BackMax Healthcare Q4 net soars 75% despite lockdown woes in March
Max Healthcare said that the virus-induced lockdown resulted in occupancy rates at its hospitals declining to 30-35% around the end of March
PremiumNEW DELHI: Max Healthcare Institute Ltd posted a 75% jump in its consolidated profit in the January-March quarter at ₹32 crore despite the lockdown that started in the second half of March being a drag on its operations.
Max Healthcare’s earnings before interest, tax, depreciation and amortisation (Ebitda) came in at 16.8%, which, although better than the 11.9% posted in the corresponding quarter last year, was still lower than 19.2% that the company was expecting. Regardless, Max Healthcare chairman Abhay Soi expressed satisfaction.
“We are further encouraged by the knowledge that up to March 21 i.e. till date of lockdown, we were in line to deliver 19% EBITDA margin for the 4th quarter," Soi said.
The company posted a 6% growth in its gross revenue at ₹807 croree.
Max Healthcare said that the covid-19 lockdown resulted in occupancy rates at its hospitals declining to 30-35% around the end of March, and it continued to remain subdued during April-May.
However, by June, there has been a gradual improvement in occupancy to around 58%, as per the company’s investor presentation.
The company is taking measures to counter the disruption caused by covid-19 pandemic, which is the worst in at least a century.
“During this period, we intend to conserve cash, continue our efforts towards structural reforms, develop our tele-consulting business, and implement material synergies through the impending merger," Soi said in a statement.
Max Healthcare’s former parent Max India Ltd had last month completed spinning off its hospital operations under Max Healthcare and the subsequent merger of Radiant Life Care Pvt Ltd with it. The process followed the National Company Law Tribunal’s (NCLT) approval for the composite merger scheme.
Radiant Life, promoted and founded by Soi and backed by KKR, had acquired a 49.7% stake in Max Healthcare in June last year for a consideration of around ₹2,136 crore. After the merger, Radiant will be a majority stakeholder in Max Healthcare.
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