Max India turns profitable on a consolidated basis

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Max India turns profitable on a consolidated basis

– Net Profit of Rs. 9 Cr against loss of Rs. 72 Cr. in FY10 –

– Consolidated Operating Revenue at Rs. 6,668 Cr., up 20% –

– Assets under Management of Life Insurance Business at Rs. 13,836 Cr. up 37% –

– Embedded Value of Life Insurance Business at Rs. 3,216 Cr., up 18% –

– Treasury Corpus of Rs. 540 Cr. as at March 31, 2011 –

  • Max India consolidated turns around; reports profit before tax of Rs. 32 Crore for FY11 against loss of Rs. 86 Cr. for FY10
  • Life Insurance: reports shareholders’ profit of Rs. 194 Cr. against loss of Rs. 21 Cr. in FY10
  • Healthcare: turns profitable during the quarter backed by strong revenue growth of 28%
  • Health Insurance: Gross Written Premium of Rs. 26 Cr from 46,000 lives insured in first year of operations
  • Speciality plastic products: Commissions new BOPP line of 22,000 tpa capacity in March 2011, total capacity expands to 52,000 tpa
  • Max India Foundation, the CSR arm of Max India, awarded with prestigious Golden Peacock Award for CSR 2010

New Delhi, May, 2011

Max India Ltd., today announced its results for the quarter and year ended March 31, 2011. The company reported Net Profit of Rs. 9 Crore for FY11 against loss of Rs. 72 Crore in the corresponding previous period.

The consolidated Profit Before Tax (PBT) for the year ended March 31, 2011 at Rs. 32 Crore against loss of Rs. 86 Crore for the year ended March 31, 2010. The consolidated PBT for the quarter ended March 31, 2011 at Rs. 130 Crore against PBT of Rs. 94 Crore for the corresponding previous quarter, grows 38% year-on-year.

The consolidated operating revenue for the year ended March 31, 2011 at Rs. 6,668 Crore against Rs. 5,574 Crore in the corresponding previous year, grows 20% year-on-year. The consolidated operating revenue for the quarter ended March 31, 2011 at Rs. 1,941 Crore against Rs. 1,592 Crore in the corresponding previous quarter, grows 21% year-on-year.

The consolidated revenue for the year ended March 31, 2011 at Rs.7,891 Crore against Rs. 7,661 Crore in the corresponding previous year, grows 3% year-on-year. The consolidated revenue for the quarter ended March 31, 2011 at Rs. 1,890 Crore against Rs. 1,793 Crore in the corresponding previous quarter, grows 5% year-on-year.

Commenting on the results, Mr. Analjit Singh, Chairman & Managing Director, Max India Limited, said, “It gives me immense pleasure to share with you that the group has turned profitable in the current year. This is a significant milestone in the new journey that we embarked upon in 2000 involving a paradigm shift in the focus of Max India group to move away from manufacturing and trading businesses to life-centric businesses.” “I am delighted that the significant investments we committed over past 10 years have started yielding positive returns with all those businesses turning profitable in the quarter”, he added.

Commenting on the results, Mr. Mohit Talwar, Director – Corporate Development, Max India Limited, said, “The strong growth in revenue and cost management initiatives across businesses have resulted in this profitability and will drive it going forward.” “I am pleased to report that with the businesses tuning profitable and adequate liquidity in the group, we are well poised to capitalize on the significant growth opportunity presented by our businesses”, he added.

Max New York Life (MNYL)

Gross premium income for the year ended March 31, 2011 at Rs. 5,813 Crore against Rs. 4,861 Crore in the corresponding previous year, grows 20% year-on-year. Individual Adjusted First Year Premium (APE) for the year ended March 31, 2011 at Rs. 1,724 Crore against Rs. 1,584 Crore in the corresponding previous year, grows 9% year-on-year. This growth at the most challenging time for the life insurance industry, where private life insurers registered a de-growth of 20%, has led to MNYL gaining market share from 5.5% for the year ended March 31, 2010 to 7.5% for the year ended March 31, 2011. Premium conservation ratio for the year ended March 31, 2011 is at 81%.

MNYL generated shareholders’ profit of Rs. 194 Crore for the year ended March 31, 2011 against loss of Rs. 21 Crore for the year ended March 31, 2010. Additionally, it also generated an undistributed surplus of Rs. 89 Crore for the year ended March 31, 2011 in policyholders’ account against surplus of Rs. 45 Crore for the year ended March 31, 2010.

Gross premium income for the quarter ended March 31, 2011 at Rs.1,682 Crore against Rs. 1,387 Crore in the corresponding previous quarter, grows 21% year-on-year. Individual Adjusted First Year Premium (APE) for the quarter ended March 31, 2011 at Rs. 472 Crore against Rs. 419 Crore in the corresponding previous quarter, registered growth of 13% year-on-year. MNYL’s shift in focus to Mass Affluent+ customer segment and long-term savings and protection products is sharpened further with introduction of new products and traditional products contributing 86% to new sales for the quarter ended March 31, 2011.

