Max Healthcare posts net loss of Rs 355 crore in June quarter, revenue drops 42%

Max Healthcare Institute Ltd (MHIL), a hospital chain based in New Delhi, on Tuesday reported net loss of Rs 355 crore during the first quarter ended June 30, 2020 as compared to net profit of Rs 9 crore in the year-ago period and Rs 47 crore in the March quarter.

"This includes impact of loss on fair valuation of Radiant's pre-merger holding of Rs 204 crore and other one-off items," MHIL said in a regulatory filing.

The company reported gross revenue of Rs 610 crore versus Rs 1,059 crore in Q1 FY20, down 42 per cent on year-on-year basis.

The operating EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) for the period stood at Rs (-)22 crore as compared to Rs 117 crore in the same period last year. EBITDA margin was at -3.9 per cent versus 12.1 per cent last year and 15.5 per cent in trailing quarter.

Despite COVID-19 impact, the company was able to maintain a stable cash position during the quarter on the back of collections from government debtors and tax refunds. The cash and cash equivalents at the end of the quarter stood at Rs 371 crore.

During the quarter under review, occupancy was 45.1 per cent versus 72.4 per cent in Q1 FY20; 69.8 per cent in March quarter. The company saw gradual recovery with June occupancy rising to 59 per cent.

The occupancy for COVID-19 patients stood at 12 per cent, while for non COVID-19 patients, it was 33.1 per cent, it said.

Commenting on Q1 earnings, Abhay Soi, Chairman and MD, Max Healthcare Institute said that the results reflect how the organisation weathered the challenges of a global pandemic. "Max Healthcare has been a front runner in combating the global pandemic. It volunteered a 200-bed hospital as a dedicated COVID-19 facility in Delhi and 150 beds dedicated wing in the Mumbai hospital at the very early stages of the pandemic. This number grew to a capacity of 1,000 beds with in few weeks," he said.

"We have successfully treated close to 7,500 COVID-19 patients since April this year. We pioneered homecare services for COVID-19 patients and extended these to over 700 mild COVID-19 patients recovering at home. In addition, we have conducted over 90,000 RT-PCR tests, the first successful convalescent plasma treatment for COVID-19 in India and so far 500 units of plasma have been administered," Soi added.

Ahead of Q1 earnings, shares of Max Healthcare closed Tuesday's trade at Rs 107.55, up 0.51 per cent, on the Bombay Stock Exchange.

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