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earnings | IST

Max Healthcare says India biz revenue higher than pre-COVID levels in Q2

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In an interview with CNBC-TV18, Abhay Soi, CMD, Max Healthcare, shared details of the quarterly performance and the outlook. He said that the India business revenue in Q2 was higher than FY19 and FY20 levels.

Max Healthcare posted a steady set of Q2 earnings. Revenue has seen a rise both sequentially, and on a year-on-year basis as the non-COVID business appears to have normalised. The company’s quarter-on-quarter (QoQ) gross revenues were up at Rs 1434 crore versus Rs 1385 crore. It had reported gross revenues of Rs 944 crore in the same period a year ago. The company reported a multi-fold jump in its consolidated net profit to Rs 144.65 crore for the quarter ended September 30. It had posted a net profit of Rs 16.65 crore for the corresponding period of the previous fiscal. In an interview with CNBC-TV18, Abhay Soi, CMD, Max Healthcare, shared details of the quarterly performance and the outlook.
He said, “If one were to look at the overall occupancy, while we did 73-74 percent pre-COVID, now it stands at about 75 percent with about 1 percent coming from COVID. So in any measure, this can be looked at as non-COVID. This is, in spite of the fact that international business is only one-third of pre-COVID levels. So that is something to look forward to in the coming quarters.”
He also confirmed that as far as revenue is concerned, the India business, at the end of Q2, was higher than FY19, FY20 levels.
On diagnostic business, Soi said, “Organically if you see, the number of partners, franchisees that we have, we have actually increased them by 25 percent. So we increased our 140 channel partners in the last quarter itself to a base of about 450. So that is a massive sort of investment in the organic part of things but we also looking at inorganic opportunities for consolidation and enhancing this business.”
On digital channels' contribution to revenue, Soi said, “We have invested in phases and from very low numbers sequentially, it has moved up to about 11 percent of our total revenues and we are seeing significant growth in this.”
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He further mentioned, “What it is enabling us to do at this stage is reaching more and more patients, our patients as well as the first-time patients, more effectively and efficiently; we are able to service their requirements. Right now, it's at the outpatient department (OPD) stage. So, what it really does is as far as the margins are concerned, it helps us convert these patients to our in-patient department (IPD), which is really where the commercial benefit lies at this stage. So at this point in time, it's about reach, it is about customer acquisition and less about profitability from the digital channel.”
For the full interview, watch the accompanying video.