Max Healthcare Institute (543220) Q4 17/18 earnings summary

Executive summary

• FY18 operating performance weakened amid regulatory and operational headwinds: standalone revenue rose 4.1% to INR 1,112 crore, but operating profit before interest and depreciation fell 36%, cash profit fell 64.6% to INR 23 crore, and net loss was INR 28 crore versus prior-year profit of INR 5 crore.

• Consolidated total income was INR 1,798 crore versus INR 1,680 crore; operating profit was INR 181 crore versus INR 213 crore, and comprehensive income attributable to equity shareholders was a loss of INR 28 crore versus income of INR 15 crore.

Financial highlights

• Standalone revenue reached INR 1,112 crore in FY18; net loss was INR 28 crore versus net profit of INR 5 crore in FY17.

• Consolidated revenue from operations was INR 1,729.13 crore versus INR 1,608.26 crore; consolidated net loss was INR 25.15 crore versus net profit of INR 15.79 crore.

• Consolidated finance costs were INR 99.37 crore versus INR 99.68 crore; depreciation and amortization was INR 94.42 crore versus INR 95.51 crore.

Outlook and guidance

• Priorities include process re-engineering using Lean and Six Sigma, automation, analytics, cost optimization, and investment in medical technology and clinical talent; no quantified profit forecast was set.

• Upcountry sales offices and OPD centers are intended to improve patient access and referrals; overseas facilitation centers are planned to support medical-value travel.

• Growth focus includes high-growth tertiary care, complex procedures, stronger specialty mix, and improved occupancy, average revenue per occupied bed, and operating efficiency.