Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q3 FY2022 Earnings Presentation
42 slides from Max Healthcare Institute's earnings presentation, Feb 12, 2022
Slide 1: Earnings update – Q3 & 9M ended Dec'21
Earnings update – Q3 & 9M ended Dec’21 February 12, 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 Q3 FY22 Highlights 05 9M ended Dec’21 Highlights 19 Covid-19 Update 27 About the Company 30 4
Slide 5: Q3 FY22 Highlights
By MAX Healthcare Q3 FY22 Highlights
Slide 6: Executive Summary (1/2)
Executive Summary (1/2) Gross revenue for Q3 FY22 was INR 1,392 Cr versus INR 1,158 Cr in Q3 FY21 (+20% YoY) and INR 1,434 Cr in Q2 FY22 Gross revenue excluding Covid-19 vaccination & related antibody tests grew by 20% YoY and 3% QoQ, despite it being a seasonally lean quarter for healthcare service
Slide 7: Executive Summary (2/2)
Executive Summary (2/2) ARPOB1 for Q3 FY22 stood at INR 61.0k versus INR 50.0k in Q3 FY21 (+22% YoY) and INR 59.0k in Q2 FY22 (+3% QoQ) Surgical:Medical revenue mix stood at 51:49; ALOS continued to be at 4.3 days in Q3 FY22 versus 5.4 days in Q3 FY21 OP consults reduced by 7% QoQ and stood at 5.4 l
Slide 8: Snapshot of recent inorganic transactions
Snapshot of recent inorganic transactions 1. O&M Agreement in South-west Delhi 2. Acquisition of Eqova Healthcare in East Delhi Type of expansion Asset Light Acquisition Capacity build up 300 beds on 8.6 acres of land in Dwarka 400 beds on 2.1 acres of land in Patparganj Built to suit model with lon
Slide 9: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) -2.9% +0.4% 1,434 +3.2% 1,392 +20.2% 362 364 +43.4% 91 7 25 +7.9% 1,158 253 337 1,343 1,385 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 Covid-19 vaccination & related antibody tests EBITDA Covid-19 vaccination & related an
Slide 10: Speciality Profile
Speciality Profile Q3 FY21 Q3 FY22 Others Others Pulmonology 8.4% Oncology* 6.6% Oncology* Pulmonology MAS and 4.2% 21.3% 18.1% general surgery 11.9% 5.2% MAS and OBGY and general surgery 3.9% pediatrics 5.8% Cardiac OBGY and Gross IP revenue 10.3% sciences Gross IP revenue pediatrics 4.0% INR 942 C
Slide 11: Payor Profile
Payor Profile Share of Revenue Q3 FY21 Q3 FY22 19.4% 22.0% 37.3% 39.4% 6.0% 4.2% 34.4% 37.3% Self pay TPA & corporates International Institutional Note: Excludes revenue from Covid-19 vaccination & related antibody tests, SBUs and other operating income 11
Slide 12: P&L Statement: Q3 FY22
P&L Statement: Q3 FY22 Figs in INR Cr Q3 FY21 Q2 FY22 Q3 FY22 Amount % NR Amount % NR Amount % NR Gross revenue (incl. movement in unbilled)1 1,158 1,434 1,392 Net revenue 1,086 100.0% 1,353 100.0% 1,317 100.0% Direct costs 448 41.2% 553 40.9% 516 39.2% Contribution 638 58.8% 800 59.1% 801 60.8% Ind
Slide 13: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue* (INR Cr) Operational beds (Q3 FY22) 869 Delhi 837 1,981 737 140 Uttar Pradesh 140 376 113 118 Maharashtra 109 288 91 110 Punjab 114 333 91 48 Uttarakhand 48 201 43 45 Haryana 42 92 34 Q3 FY22 Q2 FY22 Q3 FY21 *Excludes revenue from Covid-19 vacci
Slide 14: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) +3.4% 61.0 76.2% 59.0 75.2% 50.0 -0.9% pt -1.9% pt +22.0% 74.3% Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 ALOS2 (in days) Outpatient consults (‘000) 5.4 577 537 4.3 4.3 -6.9% 389 +38.2% -1.1 days Q3 FY21 Q2 FY22 Q3
Slide 15: Max Lab: Key performance indicators
Max Lab: Key performance indicators Operational footprint Gross Merchandise Value (INR Cr) Net revenue (INR Cr) (as of Dec 31, 2021) 54 35 265+ 24 Partner-run 34 28 34 35 20 22 22 collection centres 27 5 4 17 4 3 16 14 6 5 26 29 32 15 18 19 18 19 20 10 12 Company owned collection centres (CoCC) Q3 Q
Slide 16: Clinical and Research & Academics update
Clinical and Research & Academics update 16
Slide 17: Clinical Update
Clinical Update India’s First Balloon Cryoablation procedure for the treatment of Atrial Fibrillations, essentially arrhythmia, on a 53-year-old patient North India’s first dual lung transplant on a 55-year-old patient suffering from COPD and Bullous Lung Disease Max Mohali became the first private
Slide 18: Research and Academics Update
Research and Academics Update National and international publications 122 scientific publications in high impact factor journals during Q3 FY22 Top high Index and high impact factor publications being from Cardiology, Neurology, Oncology and Endocrinology departments 22 Covid-19 and 100 non-Covid re
Slide 19: 9M ended Dec'21 Highlights
9M ended Dec’21 Highlights 19
Slide 20: Executive Summary: 9M ended Dec'21
