Max India Reports Strong Financials for First Quarter FY2018

Q1 FY2018 Highlights:

  • Max Healthcare Network Gross Revenues: Rs. 702 Cr., grew 10%
  • Max Bupa Gross Written Premium: Rs. 159 Cr., grew 30%
  • 102 out of 190 units already sold in Antara Senior Living’s Dehradun community

11 Aug 2017, New Delhi

Max India Ltd. (Max India), Max Group’s listed company operating in the Health and Allied Services sector, today announced its financial results for the first quarter of financial year 2017-18 (Q1 FY2018).

Max India’s flagship operating company Max Healthcare (MHC), reported Gross Revenues of Rs. 702 Cr. in Q1 FY2018 for its network of owned and managed hospitals, growing 10% over the previous year. MHC’s key tertiary and quaternary care specialities continued to be significant contributors to revenue growth with Oncology, in particular, reporting strong 24% growth during the quarter.

Max Bupa, one of India’s leading standalone private health insurers, reported Gross Written Premium (GWP) of Rs. 159 Cr. in Q1, growing a healthy 30% over the previous year. This quarter also marked the on-boarding of South Indian Bank as a new bancassurance partner for Max Bupa, making this the sixth such partnership for Max Bupa. Operations under this alliance will commence in the second quarter of FY2018.

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. With its first community in Dehradun having become operational, the company has now sold over 50% of its units (102 out of 190) in the community. Since inception, Antara has generated collections of Rs. 208 Cr.

Commenting on Max India’s performance, Mr. Rahul Khosla, Chairman, Max India said, “Max India’s key businesses continued to perform well this quarter and are well positioned to deliver strong growth through the year. It is a testimony to Max Healthcare’s focus on customer-centric processes that our patient experience scores have improved 11 percentage points over last year, driven by initiatives that cover medical and administrative touch points for patients and their families. We have also gained traction in the newly launched Centre for Liver and Biliary Sciences at Max Saket, completing 100 liver transplants in a short 5-month period. Max Bupa’s new partnership with Bank of Baroda has already started bearing results, driving strong overall growth especially in the bancassurance channel. Finally, with the successful launch of Antara’s first community in Dehradun, our focus will now be on accelerating sales and improving collections.

Mr. Mohit Talwar, Managing Director, Max India, added, “MHC’s growth is being driven not only by our key specialities such as Oncology, which grew 24% this quarter, but also by expansion into upcountry centres such as Lucknow, Moradabad, Meerut, Srinagar, as well as into key international markets. In addition, cost optimisation efforts at MHC have delivered savings of over Rs. 15 crore in material and personnel costs over the past quarter. Max Bupa continues to outpace the private health insurance sector with strong GWP growth and is on track to achieving break-even by 2019. With multiple key marketing efforts lined up, Antara is expected to ramp up its sales velocity significantly in the coming months.”

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 holding 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 2017, the Group recorded consolidated revenues of Rs 16,798 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 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC, Ward Ferry, Temasek, Vanguard, Wasatch, Fidelity and New York Life.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

 

About Max India Limited

Max India, the holding company of Max Bupa Health Insurance and Antara Senior Living and equal joint venture partner in Max Healthcare, 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 49.70% 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.

 

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

Max merger with HDFC Life called off

31st Jul 2017 New Delhi

Max Financial Services (MFS), Max India and Max Life today confirmed that the proposed merger with HDFC Life has been called off. The exclusivity agreement with HDFC Life, valid till 31st July 2017, will not be renewed.

The prospective partners had evaluated several alternate structures over the last month. However, the inordinate time associated with finalization and approval of these structures led to this decision.

Max Financial Services was created in 2016, as a result of a demerger of the erstwhile Max India, to provide investors specific and undiluted access to the Group’s life insurance business, provide sharper focus to Max Life and unlock shareholder value. This demerger resulted in significant value creation based on the strong intrinsic value and superior performance of Max Life.

The quality of the Max Life business, its superior performance in the market, and the unique position of MFS as a listed entity with sole focus on the life insurance business, made Max Life and MFS attractive potential merger partners for HDFC Life. Max was therefore approached with this merger proposition.

