Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q4 FY24 Earnings Presentation
50 slides from Max Healthcare Institute's earnings presentation, May 22, 2024
Slide 1: Exchange filing cover letter
May 22, 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.: Press R
Slide 2: Press Release: Highest quarterly revenue and operating EBITDA
PRESS RELEASE Max Healthcare reports highest quarterly revenue and operating EBITDA Consummates two M&A transactions, adds ~750 beds to capacity Network1 Revenue & Operating EBITDA grew by +15% YoY each to INR 1,890 Cr & INR 503 Cr respectively, with Operating Margin at 27.9% PAT for the quarter sto
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 +26% YoY & +15% QoQ. Further, Max Lab services are now available across 41 cities. Max@Home gross revenue during Q4 FY24 was INR 46 Cr, a growth of +25% YoY & +3% QoQ,
Slide 4: Financial and Operational Highlights
PRESS RELEASE Financial and Operational Highlights INR Cr Three Months ended Growth Fiscal year ended Growth Mar 24 Mar 23 Dec 23 YoY QoQ FY24 FY23 YoY Gross Revenue 1,890 1,637 1,779 15% 6% 7,215 6,236 16% Net Revenue 1,800 1,551 1,689 16% 7% 6,849 5,904 16% Operating EBITDA 503 437 471 15% 7% 1,90
Slide 5: 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 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 & FY24
Earnings update – Q4 & FY24 May 22, 2024
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 FY24 Highlights 05 Recent Acquisitions 08 FY24 Highlights 24 About the Company 33 4
Slide 11: Q4 FY24 Highlights
By MAX Healthcare Q4 FY24 Highlights
Slide 12: Executive Summary: Q4 FY24 (1/2)
Executive Summary: Q4 FY24 (1/2) Acquired 200 bedded Alexis Hospital, Nagpur effective 9th February 2024 & 550 bedded Sahara Hospital, Lucknow effective 7th March 2024 for net consideration (incl. discharge of financial liabilities & cost of land/registration etc) of INR 1,388 Cr Recent These hospit
Slide 13: Executive Summary: Q4 FY24 (2/2)
Executive Summary: Q4 FY24 (2/2) International patient revenue was INR 158 Cr in Q4 FY24 compared to INR 138 Cr in Q4 FY23 and INR 157 Cr in Q3FY24, reflecting a growth of +14% YoY and was +1% QoQ ; accounting for ~9% of the hospital revenue ARPOB1 on a like to like basis for Q4 FY24 stood at INR 78
Slide 14: Recent Acquisitions
By MAX Healthcare Recent Acquisitions
Slide 15: Max Super Specialty Hospital Lucknow (Erstwhile Sahara Hospital)
Max Super Specialty Hospital Lucknow (Erstwhile Sahara Hospital) External Façade Entrance Lobby About the Project : Max Super Specialty Hospital Lucknow is a well planned 550 bedded hospital (Operational ~250 beds) with high quality construction & has been in operation since 2009 on ~27 Acres of Lan
Slide 16: Max Super Specialty Hospital Nagpur (Erstwhile Alexis Hospital)
Max Super Specialty Hospital Nagpur (Erstwhile Alexis Hospital) External Façade Entrance Lobby About the Project : Max Super Specialty Hospital Nagpur is a JCI accredited 200 bedded hospital (Operational 174 beds) . It is a well-built, maintained & fully-equipped with all high-end BME (Varian True B
Slide 17: Highlights
By MAX Healthcare Highlights
Slide 18: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +12.8% +14.3% 1,779 1,847 1,890 500 503 471 1,637 +15.4% 437 +15.1% Q4 FY23 Q3 FY24 Q4FY24 Q4FY24 Q4 FY23 Q3 FY24 Q4FY24 Q4FY24 Existing Overall Existing Overall Margin1 (%) : 28.2% | 27.9% | 28.4% | 27.9% Operating EBITDA per
Slide 19: Key Operational Highlights
Key Operational Highlights ARPOB1 (INR/OBD) (‘000) Inpatient Volumes2 +10.4% 56,616 56,426 58,153 76.8 78.1 76.9 54,351 70.7 +8.6% Q4 FY23 Q3 FY24 Q4FY24 Q4FY24 Q4 FY23 Q3 FY24 Q4FY24 Q4FY24 Existing Overall Existing Overall ALOS3 (in days) Outpatient consults (‘000) +3.3% 4.4 4.2 4.2 4.2 607 639 58
