Max Healthcare Q2 Results: Profit Rises, Beats Estimates

Max Healthcare Institute Ltd.’s second-quarter profit surged, beating estimates, even after excluding the impact of one-time reversal of deferred tax liability.

The Delhi-based hospital chain reported a net profit of Rs 511 crore in the three months ended September, an increase of around 1.5 times over a year earlier, according to its exchange filing.

However, this includes the impact of one-time reversal of deferred tax liability of Rs 244 crore. Excluding that, after-tax profits are up 29% over a year earlier.

It compares with the Rs 252-crore consensus estimate of analysts tracked by Bloomberg.

These numbers consider the profit from its network hospitals—that includes managed hospitals and partner healthcare facilities—which are off-balance sheet.

The company’s average revenue per operating bed improved to Rs 66,000 from Rs 59,000, and its bed occupancy stood at 78% in Q2 FY23.

Q2 FY23 Highlights (YoY)

• Revenue rose 10% to Rs 1,482 crore against the estimated Rs 1,437 crore.

• Ebitda was up 13% to Rs 410 crore, compared with the Rs 383 crore forecast.

• Ebitda margin stood at 27.7% against 26.8%. Analysts had estimated 26.7%.

"The performance for Q2 FY23 is as per our expectations and reflects the focus on execution across the organisation, in line with our articulated strategy," Dr Abhay Soi, chairman and managing director at Max Healthcare, said in the filing.

"Healthcare sector, in general, and Max Healthcare, in particular, are making significant investments over the next four-five years leading to huge employment opportunities and a multiplier effect on GDP."

The impetus provided by the government, through its focus on healthcare and Heal in India initiatives, will provide a watershed moment for the industry, he said.

Shares of Max Healthcare were trading 1.57% lower after the quarterly results were announced, compared with a 0.45% rise in the benchmark Sensex as of 2:16 p.m.