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.