Reports gross revenues of Rs 2,567 crore in FY2017 for its network of owned and managed hospitals, growing 18 per cent
Max India, Max Group’s listed company in the health and allied services sector, announced its financial results for the fourth quarter (Q4) and financial year 2016-17 (FY2017). These are the first annual financial results to be declared since the company’s stock commenced trading on the NSE and the BSE in July 2016.
Max Healthcare (MHC), Max India’s flagship operating company, reported gross revenues of Rs 2,567 crore in FY2017 for its network of owned and managed hospitals, growing 18 per cent. MHC, which is an equal joint venture with South Africa-based Life Healthcare, reported a robust 31 per cent growth in EBITDA for its network of hospitals to Rs 281 crore in FY2017 and 23 per cent growth in Q4 to Rs 77 crore over the corresponding quarter last year. The MHC Network of Hospitals also reported significant growth of 141 per cent in Profit Before Tax (PBT) to Rs 24 crore in FY2017. Q4 resulted in PBT of Rs 15 crore compared to Rs 2 crore in the corresponding quarter last year.
This marked improvement in profitability was driven, in part, by a significant performance turnaround at MHC’s newer hospitals including Dehradun and Bathinda, as well as Max Smart Super Speciality Hospital (formerly Saket City Hospital) in Saket, New Delhi. Key specialities such as renal sciences, neuro sciences and oncology, among others, continue to be the biggest drivers of growth for MHC.
Max Bupa, a leading standalone private health insurers, also reported strong growth in its topline with Gross Written Premium (GWP) of Rs 594 crore in FY2017, growing 25 per cent over FY2016. In Q4, Max Bupa reported a GWP of Rs 193 crore, growing 28 per cent over the same quarter last year.
The growth in revenues was primarily driven by robust growth in new sales as well as renewals, over the previous year, and multiple product and portfolio improvement initiatives as well as launch of new group products. Additionally, savings in operating expenses and implementation of technology-enabled solutions helped the company improve its profitability margins. The company also moved up two ranks to become the eighth largest private health insurer overall in FY2017.
Antara Senior Living, the third operating company under Max India, in FY2017, generated collections of Rs 78 crore, a growth of almost 100 per cent over the previous year.
Rahul Khosla, Chairman, Max India said, “The past one year has been an eventful one for Max India. While the company itself commenced trading on the bourses in July last year, each of our operating companies achieved important milestones of their own. MHC continues to be a sterling performer, despite challenges such as demonetization and multiple regulatory headwinds, and in addition to its core tertiary specialities, is also well-positioned to scale up some of its newer business initiatives such as Max Labs, MaxHome and Oncology Day Care. Max Bupa has also had a successful year under new leadership and as is well on its way to achieving a turnaround in profitability. Finally, we are delighted that Antara launched its first community recently and we look forward to it establishing new benchmarks in service standards in the coming years.”
Mohit Talwar, MD, Max India, added, “The strong growth in top line as well as profitability are testimony to the success of several initiatives across our businesses, such as new clinical programs, product launches and improvements, new partnerships and alliances, improved operating efficiencies, delivery of superior service standards, and tangible return on investments in people and technology. All these and more are evident in the strong stock performance over the past few months. With a further capital infusion now from the Promoters, we will have adequate liquidity to explore additional growth opportunities, mainly in healthcare.”
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