Indian private healthcare services company Max Healthcare Institute has reported a profit of Rs2.36bn ($28.17m) in the first quarter (Q1) of fiscal year 2025 (FY25), down by approximately 1.6% from Rs2.40bn ($28.65m) in Q1 FY 2024.
For the quarter that ended on 30 June 2024, earnings per share saw a slight decrease to Rs2.43, from Rs2.47 in the same quarter last year.
The company’s profits in the preceding quarter (Q4 FY24), which ended on 31 March 2024, was Rs2.51bn.
Revenue from operations experienced a 20% growth, reaching Rs15.42bn in Q1 FY25, from Rs12.84bn in Q1 FY24.
This growth also represents an increase from the Rs14.22bn reported in Q4 FY24.
Gross revenue rose to Rs20.28bn for Q1 FY25, against Rs17.19bn in Q1 FY24 and Rs18.90bn in Q4 FY24, marking an 18% year-on-year growth and a 7% growth quarter-on-quarter.
Profit after tax (PAT) for the quarter was reported at Rs2.95bn, compared to Rs2.91bn in Q1 FY24 and Rs3.11bn in Q4 FY24.
Operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q1 FY25 stood at Rs4.99bn, an increase from Rs4.36bn in Q1 FY24 and slightly below the Rs5.03bn in Q4 FY24.
The company highlighted a 12% year-on-year increase in EBITDA for existing units, amounting to Rs4.87bn, while new units contributed Rs180m to EBITDA, excluding pre-launch costs of Rs60m at Max Dwarka.
EBITDA per bed for existing units improved by 6% year-on-year to Rs7.47m.
Free cash from operations was Rs2.58bn in Q1 FY25, with a significant portion being reinvested in expansion plans and facility upgrades.
The net cash position as of 30 June 2024 was Rs660m.
The bed occupancy rate for existing units was at 76.6%, with a 5% year-on-year increase in occupied bed days (OBDs).
New units reported a 59% occupancy rate. OBDs grew by 14% year-on-year overall.
Average revenue per occupied bed (ARPOB) for existing units was Rs80,100, a 7% increase year-on-year.
Q1 FY25 also saw the commencement of commercial operations at the 303-bed Max Super Speciality Hospital in Dwarka from 2 July 2024.
In addition, Max Healthcare has entered into a lease agreement for a 250-bed hospital in Zirakpur, set to be developed by FY28.
The company has also acquired additional equity stakes in Starlit Medical Centre for up to Rs1.5bn.
Max Healthcare Institute chairman and managing director Abhay Soi said: “With the launch of Max Super Speciality Hospital, Dwarka, we have added over 900 beds to our capacity so far and have successfully supplemented the momentum of growth in revenues and profitability before augmentation of bed capacity through brown field expansion plans in FY26.
“In the meanwhile, consistent performance in existing hospitals and encouraging response to our offerings at new units is providing us with confidence to further pursue growth opportunities including newly entered built-to-suit arrangement in Mohali.”
