Max India’s Q1FY15 Consolidated PBT up 85% to Rs 77 Cr.
- Max India’s Q1FY15 EBITDA up 48% at Rs 142 Cr and PBT up 85% at Rs 77 Cr over Q1FY14
- Max Life’s Individual new business premium (APE) for Q1 grows 22% to Rs.357 Cr, outpacing the private industry growth of 14%
- Max Healthcare’s (MHC) gross revenue increases 31% in Q1FY15 to Rs 416 Cr
- LHC to equalize its stake in MHC with Max India at an enterprise value of Rs 3650 Cr, at a multiple of 31 times FY14 EBIDTA
- Max Bupa outperforms private health insurers. Market share increases by 60 bps, premium grows by 23% over previous fiscal year.
|Quarter ended June 2014||Quarter ended June 2013||Change|
|Operating Revenue||Rs 1974 Cr.||Rs 1722 Cr.||15%|
|EBIDTA||Rs 142 Cr.||Rs 97 Cr.||48%|
|PBT||Rs 77 Cr.||Rs 42 Cr.||85%|
New Delhi, 13 April 2014: Max India Ltd., one of India’s leading multi-business corporate,today announced their first quarter results of FY15. The Company reported a 15%increase in Operating Revenue, over previous fiscal year to Rs 1974 Cr while the corresponding rise in PBT for the period was 85% to Rs 77 Cr.
The key highlight of the quarter was the proposed stake equalization in Max Healthcare (MHC), the healthcare subsidiary of the group, by the USD 2 Bn South African healthcare major Life Healthcare, at an enterprise value of Rs 3650 Cr. MHC was valued at an industry leading multiple of 31 times FY14 EBITDA translating to an Equity Value of Rs. 2,884 Cr. The deal was in line with the original joint venture agreement between the two partners inked in 2012. With this stake equalization, Life Healthcare will accelerate transfer of its expertise and best practices in areas such as ‘informatics’, ‘Cost Management’ and HR Practices. This is mutually beneficial partnership with a clear meeting of minds on critical decisions such as business development, growth strategies, talent management and driving performance to achieve the highest standards of medical and service excellence. As MHC prepares itself for its third wave of growth it will stand to benefit immensely from LHC’s considerable experience in managing a large and widespread network of hospitals.
Key results highlights of Max India’s subsidiaries
Max Life Insurance, a 71% subsidiary of Max India, continued to outperform the industry, leading the Group’s growth charge by posting an impressive individual new business premium growth of 22%, to Rs 357 Cr over Q1 FY14. Max Life Insurance further increased its market share to 12.3%, an increase of 74 bps amongst private life insurers and maintained its rank as the fourth largest private life insurer. The Gross Written Premium of the Company grew 10% to Rs. 1,458 crore and Assets Under Management (AUM) up 25% to Rs. 26,697crore.
Max Healthcare, a 66% subsidiary of Max India, reported growth of 31% in Gross revenue to Rs 416 Cr, and 136% growth in EBIDTA, to Rs. 40 Cr. Max Healthcare also reported cash profit of Rs 19 Cr
Max Bupa Health Insurance, a 74% subsidiary of Max India Max Bupa Health Insurance posted a growth of 23% in Gross Written Premium to Rs 73 crore. while private health insurers grew by 3%. The company also underwent a significant change in its operating model with a new organization structure, closed B2B channel and merged Third Party Distribution (TPD) with Bancassurance.
Antara Senior Living, a 100% subsidiary of Max India, serving the high potential Senior Living industry, continues to generate considerable media and public interest and witnessed encouraging sales momentum for its maiden senior living community being built at Dehradun
Max Speciality Films (MSF), a division of Max India till last fiscal, and now a subsidiary of Max India since 1 April 2014, saw improvement in margin and revenues. It recorded a 20% growth in revenue over previous fiscal year to Rs 190 Cr and a 53% growth in EBIDTA over previous fiscal year to Rs. 18 Cr for the quarter
About Max India
The 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 is in the ‘Businesses of Life’ with its vision to be one of India’s most admired corporates for service excellence – in what we do, how we do it and the positive impact we have on society and our stakeholders. It ‘Protects Life’ through its Life Insurance subsidiary Max Life, a joint venture between Max India and Mitsui Sumitomo Insurance, Japan; ‘Cares for Life’ through its Healthcare company, Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa; ‘Enhances Life’ through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK; ‘Rejuvenates Life’ through its Senior Living business Antara, a fully owned subsidiary of Max India and ‘Improves Life’ through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. The Group also continues its interest in manufacture of Speciality Products for the packaging industry through its fully owned subsidiary Max Speciality Films.
The Group’s businesses have built commanding presence in their respective sector, through a total customer base of nearly 7.5 million, over 300 offices spread across India and a people strength of over 70,000 persons. Max India remains committed to excellence in Corporate Governance and recognizes that in today’s world, it is an important driver for building all round excellence, attracting high-quality talent and intelligent capital. The Group and its companies are Shareholder steered, Board governed and Executive managed. The Board thoroughly evaluates business performance on nine strategic levers – enhancing business performance, investing in people and organisational development, creating efficiency in capital management, adopting an integrated enterprise-wide approach, investing sensibly in new growth opportunities, maintaining the highest standards of governance, continuously improving service quality, developing a distinct corporate brand and effectively managing risk.
The flagship company Max India Limited is a widely held public limited company, listed on the BSE & the NSE. Analjit Singh, Founder & Chairman, is the lead shareholder in Max India with around 40% holding. Other leading shareholders in the company include some of world’s leading Institutional Investors, such as Goldman Sachs, International Finance Corporation, Washington (IFC), and Temasek Holdings.
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Manager-Brand & Communications
Max India Limited
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