Max Healthcare Institute Q2 Results: Net Profit Up 2%, Misses Estimates

Max Healthcare Institute Ltd.'s consolidated net profit increased 1.9% in the second quarter of fiscal 2025, missing analysts' estimates.

The company reported a net profit of Rs 282 crore in the quarter-ended Sept 30, 2024, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a profit of Rs 368 crore.

Its revenue rose 25.3% to Rs 1701 crore, as against an estimate of Rs 2,034 crore.

Total expenses increased by 32% year-over-year, primarily driven by a finance cost, which saw a substantial increase of nearly 3.9 times and depreciation grew by 45%. Employee costs also rose by 20% and other expenses increased by 47%.

Max Healthcare Q2 Results: Key Highlights (Consolidated, YoY)

• Revenue up 25.3% to Rs 1701 crore (Bloomberg estimate: Rs 2,034 crore).

• Ebitda up 16.3% to Rs 451 crore (Bloomberg estimate: Rs 551 crore).

• Margin at 26.4% versus 28.4% (Bloomberg estimate: 27.10%).

• Net profit up 1.9% to Rs 282 crore (Bloomberg estimate: Rs 368 crore).

The company has three partner healthcare facilities: Balaji Society, GM Modi Society (Hospital) and Devki Devi Society, whose financials are not included in the consolidated financial statements. After considering the above three financials, the revenue for the whole entity stands at Rs 2,119 crore and the net profit will be Rs 349 crore.

Key Highlights

• Bed occupancy for the quarter was at 81%, with occupied bed days (OBDs) up by ~18% YoY.

• ARPOB for the quarter stood at Rs 76100 compared to Rs 74600 in Q2 FY24 and Rs 77100 in Q1 FY25.

• Acquired controlling stake in Jaypee Healthcare Ltd., which owns and operates a 500-bed super specialty hospital in Noida and a 200-bed secondary care hospital in Chitta, Bulandshahr. This marks MHIL’s entry into Noida, an attractive micromarket.

• MSSH Lucknow and MSSH Nagpur acquired in Q4 FY24 delivered strong performance. Combined revenue and EBITDA from the two hospitals reported a QoQ growth of 32% and 90%, respectively.

• Free cash flow from operations 1 stood at Rs 464 crore during the quarter. Of this, Rs 217 crore was deployed on the ongoing expansion plans and for upgradation of facilities at new units. Net cash surplus at the end of September 2024 stood at Rs 313 crore, compared to Rs 66 crore at the end of June 2024.

“With the successful launch of MSSH Dwarka and acquisition of Jaypee Hospital, Noida, we have significantly augmented our capacity and capabilities to deliver high-quality patient-centric care in the NCR. We are encouraged by the enthusiastic response and strong community support to our healthcare offerings in the new geographies, leading to exceptional performance at New Units, said Mr. Abhay Soi, Chairman and Managing Director, Max Healthcare Institute.

"With the planned expansions coming on stream in FY26, we are set to further enhance our capabilities, widen our reach, and deepen our services to cater to the varied needs of our patients," he added.

Shares of the company closed 1.2% higher at Rs 1049 apiece on the NSE, as compared with a 0.91% gain in the benchmark Nifty 50.