Apollo Hospitals 4Q net profit grows 29 percent, new hospitals show higher growth

Apollo Hospitals Enterprise Ltd. (AHEL) has posted a growth of 28.6 percent in net profit at Rs 76.68 crore during the quarter ended March 31, 2019, as compared to Rs 59.64 crore in the corresponding quarter of the previous year. The total income for the quarter stood at Rs 2169.26 crore as against Rs 1868.79 crore during the same period of the previous year, with a growth of 16.08 percent.

The growth in revenue during the quarter was aided by the 15-percent year-on-year (YoY) growth in healthcare services and 18 percent growth in standalone pharmacy business. The growth in healthcare services was led by new hospitals, which reported a 25-percent YoY revenue growth. Mature hospitals grew 12 percent YoY. The overall strategy of the company continues to focus on improving asset utilization, superior margin profile through case mix and quality of revenue, along with optimization costs. This approach is paying off with the healthcare services’ EBITDA growing by 21 percent.

The total EBITDA margin grew to 12.3 percent during the quarter, from 11.5 percent during the same quarter last year. The company has seen a growth in margin from new hospitals. The reorganization of the pharmacy business continued to progress during the quarter and is expected to be completed by November, 2019. Proton therapy will break even by the end of current financial year. The Proton Therapy Center, launched in Chennai, will break even by the end of the current financial year. It will have a CapEx of around Rs 300 crore, including some brownfield expansion plans and some routine CapEx.