Max Healthcare Institute (543220) Q4 14/15 earnings summary

Executive summary

• FY15 delivered stronger operating performance, with healthcare income up 22.6% to INR 688.4 crore and patient volumes rising; reported losses persisted amid higher depreciation and financing costs.

• More than 1.6 million patient footfalls were recorded, while investor funding and a planned northern India expansion supported growth ambitions.

Financial highlights

• Standalone total income rose 11.1% to INR 789.6 crore; operating profit increased 14.5% to INR 54.5 crore from INR 47.7 crore.

• Standalone loss for FY15 was INR 38.14 crore versus INR 32.35 crore in FY14; EPS was -INR 0.85 versus -INR 0.79.

• Consolidated revenue from operations was INR 113,361 lacs versus INR 94,446 lacs; consolidated loss narrowed to INR 3,705 lacs from INR 6,465 lacs.

• Consolidated EPS improved to -INR 0.82 from -INR 1.57; net cash from operating activities was INR 6,380 lacs versus INR 7,323 lacs.

• No dividend was recommended because of carried-forward and current losses; no amount was transferred to general reserves.

Outlook and guidance

• Plans include expanding in Northern India, pursuing acquisitions, strengthening clinical programs, and improving patient outcomes and operating efficiency.

• Management intends to sustain revenue growth and contain costs through granular operating initiatives, service improvements, and further quality projects.

• International markets and patient outreach are targeted for expansion; FY16 had 12 national and global clinical trials in the pipeline, subject to regulatory approvals.