(post deleted by author)

Q3 FY 24 Concall summary
BUSINESS
● Gross operating revenues declined by 12% Y-o-Y to INR3,053 crores.
● Profit after tax came in at INR253 crores in Q3 FY24, down by about 50% Y-o-Y.
● Chemicals’ revenue (46%/70% of total sales/EBIT in 3QFY24) dropped 21% YoY to
INR1390cr while EBIT declined 43% YoY to INR320cr EBIT margin contracted 900bp YoY to
23.1%. The specialty chemicals business continued to face headwinds due to inventory
rationalization by certain key customers, while the Fluorochemicals business was hit by
seasonally low demand for refrigerants. However, it witnessed improved performance in the
later part of the quarter. Management is expecting a recovery in 4QFY24.
● Packaging Film’s revenue (36%/10% of total sales/EBIT in 3QFY24) declined 9% YoY to
INR1090 cr and EBIT was down 62% YoY to INR44.9 cr. Margin contracted 570bp YoY to
4.1%. This downturn was largely due to the oversupply in both BOPET and BOPP film
segments.
● Technical Textiles’ revenue (15% each of total sales/EBIT in 3QFY24) grew 8% YoY to
INR460cr EBIT margin expanded 700bp YoY to 15%. EBIT surged 2x YoY to INR68.8cr The
segment performed well owing to healthy domestic demand for (NTCF)Nylon Tyre Cord
Fabric coupled with strong demand for belting fabrics and polyester yarn.
● Introduced three new products in the agro vertical and successfully commissioned two large
dedicated agro facilities.
● Successfully commissioned the PTFE and the R32 plants in Q3.
● Aluminium Foil facility on January 1, 2024. This phase represents an investment of around
INR536 crores asset turn should be 1.7-2 times. Looking at getting accelerated approvals from
both local and global customers, 6 to 12 months for some of the global approvals to come
through.
● Roughly about 90%-91% was our capacity utilization in Packaging Film’s
● Interim dividend at a rate of 36%, equivalent to INR3.60 per share
● Operating leverage will play out in PTFE over the next 6 to 12 months, or maybe slightly
more than that.
● 35-40 products that we supply, total dedicated plants 17-18.
● Q1 is the strongest quarter.
MANAGEMENT GUIDANCE
● Management plans to incur ~INR20-22b of capex in FY25.
● Management is expecting a recovery in 4QFY24.
● BOPET, I think it’s a story which will probably take another 12 months, maybe slightly more
than that, to kind of normalize. BOPP is doing better. There are no new supplies that we hear
around it, but the Chinese will always keep putting up new lines. There will be some pressure
on that as well.

Results are weak. Let’s wait for tomorrow’s call.

May see some selling pressure, hopefully it doesn’t last too long.

This is a note for Max Healthcare. The stock has nearly 7x from 2020 listing levels, backed by some excellent performance metrics, like ARPOB, Bed capex, cash flows, etc, under able leadership of Abhay Soi.

Key Highlights of Q3 Performance
• Gross Revenue stood at INR 1,779 Cr for Q3 FY24, +14% growth YoY
• Network Operating EBITDA was INR 471 Cr, growth of +12% YoY
• Operating Margin stood at 27.9% versus 28.3% in Q3 FY23 and 28.7% in Q2 FY24
• EBITDA per bed improved to INR 75.6 lakhsin Q3 FY24, from INR 66.9 lakhs in Q3 FY23 and INR 75.0 lakhs in Q2 FY24
• PAT grew by 26% YoY to INR 338 Cr in Q3 FY24 Vs INR 269 Cr in Q3 FY23 and INR 338 Cr in Q2 FY24
• Cash from Operations was INR 226 Cr in Q3 FY24, of this INR 137 Cr was spent towards ongoing capacity expansion projects & INR 97 Cr was paid as dividend; Net Cash4 as on Dec 31, 2023 stood at INR 1,295 Cr
• Bed occupancy in Q3 FY24 stood at 73% and OBD’s were lower by ~1% YoY
• ARPOB improved to INR 76.8k in Q3 FY24 vs. INR 66.8k in Q3 FY23 and 74.6K in Q2 FY24
• Free treatment provided to 36,695 patients in OPD and 1,249 patients in IPD from the economically weaker sections
• YoY growth in EBITDA was impacted due to movement in provision for doubtful debts, reversal of provision for Phantom Stock Plan in Q3 FY23, GST costs on variable fees and one-time litigation costs, with overall impact of ~INR 25 Cr on like-to-like basis

Link to Conf Call Transcript: 8d528467-3384-4cf8-b1e5-5175f5c4c037.pdf (bseindia.com)
Link to Q3 Presentation: 3c35594c-b44e-4a92-aedc-bda4ad8db4dc.pdf (bseindia.com)

@adminph2, @Administrator – Can a separate thread be created for Max Healthcare? or let me know the criteria for spinning a separate thread and will try to work on it.

It seems that delivery delays due to Red Sea Crisis affected margin this quarter but definitely seems to be volatile. Margin is dependent on revenue more than cost for them.