Max India announces results for the quarter ended September 30, 2007
Strong Quarter-on-Quarter Performance
– Consolidated Revenue at Rs. 845 crore, up 100% –
– Operating Cash Profit at Rs. 227 crore, up 104% –
– Group investments at Rs. 3,958 crore, up 153% –
- Life Insurance Business: peak capital commitment increased from Rs. 1,000 crore to over Rs. 2,600 crore
- Healthcare Business: Reports positive EBITDA; another secondary hospital with 108 beds commissioned in Gurgaon
- Speciality plastic products: New BOPP line of 20,000 tpa commissioned in March ’07 achieves stabilization and high capacity utilization; Second thermal coating line commissioned
Max India Ltd. today announced its un-audited results for the quarter and six months ended September 30, 2007.
The Company has reported consolidated revenue of Rs. 1,546 crore during six months ended September 30, 2007, as against Rs. 754 crore in the corresponding previous period, a growth of 105%. Consolidated revenue for the quarter ended September 30, 2007 at Rs. 845 crore has grown 100% as against Rs. 423 crore in the corresponding previous quarter.
Operating cash profit stood at Rs. 432 crore during six months ended September 30, 2007, as against Rs. 187 crore in the corresponding previous period, a growth of 131%. Operating cash profit for the quarter ended September 30, 2007 grew 104% at Rs. 227 crore as against Rs. 111 crore in the corresponding previous period.
Group Investments as at September 30, 2007 stood at Rs. 3,958 crore against Rs. 1,567 crore as at September 30, 2006, a growth of 153%.
Commenting on the results, Mr. B. Anantharaman, Joint Managing Director, Max India Limited said, “Our life insurance and healthcare businesses have done exceedingly well, riding on the strong macro economic environment and favorable demographic profile. We expect these businesses to continue reporting impressive growth going forward as well, in line with our strategic plans. We have armed ourselves with necessary capital required to support growth in these businesses.”
Max New York Life (MNYL)
Gross premium income of for the quarter ended September 30, 2007 at Rs. 539 crore grew 85% year-on-year. Annualized First Year Premium (new sales) for the quarter at Rs. 316 crore grew 72% year-on-year. The Company has over 1.3 million policyholders with 160,000 policies sold during the quarter. Sum assured in force as at September 30, 2007 around US$ 14 billion (Rs. 543 billion) has grown 62% year-on-year. The shareholders infused Rs. 75 crore as fresh capital in the quarter, (comma) taking the total capitalization of the business to Rs. 807 crore.
“Encouraged by impressive performance of the life insurance business since inception, the Company has committed itself to strong growth plans for the business. The shareholders of MNYL have increased the peak capital commitment for the business from Rs. 1,000 crore to over Rs. 2,600 crore. We will invest over Rs. 1,800 crore in the business in the next 3 years. This will see MNYL adding around 90-100 offices every year going forward, and increasing its distribution strength to over 200,000 agents in the next four to five years. The enhanced capital commitment will allow MNYL to support its continuing rapid growth,” Mr. Anantharaman added.
Max Healthcare (MHC)
Max Healthcare has turned EBITDA positive. Considering that the two tertiary care hospitals are just around 2 years old, the financial performance of these hospitals has been far better than the industry norms. Revenue across network of hospitals for the quarter ended September 30, 2007 stood at Rs. 92 crore, a growth of 56% year-on-year. Healthcare business reported positive EBITDA of Rs. 5 crore during the quarter against negative Rs. 6 crore during the same quarter previous year. MHC has around 1,250 doctors in its network, including 538 doctors on its rolls. With the total patient transactions during the quarter averaging at over 140,000 patients a month, the average occupancy across all healthcare care facilities is at 64%. MHC has a registered patient base of over 500,000 patients.
Max Speciality Products (MSP)
The third production line, barely 6 months old, is already being operated at around 85% capacity utilization. Early in October, the second thermal coated film line plant got operationalized. Revenue for the quarter ended September 30, 2007 stood at Rs. 78 crore, a growth of 81% year-on-year. PBT for the quarter at Rs. 6 crore grew 15% year-on-year. EBITDA margin for the quarter improved to 16% with return on capital employed maintained at 18%.
About Max India Limited
Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Life Insurance (Max New York Life Insurance), Healthcare (Max Healthcare), and Clinical Research (Neeman Medical International). Max India’s other businesses are Specialty Plastic Products for the packaging industry (Max Speciality Products) and Healthcare Staffing (Max HealthStaff).
Max New York Life (MNYL) is a joint venture between New York Life, a Fortune 100 company, and Max India Limited. MNYL has positioned itself firmly on the quality platform. In line with its vision ‘To be the most admired life insurance company in India’, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.
MNYL has established a robust distribution network across the country. With 175 offices in 122 locations and more than 28,500 agent advisors, 17 bancassurance relationships, 14 corporate agents and around 450 people strong direct sales team, the Company has built a robust distribution network to support strong growth.
Max Healthcare (MHC) is one of India’s leading providers of seamless, integrated and world–class healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific knowledge and medical education. MHC operates eight healthcare centers in the NCR, offering services in over 30 medical disciplines with super speciality services in Cardiac care, Neurosciences, Orthopaedics, Paediatrics, and Obstetrics & Gynaecology.
As part of its network, MHC operates two tertiary care hospitals at Saket. Both the hospitals have recently received NABH accreditation, two of only seven hospitals in India to receive such accreditation until now.
Neeman Medical International (NMI) is a Clinical Research services provider offering various services across the value chain of new drug development to a growing list of pharmaceutical, biotech and CRO clients, in India and abroad. NMI continues to focus on developing alliances with mid sized pharma and biotech companies to transition their drug development work to India. NMI continues to focus on building business development pipeline through organic measures and intends to explore inorganic growth options as well.
Max Speciality Products (MSP) specializes in manufacturing of wide range of sophisticated barrier and packaging films. The BOPP division of MSP has an installed capacity of 29,000 tons per annum. MSP’s leather finishing foil business division manufactures a range of leather finishing and laminating foils. MSP has recently commissioned a new thermal coating line with a capacity of 144 million square meters.
Max HealthStaff International (MHS) is an international healthcare staffing company, founded on world class quality and service excellence. It is committed to be India’s leading healthcare staffing company, placing professionals at healthcare institutions in India and abroad. MHS offers a comprehensive overseas nursing program to Indian nurses. MHS operates its business through 7 training centers located in Delhi, Chandigarh, Kottayam and Chennai.
For more details contact:
Vice President – Corporate Finance
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 126