Max Healthcare Institute Q3 PAT down 6.5% at Rs 316 crore

NEW DELHI: Max Healthcare Institute Ltd on Thursday reported a 6.5 per cent decline in profit after tax at Rs 316 crore in the December quarter, impacted by a one-time payment to authority for changing shareholding in its acquired entity Jaypee Healthcare Ltd. The company had posted profit after tax (PAT) of Rs 338 crore in the corresponding quarter previous fiscal, Max Healthcare Institute said in a statement.

Network gross revenue in the quarter under review stood at Rs 2,381 crore against Rs 1,779 crore in the year-ago period, the company said.

A one-time cost of Rs 74 crore was incurred for charges paid to the Yamuna Expressway Industrial Development Authority to secure permission for a change in Jaypee Healthcare Ltd's (JHL) shareholding prior to acquisition has been treated as an exceptional item, it added.

On June 14, 2024, the company agreed to acquire a 100 per cent stake in JHL which was undergoing a corporate insolvency resolution process. As part of this acquisition, the company acquired a 63.65 per cent stake in JHL on October 4, 2024, and the remaining 36.35 per cent stake was acquired on November 11, 2024.

Max Healthcare Institute Chairman and MD Abhay Soi said in the third quarter, the company "delivered a robust growth of 34 per cent in revenue and 32 per cent in operating EBITDA".

"Over the course of this year we have been able to demonstrate remarkable operating efficiencies in all formats of inorganic growth namely greenfield, acquisitions and brownfield. We have achieved EBITDA break-even within a record time of six months from launch at our greenfield hospital in Dwarka," he added.

The company said its board has approved execution of agreement-to-lease with VR Konkan Pvt Ltd for setting up a 500-bed hospital at Thane in Maharashtra. The hospital is expected to be commissioned in 2028.

An addendum to the previously executed agreement for a built-to-suit hospital in Mohali has been approved by the Board, increasing bed capacity from 250 to 400 to meet anticipated demand and enhance operational efficiency, it added.

On the outlook, Soi said, "...with significant brownfield bed additions being commissioned within 6 months, we are poised for an exciting phase of accelerated growth."
Stay informed with the latest business news, updates on bank holidays and public holidays.

Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!