Apollo Hospitals Enterprise Ltd


BSE: 508869 | NSE: APOLLOHOSP | ISIN: INE437A01024 
Market Cap: [Rs.Cr.] 8,527 | Face Value: [Rs.] 5
Industry: Healthcare

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Director's Report

DIRECTORS

To The Shareholders

Your Directors are pleased to present the TWENTY-EIGHTH ANNUAL REPORT and the audited statements of accounts for the year ended 31st March 2009.

Financial Results (Rs.in million)
For the year ended 31st March 2009 31st March 2008
Total Income 14,803 11,516
Profit before Extraordinary Item and Taxation 1,763 1,451
Provision for Taxation 542 433
Net Profit before Extraordinary Item after Taxation 1,221 1,018
Extraordinary Item 40 -
Net Profit after Extraordinary Item and Taxation 1,181 1,018
Balance of Profit brought forward 1,248 892
Profit Available for appropriations 2,429 1,910
Appropriations
Dividend (inclusive of dividend tax) 470 412
Transfer to General Reserve 750 250
Balance carried forward to Balance sheet 1,209 1,248

Results of Operations

During the year under review, the gross revenue of the Company increased to Rs.14,803 million compared to Rs.11,516 million in the previous year, registering an impressive growth of 29%. The profit after tax for the year increased by 16% to Rs. 1,181 million compared to Rs. 1,018 million in the previous year. nancial

During the year under review, the consolidated gross revenue of the Company increased to Rs. 16,350 million compared to Rs. 12,416 million in the previous year, registering an impressive growth of 32%. Net profit after minority interest for the group increased to Rs. 1,025 million from Rs. 771 million representing a growth of 33%.

Consolidated Financial Statements

Your Company has been granted exemption from attaching the financial statements of the subsidiary companies in India and abroad, to the balance sheet of your Company for the financial year 2008-2009, under Section 212(8) of the Companies Act, 1956 by the Ministry of Corporate Affairs (MCA). A statement of summarized financials of all subsidiaries of your Company, pursuant to the approvals under Section 212(8) of the Companies Act, 1956 forms part of this report. Any further information in respect of the annual report and the financial statements of the subsidiary companies of your Company will be made available to the members on request. In accordance with the Accounting Standard, AS-21 issued by The Institute of Chartered Accountants of India, consolidated Financial Statements presented by your Company include the information of all its subsidiaries.

Dividend

The Board of Directors recommend a dividend of Rs. 6.50 per Equity Share (65% on par value of Rs. 10/- each) (as against Rs.6 per Equity Share, 60% in the previous year) on the paid-up equity share capital of the Company for the financial year ended 31st March 2009, which if approved at the forthcoming Annual General Meeting on 26th August 2009, will be paid to those shareholders whose names appear in the Register of Members as at the closing hours of business on 21st August 2009. In respect of shares held in electronic form, the dividend will be paid on the basis of beneficial ownership furnished by Depositories viz., NSDL and CDSL for this purpose.

The Register of Members and Share Transfer Books will remain closed from 22nd August 2009 to 26th August 2009 (both days inclusive).

Transfer of Reserves

Your Company proposes to transfer Rs. 750 million to the general reserve out of the amount available for appropriations. An amount of Rs. 1,209 million is proposed to be retained in the profit & loss account.

Subsidiaries

Your Company has seven subsidiary companies as on 31st March 2009. The statement in respect of the details of the subsidiary companies viz., Unique Home Health Care Limited (UHHCL), AB Medical Centres Limited (ABMCL), Samudra Healthcare Enterprises Limited (SHEL), Apollo Health and Lifestyle Limited (AHLL), Imperial Hospital and Research Centre Limited (IHRCL), Pinakini Hospitals Limited (PHL) and Apollo Hospital (UK) Limited (AHUKL) pursuant to section 212 of the Companies Act, 1956 is attached to this report.

