(BENGALURU) (Reuters) – India’s Max Healthcare Institute on Monday reported a 38% rise in its second-quarter profit before tax, as it earned more revenue per bed.
The hospital and diagnostic services provider’s consolidated profit before tax for the quarter ended Sept. 30 stood at 3.66 billion rupees ($43.99 million) compared with 2.65 billion rupees a year ago.
Max Healthcare’s average revenue per occupied bed (ARPOB) was 74,600 rupees in the second-quarter, up 13% year-on-year.
KEY CONTEXT
Max Healthcare is the first to report the September-quarter results among its peer hospital chains, with Fortis Healthcare, Apollo Hospitals Enterprise and Aster DM Healthcare due to announce results in the coming days this week.
Analysts had expected higher occupancy and growth in average revenue per occupied bed for Max Healthcare. The improvement in these operating parameters would also help towards capital allocation for bed capacity expansion, per analysts.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to
A growth growth rating* analysts price
target**
Max Healthcare 41.05 27.41 25.33 14.03 Buy 14 0.94
Institute Ltd
Fortis Healthcare 34.04 18.55 11.51 24.31 Buy 12 0.87
Ltd
Apollo Hospitals 53.62 26.22 16.91 39.16 Buy 21 0.93
Enterprise Ltd
Aster DM Healthcare 24.86 10.94 11.41 71.93 Buy 6 1.06
Ltd
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPT STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.1927 Indian rupees
(Reporting by Anisha Ajith in Bengaluru)
