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Informist, Wednesday, Aug 14, 2024

 

By Narayana Krishna

 

HYDERABAD - Improved occupancy in hospitals and growth across other business segments helped Apollo Hospitals Enterprise Ltd report robust earnings for the June quarter.

 

The Chennai-based healthcare services and pharmaceutical distribution company reported a consolidated net profit of 3.05 bln rupees, up 83% on year, in Apr-Jun, while its revenue was up 15% on year at 50.86 bln rupees. Sequentially, the company's net profit was up 20.3%, and revenue rose 2.9%. Both the topline and bottomline were above analysts' estimates.

 

Analysts had estimated Apollo Hospitals' consolidated net profit for Apr-Jun at 2.3 bln rupees on a revenue of 50.8 bln rupees.

 

Apollo Hospitals' earnings performance for the June quarter is led by healthy performance in its hospitals, pharmacy, diagnostics, and clinics business, which also helped improve margins.

 

Reacting to the robust earnings, shares of Apollo Hospitals rose nearly 4% today and at 1322 IST, they traded 2% higher at 6,720.65 rupees on the National Stock Exchange. 

 

The company's consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, margins for the June quarter expanded 175 basis points to 13.27%, while consolidated EBITDA was 6.75 bln rupees for the quarter. Analysts had expected Apollo Hospitals' EBITDA margin in the 13.2-13.4% range, while EBITDA was seen at 6.8 bln rupees.

 

The healthcare division, which is a key revenue generator for Apollo Hospitals, reported 15% on-year growth in revenues at 26.4 bln rupees, led by improved occupancy across hospitals. The occupancy rate for the quarter improved to 68% against 62% in the same period a year ago. The average revenue per occupied bed per day also rose 2% on year to 59,073 rupees in Apr-Jun.

 

Apollo Hospitals has 73 hospitals within its network with a total operational bed capacity of 9,363 as of Jun 30. The hospitals division's EBITDA was up 15% on year to 6.22 bln rupees, while this segment's margin was at 23.6%, the company said in its investor presentation.

 

Apollo HealthCo, the operating company of pharmacy distribution and digital health solutions, reported positive financials as its expenses on the online digital platform, Apollo 24/7 app, reduced significantly for the quarter. Apollo HealthCo reported a revenue growth of 15% on year at 20.82 bln rupees. The loss for this arm narrowed to 129 mln rupees from 826 mln rupees, while EBITDA was at 1.08%.

 

The company's pharmacy retail network, Apollo Pharmacy, has 6,074 stores as of Jun 30. Apollo 24/7 app's customer base touched 35 mln, while daily active users are at 630,000, as of Jun 30, the company said.

 

Apollo Health and Lifestyle Ltd, the company's operating arm of diagnostics and clinics, reported 15% on-year growth in revenue to 3.66 bln rupees, and the segment reduced its losses to 102 mln rupees against a net loss of 147 mln rupees in the year-ago quarter. Apollo Health and Lifestyle operates 2,330 diagnostic centres, 265 clinics, 137 dialysis centres, and 180 dental care centres under the Apollo brand across the country. The company reported 33% growth in its EBITDA, with the margin at 8.4%.

 

The company’s consolidated net debt as of Jun 30 was at 14.57 bln rupees. Apollo Hospitals is currently implementing eight projects at a cost of 34.35 bln rupees to add 2,285 census beds.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee 

 

 

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