Unique Home Health Care Limited (UHHCL)

UHHCL, a wholly-owned subsidiary of the Company, provides medical and paramedical services including doctor’s consultation, physiotherapy direct to patient homes and also offers paramedical service in hospitals to critically ill patients. For the year ended 31st March 2009, UHHCL recorded a revenue of Rs.10.61 million and net profit of Rs.4.23 million.

AB Medical Centres Limited (ABMCL)

ABMCL, a wholly-owned subsidiary of the Company, does not have any commercial operations as it has leased out its infrastructure viz., land, building and medical equipment to the Company for running the hospital. For the year ended 31st March 2009, ABMCL recorded an income of Rs. 6.53 million and a net profit of Rs. 3.78 million.

Samudra Healthcare Enterprises Limited (SHEL)

SHEL, a wholly-owned subsidiary of the Company, runs a 120-bed multi-speciality hospital at Kakinada. For the year ended 31st March 2009, SHEL recorded revenue of Rs. 161.85 million and a net profit of Rs. 14.54 million.

Apollo Hospital (UK) Limited (AHUKL)

AHUKL is a wholly-owned foreign subsidiary of the Company and yet to commence its operations.

Apollo Health and Lifestyle Limited (AHLL)

AHLL, a subsidiary of the Company, is engaged in the business of providing primary healthcare facilities through a network of franchised clinics across India offering specialist consultation, diagnostics, preventive health checks, telemedicine facilities and a 24-hour pharmacy all under one roof. For the year ended 31st March 2009, AHLL recorded revenue of Rs. 68.78 million and a net loss of Rs. 22.91 million.

Imperial Hospital and Research Centre Limited (IHRCL)

IHRCL, a 51% subsidiary of the Company, owns a 240-bed multi-speciality hospital at Bengaluru. For the year ended 31st March 2009, IHRCL recorded a revenue of Rs. 576.50 million and a net loss of Rs. 104.55 million.

Pinakini Hospitals Limited (PHL)

As a part of its startegy to reach out to the tier II towns and cities, the Company intends to build a hospital in Nellore at a total project cost of Rs. 60 crore through a subsidiary company, Pinakini Hospitals Limited.

Corporate Social Responsibility

Touching lives is the way of life at Apollo Hospitals. Apollo Hospitals Group is committed to the well-being of not just the patients, but the society as a whole. The ultimate aim is to provide quality healthcare to all those who need it.

This is why the hospital has developed a sound and highly transparent management model that takes the interests of our customers, shareholders, investors, business partners, employees, communities and government bodies into account to maintain the best in corporate governance, risk management, corporate ethics and compliance.

Towards this end, several initiatives have been started by the Apollo Hospitals Group. Initiatives like SACH, SAHI, CURE and DISHA aim to reach out and provide healthcare measures to the economically backward.

There are a few other initiatives that have been undertaken by Apollo Hospitals like the free medical camp service provided by the doctors from the group, in association with a NGO called Vishwas, which caters to the needs of special children. This event was organised in Sohna village in Haryana. There was also an annual medical camp for U.S. Embassy employees on the embassy premises undertaken by the doctors of Apollo Hospitals, free of cost.

The Ambulance services of the hospital was also provided to various cricket matches held in the city and for high profile events like the Republic Day function in the National Capital. One of the key schemes undertaken by Apollo Hospitals Group is the initiative where the doctors of Indraprastha Hospital in association with the Delhi Government visited 5 neighbouring areas and provided healthcare support to their residents.

Apart from this Health Talks, CME’s and health screening camps were held across the Country in association with various Companies like Wipro Technologies Ltd., TVS Electronics, India Cements Ltd., L&T Infotech, Mahindra Holidays.

"SACH" – The SAVE A CHILD’S HEART programme was conceptualized by the Apollo Hospitals with the objective of providing surgical treatment to economically deprived children with congenital and other forms of heart diseases.

Over 200,000 children in India are born with heart diseases every year. 60,000-80,000 of these children have critical heart disease. Most succumb to the disease without celebrating even their first birthday. And surgery can miraculously and dramatically transform them into absolutely normal children.

