Apollo is a leading integrated healthcare service provider.
Apollo’s revenues were in line with our expectations while margins were missed amid ₹ 135 crore operation spend on 24/7.
Apollo’s share price grew 3.2x over past three years
We value Apollo at ₹ 5080 based on SOTP valuation.
Apart from Apollo, in our hospital coverage we like Narayana.
|Particulars||FY19||FY20||FY21||FY22||5 Year CAGR(FY17-FY22)||FY23E||FY24E||2 Year CAGR (FY22-FY24E)|
|EBITDA margins (%)||11.1||14.1||10.8||14.9||-||14.0||15.6||-|
Q1FY23 Results: Hospitals ramp-up continues; 24/7 spends high
Q1FY23 Earnings Conference Call highlights
|Q1FY23||Q1FY23E||Q1FY22||Q4FY22||YoY (%)||QoQ (%)||Comments|
|Revenue||3,795.6||3,898.0||3,760.2||3,546.4||0.9||7.0||QoQ growth due to normalcy in healthcare services|
|Raw Material Expenses||1,952.1||2,013.3||2,062.0||1,815.7||-5.3||7.5|
|EBITDA (%)||12.9||14.6||13.8||13.1||-90 bps||-13 bps||QoQ decline due to ~ | 135 crore expense for 24/7|
|PBT before EO & Forex||266.3||351.4||309.3||232.7||-13.9||14.5|
|PBT after Exceptional Items||266.3||351.4||603.4||232.7||-55.9||14.5|
|Tax rate (%)||-26.1||25.0||16.3||59.6||PL||PL|
|Adj. Net Profit||317.1||246.8||243.2||90.1||30.4||251.8||Delta vis-à-vis EBITDA mainly due to lower tax|
|Hospitals||2023.4||2032.6||1939.2||1863.1||4.3||8.6||Occupancy in mature hospitals at 62%, new hospitals at 55%|
|Pharmacy||1479.2||1525.4||1512.0||1374.5||-2.2||7.6||Combined pharmacy platform sales at | 1808.1 crore|
|AHLL||293.0||339.9||309.0||308.9||-5.2||-5.1||Diagnostics: | 81.5 crore, Primary care: | 85.1 crore and specialty care: | 139.7 crore|
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