Analyst Concall
Max Healthcare to ramp up bed capacities in 12-15 months
This story was originally published at 15:55 IST on 7 November 2024
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--Max Health: Integration of Lucknow, Nagpur assets with network completed
--CONTEXT: Comments by Max Health's mgmt in post-earnings analyst concall
--Max Health:To complete integration of acquired Jaypee Health asset quickly
--Max Health: To upgrade Jaypee Health asset capacity to 480 beds from 367
--Max Health: Average revenue/occupied bed INR 76,100 vs INR 74,600 yr ago
--Max Health: Significant capacity ramp-up in 12-15 months
--Max Health: Jul-Sept overall hospital occupancy up on year at 81%
--Max Health: Have bandwidth to look for more inorganic growth opportunities
--Max Health: Jaypee Health asset has enough scope to expand in future
--Max Health: Focused on levers to improve EBITDA per bed
--CONTEXT: Max Health Jul-Sept EBITDA per bed INR 7.45 mln
By Apratim Srakar and Narayana Krishna
MUMBAI – Max Healthcare Institute Ltd. On Thursday said it is significantly ramping up its bed capacities across hospitals and a chunk of it will be ready in the next 12–15 months. In a post-earnings conference call, the company management said expansion at its hospitals at Nanavati in Mumbai, Mohali in Punjab, and Saket in Delhi will be ready by Apr-Jun of 2025-26 (Apr-Mar), while others will come later.
The company posted lower-than-expected earnings for the September quarter on Wednesday, wherein the net profit and the top line missed the Street's estimates.
The management said the recent acquisition of the Jaypee Hospital will strengthen the company's presence in the national capital region. The company is hopeful to complete the integration of Jaypee Hospital's assets quickly. The management said it is planning to increase the asset capacity of Jaypee hospital to 480 beds from 367 beds by the end of March of the current financial year. The management said Jaypee Hospital's health assets have enough scope to expand in future.
The management said Max Super Speciality hospital in Lucknow and Nagpur delivered a strong performance and the combined revenue of the two hospitals in the September quarter was up 32% on year. Max Lucknow and Max Nagpur have been fully integrated, the management said. The company added 12 beds in the Nagpur hospital in October.
The company's average revenue per occupied bed for the quarter was INR 76,100 in comparison with INR 74,600 a year ago. The company's Jul-sept overall hospital occupancy was up 81% on year.
The management said it would focus on levers to improve earnings before interest, tax, depreciation, and amortisation. The company's Jul-Sept EBITDA per bed was INR 7.45 million.
The management said it has the ability to look for more inorganic growth opportunities. At 1427 IST, shares of Max Healthcare Institute traded flat at INR 1,080 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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