Max Healthcare PAT, revenue jump in Q2FY22; CMD Abhay Soi talks about results, outlook and expansion plans
The EBITDA for operations also went up from Rs 301 cr to 337 cr during the July-September quarter. The EBITDA per bed also went up sequentially to Rs 55 lakhs per bed from 45 lakh per bed
Max Healthcare Institute Limited has reported a Q2FY22 net profit of Rs 207 crore versus Rs 17 crore during the corresponding period in FY21. The consolidated income has also gone up from Rs 650 crore in Q2FY21 to Rs 1434 crore in the reporting quarter. To tell more about the results, Chairman and Managing Director Abhay Soi spoke to Zee Business.
The CMD said that this quarter could be considered as a non-covid quarter as less that 2 per cent of the total beds were utilised for Covid-19 treatment. The EBITDA was at Rs 362 cr.
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There was a significant uptick in operations despite a dip in vaccination numbers, Soi said.
The EBITDA for operations also went up from Rs 301 cr to 337 cr during the July-September quarter. The EBITDA per bed also went up sequentially to Rs 55 lakhs per bed from 45 lakh per bed.
This is the fourth consecutive quarter of highest revenues, EBITDA and EBITDA margins.
During the Covid-19 period the occupancy was around 81 per cent which was replaced with 75 per cent non-covid occupancy.
However, the international business was hit and stood at one-third of the pre-Covid levels, the CMD further said. Toward the end of the quarter it went up to 50 per cent, Soi said.
He said that he was confident that it would come to the pre-Covid levels by the end of the financial year.
He said that historically the occupancy is higher in the second half of the financial year. He said that the occupancy and Average Revenue Per Occupied Bed (ARPOB) will go up, going forward.
The company has 2-3 levers for expansion, he said. One is the international business which is a high profitable business. The restrictions on flights have been reduced and that is likely to benefit the company, he added. The next two quarters could see a further bounce back, Soi said.
The other segment is institutional business and company is planning to reduce it over the next two quarters. The pricing power is higher by almost 40 per cent in non-institutional business.
The insurance segment is also rising for the company significantly, he added. All these will benefit the business in short term.
In the long term, the company will be adding over 1000 beds by developing two parcels of land in Gurugram, Soi said. This is expected to be done over the next 3-4 years.
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All this will be done through internal accruals and not through external debts, he clarified.
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