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News: Revenues came at Rs 4263.6 crore, flat QoQ. Driven by steady volumes and utilisation levels. EBITDA corrected 10.6% QoQ to Rs 505.4 crore. EBITDA margins declined 145 bps QoQ to 11.9%. Delta in EBITDA margins was due to lower than expected Diagnostics and Retail Health margins and higher than expected 24/7 operating costs. Hospitals revenue declined 3.1% QoQ to Rs 2194.4 crore. Margin performance by hospitals came at ~25% (matured-27.5%, new- 18.2%). Pharmacy revenues increased 5.4% QoQ to Rs 1757.8 crore, mainly due to 194 store additions taking the count to 5196 stores. Diagnostics and retail healthcare revenues increased 19.8% QoQ to Rs 381.4 crore due to the addition of collection store across various cities. Adjusted net profit declined 25% QoQ to Rs 153.6 crore.
Views: Apollo’s performance in this quarter was driven by occupancy levels, increasing patient count (both domestic, international), which reflects the healthcare industry coming back to normalcy. Pharmacy business delivered strong performance with addition of 194+ store addition followed by growth in GMV of Apollo 24/7 that increased to Rs 543 crore up 85% QoQ. Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals remain key management focus areas
Impact: Neutral