Max India Ltd. today announced its audited results for the quarter and year ended March 31, 2008.
The company has reported consolidated revenue of Rs. 3,611 crore during the year ended March 31, 2008, against Rs. 1,994 crore in the corresponding previous period, a growth of 81%. Operating revenue for the year stood at Rs. 3,244 crore, growing 78% from Rs. 1,819 crore in the corresponding previous period.
Group Investments as at March 31, 2008 stood at Rs. 4,840 crore, a growth of 128% from Rs. 2,123 crore as at March 31, 2007.
Commenting on the results, Mr. Analjit Singh, Chairman & Managing Director, Max India Limited, said, “This was a year of consolidation and gearing up for next phase of growth for the Max Group. Encouraged by strong growth potential offered by the Indian life insurance industry, we committed ourselves to a growth plan which would see Max New York Life further strengthen its position amongst the top quartile life insurance companies in India. This is where the substantial portion of Rs. 1,000 crore raised from qualified institutional placement will get deployed.” “We consolidated our healthcare business by completing the first phase of expansion and raised Rs. 300 crore from IFC, Washington for the second phase of expansion. This would double the bed capacity for Max Healthcare from 770 beds to more than 1500 beds over next 3 years,” Mr. Analjit Singh added.
Gross premium income for the year ended March 31, 2008 stood at Rs. 2,715 crore, growing 81% year-on-year. Annualized First Year Premium (new sales) for the year ended March 31, 2008 at Rs. 1,676 crore grew 73% year-on-year. Assets under Management at Rs. 3,575 Crore, grew 95% year-on-year.
Gross premium income for the quarter ended March 31, 2008 at Rs. 952 crore grew 86% year-on-year. Annualized First Year Premium (new sales) for the quarter at Rs. 573 crore grew 81% year-on-year.
The Company has sold over 2.3 million policies since inception, with 873,000 policies sold during the year. Sum assured in force as at March 31, 2008 around US$ 17.5 billion (Rs. 700 billion) has grown 56% year-on-year. MNYL increased its agency base to around 37,000 agents, adding close to 12,000 agents. MNYL also increased its geographical presence to 242 offices covering 157 locations across the country by adding 77 new offices during the year. The shareholders infused Rs. 300 Crore as fresh capital during the year, taking the total capitalization of the business to Rs. 1032 Crore.
Revenue across network of hospitals for the year ended March 31, 2008 at Rs. 372 Crore grew 52% year-on-year. Healthcare business reported positive EBITDA of Rs. 20 Crore during the year against negative Rs. 18 Crore during the previous year.
Revenue across network of hospitals for the quarter ended March 31, 2008 at Rs. 101 crore grew 45% year-on-year. Healthcare business reported positive EBITDA of Rs. 7 Crore during the quarter against negative Rs. 3 Crore during the same quarter previous year.
MHC has around 1,250 doctors in its network, including around 500 doctors on its rolls. With the total patient transactions during the year averaging over 135,000 patients a month, average occupancy across all healthcare care facilities is at 66%. MHC has a registered patient base of over 560,000 patients.
March 31, 2008 at Rs. 306 crore grows 84% year-on-year. PBT for the year at Rs. 25 crore grew 108% year-on-year. EBITDA margin for the quarter improved to 16.2% from 12.7% in the corresponding previous period with return on capital employed at 16%.
Revenue for the quarter ended March 31, 2008 at Rs. 92 Crore grew 96% year-on-year. PBT for the quarter at Rs. 10 Crore grew 186% year-on-year. EBITDA margin for the quarter improved to 18.3% from 13.2% in the corresponding previous period with return on capital employed improving significantly to 24%.
The BOPP production lines with a capacity of 29,000 TPA have achieved 100% capacity utilization within a year of tripling capacities. The second thermal coating film line, with a capacity of 10,000 KSM commissioned in October this year, has also achieved a utilization of over 65%.
Clinical Research business turned profitable, backed by strong order flows with net earnings of Rs. 0.7 Crore for the year. Revenue also grew three-fold to Rs. 11 Crore from Rs. 4 Crore for the year ended March 31, 2007.
The business has a confirmed order book of Rs. 32 Crore as at March 31, 2008, which has grown from Rs. 9 Crore as at March 31, 2007. Additionally, it has a healthy business development pipeline of around Rs. 80 Crore. This business added 14 new customers during the year, taking its total client base to 43.
Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Life Insurance (Max New York Life Insurance), Healthcare (Max Healthcare), and Clinical Research (Neeman Medical International). Max India’s other businesses are Specialty Plastic Products for the packaging industry (Max Speciality Products) and Healthcare Staffing (Max HealthStaff).
Max New York Life (MNYL) is a Joint Venture between New York Life, a Fortune 100 company, and Max India Limited. MNYL has positioned itself firmly on the quality platform. In line with its vision ‘To be the most admired life insurance company in India’, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.
MNYL has established a robust distribution network across the country. With 242 offices in 157 locations and around 37,000 agent advisors, 18 bancassurance relationships, 14 corporate agents and over 800 people strong direct sales team, the Company has built a robust distribution network to support strong growth.
Max Healthcare (MHC) is one of India’s leading providers of customized, seamless, integrated and world–class healthcare services. It is one of the largest private healthcare companies in India with a network of six hospitals, two specialty medical centers and nine clinics that are either owned or managed pursuant to service agreements.
It is committed to the highest standards of medical and service excellence, patient care, scientific knowledge and medical education. MHC operates eight healthcare centers in the NCR, offering services in over 30 medical disciplines with super speciality services in Cardiac care, Neurosciences, Orthopaedics, Paediatrics, and Obstetrics & Gynaecology.
Max Neeman Medical International (MNMI) is a Clinical Research services provider offering various services across the value chain of new drug development to a growing list of pharmaceutical, biotech and CRO clients, in India and abroad. MNMI continues to focus on developing alliances with mid sized pharma and biotech companies to transition their drug development work to India. MNMI continues to focus on building business development pipeline through organic measures and intends to explore inorganic growth options as well.
Max Speciality Products (MSP) specializes in manufacturing of wide range of sophisticated barrier and packaging films. The BOPP division of MSP has an installed capacity of 29,000 tons per annum. MSP’s leather finishing foil business division manufactures a range of leather finishing and laminating foils.
Max HealthStaff International (MHS) is an international healthcare staffing company, founded on world class quality and service excellence. It is committed to be India’s leading healthcare staffing company, placing professionals at healthcare institutions in India and abroad. MHS offers a comprehensive overseas nursing program to Indian nurses. MHS operates its business through 7 training centers located in Delhi, Chandigarh, Kottayam and Chennai.
For more details contact:
Vice President – Corporate Finance
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 126
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 182