Slide 20: Speciality Profile
Speciality Profile Q4 FY23 Q4 FY24# Others Others 9.1% 9.0% Pulmonology Oncology* Pulmonology Oncology* Liver and biliary 4.9% 24.0% Liver and biliary 5.2% 23.8% sciences sciences 3.8% 3.6% MAS and OBGY and general surgery 4.9% pediatrics 5.9% Gross IP revenue OBGY and Gross IP revenue MAS and 4.8%
Slide 21: Payor Profile
Payor Profile Share of Revenue* Q4 FY23 Q4 FY24# 17.7% 17.5% 33.9% 35.6% 9.1% 8.9% 37.8% 39.5% Self Pay TPA & corporates International Institutional Note: *Excludes revenue from SBUs and other operating income # Including New Units 15
Slide 22: Network P&L Statement: Q4 FY24
Network P&L Statement: Q4 FY24 Figs in INR Cr Q4 FY23 Q3 FY24 Q4 FY241 Amount % NR Amount % NR Amount % NR Gross revenue 1,637 1,779 1,890 Net revenue 1,551 100.0% 1,689 100.0% 1,800 100.0% Direct costs 605 39.0% 650 38.5% 707 39.3% Contribution 947 61.0% 1,038 61.5% 1,093 60.7% Indirect overheads2
Slide 23: Q4 FY24: Memorandum Consolidation of Network P&L
Q4 FY24: 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 24: Gross revenue from hospitals, by region
Gross revenue from hospitals, by region Gross Revenue* (INR Cr) Operational beds (as at end of Mar’24) 1,131 Delhi 1,072 2,079 998 221 621 Uttar Pradesh^ 200 176 174 463 Maharashtra# 136 138 131 312 Punjab 150 136 73 219 Uttarakhand 74 59 66 104 Haryana 61 56 Q4 FY24 Q3 FY24 Q4 FY23 *Excludes revenu
Slide 25: Max Lab: Key performance indicators
Max Lab: Key performance indicators Operational footprint Gross Billing Value (INR Cr) Net revenue (INR Cr) (as of March, 2024) +34% +34% 525+ 63 64 38 38 Partner-run 54 56 33 34 collection centres 48 29 Total 24 Company owned collection centres (CoCC) Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY23 FY24 FY24 FY
Slide 26: Max@Home: Key performance indicators
Max@Home: Key performance indicators Key Pointers Gross revenue (INR Cr) Quarterly Gross Revenue Trend (INR Cr) (as of March, 2024) +25% 172 +36.2% 42 44 46 14 139 40 Specialised 37 110 Service Lines 76 70 61 27 ~1,300 Strong Team* FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 FY23 FY24 FY24 FY2
Slide 27: Clinical and Research & Academics update
Clinical and Research & Academics update 21
Slide 28: Clinical Update
Clinical Update ~2,770 Liver Transplants, ~4,000 Kidney Transplants & 1,800+ Bone Marrow Transplants performed till date Max Hospital Patparganj, became the 1st hospital in India to perform the Artificial Heart Impella supported PTCA Stent on a 79 year old male patient Max Hospital Mohali successful
Slide 29: Research and Academics Update
Research and Academics Update National and international publications 100 scientific publications in high impact factor journals during Q4 FY24 Top high Index and high impact factor publications are from Oncology ( Journal Clinical Oncology : 10.6 ), Cardiology ( Eur Journal heart failure: 5.92) , C
Slide 30: FY24 Highlights
By MAX Healthcare FY24 Highlights
Slide 31: Executive Summary: FY24
Executive Summary: FY24 FY24 Gross revenue was INR 7,215 Cr versus INR 6,236 Cr in FY23 ,reflecting a growth of +16% YoY. Growth was driven by +12% increase in ARPOB1 and +2% increase in OBDs. On a like to like basis2, gross revenue stood at 7,173 Cr reflecting a growth of +15% YoY Operating EBITDA
Slide 32: Key Financial Highlights
Key Financial Highlights Gross Revenue (INR Cr) Operating EBITDA (INR Cr) +15.0% +16.4% 7,173 7,215 6,236 +15.7% 1,904 1,907 1,636 +16.6% FY23 FY24 FY24 FY23 FY24 FY24 Existing Overall Existing Overall Margin1 (%) 27.7% | 28.0% | 27.8% Operating EBITDA per bed2 (INR Lakhs) Pre-tax ROCE3 +13.8% 35% 3
Slide 33: Key Operational Highlights
