Healthcare services provider Max Healthcare Institute on November 6, reported a net profit of Rs 338 crore for the July-September period, up 26 percent from Rs 267 crore clocked in the same quarter of the preceding fiscal.
The net profit in the quarter was also impacted by a one-time reversal of Rs 244 crore deferred tax liability.
The hospital operator's revenue for the quarter came at Rs 1,732 crore, reflecting a 17 percent rise from Rs 1,482 crore in the year-ago period. The rise in revenue can be attributed to an increase in the average revenue per occupied bed (ARPOBs), improved occupancy and better patient mix.
The hospital operator's occupancy stood at 77 percent in Q2. Occupied Bed Days (OBD) also grew by over 3 percent on year.
Meanwhile, the average revenue per occupied bed (ARPOB) also improved to Rs 74,600 in Q2 FY24 as against 66,000 in Q2 FY23. The spike in ARPOBs further aided the improvement in operating metrics.
"All hospitals improved their ARPOB during the period & the overall average growth in ARPOB stood at 13 percent on year," the company stated in an exchange filing.
International patient revenue also grew by over 25 percent on year and its share in total revenue stood at around 9 percent.
Aside from revenue, these factors also helped improve the hospital operator's operational performance as its earnings before interest, taxes, depreciation and amortization (EBITDA) came in at Rs 497 crore, up 21 percent on year from Rs 410 crore recorded in the same quarter of the previous fiscal. EBITDA margin also expanded to 28.7 percent from 27.7 percent in the year-ago period.
Moreover, the company's free cash from operations were at Rs 436 crore at the end of the quarter of which Rs 90 crore was spent towards ongoing capacity expansion projects.
"We are well-poised to absorb addition to network bed capacity in the coming years, while we evaluate M&A targets for inorganic growth. We continue to see attractive opportunities for significant investments in the sector," Abhay Soi, Chairman and Managing Director, Max Healthcare
Institute said in an exchange filing.
Shares of Max Healthcare reacted positively to its Q2 earnings and were trading nearly 3 percent higher at Rs 594 on the NSE post the announcement.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