SACH was established in 2003 at Hyderabad and today SACH is the largest voluntary organisation in Asia that provides care and treatment to underprivileged children suffering from pediatric heart diseases. This initiative has touched the lives of over 50,000 children so far.

The SACH programme commenced at Chennai in November 2006 and already several complex surgeries have been performed which transformed the lives of several children with heart ailments. More than 550 children have been screened and 225 surgeries have been completed successfully here so far, of which 113 surgeries were done during the financial year which ended on 31st March 2009.

The SACH team includes highly qualified and well- trained doctors and paramedical staff from the Apollo Hospitals, with vast experience in treating pediatric heart problems.

Increase in Paid-up Share Capital

During the year, the paid-up share capital of the Company increased from Rs. 586,857,020/- (consisting of 58,685,702 equity shares of Rs.10/- each) to Rs. 602,357,020/- (consisting of 60,235,702 equity shares of Rs. 10/- each) consequent to the allotment of 1,550,000 equity shares to Smt.Sangita Reddy upon conversion of 1,550,000 warrants issued to her on 22nd August 2008 at a price of Rs. 442.55 per share including a premium of Rs. 432.55 per share.

On 18th April 2009, the company has also allotted 1,549,157 equity shares to Dr. Prathap C Reddy, upon conversion of 1,549,157 warrants issued to him at a price of Rs. 497.69 per share including a premium of Rs. 487.69 per share. Consequent to the allotment, the total paid up equity capital stood at Rs. 617,848,590/- (consisting of 61,784,859 equity shares of Rs. 10/- each).

These shares have been listed at Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE), Mumbai.

New Initiatives

Apollo Dialysis Clinics

Apollo Dialysis Clinics, India’s premier out-of-hospital dialysis clinic, provides high-end dialysis services and is designed to address specific issues that affect dialysis care in India today. Apollo Dialysis Clinics bring together the cumulative experience of Apollo Hospitals which has been a pioneer in offering quality dialysis to its patients. For over 25 years we have been the preferred hospital providing dialysis services at over 20 hospitals in India with close to 150 machines serving over 2,000 patients per year. We have one of the largest teams of nephrologists in India – with a cumulative experience of over 400 years in the fields of Clinical Nephrology, Dialysis and Transplantation.

Trivitron Healthcare is the largest medical technology provider of Indian origin in the world today. They also have the widest product range across 19 medical specialities including renal care. Their technical expertise and understanding of renal care specifications makes them a valuable ally ensuring that at Apollo Dialysis Clinics we speak the language of patient comfort while touching lives to make a difference.

Apollo Hospitals and Trivitron Healthcare, guarantee world-class dialysis technologies, personalized service, the expertise of the country’s best Nephrology teams to deliver 360-degree dialystic care in an out-of-hospital ambience. The team of experts at the Clinics provides prescriptive quality care to every patient. There are personalized treatment regimens designed to suit every patients’ medical conditions, thereby accommodating their lifestyles, schedules and other needs. This holistic approach to health helps in improving the quality of life of the patients with renal disorders. Recovery along with rehabilitation also plays a major role in the treatment plans.

Apollo Children’s Hospital

Apollo Hospitals Group has stepped into the arena of providing exclusive quality pediatrics through its Apollo Children’s Hospital. The Apollo Children’s Hospital is a 100-bed facility situated in the close vicinity of flagship Apollo Hospitals on Greams Road,

Chennai. The Apollo Children’s Hospital is one of the finest in the country, complete with an NICU, Isolation ward, three operation theatres, general ward, cheerful private rooms and tasteful suites. It has some of the most advanced technology, and other cutting-edge equipment in cardiac and neuro diagnostics. The hospital is staffed with 45 of India’s finest pediatric specialists and over 180 nurses.

With the best possible experience drawn from the state-of-the-art Apollo Centre of Excellence for Pediatrics, this hospital is bound to take pediatric care to the next frontier in India.

