Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q2 FY25 Earnings Presentation
53 slides from Max Healthcare Institute's earnings presentation, Nov 5, 2024
Slide 1: Cover letter to stock exchanges
November 5, 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: Max Healthcare fortifies its position in NCR
PRESS RELEASE Max Healthcare fortifies its position in NCR Commenced operations at Max Hospital, Dwarka and acquired Jaypee Hospital, Noida Q2 revenue jumps by +22% YoY to INR 2,228 Cr Operating EBITDA grows to INR 566 Cr & PAT stood at INR 349 Cr Key Highlights of Q2 Performance • Commenced operati
Slide 3: Press Release
PRESS RELEASE 25.8% in Q1 FY25 (Margin excluding loss at MSSH Dwarka and Jaypee Hospital one-time transaction costs was 28.2%). Further, Acquired Units improved their EBITDA by +90% QoQ, fuelled by procurement efficiencies, higher occupancies and enhanced clinical programs. Overall EBITDA per bed* w
Slide 4: Press Release
PRESS RELEASE The operating margin for H1 FY25 was 26.2%, compared to 27.8% in H1 FY24. Margin excluding loss at MSSH Dwarka and Jaypee Hospital one-time transaction expenses was 27.2%. PAT for H1 FY25 stood at INR 644 Cr vs INR 628 Cr in H1 FY24, registering a growth of 2%. PAT excluding net loss o
Slide 5: Press Release
PRESS RELEASE minimally invasive robotic Puestow's procedure, a first-of-its-kind in the region, on a 13-year- old patient with recurrent pancreatitis • Nanavati Max demonstrated exceptional medical expertise and logistical efficiency by successfully transporting vital organs of an infant across 2 s
Slide 6: Press Release: About Max Healthcare
PRESS RELEASE About Max Healthcare: Max Healthcare Institute Limited (Max Healthcare) is one of India’s largest healthcare organizations. It is committed to the highest standards of clinical excellence and patient care, supported by latest technology and cutting-edge research. Max Healthcare operate
Slide 7: 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 8: Earnings update – Q2 FY25
Earnings update – Q2 FY25 November 5, 2024
Slide 9: 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 10: 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 11: Content
Content Q2 FY25 Highlights 05 Details on Jaypee Acquisition 18 Performance Update on New Units 21 H1 FY25 Highlights 24 About the Company 36 4
Slide 12: Q2 FY25 Highlights
By MAX Healthcare Q2 FY25 Highlights
Slide 13: Executive Summary: Q2 FY25 (1/2)
Executive Summary: Q2 FY25 (1/2) Acquired ~ 64% stake in Jaypee Healthcare Ltd (JHL) on October 4, 2024. JHL owns & operates hospitals in Noida and Chitta, Acquired Jaypee Uttar Pradesh. Further, it also has a 100-bed hospital in Anoopshahr that is yet to be commissioned. Jaypee Hospital Noida, Hosp
Slide 14: Executive Summary: Q2 FY25 (2/2)
Executive Summary: Q2 FY25 (2/2) Occupancy was 81% vs 77% for Q2 FY24 and 75% for Q1 FY25, OBDs rose by +18% YoY and +8% QoQ Institutional patient bed share was 26.9% vs 27.3% in Q2 FY24 and 27.2% in Q1 FY25 ARPOB1 for the quarter stood at INR 76.1k compared to INR 74.6k in Q2 FY24 & INR 77.1k in Q1
Slide 15: Highlights
By MAX Healthcare Highlights
Slide 16: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +13.0% +10.7% 2,228 550 566 2,028 2,064 497 499 1,827 +21.9% +13.8% Q2 FY24 Q1 FY251 Q2 FY25 Q2 FY25 Q2 FY24 Q1 FY251 Q2 FY25 Q2 FY25 Existing Overall* Existing Overall* Margin2 (%) : 28.7% | 25.8% | 28.0% | 26.6% Operating EB
Slide 17: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Inpatient Volumes2 +6.8% 4.1% 71,534 77.1 79.7 76.2 66,011 62,825 74.6 60,343 18.5% +2.2% Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY25 Q2 FY24 Q1 FY253 Q2 FY25 Q2 FY25 Existing Overall Existing Overall ALOS4 (in days) Outpatient consults (‘000) +6.0% 4.1 4.0 4.1
Slide 18: Speciality Profile
Speciality Profile Q2 FY24 Q2 FY25# Others Others Gastroentrology Gastroentrology 4.2% 4.6% Pulmonology 5.4% Pulmonology Liver and biliary 4.8% Oncology* Liver and biliary Oncology* 3.2% 3.0% sciences sciences 3.1% 26.1% 25.3% MAS and MAS and 3.6% general surgery general surgery 5.0% 5.1% OBGY and O
Slide 19: Payor Profile
Payor Profile Share of Revenue* Q2 FY24 Q2 FY25# 17.9% 18.5% 33.4% 35.3% 9.3% 8.9% 39.4% 37.2% Self Pay TPA & corporates International Institutional Note: *Excludes revenue from SBUs and other operating income # Includes New Units 12
