Max Healthcare Institute (543220) Q4 19/20 earnings summary

Executive summary

• FY20 marked a turnaround: network revenue grew 11% to ₹2,959 crore and EBITDA rose 87% to ₹444 crore, with EBITDA margin at 15.0% post Ind AS 116.

• Standalone revenue rose 8.5% to ₹1,093 crore; net profit was ₹25.1 crore versus a ₹23.4 crore loss in FY19.

• The Radiant healthcare demerger and residual Max India amalgamation became effective June 1, 2020, expanding the network to 17 facilities and ~3,400 beds after year-end.

Financial highlights

• Standalone revenue from operations was ₹1,093 crore versus ₹1,008 crore; operating profit rose to ₹180 crore from ₹83 crore, and cash profit was ₹91 crore versus ₹39 crore.

• Consolidated revenue was ₹1,885 crore versus ₹1,691 crore; PAT was ₹95 crore versus a ₹19 crore loss, and diluted EPS was ₹1.77 versus a ₹0.06 loss.

• Pro forma consolidated FY20 revenue including Radiant was ₹4,371 crore and operating EBITDA was ₹589.8 crore post Ind AS 116.

• Healthcare-services revenue grew 10% standalone; lower-value pharmaceutical-supply revenue contracted 16%.

Outlook and guidance

• Priorities over the next 2–3 years: optimise existing facilities, expand brownfield capacity, develop high-end programmes, and scale asset-light MaxLab and Max @ Home.

• FY21 focus includes cost optimisation, operational effectiveness, capacity expansion, new clinical programmes, medical-value travel and clinical talent; planned cost initiatives are expected to yield fuller benefits in FY21 and beyond.

• Management cited ~2,300 beds of brownfield expansion potential, including 1,700 beds on available land, and average FY20 network occupancy of ~72% as growth headroom.