Key Operational Highlights Inpatient Volumes2 ARPOB1 (INR/OBD) (‘000) +12.8% +4% 76.1 75.8 2,22,059 2,29,898 2,31,625 67.4 +12.4% +4% FY23 FY24 FY24 FY23 FY24 FY24 Existing Overall Existing Overall ALOS3 (in days) Outpatient consults (‘000) 4.3 -0.1 days 2,505 4.2 4.2 2,472 2,281 +8.4% FY23 FY24 FY2
Slide 34: Speciality Profile
Speciality Profile FY23 FY24# Others Others Pulmonology 9.2% Pulmonology 9.2% Oncology* Oncology* MAS and 3.8% MAS and 4.1% general surgery 25.0% 23.2% general surgery 5.1% 5.3% OBGY and OBGY and pediatrics 5.3% pediatrics 6.0% Gross IP revenue Gross IP revenue INR 4,873 Cr INR 5,608 Cr Internal 7.8
Slide 35: Payor Profile
Payor Profile Share of Revenue FY23 FY24# 18.1% 17.3% 33.7% 36.2% 8.5% 9.1% 38.0% 39.1% Self Pay TPA & corporates International Institutional# Note: Excludes revenue from SBUs and other operating income #The increase in revenue share of institutional despite marginal drop in bed share is mainly due
Slide 36: P&L Statement: FY24
P&L Statement: FY24 Figs in INR Cr FY23 FY24 Amount % NR Amount % NR Gross revenue 6,236 7,215 Net revenue 5,904 100.0% 6,849 100.0% Direct costs 2,304 39.0% 2,675 39.1% Contribution 3,600 61.0% 4,174 60.9% Indirect Overheads1 1,964 33.3% 2,267 33.1% Operating EBITDA 1,636 27.7% 1,907 27.8% ESOP (Eq
Slide 37: Network Balance Sheet
Network Balance Sheet1 (Includes Managed & Partner Healthcare Facilities) Figs in INR Cr Mar 23 Mar 24 Shareholders' Equity (includes corpus & other equity) 8,070 9,295 Gross Debt * 682 1,177 Deferred/Contingent Consideration Payable2 440 461 Put Option Liability3 150 87 Lease Liabilities 139 173 De
Slide 38: FY24: Memorandum Consolidation of Network P&L
FY24: Memorandum Consolidation of Network P&L Figs in INR Cr MHIL, its Partner Healthcare Facilities ("PHF") Financials subsidiaries & Eliminations MHC Network (IGAAP Audited)* Silos & (Consolidated) GM Modi Adjustment(2) (Certified by an IND AS Balaji Devki Devi IND AS ICA) Society Audited Society
Slide 39: About the Company
By MAX Healthcare About the Company
Slide 40: 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 capitalisation Current capacity ~4,000 beds 19 ~74% ~75% NCR Facilities Beds in metros FY24 Occupancy# 402 Shalimar Bagh 516 402 387 BLK Patparganj 23% 44% ~35% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ FY2
Slide 41: 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 42: State-of-the-art infrastructure
State-of-the-art infrastructure Da Vinci Robotic System Cathlab Machine 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 heart ma
Slide 43: Strong Focus on Research and Academics
Strong Focus on Research and Academics Research: Academics: Max Institute of Medical Excellence (MIME) is the education division of Significant strategic partnerships: Imperial College London, Ashoka MHC for medical education & training University, IIT Bombay, IIIT Delhi, IIIT D iHub Innovation Cent
Slide 44: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY21 FY22 FY23 FY24 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 3,881 5,509 6,236 7,215 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 6,849 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 2,675 39.1% Contribution 2,121 58
Slide 45: 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 ~1,336 Cr in FY24 3.1 Brownfield • ~2,600 beds addition via brownfield
Slide 46: 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 47: Network Holding Structure
Network Holding Structure (As at end of March’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 48: 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 49: 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 50: 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
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