Max Healthcare Institute (543220) Q4 21/22 earnings summary

Executive summary

• FY22 combined COVID response with a return to growth investment; network gross revenue, operating EBITDA, operating margin and net profit reached reported highs.

• Recovery in hospital activity, vaccination, medical tourism and insurance-supported demand lifted performance, while capacity, equipment and digital investments positioned operations for expansion.

Financial highlights

• Network gross revenue rose 42% YoY to INR 5,509 crore; network operating EBITDA increased 118% to INR 1,390 crore, with margin at 26.6% vs 17.5%.

• Audited consolidated revenue from operations was INR 3,931 crore and total income INR 4,059 crore; net profit was INR 605 crore and EPS INR 6.25 basic, INR 6.24 diluted.

• Consolidated revenue from operations grew 46% to INR 3,931 crore vs FY21 pro forma INR 2,683 crore; EBITDA rose to INR 1,070 crore from INR 514 crore, with margin at 26.4% vs 18.4%.

Outlook and guidance

• Visibility for ~2,800 bed additions over five years, with new beds expected to begin commissioning from the end of FY23 and ramp up progressively.

• FY23 priorities include the patient-facing super-app, scaling Max Lab and Max @ Home, expanding medical value travel assistance centres, adding clinical programmes and investing in equipment.

• Management planned to continue brownfield, greenfield and asset-light expansion while evaluating acquisitions and strengthening digital reach.