Max Healthcare emerges as frontrunner in race to buy AMRI Hospitals

Max Healthcare Institute could be keen to buy Kolkata-based Emami Group’s AMRI Hospitals with a counteroffer that trumps an earlier Manipal Health Enterprises bid by Rs 900 crore. Sources close to Emami, with interests in consumer goods, medical care and property development, said Max has made a counteroffer of Rs 2,700 crore to buy the AMRI chain to strengthen its position in eastern India. AMRI has three superspecialty hospitals in Kolkata and one in Bhubaneswar.

The counteroffer could trigger a potential corporate war between two of the country’s leading hospital chains. Manipal has already approached a court to prevent AMRI to sell any of its shares.

Max Healthcare Institute has posted a profit after tax of Rs 511 crore for the second quarter of the 2022-23 fiscal, as its revenues grew nine per cent to Rs 1,567 crore. This is Max Healthcare’s highest ever gross revenue. The growth in Q2FY23 revenue and Operating EBITDA was driven by higher occupancies, improved payor mix. International patient revenue grew by 16 per cent QoQ and reflected around 110 per cent of pre-Covid average.

Abhay Soi, Chairman and MD, Max Healthcare Institute, said, “The performance for Q2FY23 is as per our expectations and reflects the focus on execution across the organisation in line with our articulated strategy.” He added that the healthcare sector in general and Max healthcare in particular are making significant investments over the next 4-5 years.

Max Lab (non-captive pathology vertical) added over 65 channel partners during Q2FY23, taking the overall active clients to 920 spread across 34 cities. The vertical posted gross revenue of Rs 30 crore during the quarter, recording a growth of 21 per cent QoQ on a like to like basis (excluding Covid-19 related tests).

For the half year, the Network gross revenue stood at Rs 3,040 crore representing a 17% growth on a like-to-like basis over the corresponding period last fiscal. The Network Operating EBITDA grew by 22 per cent on a like-to-like basis over H1FY22, and stood at Rs 780 crore. Further the Operating margin for H1FY23 was 27.2%, compared to 26 per cent in H1FY22 on a like-to-like basis.
MB Bureau