Q2 FY2017 Results Highlights:
- Max Healthcare Network of Hospitals Gross Revenues: Rs. 667 Cr., grew 24%
- Max Healthcare Network of Hospitals EBITDA: Rs. 80 Cr., grew 52%
- Max Bupa Gross Written Premium: Rs. 138 Cr., grew 24%
9th November 2016, New Delhi
Max India Ltd. (Max India), one of the three listed companies formed after the demerger of the erstwhile consolidated Max India, today announced its financial results for the second quarter of FY2017 (Q2 FY2017).
Max Healthcare (MHC), the largest operating company under Max India, reported Gross Revenues of Rs. 667 Cr. in Q2 FY2017 for its network of owned and managed hospitals, growing an impressive 24% over the corresponding period last year. MHC, which is an equal joint venture with South Africa-based Life Healthcare, reported a 52% growth in network EBITDA to Rs. 80 Cr for the same period. The robust growth in revenues was driven primarily by contributions from tertiary specialities such as Renal Sciences, Neuro, Cardiac, Orthopaedics and Oncology. In the first half of FY2017 (H1 FY2017), MHC’s Gross revenues grew 26% over the corresponding period last year to Rs. 1,300 Cr., while EBITDA grew 44% to Rs. 140 Cr.
MHC has undertaken significant expansion efforts in the recent past, including two large acquisitions in the Delhi/NCR region — Pushpanjali Crosslay Hospital (now Max Super Speciality Hospital, Vaishali), in May 2015 followed by the acquisition of operating rights for the marquee South Delhi-based Saket City Hospital (Now Max Smart Super Speciality Hospital) in October 2015. Together these have already enhanced MHC’s existing bed capacity by over 25%. Moreover, the company plans to expand the Max Smart Super Speciality Hospital by 900 additional beds over the next few years, thereby expanding its capacity to 1200 beds. Combined with Max Healthcare’s existing and contiguously located flagship facility (Max Super Specialty Hospital – Saket), Max Healthcare will have a footprint of around 2,000 beds in a prime location of South Delhi (Saket), creating one of the largest as well as highest quality healthcare facilities across Asia. These acquisitions and the latent capacity already available within the MHC network enable MHC to expand capacity to 5,000 beds over the next 5 years.
Max Bupa, one of India’s leading standalone private health insurers, also reported significant growth in its topline with Gross Written Premium (GWP) of Rs. 138 Cr. in Q2 FY2017, 24% higher than last year. The company reported a Profit Before Tax of Rs. 23 Cr. in Q2FY2017, including a one-off accounting adjustment. Max Bupa expects to break even within the next two years.
This quarter, Max Bupa commenced offering its comprehensive health insurance policy suite to the diverse and large customer base of Bank of Baroda, one of India’s largest public sector banks, through a bancassurance corporate agency agreement. Max Bupa already has bancassurance arrangements and strategic alliances with other leading retail finance institutions such as Standard Chartered Bank, Federal Bank, Ratnakar Bank, Deutsche Bank, Muthoot Finance and Bajaj Finserv.
In H1 FY2017, Max Bupa reported GWP of Rs. 260 Cr., growing 23% over the corresponding period last year. The first half of the year was also marked by other significant developments at Max Bupa – Max India’s JV partner Bupa, a leading international healthcare group, acquired additional stake in Max Bupa, increasing shareholding from 26% to 49%. One of the fastest growing players in the segment, Max Bupa is now the country’s 8th largest private health insurer.
Antara Senior Living, the third operating company under Max India, is pioneering the concept of ‘Age in Place’ for the elderly by developing Senior Living communities in India. Antara will launch its maiden community with around 200 apartments in Q4 FY2017 near Dehradun, Uttarakhand.
Commenting on Max India’s performance, Mr. Rahul Khosla, Chairman, Max India said, “Less than a year since restructuring the Max Group, we have started seeing benefits for our operating businesses in the form of sharper focus and improved capabilities to leverage their underlying strengths. Growth in top line and profitability are testimony to the success of several initiatives such as new clinical programs, product launches and refinements, deeper alliances and partnerships, improved operating efficiencies, delivery of superior service quality, and visible return on investments in people and technology, including digital delivery of healthcare and health insurance services.”
Mr. Mohit Talwar, Managing Director, Max India, added, “The market has responded favourably over the past few months since the Max India stock started trading in July, and we hope the investors’ trust in us will only continue to grow from here. A cash infusion of Rs. 100 Cr. Is expected to flow into Max India from the potential merger of MFS, Max Life and HDFC Life, and will create adequate liquidity to explore additional growth opportunities, mainly in healthcare.”
In January 2016, the Max Group concluded an important corporate restructuring wherein the erstwhile Max India was demerged into three separate entities, Max Financial Services, Max India and Max Ventures & Industries. With the listing of the Max India stock in July 2016, all three demerged companies of the Max Group are now listed.
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Wasatch, Ward Ferry, Nomura, New York Life and Invesco.
The Max Group comprises three listed companies, namely Max Financial Services, Max India and Max Ventures & Industries.
About Max India Limited
Max India, the holding company for Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, is focused on health and allied businesses. Max Healthcare and Max Bupa Health Insurance are joint ventures with global leaders Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. The Company owns and actively manages a 45.95% per cent stake in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
Max India is listed on both the Bombay Stock Exchange as well as the National Stock Exchange.
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Max India: www.maxindia.com