- 26 May 2022
- ICICIdirect Research
APOLLO HOSPITALS REPORTS MISS ON ESTIMATES, MARGINS DIP
APOLLOHOSP - 7341 Change: 82.50 (1.14 %)News: Consolidated revenues grew 24% YoY to | 3546 crore (I-direct estimate of | 3613 crore). Hospitals segments grew 21% YoY to | 1863 crore vs I-direct estimate of | 1946 crore. HealthCo and Pharmacy grew 23% YoY to | 1374 crore (I-direct estimate: | 1331 crore). AHLL reported growth of 47% YoY to | 309 crore (I-direct estimate: | 337 crore). EBITDA margins declined 130 bps YoY to 13.1% (I-direct estimate: 15.7%) mainly on back of increase in other expenditure. EBITDA in absolute terms grew 12.5% YoY to | 463 crore (I-direct estimate: | 566 crore). Adjusted profit for the quarter was at | 90 crore v/s profit of | 150 crore in Q4FY21 (I-direct estimate: | 216 crore). Delta vis-à-vis EBITDA was mainly due to higher tax and depreciation being partially offset by higher other income. The Board also recommended a dividend of | 11.75 per equity share
Views: Apollo Hospitals’ result was below I-direct estimates, in-terms of revenues, hospitals lagged our expectations but pharmacies was better than estimated. Q4FY22 margins was a miss against our estimates. Healthcare business was impacted in Q4FY22 due to omicron wave and is largely reflected in this quarters numbers for Apollo. Pharmacy distribution business reorganised into a 100% subsidiary Apollo HealthCo Ltd along with Apollo 24/7, the group’s Digital healthcare services platform. Apollo Diagnostics has set an aspirational target to achieve | 1000 crore revenues mark over the next three years. Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals remain key management focus areas. The pharmacy business remains a steady growth engine albeit in a changed structure
Impact: Neutral