Apollo Reach Hospitals

Apollo Hospitals Group launched its pioneering initiative to provide world-class healthcare to semi-urban and rural India through the inauguration of Apollo Reach Hospitals at Karim Nagar, Andhra Pradesh by Hon’ble Prime Minister of India, Dr. Manmohan Singh. Located in semi-urban and rural India, every Apollo Reach Hospitals will be constructed on a land area of around 1 - 2 acres. A cookie-cutter model has been adopted for speedy roll-out of Apollo Reach Hospitals with a timeline goal of 18 - 24 months from land procurement. Designed as 100 – 150 bed specialty hospitals, each Apollo Reach Hospitals would also be expandable to 200 beds.

The Group has initiated the construction of hospitals, procurement of land and identification of cities to set up the first phase of 25 Apollo Reach Hospitals over the next two years across India.

The focus of services at Apollo Reach Hospitals would include cardiology, cardio-thoracic surgeries, neurology, nephrology, and orthopedics. State-of-the-art technology including a complete range of diagnostic modalities such as CT scanner, X-ray, diagnostic cardiology, neurology, endoscopy systems, comprehensive lab services, blood bank, etc. is available at the hospital. A dedicated pool of medical professionals, paramedical and other administrative staff would manage the hospital services.

Support Services planned at Apollo Reach Hospitals are as detailed under:

• 24 X 7 fully-functional Emergency Care Unit

• State-of-art trauma care unit with life-saving modalities

• Well-equipped executive wards

• High-end Critical Care Units backed with life support equipment

• Outpatient clinic with facilities for consultation across departments

• Executive consulting suites

• Health Check-up packages

• Round-the-clock Pharmacy

• Outpatient & inpatient surgery

• Rehabilitation & Physiotherapy department with therapeutic & diagnostic units

• Hospital on wheels

• Dedicated laboratory services with facility for blood storage

Proceeds of Preferential Issues

The details of utilization of proceeds of Preferential Issues up to 31st March 2009, are set out in the statement attached herewith as Annexure - A.

Corporate Governance

Pursuant to clause 49 (VII) of the Listing Agreement with the Stock Exchanges, a separate report on Corporate Governance forms part of the Directors’ Report in the Annual Report. Your Company is compliant with the requirements of the Listing Agreement and necessary disclosures have been made in this regard in the Corporate Governance Report.

A certificate from the Auditors of the Company regarding compliance with conditions of Corporate Governance as stipulated under clause 49 of the Listing Agreement is attached to this report.

Human Resources Development

HR’s role as a strategic business partner is pivotal for all the change initiatives at Apollo. Human Resources are our assets as they are the key drivers for our sustained growth and success. The services they render at every touch point helps in enhancing the service excellence to our patients thereby supporting the mission of Apollo of "touching a billion lives".

Human Resource at Apollo has evolved with employee initiatives across all levels from Senior Management to grass root level. Building knowledge-sharing practices, creating pool of process specialists through the interventions of Six Sigma, engaging employees through various employee-engagement activities have been the areas of key focus.

Knowledge Sharing A knowledge sharing portal for the CEOs titled "The CEO Handbook" and "The DMS Handbook" for the Medical Administrators have been developed in-house incorporating the best practices with measures and metrics and the same has been uploaded in the Apollo’s Light house (in-house on-line forum). This has been integrated with an on-line balanced scorecard termed as the Apollo Performance Monitor (APM) to track the performance of individual units.

Six Sigma In our effort to inculcate a high-performance culture, Lean Six Sigma initiative has been institutionalized. At present there are more than 100 trained Lean Six Sigma Green Belts and 20 certified Green Belts in our Group. We target to train more than 200 Green Belt Champions and 20 Black Belt Champion this year.

Employee Engagement Engaging employees being the key focus area, a number of employee-engagement activities was operational. Infotainments, party games, sports activities were conducted at regular intervals. Two mega infotainment shows were conducted before the final audit of JCIA. A standardized group induction kit has also been developed in a video interactive mode to align Apol-lo’s mission and values across hospitals.

Our human resources team strives to align the HR policies with the business goals of the organization, and also help in creating a performance-driven culture. Various initiatives such as performance-linked rewards, transparent review process, building a high-performance work teams have helped in controlling attrition at different levels. Introduction of new services, additional pharmacies and additional beds have resulted in the increase of human resources strength at Apollo.

