For the quarter, revenue came in at ₹2,541 crore, up 10% from the previous year’s ₹2,326 crore. The street though, was expecting the company’s topline to grow by 14%.
Its profit of ₹387 crore was up 3% from the previous year’s ₹376 crore and also lower than street expectations of ₹416.9 crore.The company’s margins contracted to 26.8% from 27.2% in the year-ago period. However, they were higher than street estimates of 25.2%.
Share of the oncology division dropped to 21% from 26% last year and 24% sequentially due to the discontinuation of select chemotherapy drugs for institutional patients.
Clinician costs increased by 230 basis points, leading to lower margins.The company’s EBITDA per bed was at ₹73.4 lakh compared to ₹73.9 lakh last year and ₹71.3 lakh in the previous quarter.
Max Labs revenue increased 14% to ₹52 crore from ₹46 crore in the previous year. Its margins expanded to 17% from 14% last year and 13% sequentially.
Max@Home revenue was up 30% to ₹73 crore from ₹56 crore in the fourth quarter last year and from ₹68 crore in the previous quarter.
Big Relief For Super Speciality Hospitals
The Competition Commission of India has issued directions for closure of 10-year old anti-competition proceedings against the 12 major hospitals, half of which are from the Max Chain. They include:
- Max Super Speciality, Patparganj
- Max Smart Super Speciality, Saket
- Max Super Speciality, Shalimar Bagh
- BLK Max Super Speciality, New Delhi
- Max Multi Speciality Centre, Panchsheel Park
- Max Multi Speciality Centre, Pitampura
Shares of Max Healthcare are trading 4.4% lower at ₹1,042.6. The stock has also turned negative on a year-to-date basis after Friday’s fall.
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