- 14 Feb 2022
- ICICIdirect Research
Margins steady amid continued traction for electivesAPOLLOHOSP - 4777 Change: 136.95 (2.95 %)
News: Consolidated revenues grew 31.9% YoY to Rs.3638.9 crore (I-direct estimate of Rs.3616.8 crore) driven by growth of 40.9% YoY in hospitals segment to Rs.2023.9 crore vs. I-direct estimate of Rs.2118.2 crore. Pharmacies grew 16.1% YoY to Rs.1307.4 crore (I-direct estimate: Rs.1113.8 crore) while AHLL revenues grew 58.7% YoY to Rs. 313.2 crore (I-direct estimate: Rs.384.7 crore). EBITDA margins improved 199 bps YoY to 16.1% (I-direct estimate: 17%) mainly due to change in case mix. EBITDA in absolute terms grew 50.4% YoY to Rs.587 crore (I-direct estimate: Rs.613.3 crore). Adjusted profit for the quarter was at Rs.228.4 crore vs. profit of Rs.130.5 crore in Q3FY21 (I-direct estimate: Rs.261.8 crore). Delta vis-à-vis EBITDA was mainly due to higher other income and lower interest and tax expense.
Views: Apollo Hospitals’ result was almost in line with I-direct estimates but skewed with hospitals lagging our expectations but pharmacies a beat. Healthcare business is more or less back to normalcy due to rebound in patient visit and elective procedures. Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals and AHLL remain key management focus areas. The pharmacy business remains a steady growth engine albeit in a changed structure.