Max Healthcare Institute Ltd (MHIL), one of the leading private sector healthcare services provider, has reported 243 per cent year-on-year growth in net profit at Rs 135 crore for third quarter ended December 31, 2020, compared to Rs 39 crore in the same period last year. On the sequential basis, the profit surged 276 per cent from Rs 36 crore in September quarter of 2020.
The company said that the financial performance was driven by an increase in footfalls of OPD patients, IPD occupancy and improved average revenue per occupied bed. While outpatient department (OPD) consults rose 12 per cent QoQ to 3.9 lakh during December quarter of 2020, average bed occupancy improved to 76.2 per cent.
The New Delhi-based hospital chain saw its gross revenues rising by 6 per cent YoY and 24 per cent QoQ to Rs 1,160 crore during December quarter of FY21.
Max Healthcare also witnessed a significant improvement in EBITDA margins, which stood at 23.2 per cent for the quarter, up from 15.8 per cent in the corresponding quarter in FY 20. The EBITDA margin for the previous quarter was 16.2 per cent.
The network EBITDA rose to Rs 253 crore versus Rs 160 crore in Q3 FY20 and Rs 143 crore in the previous quarter (Q2 FY21). This was the highest ever quarterly EBITDA achieved by the company, it said.
"This financial performance was driven by an increase in footfalls of OPD patients, IPD occupancy and improved ARPOB. The network saw occupancy relating to COVID-19 decline in the latter half of the quarter and an increase in the surgical cases in key specialities. The significant improvement in EBITDA was also underpinned by long term structural cost savings program initiated in the previous financial year and followed up with additional initiatives in the current financial year," Max Healthcare Institute said.
The company said that revenue from international medical tourists witnessed an uptick during the quarter and grew by 2.3 times of Q2 FY21, reaching around 40 per cent of pre-Covid levels.
The net debt (including put option liabilities) reduced by Rs 121 crore to Rs 1,867 crore as on December 31, 2020 as against Rs 1,988 crore on September 30, 2020.
In order to increase focus on international medical tourism business, Max Healthcare's board approved to establish a subsidiary in UAE, which will focus on reaching out to a greater number of patients and capturing a higher market share from Africa, West Asia and Eastern Europe.
The company further stated that it continued to invest in technology and clinical talent. Max Vaishali is in advanced stage to commission its TomoTherapy System which will offer a revolutionary radiotherapy for cancer treatment, it said. With a view to enhance top-notch clinical talent, network hospitals hired more than 20 senior consultants during the quarter, it added.
Commenting on Q3 results, Abhay Soi, Chairman and MD, Max Healthcare Institute, said, "We are pleased with our Q3 results, which reflect continued best in class operating performance underpinned by strong fundamentals. These results also demonstrate the resilience of our clinical and non-clinical teams to serve the communities during challenging times. We are committed to highest standard of clinical excellence and patient care supported by latest technology".