© Reuters.
Max Healthcare reported a 19% year-on-year increase in operational revenue to Rs 1,363 crore ($182 million) for the second quarter of fiscal year 2024, according to data from the Bombay Stock Exchange. This growth came despite a one-time reversal of deferred tax liability that led to a 39.5% drop in consolidated net profit to Rs 276.68 crore ($37 million).
When including revenues from partner hospitals – Max Smart Super Speciality Hospital, Max Saket Super Speciality Hospital (East wing), and Max Balaji Hospital – the company’s net profit rose by 26% to Rs 338 crore ($45 million) and revenue increased by 17% year-on-year to Rs 1,827 crore ($244 million).
The firm also witnessed a 13% jump in Average Revenue Per Occupied Bed (ARPOB) and a 25% increase in international patient revenue. The Oncology department’s share of revenue increased to 25.3%. Furthermore, bed occupancy rose by 3% year-on-year, attributed to an improved specialty and patient mix.
However, the company also reported a 16% rise in total expenses due to growing employee benefit expenses and purchases of drugs, consumables, and implants. Despite this increase in expenditure, Chairman and Managing Director Abhay Soi expressed confidence in the company’s readiness for additional network bed capacity and potential mergers and acquisitions targets.
As part of its expansion plans, Max Dwarka has applied for an occupancy certificate with operations expected to commence in the fourth quarter of fiscal year 2024.
InvestingPro Insights
According to real-time data from InvestingPro, Max Healthcare (MAXE) has been experiencing accelerating revenue growth, which aligns with the reported 19% year-on-year increase in operational revenue. This growth trajectory is further supported by the consistent increase in earnings per share, indicative of the company’s financial health.
InvestingPro Tips highlight Max Healthcare as a prominent player in the Healthcare Providers & Services industry, with a history of delivering high returns on book equity to its stockholders. This is a particularly relevant point considering the firm’s ongoing expansion plans and potential for future mergers and acquisitions.
In addition, analysts anticipate continued sales growth for Max Healthcare in the current year. This positive outlook is likely bolstered by the firm’s recent performance, including a 13% jump in Average Revenue Per Occupied Bed and a 25% increase in international patient revenue.
These are just a few of the insights available on InvestingPro, which currently provides an additional 13 tips for Max Healthcare. For more in-depth analysis and insights, consider exploring the full range of InvestingPro Tips.
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