Apollo Hospitals Enterprises Ltd, one of India’s largest healthcare providers, aims to increase average occupancy across its hospitals to 68-70% in FY24. On Tuesday, the company reported a 60% surge in its consolidated net profit to ₹145 crores for the March quarter, driven by improved profitability across segments.
“The focus remains on growing Tower Specialties of Cardiac, Oncology and Neurology, in addition to Nephrology, Gastroenterology and Orthopedics. The Tower specialties contribute to around 60% of hospitals revenues. Besides, there will be a higher focus on insurance penetration and engaging more with Retail and Corporates,” said Krishnan Akhileshwaran, Group CFO, Apollo Hospitals Enterprises.
The company’s consolidated Ebitda (earnings before interest, taxes, depreciation and amortization), excluding 24/7 operating cost and ESOP charge) rose to ₹706 crores, reflecting a YoY growth of 29%.
Apollo Hospitals saw a revenue spike of 21% YoY, amassing ₹4302.2 crores in revenue. The company’s Healthcare Services (HCS) segment is credited as the main driver of this growth, registering a revenue increase of 18% YoY to ₹2,195 crores.
According to the latest figures, revenues from established hospitals and new facilities were up by 18% and 16%, respectively, leading to significant improvements in operating performance. The EBITDA for these segments surged by 31% YoY, standing at ₹535 crores.
A key cluster in Tamil Nadu witnessed a volume increase of 15%, along with an average revenue per operating bed (ARPOB) increase of 12%, taking the figure to ₹65,670. The occupancy rate in this region improved from 59% in the previous year to 63%. Similar improvements in ARPOB and occupancy were noted across other clusters.
The company has set its sights on boosting average occupancies in mature hospitals to 68-70% during FY24, with Q4FY23 figures standing at 65% for mature hospitals and 62% for new facilities.
Apollo Hospitals is also eyeing expansion in major metropolitan areas including Delhi and Mumbai, alongside efforts to enhance occupancy and growth in the Karnataka cluster. Plans are underway to add 2,000 beds with a projected investment of over ₹3000 crores ($404 million) over the next four years.
Meanwhile, Apollo Health and Lifestyle Ltd (AHLL), Apollo’s diagnostics and retail health subsidiary, saw its revenues reach ₹308.5 crores in Q4FY23. Despite this, it posted a net loss of INR 23.4 crores. The company is optimistic about this segment turning profitable by Q4FY24.
Apollo’s non-COVID diagnostics business exhibited a remarkable growth rate of 45% YoY and now stands over ₹102 crores in Q4 FY23. With an aim to further expand, the company has added 500 new collection centers, bringing the total to over 1,600 centers across 200 cities.
Lastly, Apollo HealthCo Ltd., a wholly owned subsidiary that includes the pharmacy distribution business, Apollo24/7, and a 25.5% stake in Apollo Pharmacies Ltd, reported a revenue of ₹1799.2 crores in Q4 FY23, marking a YoY growth of 31%.
Shares of Apollo Hospitals traded at ₹4,668.45, up 1.5% on Wednesday.
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Updated: 31 May 2023, 11:45 AM IST