MAXHEALTH - Max Healthcare Institute Limited Share Price

Question: "Do you think you can go back to the prior level of contribution from oncology? And what could drive it back?"
Answer: The oncology contribution drop is linked to high-value drugs, which had low margins despite their revenue significance. We believe there will be a recovery in contribution as we engage with CGHS, pushing for necessary tariff adjustments. As institutional shifts stabilize and as discussions with CGHS progress, we expect oncology's revenue contribution to improve, though it may take time.

Question: "Has the oncology team fully recovered in strength? What kind of further pickup can we see in oncology?"
Answer: Any team departures are swiftly compensated by hiring similarly qualified professionals. Recently, we've strengthened our team with highly qualified individuals from our competitors. Therefore, while some transitions occur, we are well-positioned to sustain and enhance our oncology capabilities moving forward.

Question: "Have you renewed all the insurance contracts? Is there anything pending?"
Answer: The recent quarter saw disruptions in renewals, leading to numerous complaints. However, we restored these services, and now have a mechanism for annual pre-agreed increments in contracts to avoid future issues. This addresses past delays and ensures smoother renewals moving forward. So, anything pending has been resolved.

Question: "What kind of increment can we expect from insurance this year?"
Answer: While specific numbers are hard to pin down, we did secure a moderate upward revision in rates across our insured patients. This increment does not adversely affect our financials and aligns well with historical adjustments, suggesting that revenue growth will continue without significant disruptions.

Question: "What is the expected path for institutional patients or concerns regarding other insurers?"
Answer: Institutional patient volume has increased due to our strategies amid the disruption. While there could be waves of negotiations with insurance partners, recent events have led to lessons learned across the industry, ideally softening future negotiations and potentially stabilizing our patient base in this category.

Question: "Can you elaborate on the EBITDA contribution from new facilities?"
Answer: New facilities like Nanavati and Saket have shown quick operational breakeven with margins remaining solid. As we increase capacity, the cash flow generated is expected to be margin-accretive. Our strategy ensures that we leverage operating leverage, leading to improved profitability as these facilities ramp up operations.

Question: "What is guidance on hospital commission dates?"
Answer: We expect to commission the first phase of the new Gurgaon facility by the end of H1 FY '27. While specific guidance on potential losses isn't available, historical performance suggests that strong patient demand can lead to quicker breakeven, mitigating loss duration.

Question: "Clarify the CGHS revenue impact and how it is split?"
Answer: The projected INR 200 crore revenue uplift accounts for rate revisions minus losses from discontinued oncology drugs due to CGHS pricing. A portion of this will be negated by the impact of GST, so we anticipate a sustained net impact of around INR 140 crore moving forward.

Question: "What is the anticipated bedroom capacity growth over the years?"
Answer: Currently, we operate around 4,800 beds and plan to reach approximately 6,000 by FY '28, with ongoing expansions and new facilities in the pipeline. The eventual goal is to have around 8,000 operational beds by FY '28, aligning with our overall strategic growth objectives.