Slide 20: Network P&L Statement: Q2 FY25
Network P&L Statement: Q2 FY25 Figs in INR Cr Q2 FY24 Q1 FY25 Q2 FY251 Amount % NR Amount % NR Amount % NR Gross revenue 1,827 2,028 2,228 Net revenue 1,732 100.0% 1,935 100.0% 2,125 100.0% Direct costs 667 38.5% 773 39.9% 843 39.7% Contribution 1,065 61.5% 1,162 60.1% 1,282 60.3% Indirect overheads
Slide 21: Q2 FY25: Memorandum Consolidation of Network P&L
Q2 FY25: Memorandum Consolidation of Network P&L Figs in INR Cr MHIL, its Partner Healthcare Facilities ("PHF") Financials subsidiaries & Eliminations MHC Network (IGAAP Unaudited)* Silos & (Consolidated) GM Modi Adjustment(2) (Certified by an IND AS Balaji Devki Devi IND AS ICA) Society Unaudited S
Slide 22: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue1 (INR Cr) Operational beds (as at end of Sep’24) 1,285 Delhi 2 1,174 2,228 1,106 313 621 Uttar Pradesh3 279 202 229 465 Maharashtra4 192 147 139 312 Punjab5 135 145 84 219 Uttarakhand 78 74 68 104 Haryana 71 64 Q2 FY25 Q1 FY25 Q2 FY24 (1) Exclude
Slide 23: Max Lab: Key performance indicators
Max Lab: Key performance indicators Operational footprint Gross Billing Value (INR Cr) Net revenue (INR Cr) (as of Sep, 2024) +23% +21% ~480 77 46 Partner-run 64 68 38 38 41 collection centres 63 56 34 24 Company owned collection centres (CoCC) Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY24 FY24 FY24 FY25 FY25
Slide 24: 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, 2024) +24% 172 +36% 49 53 14 139 46 Specialised 42 44 110 Service Lines 76 70 61 27 ~1,300 Strong Team* FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q2 Q3 Q4 Q1 Q2 FY24 FY24 FY24 FY25 FY
Slide 25: Details on Jaypee Acquisition
Details on Jaypee Acquisition 1
Slide 26: Acquisition of Jaypee Hospital (1/2)
Acquisition of Jaypee Hospital (1/2) • Jaypee Healthcare Limited (JHL) primarily operates a 500-bed hospital in Noida, commissioned in 2013 and situated on 18 acres of land with built up area of ~9 lakh sft. JHL also owns two smaller hospitals : a 200-bed facility in Chitta, Bulandshahr and 100-bed
Slide 27: Acquisition of Jaypee Hospital (2/2)
Acquisition of Jaypee Hospital (2/2) Main Facade Lobby Twin Sharing Room Private Rooms LINAC Bi-Plane CATH LAB 20
Slide 28: Performance Update on New Units
Performance Update on New Units 2
Slide 29: Performance Update: Acquired Hospitals (1/2)
Performance Update: Acquired Hospitals (1/2) Q2 FY24* Q1 FY25 Q2 FY25 Max Super Specialty Hospital, Lucknow • PMI activities are complete & necessary licenses are in place Operational Occupancy : • OC up to 12th floor has been received. On-course to enhance Beds : 234 65% operational bed capacity by
Slide 30: Performance Update: Greenfield Hospital Dwarka (2/2)
Performance Update: Greenfield Hospital in South-West, Delhi (Max Super Specialty Hospital, Dwarka) (2/2) Institutional 5% OP Consults Surgeries International 23% +58.3% Payor 248 +72.2% 10,151 222 profile 54% Self Pay 6,133 99 3,422 18% TPA & Corporate Jul Aug Sep Jul Aug Sep Max Super Specialty Ho
Slide 31: H1 FY25 Highlights
By MAX Healthcare H1 FY25 Highlights
Slide 32: Executive Summary: H1 FY25
Executive Summary: H1 FY25 H1 FY25 Gross revenue for the Network was INR 4,256 Cr versus INR 3,546 Cr in H1 FY24,reflecting a growth of 20% (Excluding INR 34 Cr from MSSH Dwarka, growth stood at +19%) ARPOB grew by +3% and OBDs were up by +17% H1 FY25 Operating EBITDA for the Network stood at INR 1,
Slide 33: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +12.6% +11.2% 4,256 3,993 3,546 +20.0% 1,038 1,064 933 +14.1% H1 FY24 H1 FY25 H1 FY25 H1 FY24 H1 FY25 H1 FY25 Existing Overall Existing Overall Margin1 (%) 27.8% | 27.3% | 26.2% Operating EBITDA per bed2 (INR Lakhs) Pre-tax RO
Slide 34: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Inpatient Volumes2 +4.8% +6.9% 1,37,545 1,16,856 1,22,446 +17.7% 79.9 76.6 74.7 +2.6% H1 FY24 H1 FY25 H1 FY25 H1 FY24 H1 FY25 H1 FY25 Existing Overall Existing Overall2 ALOS3 (in days) Outpatient consults (‘000) 4.1 4.1 4.1 +5.3% 1,520 1,341 +19.3%
Slide 35: Speciality Profile
Speciality Profile H1 FY24 H1 FY25 Others Others Gastroentrology Gastroentrology 4.2% 4.6% Pulmonology 5.2% Pulmonology 4.8% MAS and Oncology* MAS and Oncology* 3.2% 3.2% general surgery 25.7% general surgery 25.2% 5.3% 5.2% OBGY and OBGY and pediatrics 5.4% pediatrics 5.6% Gross IP revenue Gross IP
