Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q4 FY23 Earnings Presentation
45 slides from Max Healthcare Institute's earnings presentation, May 16, 2023
Slide 1: Exchange filing cover letter
May 16, 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.: Press R
Slide 2: Press Release: Highest ever revenue and profitability
PRESS RELEASE Max Healthcare reports highest ever revenue and profitability; Network1 Revenue totalled INR 1,637 Cr, +26% YoY Operating EBITDA at INR 437 Cr, +44% YoY PAT for the quarter stood at INR 320 Cr Declares its maiden dividend of 10%, INR 1 per Share Gross Revenue stood at INR 1,637 Cr fo
Slide 3: Press Release (continued)
PRESS RELEASE The YoY growth in ARPOB and Operating EBITDA was driven by improvement in channel mix specialty mix along with increase in other operating income. Max Shalimar Bagh commissioned a new 92 beds oncology block in Mar 2023. During Q4 FY23, the overall occupancy at the hospital stood at 84%
Slide 4: Press Release: Clinical and Research Update
PRESS RELEASE Clinical Update: Till date we have performed 2,110+ Liver Transplants, ~3,500 Kidney Transplants & 1,650+ Bone Marrow Transplants Successfully removed the world’s largest adrenal tumor, weighing 11.5 Kg, from a 55-year-old patient at MSSH Saket MSSH Vaishali became the 1st hospit
Slide 5: 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 – Q4 & FY23
Earnings update – Q4 & FY23 May 16, 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 Q4 FY23 Highlights 05 FY23 Highlights 19 About the Company 28 4
Slide 11: Q4 FY23 Highlights
By MAX Healthcare Q4 FY23 Highlights
Slide 12: Executive Summary: Q4 FY23 (1/2)
Executive Summary: Q4 FY23 (1/2) Gross revenue was INR 1,637 Cr compared to INR 1,298 Cr in Q4 FY22 and INR 1,559 Cr in Q3 FY23; reflecting a growth of +26% YoY and +5% QoQ. YoY growth of 26% is contributed by increase in ARPOB by 11%, OBDs by 14% and other operating income by 1% Operating EBITDA fo
Slide 13: Executive Summary: Q4 FY23 (2/2)
Executive Summary: Q4 FY23 (2/2) International patient revenue improved by +43% YoY and +10% QoQ; contributed 9.1% to the hospital revenue ARPOB1 for Q4 FY23 stood at INR 70.7k versus INR 63.5k in Q4 FY22 (+11% YoY) and INR 66.8k in Q3 FY23 (+6% QoQ) Increase in ARPOB over Q4 FY22 was led by improve
Slide 14: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +4.4% 1,559 1,637 419 437 1,298 +26.2% +43.7% 304 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Margin1 (%) Q4 FY22 : 24.8% | Q3 FY23 : 28.3% | Q4 FY23 : 28.2% Operating EBITDA per bed2 (INR Lakhs) Pre-tax ROCE3 34% 36% +5.1
Slide 15: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) +5.9% +0.1% pt 70.7 77% 77% 63.5 66.8 68% +9.0% pt +11.3% Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 ALOS2 (in days) Outpatient consults (‘000)3 +0.2 day +2.4% 4.3 4.2 4.4 574 588 507 +16.0% Q4 FY22 Q3 FY23 Q4 FY23
Slide 16: Speciality Profile
Speciality Profile Q4 FY22 Q4 FY23 Others Others 9.0% Pulmonology Oncology* Pulmonology 9.0% Oncology* MAS and 5.2% 23.8% MAS and 4.5% 22.9% general surgery general surgery 4.8% 4.7% OBGY and OBGY and pediatrics 4.6% pediatrics 5.9% Gross IP revenue Gross IP revenue INR 1,268 Cr Internal 8.1% INR 1,
Slide 17: Payor Profile
Payor Profile Share of Revenue Q4 FY22 Q4 FY23 17.5% 19.6% 36.4% 35.6% 9.1% 7.9% 36.1% 37.8% Self Pay TPA & corporates International Institutional Note: Excludes revenue from SBUs and other operating income 11
Slide 18: Network P&L Statement: Q4 FY23
Network P&L Statement: Q4 FY23 Figs in INR Cr Q4 FY22 Q3 FY23 Q4 FY23 Amount % NR Amount % NR Amount % NR Gross revenue 1,298 1,559 1,637 Net revenue 1,226 100.0% 1,478 100.0% 1,551 100.0% Direct costs 497 40.5% 573 38.8% 605 39.0% Contribution 729 59.5% 905 61.2% 947 61.0% 1 Indirect overheads 425
Slide 19: Q4 FY23 Memorandum Consolidation of P&L for Network
Q4 FY23 Memorandum Consolidation of P&L for Network 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 Societ
Slide 20: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue* (INR Cr) Operational beds (Q4 FY23) 998 Delhi 955 2,012 791 176 376 Uttar Pradesh 164 137 138 289 Maharashtra 132 118 136 312 Punjab 127 104 59 201 Uttarakhand 59 48 56 92 Haryana 52 41 Q4 FY23 Q3 FY23 Q4 FY22 *Excludes revenue from Max Lab oper
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 Mar, 2023) 47 46 48 30 29 ~400 0 28 Partner-run 40 2 1 25 1 0 24 0 collection centres 37 2 2 6 5 47 38 45 45 24 29 27 29 48% 23 31 19 Company owned YoY collection centres (CoCC) Q4 Q1 Q
Slide 22: Clinical and Research & Academics update
Clinical and Research & Academics update 16
Slide 23: Clinical Update
