Max India turns profitable on a consolidated basis

Posted on: September 17th, 2015 by admin No Comments

– Consolidated Operating Revenue at Rs. 4,732 Cr., up 19% –

– Assets under Management of Life Insurance Business at Rs. 13,016, Cr. up 43% –

– Treasury Corpus of Rs. 580 Crore as at Dec 31, 2010 –

  • Max India consolidated turns around; reports profit before tax of Rs. 38 Crore in the quarter from loss in the previous quarter
  • Gross Premium Income for nine months ended December 31, 2010 at Rs. 4,130 Crore, Up 19%.
  • Revenue from network of hospitals for the nine months ended December 31, 2010 at Rs. 507 Crore, Up 31%.
  • Health Insurance: IRDA approval received for 3 new products to drive revenue growth.
  • Speciality plastic products: Commissioning a new BOPP line of 22,000 tpa capacity in March 2011, taking the total capacity to 52,000 tpa.
  • Corporate Social Responsibility: wins the 6th Corporate and Social Governance Awards 2010 for the ‘Best Corporate Social Responsibility Practices’ from BSE

Max India Ltd., today announced its un-audited results for the quarter and nine months ended December 31, 2010. The company reported consolidated profit before tax for the quarter ended December 31, 2010 at Rs. 38 Crore against loss before tax of Rs. 94 Crore in the corresponding previous period.

The consolidated operating revenue for the quarter ended December 31, 2010 at Rs. 1,678 Crore against Rs. 1,442 Crore in the corresponding previous quarter, grows 16% year-on-year. The consolidated operating revenue for the nine months ended December 31, 2010 at Rs. 4,732 Crore against Rs. 3,986 Crore in the corresponding previous period, grows 19% year-on-year.

The consolidated revenue for the nine months ended December 31, 2010 at Rs. 6,006 Crore against Rs. 5,872 Crore in the corresponding previous period, grows 2% year-on-year. The consolidated revenue for the quarter ended December 31, 2010 at Rs. 1,909 Crore against Rs. 1,733 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, “We are delighted that the group has turned profitable in the recent quarter led by robust growth in revenue and sharp focus on cost management. Our life insurance business has successfully responded to the changing regulatory landscape by realigning its strategy for a sustainable and profitable growth.” “The second phase of expansion of the healthcare business, that envisages doubling of bed capacity to 2000 beds in FY12, is progressing towards completion”, he added.

Commenting on the performance of the businesses, Mr. Mohit Talwar, Director – Corporate Development, Max India Limited, said, “The life insurance business has demonstrated the inherent robustness and flexibility in its business model by turning profitable and outpacing the industry growth by a significant margin in the current quarter. The business will be self-sustaining going forward and will not need any further capital.” “Our healthcare business is experiencing significant traction and has turned into cash profits led by sequential improvement in margins.”, he added.

Max New York Life (MNYL)

Gross premium income for the quarter ended December 31, 2010 at Rs. 1,465 Crore, grows 15% year-on-year. Individual Adjusted First Year Premium (APE) for the quarter ended December 31, 2010 at Rs. 427 Crore, registered de-growth of 4% year-on-year against de-growth of 42% for the private life insurers. With the seamless shift in product mix to adapt to the changing regulatory scenario, traditional products contributed 85% to new sales for the quarter ended December 31, 2010.

Gross premium income for the nine months ended December 31, 2010 at Rs. 4,130 Crore, grows 19% year-on-year. Individual Adjusted First Year Premium (APE) for the nine months ended December 31, 2010 at Rs. 1,252 Crore, grows 7% year-on-year. Premium conservation ratio for the nine months ended December 31, 2010 at 80%. The Company has sold over 5 million policies since inception.