Slide 36: Payor Profile
Payor Profile Share of Revenue H1 FY24 H1 FY25 18.1% 18.2% 33.7% 35.1% 9.1% 8.6% 39.0% 38.0% Self Pay TPA & corporates International Institutional Note: Excludes revenue from SBUs and other operating income 29
Slide 37: P&L Statement: H1 FY25
P&L Statement: H1 FY25 Figs in INR Cr 1 H1 FY24 H1 FY25 Amount % NR Amount % NR Gross revenue 3,546 4,256 Net revenue 3,361 100.0% 4,060 100.0% Direct costs 1,317 39.2% 1,616 39.8% Contribution 2,043 60.8% 2,444 60.2% 2 Indirect Overheads 1,110 33.0% 1,380 34.0% Operating EBITDA 933 27.8% 1,064 26.2
Slide 38: H1 FY25: Memorandum Consolidation of Network P&L
H1 FY25: 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 39: Network Balance Sheet
Network Balance Sheet1 (Includes Managed & Partner Healthcare Facilities) Figs in INR Cr Mar 24 Sep 24 Shareholders' Equity (incl. corpus) 9,295 9,816 Gross Debt 1,177 1,211 Deferred/Contingent Consideration Payable2 461 484 Put Option Liability3 87 90 Lease Liabilities4 173 600 Deferred Tax Liabili
Slide 40: Clinical and Research & Academics update
Clinical and Research & Academics update 33
Slide 41: Clinical Update
Clinical Update 3,000 Liver Transplants, 4,333 Kidney Transplants & 1,884 Bone Marrow Transplants performed till date In a first, Nanavati Max Hospital successfully treated a 57-year-old patient with severe coronary artery blockages through a robotic-assisted, minimally invasive CABG procedure Max P
Slide 42: Research and Academics Update
Research and Academics Update National and international publications 112 scientific publications in high impact factor journals during Q2 FY25 Top high Index and high impact factor publications are from Cardiology (NEJM: 20.54), (J Am Coll Cardiol: 8.76) (Eu Heart journal : 4.09) 124 clinical trial
Slide 43: Max Healthcare: India's Second Largest Hospital chain
Max Healthcare: India’s Second Largest* Hospital chain in terms of hospital revenue, EBITDA and market capitalisation Current capacity ~5,000 beds 22 ~78% ~81% NCR Facilities Beds in metros Q2 FY25 Occupancy# 402 Shalimar Bagh 516 410 387 BLK Patparganj 23% 44% ~30% Eqova Vaishali Revenue CAGR^ EBIT
Slide 44: 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 45: State-of-the-art infrastructure
State-of-the-art infrastructure Da Vinci Robotic System Cath Lab: Azurion 5 M20 LINAC Machine (Edge) Advanced robotics provides high precision Cathlab is used to visualize the arteries of High precision and integrated LINAC is a and enables minimal invasive surgery the heart and the chambers of the
Slide 46: Strong Focus on Research and Academics
Strong Focus on Research and Academics Research: Academics: Significant strategic partnerships: New collaboration with Boston Max Institute of Medical Education (MIME) is the education division of University, Imperial College London, Ashoka University, IIT Bombay, MHC for medical education & trainin
Slide 47: Historical Financial Performance Snapshot
Historical Financial Performance Snapshot Figs in INR Cr FY22 FY23 FY24 H1 FY25 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue1 5,509 6,236 7,215 4,256 Net revenue 5,218 100.0% 5,904 100.0% 6,849 100.0% 4,060 100.0% Direct costs 2,103 40.3% 2,304 39.0% 2,675 39.1% 1,616 39.8% Contribu
Slide 48: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix Optimising Existing 1 2 Infrastructure • Increase utilization & improve process efficiencies Strong free cash flows from • Optimize payor mix operations INR ~464 Cr in Q2 FY25 3.1 Brownfield • ~2,600 beds addition via brownf
Slide 49: 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 50: Network Holding Structure
Network Holding Structure (As at end of Oct’24) 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 51: List of Network Healthcare Facilities
List of Network Healthcare Facilities As on Oct’24 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 Max Smart Super Speciality Hospital
Slide 52: 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 53: About Us
About Us Max Healthcare Institute Limited (Max Healthcare) is one of India’s largest healthcare For further information, please visit organizations. It is committed to the highest standards of clinical excellence and patient care, supported by latest technology and cutting-edge research. www.maxheal
Max Healthcare Institute — Q2 FY25 Earnings Presentation on 6ix