Max Healthcare Institute (543220) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue from operations rose 16% YoY to INR 4,563 crore; EBITDA increased 29% to INR 1,380 crore, with margin expanding to 29.3%.

• Growth reflected higher occupancy and OPD footfalls, stronger medical tourism and insurance penetration; COVID vaccination and related-test revenue fell to INR 2 crore from INR 221 crore.

• Expansion, digital services and clinical technology remained strategic priorities, alongside a plan to add more than 2,800 beds over five years.

Financial highlights

• Consolidated total income was INR 4,702 crore vs INR 4,059 crore in FY22; revenue from operations was INR 4,563 crore vs INR 3,937 crore, up 16% YoY.

• EBITDA before exceptional items and share of profit/loss in associates, excluding partner facilities, was INR 1,380 crore vs INR 1,070 crore; margin was 29.3% vs 26.4%.

• Net profit after tax was INR 1,103 crore vs INR 605 crore, up 82% YoY; EPS was INR 11.38 vs INR 6.25.

• Reported PAT included a INR 282.5 crore deferred-tax credit from the Saket City Hospitals business transfer, with INR 38.28 crore capital-gains tax also recorded.

• Network gross revenue was INR 6,236 crore and operating EBITDA INR 1,636 crore, at a 27.7% operating EBITDA margin.

Outlook and guidance

• Plan to add over 2,800 beds in five years through brownfield and greenfield projects, with asset-light partnerships and M&A also under consideration.

• Management cited potential to add 600–800 beds annually through internal accruals; expansion projects include Mohali, Nanavati Mumbai, Saket and Gurugram.

• Dwarka’s 300-bed hospital was targeted to commission in FY24, subject to the developer obtaining an occupancy certificate; construction and approvals were progressing across other projects.

• Renewable energy share reached 33.3% in FY23, with a 60% target by FY25; water neutrality is targeted by FY25.