Employee Count The total employee strength as on March 2009 is 19,088 as against 15,927 for the year ending March 2008, an increase of 19.8%. The increase of 3,161 employees is due to the opening of 297 additional standalone pharmacies during the said year and an increase of 200 beds, coupled with new value-added services in the hospital division for improving service delivery to the customer.

Directors’ Responsibility Statement

Pursuant to section 217(2AA) of the Companies (Amendment) Act, 2000, the Directors of the Company hereby state and confirm that:

• In the preparation of the annual accounts for the year, the applicable accounting standards had been followed along with proper explanations and there were no material departures;

• The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

• The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• The Directors had prepared the annual accounts on a going concern basis.

Fixed Deposits

The total deposits with the Company as on 31st March 2009 was Rs. 136.15 million (Rs. 141.33 million as on 31st March 2008) which include deposits for an aggregate of value of Rs. 4.64 million (Rs. 6.94 million as on 31st March 2008) not claimed by the depositors. Out of these deposits, an aggregate value of Rs. 0.63 million have since been repaid / renewed.

Directors

As per the provisions of Articles of Association of Company, four Directors of the Company viz., Smt. Sangita Reddy, Shri Deepak Vaidya, Shri P. Obul Reddy and Shri Rafeeque Ahamed retires by rotation at the ensuing Annual General Meeting and are eligible for re-appointment.

Shri. Habibullah Badsha resigned as a Director with effect from 1st December 2008 and joined the Board subsequently with effect from 30th January 2009.

New Directors

The Board of Directors at its meeting held on 30th January 2009 appointed Shri Michael Fernandes, as an Alternate Director to Shri Khairil Anuar Abdullah.

Auditors

The Auditors, M/s. S. Viswanathan, Chartered Accountants, retire at the ensuing Annual General

Meeting and have confirmed their eligibility and willingness to accept office, if re-appointed.

Particulars of Employees as per section 217(2A) of the Companies Act, 1956.

Particulars of Employees required under Section 217(2A) of the Companies Act, 1956 and the Companies (Particulars of Employees) Rules, 1975 as amended forms part of this report and attached herewith as Annexure B.

Particulars regarding Conservation of Energy, Technology Absorption and Foreign Exchange

Earnings and Outgo.

Particulars as required to be disclosed as per the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are set out in the statement attached herewith as Annexure C.

Acknowledgement

Your Directors wish to place on record their appreciation of the contribution made by the employees at all levels, to the continued growth and prosperity of your Company.

Your Directors also wish to place on record their appreciation of business constituents, banks and other financial institutions, shareholders of the

Company for their continued support.

For and on behalf of the Board of Directors

Place : Chennai Dr. Prathap C Reddy
Date : 29th June 2009 Executive Chairman

Annexure-A to the Directors’ Report

Details of Utilization of Proceeds of Preferential Issues up to 31st March 2009.

(Rs. in crores)
Particulars As on 31st March 2009
Opening Balance of Mutual Funds as on 1st April 2008 357.00
Funds received through Preferential Issues (from 1st April 2008 to 31st March 2009)
(i) Allotment of Equity Shares to Promoter on 22nd August 2008 (90% of the total issue) 61.74
Total Funds received 418.74
Particulars of Utilization/Deposits
New Projects 55.10
Expansion of existing facilities 29.95
Investment into equity/loans to group companies 21.38
Capital Expenditure & Working Capital 72.31
Balance amount parked in Mutual Funds / Subscription of Debentures / Deposits 240.00

Annexure B to the Directors’ Report

Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 and forming part of the Directors’ Report.