Clinical Update Till date we have performed 2,110+ Liver Transplants, 3500+ Kidney Transplants & 1650+ Bone Marrow Transplants Successfully removed the world’s largest adrenal tumor, weighing 11.5 Kg, from a 55 year old patient at MSSH Saket MSSH Vaishali became the 1st hospital in the country to su
Slide 24: Research and Academics Update
Research and Academics Update National and international publications 109 scientific publications in high impact factor journals during Q4 FY23 Top high Index and high impact factor publications are from Cardiology, Oncology, Endocrinology, Internal Medicine and Gastro ~100 clinical trials are curre
Slide 25: FY23 Highlights
By MAX Healthcare FY23 Highlights
Slide 26: Executive Summary: FY23
Executive Summary: FY23 FY23 Gross revenue at INR 6,236 Cr versus INR 5,509 Cr in FY22 Gross revenue (excl. Covid-19 vaccination) for FY23 was INR 6,234 Cr compared to INR 5,272 Cr in FY22, reflecting a growth of +18% YoY Covid-19 Vaccination revenue in FY23 was INR 2 Cr compared to INR 236 Cr in FY
Slide 27: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +13.2% +17.7% 6,236 1,636 5,509 2 +18.2% 1,390 0 236 +25.3% 85 6,234 1,636 5,272 1,305 FY22 FY23 FY22 FY23 Covid-19 vaccination & related antibody tests EBITDA Covid-19 vaccination & related antibody tests revenue Margin1 (%)
Slide 28: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) 67.4 +3% pt 76% 58.5 +15.2% 75% FY22 FY23 FY22 FY23 ALOS2 (in days) Outpatient consults (‘000) 4.7 -0.4 days 4.3 2,281 2,008 +13.6% FY22 FY23 FY22 FY23 (1) ARPOB calculated as gross revenue / total OBD; Gross revenue exc
Slide 29: Speciality Profile
Speciality Profile FY22 FY23 Others Others 9.2% Pulmonology Oncology* 8.7% Oncology* Pulmonology# MAS and 4.1% 20.8% 23.2% 7.0% general surgery MAS and 5.3% general surgery 4.9% OBGY and OBGY and pediatrics 6.0% pediatrics 4.9% Gross IP revenue Gross IP revenue INR 4,177 Cr INR 4,873 Cr 11.7% Cardia
Slide 30: Payor Profile
Payor Profile Share of Revenue FY22 FY23 17.3% 20.0% 36.2% 37.5% 8.5% 5.5% 36.9% 38.0% Self Pay TPA & corporates International Institutional Note: Excludes revenue from Covid-19 vaccination & related antibody tests, SBUs and other operating income 24
Slide 31: Network P&L Statement
Network P&L Statement Figs in INR Cr FY22 FY23 Amount % NR Amount % NR 1 Gross revenue 5,509 6,236 Net revenue 5,218 100.0% 5,904 100.0% Direct costs 2,103 40.3% 2,304 39.0% Contribution 3,115 59.7% 3,600 61.0% Indirect Overheads2 1,725 33.1% 1,964 33.3% Operating EBITDA 1,390 26.6% 1,636 27.7% Less
Slide 32: Network Balance Sheet
Network Balance Sheet1 (Includes Managed & Partner Healthcare Facilities) Figs in INR Cr Mar 22 Mar 23 Shareholders' Equity 6,718 8,070 Gross Debt 918 682 Deferred/Contingent Consideration Payable2 425 440 Put Option Liability3 139 150 Lease Liabilities 202 139 Deferred Tax Liability / (Deferred Tax
Slide 33: FY23 Memorandum Consolidation of P&L for Network
FY23 Memorandum Consolidation of P&L for Network Figs in INR Cr MHIL, its Partner Healthcare Facilities ("PHF") Financials Eliminations MHC Network subsidiaries & (IGAAP Audited)* & (Consolidated) Silos Adjustment(2) (Certified by an IND AS Balaji GM Modi Devki Devi IND AS ICA) Audited Society Socie
Slide 34: About the Company
By MAX Healthcare About the Company
Slide 35: India's Second Largest Hospital Chain
Max Healthcare: India’s Second Largest* Hospital Chain in terms of revenue, EBITDA and market capitalisation Current capacity 3,500+ beds 17 ~85% ~77% NCR Facilities Beds in metros Q4 FY23 Occupancy 372 Shalimar Bagh 540 402 378 BLK Patparganj 13% 41% ~36% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ Q
Slide 36: Vision: 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 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 38: 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, Imperial College London, Ashoka University, IIT Bombay, of MHC for medical education & training
Slide 39: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY20 FY21 FY22 FY23 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 4,356 3,881 5,509 6,236 Net revenue 4,023 100.0% 3,629 100.0% 5,218 100.0% 5,904 100.0% Direct costs 1,715 42.6% 1,508 41.6% 2,103 40.3% 2,304 39.0% Contribution 2,308 57
Slide 40: 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 utilization & improve process efficiencies operations • Focus on tower specialties & case mix INR ~1,281 Cr in FY23 Strong financial profile to support expansion plan
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 Apr’23) 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, Imm
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 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 at the end of the Gross Revenue period for patients admit
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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