The Hindu Business Line : Max India Q3 net rises 5-fold to Rs 21 crore

New Delhi, Jan 30 Having almost tripled capacity of speciality products business last year, Max India is reaping benefits with a five-fold increase in its standalone net profits at Rs 21 crore for the quarter ended December 31, 2007, as against the corresponding period, the previous year.

The net sales during the third quarter nearly doubled to Rs 77.5 crore as against Rs 40 crore reported in the corresponding quarter of the previous year. According to the company, the ramping up of the business of speciality plastic products for the packaging industry, which in a short span of nine months is already operating at over 95 per cent capacity utilisation, contributed Rs 9 crore to profit during the quarter.

Child benefit products

“The launch of child benefit products (insurance) boosted our premiums in the current quarter. Opening of 58 new sales offices in the current quarter and expected launch of series of health insurance products in the next quarter should see us continue reporting impressive growth,” said Mr B. Anantharaman, Joint Managing Director, Max India, in a statement.

Consolidated

Max India’s consolidated revenue for the quarter ended December 31, 2007 doubled to Rs 1,226 crore, as against Rs 604 crore in the corresponding quarter of the previous year. Operating cash profit saw a growth of 83 per cent at Rs 422 crore (Rs 230 crore) .

Max New York Life, the joint venture with New York Life, sold 2.35 lakh policies during the quarter. Gross premium income for the quarter ended December 31, 2007 stood at Rs 764 crore, growing 69 per cent year-on-year. Shareholders infused Rs 100 crore as fresh capital in the quarter taking the total capitalisation of the business to Rs 907 crore. Max Healthcare with average occupancy of 68 per cent reported a consolidated revenue of Rs 98 crore for the quarter, up 48 per cent against the corresponding quarter the previous year. The business reported positive EBITDA of Rs 5 crore during the quarter against a loss of Rs 3 crore during the same quarter previous year.

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