Apollo Hospitals Q3 result: Net profit declines 33.3%; misses Street's estimate

Apollo Hospitals Enterprise Ltd on February 14 posted a decline of 33.3% percent year-on-year in its consolidated net profit for the quarter ended December 31, 2022. Consolidated net profit came at Rs 163.20 crore as against Rs 243.25 crore in the corresponding quarter a year ago.

On a sequential basis, the bottomline was down 23.3 percent from Rs 212.8 crore in Jul-Sep.

Even as the net profit lagged the Street's estimate of Rs 229.7 crore, the topline managed to top expectations of Rs 4,177.50 crore.

The healthcare major's revenue rose 17.2 percent to Rs 4,263.60 crore in the October-December quarter from Rs 3,638.9 crore in the year-ago period.  The rise in revenue can be attributed to higher pharmacy sales, better revenue mix, and normalisation of medical tourism.

Sequentially, the topline was marginally up from Rs 4,251.10 crore achieved in the previous quarter.

Revenue from the digital health and pharmacy segment jumped 34.5 percent on year while that from healthcare services grew around 9 percent.

EBIDTA margin contracted sharply by 420 basis points to 11.9 percent in the quarter ended December. The weakness on the operational front, largely on account of higher spend on Apollo 24x7 was the major drag on the bottomline.

The erosion in EBIDTA margin was also much steeper then the Street's estimate. A poll of brokerages conducted by Moneycontrol had pegged the company's EBIDTA margin for the quarter at 13.1 percent, a contraction of 300 basis points on a year-on-year basis.

On February 14, shares settled 2.06 percent lower at Rs 4,268.85 on the National Stock Exchange. The stock has shed 1.5 percent over the past month and 4.85 percent over the past year.