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Informist, Wednesday, Aug 14, 2024

 

--Apollo Hospitals: Bangladesh accounts for 30% of co's global patients

--Apollo Hospitals: Expect rebound in inflow of Bangladesh patients

--Apollo Hospitals: Seeing fall in patients from Bangladesh

--Apollo Hospitals: To add 500 Apollo Pharmacy retail stores in FY25

--Apollo Hospitals: Expect Apollo 24/7 ops to break even in 6-7 qtrs

--Apollo Hospitals: FY25 earnings growth promising

--CONTEXT: Comments of Apollo Hospitals mgmt in earnings call

--Apollo Hospitals: EBITDA margin to improve 100 bps in 3-4 quarters

 

By Narayana Krishna

 

HYDERABAD – Apollo Hospital Enterprise Ltd today said that there has been a slight fall in patients coming from Bangladesh to its hospitals in India after the recent political turmoil in the neighbouring country.

 

"We have seen some fall (in patient inflow) towards the first quarter (Apr-Jun) and into this quarter (Jul-Sep) as a combination of elections and the more recent political issues...some drop in volume. We are hopeful that this will come back very quickly," Apollo Hospitals' management said in a post-earnings conference call.

 

Patients coming from Bangladesh make up for about 30% of Apollo Hospitals' total international patients, but as a percentage of our total revenue, they are about 2%, the management said. Apollo Hospitals gets around 7-8% of its total revenue from patients coming from foreign countries.

 

The Chennai-based healthcare services and pharmaceutical distribution company reported a consolidated net profit of 3.05 bln rupees, up 83% on year, for Apr-Jun, while its revenue rose 15% on year to 50.86 bln rupees.

Over the past one-two years, the company has been actively exploring other international markets as well to expand its reach, the management said.  More

 

Apollo Hospitals is exploring other international markets to improve its international healthcare services business. Apollo Hospitals' Kolkata hospital facility gets higher footfall from Bangladesh. The company has a separate division and a hospital in Ahmedabad.

 

A wave of protest had swept Bangladesh for some months, impacting the economic activity in the country. Eventually that led Sheikh Hasina to resign as the prime minister and flee the country. Several other top position holders in the country were also forced to quit. An interim government under Nobel laureate Muhammad Yunus took charge earlier this month in the country.

 

PROMISING OUTLOOK

Apollo Hospital management is expecting a robust growth across all its business segments in 2024-25 (Apr-Mar).

 

"The outlook for FY25 continues to be promising. We are dedicated to driving growth and enhancing profitability through a series of strategic plans. In healthcare services, we are expanding our market and uncovering latent demand through better use of technology and business intelligence tools," Apollo Hospitals management said.

 

The company is expecting 100 basis points further improvement in its hospitals business in next 3-4 quarters, aided by operating efficiency and expansion. For Apr-Jun, Apollo Hospitals' consolidated earnings before interest, tax, depreciation and amortisation or EBITDA margins for the quarter expanded 175 basis points to 13.27%, while hospitals business segment EBITDA margin was at 23.6%, flat on year.

 

Apollo Hospitals said that while there was a 2% improvement in average revenue per occupied bed per day at 59,073 rupees, it may improve further going forward.

 

The company also expects its digital healthcare services platform, Apollo 24/7 to break even in the next 6-7 quarters. The company is aiming to open 500 new Apollo Pharmacy stores in the current fiscal year. Apollo Pharmacy opened 44 new stores during Apr-Jun and the total store count was 6,074 as of Jun 30.

 

Today, after rising 4% during the day, shares of Apollo Hospitals shed gains and ended at 6,515.85 rupees on the National Stock Exchange, down 1.1% from their previous close.  End

 

Reported by Narayana Krishna

Edited by Akul Nishant Akhoury

 

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