Apollo Hospitals shares rise on better-than-expected Q1 earnings

Apollo Hospitals' net profit as well as revenue topped the Street's estimates in Q1.

Shares of Apollo Hospitals Enterprise rose over 2 percent on August 14, a day after the healthcare services major reported strong earnings for the April-June quarter.

At 02.06 pm, shares of Apollo Hospitals were trading at Rs 6,695.45 on the NSE.

The company's consolidated net profit for Q1 of FY25 surged 83 percent on year to Rs 305 crore, up from Rs 167 crore in the year-ago period. With this, the bottomline also topped the Moneycontrol's estimate of Rs 287 crore. 

Revenue from operations grew 15 percent to Rs 5,086 crore in the quarter gone by, also better than the estimated Rs 5,072 crore. The company had clocked in a topline of Rs 4,418 crore in the same quarter previous fiscal.

The operational performance also improved as the EBITDA margin expanded to 13.3 percent in Q1, right on point when compared to Moneycontrol's estimate and up from 11.5 percent in the same period last year.

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Among the brokerages that Moneycontrol polled before Apollo's earnings, it was Nuvama Institutional Equities that forecasted the closest estimates for the healthcare major's headline numbers. Nuvama had predicted  Apollo Hospitals to deliver a consolidated net profit of Rs 295 crore with a revenue of Rs 5,128 crore in the fiscal first quarter.

That aside, Apollo's healthy earnings are driven by 15 percent on-year revenue growth across all its segments--the flagship hospital services vertical, Apollo Health and Lifestyle, and Apollo HealthCo. Apollo Health and Lifestyle and Apollo HealthCo, which operates the company's pharmacy, diagnostics, retail healthcare and Apollo 24/7 businesses, managed to retain profitability at the EBITDA level. However, they have not yet reached breakeven in terms of net profit.

As for the company's flagship healthcare services business, overall occupancy rose to 68 percent as compared to 62 percent a year ago, aided by a strong increase in patient flows across hospitals with inpatient (IP) volume increasing by 11 percent and outpatient (OP) new registrations by 13 percent. The company aims to take it bed occupancy levels to 70 percent.

Also Read | Apollo Hospitals Q1 Preview: Steady occupancy, healthy HealthCo sales to aid profit growth

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