Apollo Hospitals Q2 results: Net profit increases by 14% YoY to ₹233 crore

Apollo Hospitals Enterprise reported a 14% YoY rise in its net profit to 2.33 billion rupees ( ₹233 crore) in the September quarter of the current financial year. September quarter's profit was led by the increase in the number of patients due to seasonal flu infections. The company also laid out plans to expand its operations.

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Its attributable net profit increased to 2.33 billion rupees in the quarter under review from  2.04 billion rupees, a year ago. The revenue from operations of the hospital chain operation increased by 12.7% to 25.66 billion rupees.

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Apollo's shares closed 3.7% higher at ₹5297.45 per share on BSE on Friday.

Apollo Hospital runs over 70 hospitals across the country with over 10,000 beds,  said revenue from operations rose 14% to 48.47 billion rupees. Its revenue from hospital services increased by 12.7% to 25.66 billion rupees.

"Quarterly occupancy rate was at 68%, similar to last year but a decrease in average length of stay of patients was a boost to the occupancy in the second quarter," Chief Financial Officer Krishnan Akhileswaran told Reuters.

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"There was also a good uplift in surgical cases volume, which was up 7% compared to last year, which can sustain for the next few quarters," he said.

Over the next few quarters, Apollo aims to increase occupancy to more than 70%. The hospital group is planning to add 1,170 more beds by the end of next fiscal year, added Akhileswaran.

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The company is planning to add a total of 2,860 beds over the next three years. Mergers and acquisitions have helped Apollo to expand its facilities in Pune and Kolkata through acquisitions, the company said in its stock filing. Despite the impressive performance of its hospital business, Apollo's digital health and pharmacy business continued to report losses in the quarter under review. The digital health and pharmacy business contributes around 40% of Apollo's business.

The company expected to turn the cash-guzzling unit, which offers online consultations and pharmacy under 'Apollo 24/7,' profitable by the end of the financial year 2024, said Apollo.

Earlier this week, Max Health Care Institute reported a 38% rise in quarterly profit as it earned higher revenue per bed.: