Apollo Hospitals Q2 net profit grows 33%

Apollo Hospitals Q2 net profit grows 33%

Mumbai: Hospital and pharmacy chain operator Apollo Hospitals Enterprise Ltd posted a 33.3% rise in quarterly net profit on higher project income and better occupancies, a top official said on Tuesday.

For the July-September quarter, the Chennai-based firm posted a net profit of Rs23.6 crore on revenue of Rs282 crore.

Last year’s net profit of Rs50.2 crore included a one-time gain of Rs32.5 crore on sale of its stake in Sri Lanka operations.

“The growth this quarter is a combination of higher project income from Mongolia, Mauritius, higher occupancies and better realizations," chief financial officer S.K. Venkataraman said.

Project income, fees for providing management services, rose 41%, to Rs10.3 crore in the quarter, he added. “The project income adds straight to the bottom line.".

Occupancy rate was nearly 70% in the quarter, while the average duration of a patient’s stay was six days, almost unchanged from a year ago.

Apollo’s pharmacy chain of about 300 outlets clocked a 30% revenue growth to Rs47.3 crore, Venkataraman added.

Earlier this month, Apollo chairman Prathap Reddy forecast a net profit growth of 40% on a revenue rise of 25% for fiscal 2008.

Apollo Hospitals’ shares closed 3.3% higher at Rs478.90 on Tuesday on the Bombay Stock Exchange.