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Business News/ Companies / Company Results/  Apollo Hospitals post 76% rise in Q4 profits to 254 crore
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Apollo Hospitals post 76% rise in Q4 profits to ₹254 crore

The healthcare services segment reported an occupancy of 65% during Q4FY24, driven by a strong increase in patient flow across hospitals. It reported an increase in revenue of 17% to reach ₹2,562.6 crore during the quarter.

During Q4, it reported revenues of ₹4,944 crore, a 15% y-o-y rise from ₹4,302.2 crore. (Photo: Mint)Premium
During Q4, it reported revenues of 4,944 crore, a 15% y-o-y rise from 4,302.2 crore. (Photo: Mint)

New Delhi: Apollo Hospitals Enterprises Ltd. on Thursday posted a consolidated net profit of 253.8 crore for the quarter ended March, a 76% rise from the corresponding three months a year ago, buoyed by a continued reduction in losses at its pharmacy, health and lifestyle segments.

During Q4, it reported revenues of 4,944 crore, a 15% y-o-y rise from 4,302.2 crore. The results were in line with Bloomberg analyst estimates.

“The increase in PAT is not just attributable to the revenues but also significantly to the improving overall profitability of HealthCo, on which we have been working to break even quarter on quarter. So clearly, it's a combination of growth as well as commitment towards profitability," Krishnan Akhileswaran, group chief financial officer, Apollo Hospitals, told Mint.

Earnings before interest, tax, depreciation, and amortization (Ebitda) stood at 640 crore during Q4FY24, a 31% rise with a margin of 12.95%.

“Going forward, Apollo Hospitals will continue to strengthen its endeavors to identify and introduce best-in-class, technology-enabled healthcare solutions to enhance patient outcomes and improve access to quality care," said Prathap C. Reddy, chairman, Apollo Hospitals Group, in a statement.

Voulme growth remains strong

The company, Akhileswaran said, will continue its growth momentum as Apollo plans to maintain its commitment to profitability in HealthCo, while volume growth in healthcare services remains strong. HealthCo is Apollo’s digital healthcare and omni-channel pharmacy platform.

The healthcare services segment reported an occupancy of 65% during Q4FY24, driven by a strong increase in patient flow across hospitals. It reported an increase in revenue of 17% to reach 2,562.6 crore during the quarter.

The growth in healthcare services was driven by a strong penetration of insurance in the country, along with a shift from unorganized to organized, quality healthcare services.

Also read | Apollo to Aster, Manipal to Max, hospital chains ready for a big-bang expansion

Further, average revenue per occupied bed (ARPOB) for the quarter rose 12%. “The company plans have the potential to take the occupancy level to 70% over the next few quarters as we are on track to add 2,300 beds with an infusion of 3,400 crore over the next three years," Akhileswaran added.

Expansion plans

The company has expansion plans spanning major cities, including Gurugram, Hyderabad, Kolkata, Pune, and Bengaluru.

Apollo Health and Lifestyle Limited (AHLL) reported overall losses of 51 crore during the quarter, with revenues rising 15% to 354.7 crore. The HealthCo business reported losses of 196 crore, with overall revenues rising 13% to 2,026.7 crore.

The company recently entered a binding agreement to raise 2,475 crore in equity capital from private equity investor Advent International. The capital will be used for a combination of growth and debt reduction for HealthCo.

The company also reported its financial numbers for FY24, with its net profit rising 33% to 899 crore. Its full-year revenue increased 15% to 19,059 crore.

 

Also read | India records over 16,000 heatstroke cases, 60 deaths since 1 March

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ABOUT THE AUTHOR
Naman Suri
Naman is a skilled business journalist who excels in breaking down complex financial details. He specializes in the corporate sector, providing thorough coverage of the pharmaceutical industry, the dynamic field of sports business, and the fascinating area of white-collar crime. Naman has a knack for making sense of numbers and presenting them in an understandable way.
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Published: 30 May 2024, 09:19 PM IST
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