Executive Summary: 9M ended Dec’21 9M ended Dec'21 gross revenue was INR 4,211 Cr versus INR 2,719 Cr in 9M ended Dec'20 (+55% YoY). This includes revenue of INR 234 Cr from Covid-19 vaccination and related antibody tests Operating EBITDA for 9M ended Dec'21 was INR 1,085 Cr versus INR 373 Cr in 9M
Slide 21: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +54.8% +190.7% 4,211 234 1,085 85 2,719 +46.3% +168.1% 3,977 373 1,001 9M ended Dec’20 9M ended Dec’21 9M ended Dec’20 9M ended Dec’21 Covid-19 vaccination & related antibody tests EBITDA Covid-19 vaccination & related antibod
Slide 22: Speciality Profile
Speciality Profile 9M ended Dec’20 9M ended Dec’21 Others Others 8.6% Oncology* 6.9% Oncology* Pulmonology Pulmonology 20.2% 20.0% 7.8% 10.5% MAS and MAS and general surgery general surgery 3.8% 4.9% OBGY and OBGY and pediatrics 4.5% Gross IP revenue Cardiac pediatrics 4.9% Gross IP revenue INR 2,21
Slide 23: Payor Profile
Payor Profile Share of Revenue 9M ended Dec’20 9M ended Dec’21 20.2% 23.0% 37.9% 41.4% 4.8% 3.0% 32.6% 37.2% 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: 9M ended Dec'21
P&L Statement: 9M ended Dec’21 Figs in INR Cr 9M ended Dec’20 9M ended Dec’21 Amount % NR Amount % NR Gross revenue (incl. movement in unbilled)1 2,719 4,211 Net revenue 2,540 100.0% 3,992 100.0% Direct costs 1,073 42.2% 1,606 40.2% Contribution 1,467 57.8% 2,386 59.8% Indirect overheads 1,094 43.1%
Slide 25: Memorandum Profit & Loss Consolidation sheet of Network Financials
Max Healthcare : Memorandum Profit & Loss Consolidation sheet of Network Financials for 9M ended Dec 21 MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Silos (IGAAP Unaudited)* Eliminations (Consolidated) (INR Cr) & Ind AS Balaji GM Modi Devki Devi IND AS (Cert
Slide 26: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) 57.1 76.7% 48.0 63.3% +19.0% +13.4% pt 9M ended Dec’20 9M ended Dec’21 9M ended Dec’20 9M ended Dec’21 ALOS2 (in days) Outpatient consults (‘000) 5.4 -0.6 days 1,501 4.8 +61.7% 929 9M ended Dec’20 9M ended Dec’21 9M ende
Slide 27: Covid-19 Update
By MAX Healthcare Covid-19 Update
Slide 28: 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 ~25 ~9,34,000 ~20,50,000 Operationalised one of the largest Covid-19 vaccina
Slide 29: Covid-19 Update (2/2)
Covid-19 Update (2/2) Occupancy (%) 87 85 Post sharp fall in occupancy rate at the start of first wave of 79 79 79 81 72 72 68 71 66 69 75 69 72 75 69 Covid-19 at the end of Mar’20, the overall occupancy steadily 60 67 rose back to normal levels in Q3 FY21 45 Occupancy rebounded to 85%+ levels in Ap
Slide 30: About the Company
By MAX Healthcare About the Company
Slide 31: India's Second Largest Hospital Chain by revenue, EBITDA and market cap
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 13%^ +60%^ 32% Patparganj Vaishali Revenue CAGR EBITDA CAGR ROCE 3 years 3
Slide 32: 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 33: 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 34: 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 – 15,000+ research of MHC for medical education & training participan
Slide 35: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY19 FY20 FY21 9M ended Dec’21 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue (incl. movement in unbilled) 3,920 4,356 3,881 4,211 Net revenue 3,599 100.0% 4,023 100.0% 3,629 100.0% 3,992 100.0% Direct costs 1,566 43.5% 1,715 42.6% 1,508 4
Slide 36: 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 ~591 Cr Strong financial profile to support expansion plans in 9M ended Dec’21 • 2,300 beds addition via brow
Slide 37: Existing 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 (Current occupancy is indicated in brackets) 7,442 500 500 200 250 150 200 111 300 250 300 Nanavati Hospital* (68%) 350 190 Saket Complex (Vikrant) (77%
Slide 38: Awards and Accolades
Awards and Accolades Operational Clinical Safety Service Quality Others Excellence Patient Safety Award Ranked 1st in “Excellence Best customer service ET Best Healthcare by FICCI in Hospital Management in Healthcare brand during Covid Times “ by Diamond Award for Economic Times in 2021 HIMSS-Elsevi
Slide 39: Network Structure
Network Structure Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Medical Service Agreement with Max Panchsheel Society Immigration centre (Lajpat Nagar) Max Saket (West) MHIL Devki Devi Society SBUs (MaxLab, Max@Home) (Max Saket East, Immigration centre (Mohali) Onco
Slide 40: 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 41: 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 42: About Us
About Us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. please contact: For more information, visit MHIL h
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