Assets under Management as at March 31, 2011 at Rs. 13,836 Crore, grows 37% year-on-year. Sum assured in force as at March 31, 2011 around Rs. 1,55,000 Crore, grows 25% year-on-year. The business is well capitalized at Rs. 1,976 Crore, as at March 31, 2011.

MNYL wins Customer & Brand Loyalty Award 2011 with its brand awareness reaching to an all time high of 98% in March 2011.

Max Healthcare (MHC)

Revenue across network of hospitals for the year ended March 31, 2011 at Rs. 685 Crore against Rs. 534 Crore in the corresponding previous year, grows 28% year-on-year. The average revenue per occupied bed day for the year ended March 31, 2011 at Rs. 21,558 against Rs. 20,431 in the corresponding previous year improves 6% year-on-year. Average Occupancy across facilities for the year ended March 31, 2011 at 68% with average length of stay at 3.6 days.

Revenue across network of hospitals for the quarter ended March 31, 2011 at Rs. 179 Crore against Rs. 147 Crore in the corresponding previous quarter grows 22% year-on-year. The average revenue per occupied bed day for the quarter ended March 31, 2011 at Rs. 22,868 against Rs. 22,056 in the corresponding previous quarter, improves 4% year-on-year. Average Occupancy across facilities at 67% with average length of stay at 3.6 days for the quarter ended March 31, 2011.

EBITDA for the year ended March 31, 2011 at Rs. 51.9 Crore against Rs. 23.5 Crore in the corresponding previous year, grows 121% year-on-year. EBITDA margin for the year ended March 31, 2011 improves to 7.6% from 4.4% in the corresponding previous year. EBITDA for the quarter ended March 31, 2011 grows 6.5 times to Rs. 19.6 Crore. EBITDA margin for the quarter ended March 31, 2011 improves to 11.0% from 1.8% in the corresponding previous period.

MHC receives various accolades across categories: Max Super Specialty Hospital, Saket declared the Best Large Private Hospital in the category of “Operational Excellence in Healthcare Delivery” and Max Super Specialty Hospital, Patparganj has been awarded for “Excellence in Environment Conservation” at the FICCI Healthcare Excellence Awards.

Max Bupa Health Insurance (MBHI)

The initial sale for Max Bupa is tracking well with Gross Written Premium of Rs. 26 Crore and over 46,000 lives covered in its first year of operations. Peak equity commitment of Rs. 690 Crore with Rs. 291 Crore infused till date. MBHI with diversified product portfolio is setting benchmarks in the industry with highest agent & telesales channel productivity.

Max Speciality Films (MSF)

Revenue for the year ended March 31, 2011 at Rs. 440 Crore against Rs. 336 Crore in the corresponding previous year, grows 31% year-on-year. The sales quantity for the year ended March 31, 2011 at 31,526 tons against 29,768 tons in the corresponding previous year, grows 6% year-on-year. Revenue for the quarter ended March 31, 2011 at Rs. 118 Crore against Rs. 91 Crore in the corresponding previous quarter, grows 30% year-on-year. BoPP sales quantity for the quarter ended March 31, 2011 at 8,225 tons against 7,657 tons in the corresponding previous quarter grows 7% year-on-year.

EBITDA for the year ended March 31, 2011 at Rs. 68 Crore, grows 59% year-on-year. Profit before tax for FY11 at Rs. 51 Crore grows 150% year-on-year. EBITDA for the quarter ended March 31, 2011 at Rs. 11 Crore, declines 2% year-on-year. MSF sustained its profitability trend with profit before tax for the quarter ended March 31, 2011 at Rs. 7 Crore growing by 16% year-on-year. MSF bagged Worldstar 2010 Packaging Excellence award for the BoPP packaging film developed for Reckitt & Benckiser, South Africa.

Max Neeman Medical International (MNMI)

Revenue for the year ended March 31, 2011 at Rs. 24 Crore grows 33% year-on-year. The business reports a profit of Rs. 3.2 Crore for the year ended March 31, 2011 grows 45%. Revenue for the quarter ended March 31, 2011 at Rs. 8 Crore, grows 45% year-on-year. Order book as at March 31, 2011 at Rs. 32 Crore, with net addition of Rs. 13 Crore received in Q4FY11. The business development pipeline stands at Rs. 33 Crore as at March 31, 2011.

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 Speciality 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 36.5% 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 flexible product solutions through a nationwide multi-channel distribution network with over 8,700 employees, 55000 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.

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 9 key Indian cities and tied up with over 700 key hospitals across the country.

Max Neeman Medical International (MNMI) provides Clinical Research services across the entire value chain of new drug development and offers Medical Writing services. MNMI conducts Phase II, III, IV of clinical trial studies and has access to over 1250 ICH-GCP trained investigators and 210 research coordinators across 22 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 and has an installed capacity of 30,000 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 financial and other information all of which has not been subjected to audit and is not a statutory release. 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