Max India sustains strong financial performance

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Max India sustains strong financial performance

– Net Profit for Q1FY12 at Rs. 70 Cr. against loss of Rs. 25 Cr. for Q1FY11-

– Consolidated Operating Revenue at Rs. 1,676 Cr., up 12% –

– Assets under Management of Life Insurance Business at Rs. 14,557 Cr. up 33% –

– Treasury Corpus of Rs. 439 Cr. as at June 30, 2011 –

  • Max India to acquire Warburg Pincus stake in MHC, stake to increase from 75.6% to 91.8%
  • Promoters subscribe 3% stake in Max India at Rs. 216.75 per share through warrant conversion
  • Life Insurance: Market share improves by 419 bps in Q1FY12 to 11.9%
  • Healthcare: EBITDA grows 133% y-o-y in Q1FY12, transitions from tertiary to quaternary care
  • Health Insurance: Growth continues with encouraging early signs on renewals; Gross Written Premium of Rs. 14 Cr from 24,000 lives covered in Q1FY12
  • Speciality plastic products: New BOPP line also achieves 100% capacity utilization

New Delhi, August, 2011

Max India Ltd., today announced its results for the quarter ended June 30, 2011. The consolidated Net Profit for the quarter ended June 30, 2011 at Rs. 70 Crore against loss of Rs. 25 Crore for the corresponding previous quarter. The consolidated Profit Before Tax (PBT) for the quarter ended June 30, 2011 at Rs. 97 Crore against loss of Rs. 26 Crore for the quarter ended June 30, 2010.

The consolidated operating revenue for the quarter ended June 30, 2011 at Rs. 1,676 Crore against Rs. 1,496 Crore in the corresponding previous quarter, grows 12% year-on-year. The consolidated revenue for the quarter ended June 30, 2011 at Rs. 2,021 Crore against Rs. 1,838 Crore in the corresponding previous quarter, grows 10% year-on-year.

Commenting on the results, Mr. Analjit Singh, Chairman & Managing Director, Max India Limited, said, “Our businesses have exhibited another quarter of persistent growth and improved profits. Our Life Insurance business has been consistently outperforming private life insurers? growth post the new regulatory regime driven by strong fundamentals on which the business is formed and is now the 3rd largest private life insurer in India basis new premiums.” “Our Healthcare business has expanded its service profile to include organ transplant and stem cell research, taking a leap from tertiary to quaternary care.”he added.

Commenting on the results, Mr. Mohit Talwar, Director – Corporate Development, Max India Limited, said, “Our focus on sustainable and profitable growth has started bearing fruits with the life insurance business performing exceedingly well and driving strong financial performance.”

Max New York Life (MNYL)

Gross premium income for the quarter ended June 30, 2011 at Rs. 1,373 Crore against Rs. 1,304 Crore in the corresponding previous year, grows 5% year-on-year. Individual Adjusted First Year Premium (APE) for the quarter ended June 30, 2011 at Rs. 329 Crore against Rs. 384 Crore in the corresponding previous year, declines 14% year-on-year. MNYL becomes the 3rd largest private life insurer in India basis new premiums gaining 4.2% market share amongst private life insurers from 7.7% in Q1FY11 to 11.9% in Q1FY12. MNYL de-growth for the quarter is at 14% against 44% for private life insurers.

Assets under Management as at June 30, 2011 at Rs. 14,557 Crore, grows 33% year-on-year. Sum assured in force as at June 30, 2011 around Rs. 1,39,000 Crore. The business is well capitalized at Rs. 1,976 Crore, as at June 30, 2011.

MNYL launched Fast Track Plan Unit Linked Product that enables customers to choose Sum Assured, offers six funds, systematic Investment, partial withdrawals and other benefits. Brand awareness is reported at 96% in June 2011.

Max Healthcare (MHC)

Revenue across network of hospitals for the quarter ended June 30, 2011 at Rs. 190 Crore against Rs. 159 Crore in the corresponding previous quarter grows 19% year-on-year. The average revenue per occupied bed day for the quarter ended June 30, 2011 at Rs. 23,666 against Rs. 21,789 in the corresponding previous quarter, improves 9% year-on-year. Average Occupancy across facilities improves from 63.9% to 68.3% with average length of stay maintained at 3.5 days for the quarter ended June 30, 2011.

EBITDA for the quarter ended June 30, 2011 grows 133% y-o-y to Rs. 11 Crore against Rs. 4.8 Crore in the corresponding previous quarter. EBITDA margin for the quarter ended June 30, 2011 improves to 6% from 3% in the corresponding previous period.

MHC is setting up a state of the art Stem Cell Lab in Gurgaon hospital and service profile enhanced to include Organ Transplant. In continuous commitment to Service Excellence, revolutionary change in healthcare operations has been introduced with Electronic Health Records (EHR).

Max Bupa Health Insurance (MBHI)

Max Bupa?s initial sale is tracking well with Gross Written Premium of Rs. 14 Crore collected for the quarter ended June 30, 2011 against Rs. 2.2 Crore in the corresponding previous period, grows 511%. Around 24,000 lives covered in first quarter of FY12, more than 68,000 lives as of June 2011 are in force. Peak equity commitment of Rs. 690 Crore with Rs. 321 Crore infused till date.

IRDA approval has been received for two more products – Swasthya Parivar & Health Companion. MBHI has been awarded with “Best product Innovation? award for “Family First? at India Insurance Awards. Distribution alliances have been established with the 9 large distributors including Bajaj Capital.

