Max Healthcare Institute (543220) Q4 15/16 earnings summary

Executive summary

• FY 2015-16 standalone total income rose 14.8% YoY to ₹944.6 crore; consolidated total income was ₹1,475.2 crore vs ₹1,160.9 crore. Network expansion included Crosslay and Saket acquisitions.

• Cash profit improved to ₹28.3 crore standalone from ₹11.3 crore; net loss narrowed to ₹22.2 crore from ₹38.1 crore. Consolidated loss before tax was ₹14.3 crore vs ₹37.1 crore.

Financial highlights

• Standalone operating income was ₹914.9 crore vs ₹789.6 crore; operating profit was ₹58.2 crore vs ₹54.5 crore, while finance costs declined to ₹29.9 crore from ₹43.2 crore.

• Consolidated operating income reached ₹1,445.4 crore vs ₹1,133.6 crore; operating profit was ₹145.4 crore vs ₹102.5 crore and cash profit ₹72.3 crore vs ₹41.3 crore.

• Standalone EPS improved to -₹0.4 from -₹0.9; consolidated EPS improved to -₹0.3 from -₹0.8.

Outlook and guidance

• Priorities include integrating acquired hospitals, strengthening existing operations, widening clinical offerings and leveraging the larger network to improve financial performance.

• Productivity, occupancy, shorter inpatient stays and higher-complexity procedures are expected to support revenue realization and offset rising employee costs.

• A three-year medical excellence plan targets clinical outcome tracking, fewer patient-safety incidents, selected-hospital JCIA accreditation and multidisciplinary care.