Assets under Management as at December 31, 2010 at Rs. 13,016 Crore, grows 43% year-on-year. Sum assured in force as of December 31, 2010 over Rs. 1,47,000 Crore, grows 28% year-on-year. To cater to long-term savings and protection needs of mass affluent+ customers through a high quality agency; MNYL has right sized its agency strength from 75,000 agents to around 55,000 agents. The business is well capitalized at Rs. 1,976 Crore, as at December 31, 2010.

Profit before tax for the quarter ended December 31, 2010 at Rs. 81 Crore against loss of Rs. 66 Crore in the corresponding previous quarter. Profit before tax for the nine months ended December 31, 2010 at Rs. 32 Crore against loss of Rs. 157 Crore in the corresponding previous period.

MNYL Brand Awareness improves from 82% in December 2009 to 94% in December 2010 and receives the Brand Excellence Award and recognition as ‘Powerbrand’ & ‘Master Brand’. MNYL has also received the CII Commendation for Business Excellence initiatives.

Max Healthcare (MHC)

Revenue across network of hospitals for the quarter ended December 31, 2010 at Rs. 177 Crore, grows 27% year-on-year. The average revenue per occupied bed day for the quarter is over Rs. 22,000 improves 9.6% year-on-year. Revenue across network of hospitals for the nine months ended December 31, 2010 at Rs. 507 Crore, grows 31% year-on-year. The average revenue per occupied bed day for the nine months is over Rs. 21,000 improves 6.3% year-on-year. Average Occupancy across facilities at 68% with average length of stay maintained at 3.5 days for the nine months ended December 2010.

EBITDA for the quarter ended December 31, 2010 at Rs. 19 Crore, shows a remarkable growth of 138% year-on-year. EBITDA margin for the quarter improves to 10.4% from 5.6% in the corresponding previous period. EBITDA for the nine months ended December 31, 2010 at Rs. 32 Crore, grows 55% year-on-year. EBITDA margin improves to 6.4% from 5.4% 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. 15.04 Crore and over 27,000 lives covered in nine months ended Dec 2010. Out of the peak equity commitment of Rs. 700 Crore, Rs. 271 Crore has been infused till date.

Max Speciality Films (MSF)

Revenue for the quarter ended December 31, 2010 at Rs. 116 Crore, grows 40% year-on-year. BOPP sales quantity for the quarter ended December 31, 2010 at 8,462 tons, grows 16% year-on-year. Revenue for the nine months ended December 31, 2010 at Rs. 325 Crore, grows 31% year-on-year. The sales quantity for the nine months ended December 31, 2010 at 23,302 tons, grows 6% year-on-year.

EBITDA for the quarter ended December 31, 2010 at Rs. 17 Crore, grows 53% year-on-year with margins improving to 14.2%. MSF sustained its improving profitability trend with profit before tax for the quarter ended December 31, 2010 at Rs. 13 Crore growing by 149% year-on-year. EBITDA for the nine months ended December 31, 2010 at Rs. 57 Crore, grows 81% year-on-year with margins at 12.8%. Profit before tax for the nine months ended December 31, 2010 at Rs. 44 Crore grows 208% year-on-year.

MSF to add a new BOPP line of 22,000 tpa capacity to be operationalize by March 2011, taking the total capacity to 52,000 tpa.

Max Neeman Medical International (MNMI)

Revenue for the quarter ended December 31, 2010 at Rs. 7 Crore, grows 55% year-on-year. The business reports a profit of Rs. 1.7 Crore for the quarter ended Dec’10, against a loss of Rs. 0.1 Crore in the corresponding previous quarter. Revenue for nine months ended December 31, 2010 at Rs. 16 Crore, grows 27% year-on-year. The business reports a profit of Rs. 2.2 Crore for the nine months ended Dec’10, against a profit of Rs. 1.1 Crore in the corresponding previous quarter, grows 100%.

Order book as at December 31, 2010 at Rs. 28 Crore, with net addition of Rs. 12 Crore received in the current fiscal. The business development pipeline stands at Rs. 87 Crore as at December 31, 2010.

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 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