By MAX Healthcare Q4 FY22 Highlights
Slide 6: Executive Summary: Q4 FY22 (1/2)
Executive Summary: Q4 FY22 (1/2) Gross revenue for Q4 FY22 was INR 1,298 Cr versus INR 1,161 Cr in Q4 FY21 (+12% YoY) and INR 1,392 Cr in Q3 FY22 (- 7% QoQ) Omicron wave in the first half of Q4 FY22 led to drop in occupied bed days by ~8% QoQ. Daily occupancy touched a low of 54% in Jan’22, before s
Slide 7: Executive Summary: Q4 FY22 (2/2)
Executive Summary: Q4 FY22 (2/2) ARPOB1 for Q4 FY22 stood at INR 63.5k versus INR 56.1k in Q4 FY21 (+13% YoY) and INR 61.0k in Q3 FY22 (+4% QoQ) Surgical:Medical revenue mix of IPD improved to 52:48; ALOS continued to be at 4.3 days in Q4 FY22 versus 4.6 days in Q4 FY21 OP consults stood at 5.1 lakh
Slide 8: Snapshot of inorganic transactions in Q4 FY22
Snapshot of inorganic transactions in Q4 FY22 1. O&M Agreement in South-west Delhi 2. Acquisition of Eqova Healthcare in East Delhi Type of expansion Asset Light Acquisition Bed Capacity 300 beds on 8.6 acres of land in Sector 10, Dwarka 400 beds on 2.1 acres of land in Patparganj Built to suit mode
Slide 9: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) -6.8% -16.3% 1,392 364 1,298 +11.8% 7 304 +15.9% 1,161 2 263 1,385 1,296 Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Covid-19 vaccination & related antibody tests revenue Margin1 (%) Q4 FY21 : 24.1% | Q3 FY22 : 27.6% | Q4
Slide 10: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) +4.2% 63.5 -6.3% pt 61.0 56.1 74% 70% 68% +13.3% -1.9% pt Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 ALOS2 (in days) Outpatient consults (‘000) 4.6 -5.7% 4.3 4.3 537 -0.3 days 486 507 +4.3% Q4 FY21 Q3 FY22 Q4 FY22 Q
Slide 11: Speciality Profile
Speciality Profile Q4 FY21 Q4 FY22 Others Others 9.0% Pulmonology Oncology* 8.3% Oncology* Pulmonology MAS and 4.5% 22.9% 6.7% 20.4% general surgery MAS and 4.7% general surgery OBGY and 5.0% pediatrics 4.6% OBGY and pediatrics 4.4% Gross IP revenue Gross IP revenue Internal INR 1,018 Cr INR 912 Cr
Slide 12: Payor Profile
Payor Profile Share of Revenue Q4 FY21 Q4 FY22 19.6% 23.7% 36.4% 39.5% 7.9% 6.0% 30.8% 36.1% Self pay TPA & corporates International Institutional Note: Excludes revenue from Covid-19 vaccination & related antibody tests, SBUs and other operating income 12
Slide 13: Network P&L Statement: Q4 FY22
Network P&L Statement: Q4 FY22 Figs in INR Cr Q4 FY21 Q3 FY22 Q4 FY22 Amount % NR Amount % NR Amount % NR Gross revenue1 1,161 1,392 1,298 Net revenue 1,089 100.0% 1,317 100.0% 1,226 100.0% Direct costs 435 40.0% 516 39.2% 497 40.5% Contribution 654 60.0% 801 60.8% 729 59.5% Indirect overheads 391 3
Slide 14: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue* (INR Cr) Operational beds (Q4 FY22) 791 Delhi 869 1,981 737 137 Uttar Pradesh 140 376 117 118 Maharashtra 118 288 94 104 Punjab 110 333 93 48 Uttarakhand 48 201 41 41 Haryana 45 92 35 Q4 FY22 Q3 FY22 Q4 FY21 *Excludes revenue from Covid-19 vacci
Slide 15: Max Lab: Key performance indicators
Max Lab: Key performance indicators Operational footprint Gross Billing Value (INR Cr) Net revenue (INR Cr) (as of Mar 31, 2022) 54 35 300+ 37 24 Partner-run 28 34 35 20 22 22 6 collection centres 27 5 4 17 4 3 5 6 5 26 29 32 31 15 18 19 19 25 20 12 Company owned collection centres (CoCC) Q4 Q1 Q2 Q
Slide 16: Clinical and Research & Academics update
Clinical and Research & Academics update 16
Slide 17: Clinical Update
Clinical Update Successfully conducted TAVR procedure for valve replacement on a 60 year old patient wherein open heart surgery could have proved fatal New Specialities added at Max Mohali - Paediatric Neurology, Spine Surgery Programme, Weight loss and bariatric clinic Launched ‘Physiotherapy on Wh
Slide 18: Research and Academics Update
Research and Academics Update National and international publications 142 scientific publications in high impact factor journals during Q4 FY22 Top high Index and high impact factor publications are from Cardiology, Rheumatology , Internal Medicine, Neurology departments 50 Covid-19 and 92 non-Covid
Slide 19: Covid-19 Update
By MAX Healthcare Covid-19 Update
Slide 20: Covid-19 Update (1/2)
Covid-19 Update (1/2) Key contributions* : Our response : First private hospital to offer a dedicated facility in Delhi for Covid-19 care Infrastructure One of the first private sector labs to start Covid-19 testing support ~150 ~10,16,000 ~21,00,000 Operationalised one of the largest Covid-19 vacci
Slide 21: Covid-19 Update (2/2)
Covid-19 Update (2/2) Post sharp fall in occupancy rate at the start of first wave of Occupancy (%) Covid-19 at the end of Mar’20, the overall occupancy steadily rose back to normal levels in Q3 FY21 87 85 76 79 81 72 74 72 68 66 69 75 69 72 75 69 70 74 60 Occupancy rebounded to 85%+ levels in Apr’2
Slide 22: FY22 Highlights
By MAX Healthcare FY22 Highlights
Slide 23: Executive Summary: FY22