Max Speciality Films (MSF)

Revenue for the quarter ended June 30, 2011 at Rs. 179 Crore against Rs. 92 Crore in the corresponding previous quarter, grows 95% year-on-year. BoPP sales quantity for the quarter ended June 30, 2011 at 12,847 tons against 7,269 tons in the corresponding previous quarter grows 77% year-on-year.

EBITDA for the quarter ended June 30, 2011 at Rs. 21 Crore against Rs. 11 Crore in the corresponding previous period, grows 89% year-on-year. MSF sustained its profitability trend with profit before tax for the quarter ended June 30, 2011 at Rs. 11 Crore against Rs. 5 Crore in the corresponding previous year, grows by 98% year-on-year.All BOPP lines are operating at 100% capacity utilization.

Max Neeman Medical International (MNMI)

Revenue for the quarter ended June 30, 2011 at Rs. 3 Crore, grows 30% year-on-year. Loss for Q1FY12 has been reported at Rs. 2.5 Crore against loss of Rs. 1.7 Crore in Q1 FY11. Order book as at June 30, 2011 at Rs. 31 Crore, with net addition of Rs. 3 Crore received in Q1FY12.

About Max India

Max India Group is a multi-business corporate, driven by the spirit of enterprise and focused on people and service oriented businesses. The Company is headquartered in New Delhi, India.

Max India

Max India is in the “Business of Life? with its vision is to be one of India?s most admired corporates for Service Excellence. It “Protects Life? through its Life Insurance subsidiary Max New York Life, a joint venture between Max India and New York Life, a Fortune 100 company; “Cares for Life? through its Healthcare company, Max Healthcare, a subsidiary of Max India Limited; “Enhances Life? through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK; and “Improves Life? through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. From its past, Max India continues its interest in manufacture of Specialty Products for the packaging industry.

The flagship company Max India Limited is a widely held public listed entity, with the owner sponsors, led by Analjit Singh holding over 37% stake. Its other shareholders include some of world?s best Institutional Investors such as, Warburg Pincus, Goldman Sachs and IFC.

Subsidiaries

Max New York Life (MNYL) is a joint venture between Max India Ltd. and New York Life, a Fortune 100 company and the largest life insurer in USA. Incorporated in 2000, MNYL is one of India?s leading private life insurance companies and offers both individual and group life insurance solutions. The Company has developed a highly trained network that is focused on offering outstanding services and building partnerships for life with the customer?s. MNYL offers flexibleproduct solutions through a nationwide multi-channel distribution network with nearly 7,000 employees, 40,000 agents and a distribution tie-up with Axis Bank, India?s 3rd largest private bank.

Max Healthcare (MHC) is a leading provider of standardized, seamless and world-class healthcare services. MHC has collaboration with Singapore General Hospital in the areas of medical practices, nursing, paramedical, research & training and is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. MHC operates eight centers in Delhi & NCR, offering services in over 30 medical disciplines. MHC has state of the art tertiary care facilities at Saket in South Delhi, secondary care hospitals at Pitampura, Patparganj, Gurgaon and Noida and an outpatient facility, the Max Medcentre and a Speciality centre focused on Eye and Dental care at Panchsheel Park. MHC is in the process of doubling its capacity to 1900 beds by 2012, whereby 4 new hospitals will be commissioned, one in West Delhi, two in Punjab and one in Dehradun, Uttar Pradesh.

The tertiary care hospitals at Saket include Max Super Speciality Hospital (Unit of Devki Devi Foundation), a Centre of Excellence in Cardiac Services, Oncology, Minimal Access, Metabolic & Bariatric Surgery and the Max Super Speciality Hospital, a super speciality facility in Orthopaedics & Joint Replacement, Neurosciences, Paediatrics, Obstetrics & Gynaecology, Aesthetic & Reconstructive Plastic Surgery and Internal Medicine. In addition, it has an Institute of Allied Medical Services where it provides General and Laparoscopic surgery, Urology, Eye & ENT, Nephrology, Dermatology, Department of Mental Health & Behavioural Sciences amongst others.

Max Bupa Health Insurance Limited is a joint venture between Max India Limited and Bupa Finance Plc, UK, a leading international healthcare company with a legacy of providing specialized healthcare services for over 60 years. The Company started its operations in March 2010 with the vision to be the most admired health insurance company in India. Max Bupa?s mission is to ensure that families? live healthier, more successful lives and to be a healthcare partner providing expertise for life through its consistent, high quality, health insurance services. Max Bupa has set up its offices in 11 key Indian cities and tied up with nearly 850 key hospitals across the country.

Max Neeman Medical International (MNMI) provides Clinical Research services across the entire value chain of new drug development. MNMI conducts Phase II, III, IV of clinical trial studies and has access to over 1350 ICH-GCP trained investigators and 210 research coordinators across 31 cities to offers services to a growing list of Pharmaceutical, Biotech and Clinical Research clients, in India and abroad. MNMI is focusing on developing alliances with midsized pharma and biotech companies to transition their drug development work to India. The Company has an employee base of 320 at five Regional offices in India & one business development office in USA.

Max Speciality Films (MSF) specializes in manufacturing of wide range of sophisticated barrier and packaging (BOPP) films to cater to the needs of wide range of packaging applications including food packaging, overwrap, consumer products and label manufactures. MSF has an installed capacity of 52,000 tons per annum. MSF?s leather finishing foil business division manufactures a range of leather finishing and laminating foils

Disclaimer

This release is a compilation of unaudited financial and other information and has not been subjected to limited review. This may also contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from our expectations and assumptions. We do not undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Mohit Talwar

Director – Corporate Development
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
E-mail: mtalwar@maxindia.com