Max Life has grown into one of India’s largest, fastest-growing and highest quality private life insurance businesses. The business’ success comes through in a comprehensive set of parameters including sales, profits and customer retention and is driven by digital thinking, operational efficiencies, a robust and diversified distribution architecture, highly engaged bancassurance partners, a profitable own agency force and a highly competent and engaged talent pool led by a top quality leadership team.

The company delivered its best performance since inception in FY 2017. It continues to remain strong and is poised for out-performance as the life insurance industry witnesses a return to growth. It reported consolidated revenues of Rs. 12,971 Cr. and shareholder Profit before Tax of Rs.  768 Cr. (50% YoY growth). Its Embedded Value (EV) stands at Rs 6,590 Cr., with 20% Operating Return on EV. Its Assets under Management (as at 31st Mar. 2017) are Rs. 44,370 Cr., a 24% growth over last financial year.

The company will continue on its path to aggressively invest in organic and inorganic growth levers. This will be done through investments in enhancing own channels such as agency and digital, delivering superior policyholder experience, deepening and leveraging existing bancassurance partnerships, and forging new distribution alliances. In addition, it will pursue acquisition opportunities as the industry further consolidates.

Max Life is committed and confident of delivering superior value to all its stakeholders to become India’s most admired life insurance company.

 

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 2017, the Group recorded consolidated revenues of Rs. 16,798 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 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Vanguard, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

 

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

About Max Life Insurance Company Limited

Max Life Insurance offers comprehensive long term savings, protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

 

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

Strong Revenue and Profit Growth in the Company’s First Annual Results

FY2017 Results Highlights:

  • Max Healthcare Network Gross Revenues: Rs. 2,567 Cr., grew 18%
  • Max Healthcare Network EBITDA: Rs. 281 Cr., grew 31%
  • Max Bupa Gross Written Premium: Rs. 594 Cr., grew 25%
  • Antara Senior Living commenced operations at maiden community in Dehradun, Uttarakhand

29 May 2017, New Delhi

Max India Ltd. (Max India), Max Group’s listed company in the Health and Allied Services sector, today announced its financial results for the fourth quarter (Q4) and financial year 2016-17 (FY2017). These are the first annual financial results to be declared since the Company’s stock commenced trading on the NSE and the BSE in July 2016.

Max Healthcare (MHC), Max India’s flagship operating company, reported Gross Revenues of Rs. 2,567 Cr. in FY2017 for its network of owned and managed hospitals, growing 18%. MHC, which is an equal joint venture with South Africa-based Life Healthcare, reported a robust 31% growth in EBITDA for its network of hospitals to Rs. 281 Cr. in FY2017 and 23% growth in Q4 to Rs. 77 Cr. over the corresponding quarter last year. The MHC Network of Hospitals also reported significant growth of 141% in Profit Before Tax (PBT) to Rs 24 Cr. in FY2017. Q4 resulted in PBT of Rs. 15 Cr. compared to Rs. 2 Cr. in the corresponding quarter last year.

This marked improvement in profitability was driven, in part, by a significant performance turnaround at MHC’s newer hospitals including Dehradun and Bathinda, as well as Max Smart Super Speciality Hospital (formerly Saket City Hospital) in Saket, New Delhi. Key specialities such as Renal Sciences, Neuro Sciences and Oncology, among others, continue to be the biggest drivers of growth for MHC.

Max Bupa, one of India’s leading standalone private health insurers, also reported strong growth in its topline with Gross Written Premium (GWP) of Rs. 594 Cr. in FY2017, growing 25% over FY2016. In Q4, Max Bupa reported a GWP of Rs. 193 Cr., growing 28% over the same quarter last year.

The growth in revenues was primarily driven by robust growth in new sales as well as renewals, over the previous year, and multiple product and portfolio improvement initiatives as well as launch of new group products. Additionally, savings in operating expenses and implementation of technology-enabled solutions helped the company improve its profitability margins. The company also moved up 2 ranks to become the 8th largest private health insurer overall in FY2017.