Executive Summary: FY22 FY22 gross revenue was INR 5,509 Cr versus INR 3,881 Cr in FY21 (+42% YoY). This includes revenue of INR 236 Cr from Covid-19 vaccination and related antibody tests Operating EBITDA for FY22 was INR 1,390 Cr versus INR 636 Cr in FY21 (+118%); EBITDA per bed1 grew to INR 53.9
Slide 24: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +42.0% +118.5% 5,509 236 1,390 +35.9% 85 3,881 636 +105.2% 5,273 1,305 FY21 FY22 FY21 FY22 Covid-19 vaccination & related antibody tests EBITDA Covid-19 vaccination & related antibody tests revenue Margin1 (%) FY21 : 17.5% | F
Slide 25: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) 58.5 75% 50.1 65% +16.7% +9.6% pt FY21 FY22 FY21 FY22 ALOS2 (in days) Outpatient consults (‘000) 5.2 -0.5 days 2,008 4.7 +42.0% 1,414 FY21 FY22 FY21 FY22 (1) ARPOB calculated as gross revenue/total OBD; Gross revenue exc
Slide 26: Speciality Profile
Speciality Profile FY21 FY22 Others Others 8.7% Oncology* 7.4% Oncology* Pulmonology Pulmonology 20.8% 20.2% 7.0% 9.3% MAS and MAS and general surgery general surgery 4.9% 4.1% OBGY and OBGY and pediatrics 4.4% Gross IP revenue pediatrics 4.9% Gross IP revenue INR 3,125 Cr 11.1% Cardiac INR 4,177 Cr
Slide 27: Payor Profile
Payor Profile Share of Revenue FY21 FY22 20.0% 23.2% 37.5% 40.8% 5.5% 3.9% 32.1% 36.9% Self pay TPA & corporates International Institutional Note: Excludes revenue from Covid-19 vaccination & related antibody tests, SBUs and other operating income 27
Slide 28: Network P&L Statement: FY22
Network P&L Statement: FY22 Figs in INR Cr FY21 FY22 Amount % NR Amount % NR 1 Gross revenue 3,881 5,509 Net revenue 3,629 100.0% 5,218 100.0% Direct costs 1,508 41.6% 2,103 40.3% Contribution 2,121 58.4% 3,115 59.7% Indirect overheads 1,485 40.9% 1,725 33.1% Operating EBITDA 636 17.5% 1,390 26.6% E
Slide 29: Network Balance Sheet
Network Balance Sheet1 Figs in INR Cr Mar 21 Particulars Sep 21 Mar 22 5,738 Shareholders' Equity 6,282 6,718 1,128 Gross Debt 1,002 918 82 Put Option Liability2 5 139 198 Lease Liabilities (Ind AS 116) 196 202 428 Deferred/Contingent Consideration Payable3 440 425 158 Deferred Tax Liability/Deferre
Slide 30: Memorandum Profit & Loss Consolidation sheet of Network Financials FY 2021-22
Max Healthcare: Memorandum Profit & Loss Consolidation sheet of Network Financials for FY 2021-22 MHIL & its Partner Healthcare Facilities ("PHF") Financials Eliminations subsidiaries & MHC Network Silos (IGAAP Audited)* & (Consolidated) (INR Cr) Ind AS Balaji GM Modi IND AS Adjustment (Certified by
Slide 31: About the Company
By MAX Healthcare About the Company
Slide 32: India's Second Largest Hospital Chain by revenue, EBITDA and market capitalization
Max Healthcare: India’s Second Largest* Hospital Chain in terms of revenue, EBITDA and market capitalization Current capacity 3,400+ beds 17 ~85% +75% NCR Facilities Beds in metros Occupancy 280 Shalimar Bagh 540 402 378 BLK 12% 59% 29% Patparganj Vaishali Revenue CAGR^ EBITDA CAGR^ FY22 3 years 3 y
Slide 33: 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 34: 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 35: 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 and Imperial College London – 30,000+ research of MHC for medical education & training participan
Slide 36: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY19 FY20 FY21 FY22 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue (incl. movement in unbilled) 3,920 4,356 3,881 5,509 Net revenue 3,599 100.0% 4,023 100.0% 3,629 100.0% 5,218 100.0% Direct costs 1,566 43.5% 1,715 42.6% 1,508 41.6% 2,103
Slide 37: 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 ~ 770 Cr Strong financial profile to support expansion plans in FY22 • 2,300 beds addition via brownfield exp
Slide 38: Existing valuable land bank to enable addition of 4,000+ beds
Existing valuable land bank to enable addition of 4,000+ beds, with ~2,800 beds coming in next 5 years Indicative commencing timelines for new beds (existing unit occupancy is indicated in brackets) 7,442 Shalimar Bagh (79%) 500 Dwarka, South-west Delhi 500 Gurugram (Sec 53 & 56) (67%) 200 Saket Com
Slide 39: Awards and Accolades
Awards and Accolades Operational Clinical Safety Service Quality Others Excellence Patient Safety Award Ranked 1st in “Excellence Best customer service Ranked Best Multi by FICCI in Hospital Management in Healthcare Specialty Hospital in Delhi during Covid Times “ by by Outlook Health 2022 Diamond A
Slide 40: Network Holding Structure
Network Holding Structure (As on May 15, 2022) 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, Immi
Slide 41: 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 42: 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 Gross Revenue at the end of the period for patients admit
Slide 43: 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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