CRISIL Research has come out with its report on Apollo Hospitals Enterprise. According to the research firm, the company added 42 stores during the quarter; it now has 1,399 pharmacy stores.
CRISIL Research has come out with its report on Apollo Hospitals Enterprise . According to the research firm, the company added 42 stores during the quarter; it now has 1,399 pharmacy stores. EBITDA margin improved 110 bps y-o-y and 40 bps q-o-q to 2.9% due to margin expansion in mature stores and increase in contribution from the high margin private label goods.
Apollo Hospitals Enterprise Ltd’s (Apollo’s) Q2FY13 standalone results exceeded CRISIL Research’s expectations. Revenues grew by 20% y-o-y to Rs 8,363 mn driven by growth in the pharmacy and healthcare services businesses. EBITDA margin was up by 10 bps y-o-y to 17.2%. This coupled with a decline in interest cost and increase in other income led to adj. PAT increasing 38% y-o-y to Rs 814 mn. Despite increase in debt, interest cost declined y-o-y as some portion was capitalised for the capacity additions. Hospitals in the Chennai and Hyderabad clusters continued with their steady operating performance with sequential growth in occupancy and revenues. Hospitals in tier II and tier III cities, too, reported healthy growth in occupancy and margins. Also, the pharmacy business recorded strong growth with improvement in margins. We are in the process of revising our estimates upwards post detailed discussion with the management. We maintain our fundamental grade of 5/5.
Chennai, Hyderabad clusters steady; hospitals in tier II/III cities post strong growth
Pharmacy business progressing well; rising share in private labels boosts margins
Capacity expansion on track; 550 beds likely to be added in FY13
Improving performance in Apollo Health Street and Apollo Munich Health Insurance
Fair value maintained at Rs 655 per share
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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