Max Healthcare Q1 Results: Profit Rises 18%, Meets Estimates

Max Healthcare Institute Ltd.’s first-quarter profit rose, in line with estimates.

The Delhi-based hospital chain reported net profit of Rs 173 crore in the three months ended June 30, up 18% over a year earlier, according to its exchange filing.

However, considering the profit from its network hospitals that also includes managed hospitals and partner healthcare facilities which are off-balance sheet, its after-tax profit for the quarter stood at Rs 229 crore compared to Rs 205 crore in June quarter last year.

That compares with the Rs 218-crore consensus estimate of analysts tracked by Bloomberg.

Q1 FY23 Highlights (YoY)

• Revenue up 7% at Rs 1,066 crore (Estimate: Rs 1,322 crore)

• Ebitda up 8% to at Rs 264 crore (Estimate: Rs 343 crore)

• Margin at 24.8% vs 24.4% (Estimate: 25.9%)

Dr. Abhay Soi, chairman and managing director at Max Healthcare, said Q1 FY23 performance reflects normalisation of revenue and operating Ebitda after the Omicron wave in the previous quarter. "The quarter saw improvement in all operational and financial parameters. With well laid out plan for distilling payor mix and expansion plans currently underway, we expect to build on this performance in the coming years," he was quoted as saying in the filing.

"We seek to employ our deleveraged balance sheet toward inorganic growth in the near term."

Shares of Max Healthcare were trading 0.58% lower after the quarterly results were announced, compared with a 0.21% decline in the benchmark Sensex as of 1:12 pm.

(Updates an earlier version to reflect off-balance sheet items)