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. In April 2017, Antara opened the gates to its maiden community of 200 apartments near Dehradun, Uttarakhand, with unanimous appreciation from customers, public and media. In FY2017, the company generated collections of Rs. 78 Cr., a growth of almost 100% over the previous year.

Commenting on Max India’s performance, Mr. Rahul Khosla, Chairman, Max India said, “The past one year has been an eventful one for Max India. While the Company itself commenced trading on the bourses in July last year, each of our operating companies achieved important milestones of their own. MHC continues to be a sterling performer, despite challenges such as demonetization and multiple regulatory headwinds, and in addition to its core tertiary specialties, is also well-positioned to scale up some of its newer business initiatives such as Max Labs, Max@Home and Oncology Day Care. Max Bupa has also had a successful year under new leadership and as is well on its way to achieving a turnaround in profitability. Finally, we are delighted that Antara launched its first community recently and we look forward to it establishing new benchmarks in service standards in the coming years.

Mr. Mohit Talwar, Managing Director, Max India, added, “The strong growth in top line as well as profitability are testimony to the success of several initiatives across our businesses, such as new clinical programs, product launches and improvements, new partnerships and alliances, improved operating efficiencies, delivery of superior service standards, and tangible return on investments in people and technology. All these and more are evident in the strong stock performance over the past few months. With a further capital infusion now from the Promoters, we will have 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 holding 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 2017, the Group recorded consolidated revenues of Rs 16,798 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 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC, Ward Ferry, Temasek, Vanguard, Wasatch, Fidelity and New York Life.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max India Limited

Max India, the holding company of Max Bupa Health Insurance and Antara Senior Living and equal joint venture partner in Max Healthcare, 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.

________________________________________________________________________

For information please contact:
Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

For further information, please visit:

Max Group: www.maxgroup.net

Max India: www.maxindia.com

Funds to help consolidate shareholding in Max Healthcare to ~50% along with the JV partner, Life Healthcare

11th May 2017, New Delhi

Max India Limited (Max India) today announced that it will raise funds from its Sponsor, Max Group’s Founder and Chairman Emeritus Mr. Analjit Singh, by issuing warrants amounting to Rs. 300 crore at Rs. 154.76 per share of Max India, priced in accordance with SEBI guidelines. The total number of warrants issued will be 1,93,84,854 which translates to approx. 4% stake in the company for the Sponsors.

The Sponsors’ shareholding in the Company will increase to 45.12% as a result of this transaction

A significant portion of the proceeds from this transaction will be utilized by Max India to acquire a 3.75% stake in its flagship business Max Healthcare (MHC) from International Finance Corporation (IFC), which owns a 7.5% stake in the latter company. IFC’s balance 3.75% stake in MHC will be acquired by Max India’s joint venture partner in MHC – the Life Healthcare Group, which is South Africa’s second largest hospital chain. The total consideration for the stake acquisition will be Rs. 423 crore, translating to Rs. 105 per share of MHC.

IFC has been a long-standing investor in MHC, who acquired stakes in multiple tranches over a period of 10 years. Post acquisition, both JV partners’ stake in MHC will increase to 49.7% each.

Mr. Rahul Khosla, President, Max Group, Chairman, Max India and Chairman Max Healthcare, said, Max India’s stake increase in Max Healthcare reflects our confidence in the company’s potential. We remain committed to providing the capital the business needs to continue on its growth trajectory. Max Healthcare’s key specialities, including Neurosciences, Oncology, Cardiac and Renal Sciences continue to report strong growth, and we are excited about the growth potential from our new growth initiatives, such as Oncology Day Care, Digicare and Max Labs. In addition, we have significant headroom for growth as we build out new capacity at Max Smart Super Speciality Hospital, Saket, Max Vaishali and several other existing locations.”

