Aug 13 (Reuters) – Indian hospital operator Max Healthcare Institute reported a 4.7% rise in first-quarter profit on Thursday, led by strong demand for complex procedures and increased bed additions.
The company’s consolidated net profit rose to 3.22 billion rupees ($33.7 million) for the quarter ended June 30, from 3.08 billion rupees a year ago.
• Rising demand for treatment of complex diseases such as cancer and orthopedic conditions amid increasing health awareness has been driving growth for India’s private hospitals, which dominate the specialty care market.
• Shares of the company rose as much as 3% after the results, before trimming gains to close flat.
• Treatments for cancer and orthopedic conditions contributed the most to the company’s revenue, making up 22.2% and 12.8%, respectively. Cardiac sciences accounted for 10.1% of the revenue.
• Overall revenue rose nearly 17% higher to 23.66 billion rupees.
• During the quarter, Max’s occupied bed days rose 10% on-year, with total bed occupancy at 75%.
• Its average revenue per occupied bed for the quarter also rose 5% to 81,900 rupees.
• Max, like its rivals, has been aggressively expanding by investing in smaller hospitals and increasing its bed count, especially in smaller towns.
• The company also approved capital expenditure of 4.25 billion rupees for expansion at one of its hospitals in Vaishali, which is near the capital city of New Delhi.
($1 = 95.4275 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)
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