SI. No. Name Age Designation Gross Remuneration (Rs. in lakhs) Qualification Experience in Years Date of Joining Details of Previous Employment
(A) Employed throughout the year
1 Atul Ahuja 37 Sr.General Manager – Merchan- dising 30.61 MBA, PGDP 13 15-Jun-07 Senior Product Manager Oracle Corp.
2 Binod Madhab Samal 40 Vice President Corporate- IT 41.70 B.Tech, P.G. Diploma in Mgmt. & P.G.Diploma in Industrial Mgmt. 14 8-Apr-04 Marico Industries, Manager & GE – Asst. Vice President
3 G. Dasaratharama Reddy 54 Sr. General Manager – Finance 26.05 B.Com, CA 30 13-Oct-95 Hyundai Electronics of America
4 George Eapen 58 Chief Executive Officer 39.89 B.Sc, DHMCT 35 12-Jul-99 Assistant Vice President in Reliance Petro- leum Limited
5 T. Karunakar 42 General Manager – HR 24.04 MSW 18 28-Jan-02 Indian Hotels
6 R. Krishnakumar 45 Head Investor Relations 30.89 B.Com (Hons), C.A., ICWA – Intermediate 23 20-Jun-07 Chief Financial Officer, Apollo Hospitals International Limited
7 Dr. M.K. Mani 73 Chief Nephrolo- gist 34.39 MD,FAMS, FRCP(EDIN) 50 16-Jan-84 Physician, Renal Unit, Sydney Hospitals, Chief Nephrologist, Jaslok Hospital, Mumbai
8 G. Narotham Reddy 49 Vice President – Materials 30.40 M.Sc., PGDMM 25 1-Feb-84 -
9 S. Obul Reddy 47 General Manager – Finance & Legal 33.23 B.Com, B.L, 21 16-Aug-90 -
10 K. Padmanabhan 57 Group President - Corporate Planning & Marketing 101.08 B.Com, PGDIA, MBA 37 1-Jul-96 Vice President & Chief Executive Officer of the Bicycles Division of Tube Investments Ltd
11 Dr. K. Prabakar 55 Vice President – HR 37.91 B.Sc., DSSA (PM & IR), B.L.,Dip. TD, Dip L.A.L, Ph.D 31 12-Feb-86 Personnel Manager – Om Sindoori Hotels, Chennai
12 Dr. Prathap C Reddy 77 Executive Chairman 862.14 MBBS, FRCS 43 Since inception Practicing as a Cardiologist in USA and India
13 Preetha Reddy 52 Managing Director 344.85 B.Sc., M.A 28 3-Feb-89 Chief Executive-Indian Hospitals Corporation Ltd
14 Y.V. Raghava Rao 37 Vice President – Inter- national Business 27.12 B.Com, MBA one year program in Intl.Business 12 16-Sep-02 Euro Discover Technology Venture Ltd
15 P.B. Ramamoorthy 54 General Manager – Pharmacy 29.28 B.Sc, M.B.A, PGDMM 30 3-Jan-85 True Biscuits, Marketing Executive
16 K. Ravichandran 40 Vice President – Projects 30.46 B.Tech, Chemi- cal, MBA 17 7-Jul-2000 Manager- IFCI Ltd
17 Sangita Reddy 47 Executive Director – Operations 86.21 B.Sc. 25 31-Jul-2000 Managing Director, Deccan Hospitals Corporation Ltd
18 V. Satyanarayana Reddy 48 Chief Executive Officer 40.90 B.Sc (Agri), MBA,Mphil 24 17-Apr-89 -
19 C. Sreethar 51 Chief Operating Officer 31.57 B.Com, DPIM 29 31-Oct-84 -
20 Suneeta Reddy 50 Executive Director – Finance 215.53 B.A 26 1-May-2000 Jt. Managing Director, Indian Hospitals Corporation Ltd
21 S.K. Venkataraman 49 CFO & Company Secretary 46.20 B.Sc – Applied Science, ACS, FCA and AIII 25 25-Feb-91 Asst. Manager – Taxation in Shriram Fibres Limited, New Delhi
22 S. Venkatraman 50 Chief Executive Officer - Projects 42.68 B.Com, MBA 28 13-Dec-07 President & CEO, Sterling Add Life India Ltd
23 V. Venugopal 46 Senior General Manager – Finance 34.63 B.Sc, CA, ICWA 22 13-Jul-87 -
(B) Employed for part of the year with an average salary above Rs. 2 lakhs per month.
24 Chandra D Sharma 64 President 34.77 B.E (Mech), PGDBA (IIMA), SEP (Stanford) 36 1-Oct-07 Managing Director, Boots, East Africa
25 C. Chandrasekhar 40 Group President – Marketing 12.46 MBA (Market- ing), Advance Management Course, ISB Hyderabad 17 1-Jan-09 Apollo DKV Insurance Company Limited
26 David S Nevill 48 Sr.Presi dent – Business Develop- ment 40.18 MBA 19 15-Jun-06 President and CEO in Wesley Medical Centre, Wichita, Kansas
27 Lalit Varma 46 Vice President – Projects 12.80 B.Tech Civil Engineer- ing General Management Program 23 17-Nov-08 General Man- ager - Health Care Proj- ects- Reliance Industries Ltd, Mumbai.
28 Pradeep Thukral 46 Group Head – Inter- national Marketing 24.92 Mechanical Engg/Bachelor of Arts & MBA 26 18-Aug-08 Head Corporate Marketing - IMCL Apollo Hospital, Delhi & Associated VP & Head Inter- national Business - Wockhardt Hospitals Group
29 Dr. Shenoy Robinson 49 Chief Operating Officer Special Projects 28.59 MBBS / Post Graduation in Anesthesiology 21 16-Jun-08 President - CATEX- The institute for catalysing excellence, DMS - Apollo Hospitals Dhaka
30 Sri Harsha G 42 Chief Learning Officer 15.89 PG Dip.in IRBM 19 4-Oct-99 Manager, Oberoi Hotels, Hyderabad
31 Vivek Kamath 47 Chief Executive Officer 15.05 M.Sc., MMS 25 1-Aug-06 Senior Vice President LG Life Sciences (I) Pvt Ltd.