Commenting on the Sponsors’ stake increase, Mr. Mohit Talwar, Managing Director, Max India said, “The increase in the Sponsors’ shareholding represents their unyielding commitment to the company, and more specifically, their confidence in the immense growth prospects of the underlying healthcare, health insurance and senior living businesses. IFC has been a critical supporter through MHC’s journey over the past decade and we hope to partner with them again soon.”

Mr. Andre Meyer, CEO, Life Healthcare said, “The increase in shareholding reflects Life Healthcare’s continued commitment to the Indian healthcare market and a furthering of the partnership with Max India.”

Max Healthcare, Max India’s flagship operating company, reported 23% growth in Gross Revenues to Rs. 1,939 Cr. in first 9 months, while its EBITDA grew 34% to Rs. 203 Cr. over the corresponding period last year. During 9M FY2017, a significant proportion of revenue contributions came from MHC’s major specialities.

 

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, 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 (to be increased to 49.7%) 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.

 Max India is listed on both the Bombay Stock Exchange as well as the National Stock Exchange.

For information please contact:
Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

For further information, please visit:

Max Group: www.maxgroup.net

Max India: www.maxindia.com

Q3 FY2017 Results Highlights:

  • Max Healthcare Network of Hospitals Gross Revenues: Rs. 639 Cr., grew 16%
  • Max Healthcare Network of Hospitals EBITDA: Rs. 63 Cr., grew 17%
  • Max Bupa Gross Written Premium: Rs. 140 Cr., grew 24%

13th February 2017, New Delhi

Max India Ltd. (Max India), Max Group’s listed company in the Health and Allied Services sector, today announced its financial results for the third quarter of FY2017 (Q3 FY2017).

Max Healthcare (MHC), Max India’s flagship operating company, reported Gross Revenues of Rs. 639 Cr. in Q3 FY2017 for its network of owned and managed hospitals, growing 16% over the corresponding period last year. MHC, which is an equal joint venture with South Africa-based Life Healthcare, reported a 17% growth in network EBITDA to Rs. 63 Cr. for the same period.

The growth in profitability was driven primarily by improvement in margins from the company’s newer hospitals in Shalimar Bagh (Delhi), Dehradun, Bathinda and Mohali. In the first 9 months of FY2017 (9M FY2017), MHC’s Gross Revenues grew 23% to Rs. 1,939 Cr., while EBITDA grew 34% to Rs. 203 Cr. over the corresponding period last year. During 9M FY2017, a significant proportion of revenue contributions came from MHC’s major tower specialities, with Renal Sciences leading revenue growth at 36%.

Max Bupa Health Insurance (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. 140 Cr. in Q3 FY2017, growing 24% over last year and 23% for the first 9 months of 2017 over last year. The business now covers 1.2 million urban retail customers.

One of the fastest growing players in the segment, Max Bupa is now the country’s 8th largest private health insurer overall and 4th largest amongst standalone private health insurers in India. Max Bupa was awarded “India’s Most Valuable and Admired Health Insurer 2016” by Pharma Leaders, an annual recognition to honour excellence in the healthcare sector.

Antara Senior Living (Antara), 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 200 apartments in Q4 FY2017 near Dehradun, Uttarakhand.

Commenting on Max India’s performance, Mr. Rahul Khosla, Chairman, Max India said, Our key healthcare specialities, including Neurosciences, Oncology, Orthopaedics and Renal Sciences have contributed to strong growth this year. In addition, MHC’s new business initiatives, such as Oncology Day Care, Digicare and Max Labs, have also started showing encouraging results. There will be significant effort over the next few months in scaling up and stabilising growth across these new service lines. I am pleased with Max Bupa’s performance and strong position in the market and am looking forward to welcoming Antara’s first residents this year.

Mr. Mohit Talwar, Managing Director, Max India, added, “With over 20% growth in revenues so far this year, Max Healthcare continues to outpace its key competitors. Max Bupa has also seen a growth of 24% in its B2C segment this year, and is the 5th largest private health insurer in this segment. The market has taken cognisance of this and has responded extremely favourably since the Max India stock started trading in July.”

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.

For information please contact:
Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

For further information, please visit:

Max Group: www.maxgroup.net

Max India: www.maxindia.com