Healthcare Network P&L Statement and Expansion Projects
MAX
Healthcare
Strong cash generation from
operations
INR 697 Cr in H1 FY24
+
Headroom to raise debt
given current leverage
Net Cash Surplus of INR 1,303 Cr
as on Sept. 30, 2023
+
Demonstrated ability to
generate high return on
capital employed
~36% ROCE in H1 FY24
Long term growth potential
Multiple avenues for future growth
•
Focus on tower specialities & case mix
1
2
Optimising Existing
Infrastructure
3.1 Brownfield
•
Increase utilization & improve process efficiencies
Optimize payor mix
~2,600 beds addition via brownfield expansion - ROCE
accretive
Strong financial profile to support future growth
4
3.2 Asset light
Significant
3
increase in
capacity
3.3 Greenfield
(~2X bed
capacity in
next 4-5
years)
3.4 M&A
Capital Light
Adjacencies
5
Digital Platform
R
.
•
•
•
Management contracts and long term leases of "build-to-
suit" properties
Greenfield hospitals in highly attractive and compelling
territories with attractive payback - Acquired land parcels
with potential to add 1,000 beds
Strong track record of successful M&A and turnaround
Limited competitive intensity and robust deal pipeline
Adequate headroom for M&A even after brownfield
capex, driven by strong free cash flows and low leverage
ROCE threshold levels of 20-25% within 4-5 years post
acquisition
•
Non-captive pathology - Max Lab
.
Homecare Max@Home
Leverage brand, customer loyalty and data to build a
digital ecosystem
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