Max India Ltd posts standalone net loss at Rs0.21cr in Q2FY19 vs. net profit of Rs1.75cr yoy : Misses Estimates

The company’s standalone NII stood at Rs14.42cr, down 11.37% yoy and 0.35% qoq.

Nov 02, 2018 05:11 IST India Infoline Research Team

Max India Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 14.42 [11.4]
Net Loss (adjusted) 0.21 -

Max India’s revenue in Q2FY19 declined by 11.4% yoy to Rs14.2cr. Company reported loss of Rs0.2cr in Q2FY19 vs. Profit of Rs2.2cr in Q2FY18. Note that these are standalone results and Max India has Hospital and insurance businesses, which are reported separately. Please refer to highlights to get clear idea of the operational performance of its consolidated businesses.
Other highlights

Max Healthcare
  • Net revenue grew 4% sequentially to Rs670cr in Q2FY19, EBITDA up 118% qoq to Rs65cr in Q2FY19; margins improved 506bps qoq to 9.7% in Q2FY19. Healthcare business reported loss of Rs7cr in Q2FY19 vs. profit of Rs2cr in Q2FY18.
  • Average Revenue/Occupied Bed Day in Q2FY19 was Rs43,398 vs. Rs44,045 in Q1FY19 and Rs43,959 in Q2FY18.
  • Average Length of Stay in Q2FY19 was 3.34 days vs. 3.25 days in Q1FY19 and 3.06 days in Q2FY18.
  • East Delhi complex margins improved 704bps sequentially to 14.7% in Q2FY19. Saket complex margins improved 302bps to 11.5% in Q2FY19.
  • It has added 3 new locations to take the overall count to 16 locations.
  • It has started new partner offices in Ethiopia and Nepal.
Max Bupa
  • Gross Premium grew 30% yoy to Rs 219cr in Q2FY19, this was driven by 54% growth in new sales and 18% growth in renewals.
  • Average premium realisation in B2C segment grew by 3% yoy to Rs8,293 in Q2FY19.
  • Net loss of Max Bupa in Q2FY19 is at Rs23cr vs. Rs6cr in Q2FY18. Adjusted for reinsurance, net loss is Rs29cr in Q2FY19 vs Rs20cr in Q2FY18.

Technical View:

Max India Ltd is currently trading at Rs. 69.40, down by 0.65 points or 0.93% from its previous closing of Rs. 70.05 on the BSE.
The scrip opened at Rs. 70 and has touched a high and low of Rs. 72.95 and Rs. 68.50 respectively. So far 2,86,188 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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