- 09 Feb 2024
- ICICI Securities
APOLLO HOSPITALS Q3FY24 RESULTS- GOOD ALL-ROUND PERFORMANCE
APOLLOHOSP - 7015 Change: -57.50 (-0.81 %)News/Results: Revenues grew 14% YoY to Rs 4851 crore, mainly supported by hospitals as well as Pharmacy (Apollo HealthCo) businesses. EBITDA grew 21% to Rs 614 crore and EBITDA Margins grew 90 bps to 12.7%, positive delta was attributable to reduction in losses of Apollo online pharmacy distribution and Apollo 24x7. Healthcare services division (Hospitals) revenues grew 12% YoY to Rs 2464 crore on the back of growth from both new as well as existing hospitals. EBITDA grew 8% to Rs 586 crore and margins stood at 23.8%. ARPOB grew 10% YoY to Rs 56368. Apollo HealthCo (Digital Healthcare and Omni-channel Pharmacy platform) grew 17% YoY to Rs 2049 crore to Rs 2049 crore. Revenue from digital platforms came at ₹ 225 crore whereas Offline pharmacy reported revenue of ₹1834 crore. EBITDA margins before 24x7 and ESOP charges stood at 7.7%. AHLL revenues stood at Rs 338 crore up 8% YoY and EBITDA margins stood at 8%.
Views: The hospitals business has maintained strong profitability with optimum case mix and payor mix. The company has embarked upon a new capex plan to add 2860 beds with a spend of over Rs 3400 crore in the next 4 years across India. Apollo HealthCo post 24x7 and ESOP charges turned EBITDA positive during the quarter. Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals remain key management focus areas.
Impact: Positive