Max Healthcare on August 10 reported a record net profit of Rs 205 crore for the quarter ended June 2021 (Q1FY22) led by high overall occupancy, improvement in direct costs ratios and significant uptake in COVID-19 vaccination.
The hospital chain reported a net loss of Rs 375 crore in Q1FY21. Revenues more than doubled year-on-year (YoY) to Rs 1,385 crore in Q1FY22 compared to Rs 617 crore in Q1FY21. The EBITDA margins in Q1FY22 stood at 27.2 percent.
While Max Healthcare has benefitted on low base in Q1FY21, but even on QoQ basis, the numbers were strong with revenue growing at 19 percent and net profit by 89 percent.
Around 10 percent revenue came from COVID-19 vaccinations and related antibody tests post inoculation during the quarter.
Max said the financial performance improved over trailing quarter despite drop in ARPOB (average revenue per occupied bed) by 8.2 percent. Margin expansion was driven by high overall occupancy, improvement in direct costs ratios and significant uptake in COVID-19 vaccination in initial six weeks post launch on May 1, 2021, which touched a high of 48,600 vaccinations /day.
"The significant improvement in Operating EBITDA is also attributed to
the gains from augmentation of clinical programs and structural cost savings undertaken in last two fiscal years," Max Healthcare said.
Max has treated 11,000 COVID-19 patients in the in-patient department at network hospitals during the quarter.
COVID-19 admissions increased significantly in first half of the quarter, followed by rapid reduction in second half with drop in cases.
Consequently, Q1 FY22 average occupancy stood at 80.8 percent, while June 21 occupancy dropped to 69.4 percent, with only 60 COVID-19 patients under treatment at network hospitals as on June 30, 2021.
Simultaneously, non-COVID admissions have been ramping up.
The revenue from international medical tourism remained low during the quarter and declined by 18 percent over Q4 FY21 due to imposition of air-travel related restrictions post onset of second wave of COVID-19 infections.
However, it was still twice more than the reported in Q1 last year.
Max Lab (non-captive pathology business vertical) revenue grew by 2.4 times YoY and stood at Rs 35.9 crore.
Regular (non-COVID) business growth on QoQ stood at 25 percent.
Shares of Max Healthcare hit a record high of Rs 309.80 as they rallied 8 percent on the BSE in intra-day trade on Tuesday following the result announcement.
Max Healthcare has major concentration in North India consisting of a network of 17 healthcare facilities. Out of the total network, eight hospitals and four medical centres are located in Delhi and the NCR and the others are located in the cities of Mumbai, Mohali, Bathinda and Dehradun.
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