Note:

(i) Dr. Prathap C Reddy, Executive Chairman, Smt. Preetha Reddy, Managing Director, Smt. Suneeta Reddy, Executive Director – Finance, Smt. Sangita Reddy, Executive Director – Operations are relatives.

(ii) For Sl.No. 12, 13, 17 & 20 remuneration calculated based on net profits of the company, in accordance with the provisions of Companies Act, 1956 and as approved by the members at General Meetings.

(iii) For other Sl. Nos. (except mentioned in Note No.2) remuneration includes basic salary, allowances, taxable value of perquisites etc. The term remuneration has the meaning assigned to it in the Explanation to Section 198 of the Companies Act, 1956.

Annexure C to the Directors’ Report

Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo.

Conservation of Energy

The operations of the Company are not energy-intensive. However, significant measures are being taken to reduce energy consumption by using energy-efficient equipment.

The following energy-saving measures were taken during the year:

1. Conventional light fittings were replaced with energy-efficient CFL light fittings.

2. Existing manual power factor panel has been automised to maintain optimum power factor, thus resulting in reduction in overall energy bill.

3. Adopting VFD drive AHUs with heat recovery wheel.

4. Adopting centrifugal pumps with VFD drive and with plant manager in Central AC plant.

5. Reutilizing heat recovery from Central AC plant chillers for primary feeding to Steam boilers.

6. Automization of raw water supply with Hydro-pneaumatic system for water pumping.

Your Company constantly evaluates and invests in new technology to make its infrastructure more energy efficient.

As energy costs comprise a very small part of your Company’s total expenses, the financial implications of these measures are not material.

Technology Absorption

Over the years, your Company has brought into the country the best that the world has to offer in terms of technology. In its continuous endeavour to serve the patients better and to bring healthcare of international standards within the reach of every individual, your Company has introduced the latest technology in its hospitals.

This dynamic volume CT scanner was commissioned at Apollo Heart Centre, Chennai in November 2008. The revolutionary CT technology shortens the diagnosis of cardiac and stroke patients to a fraction of the usual time. It enables study of arterial and venous blood and organ function in real-time 3D clarity with less radiation and contrast doses to the patient. The wide coverage detector with 320 row and 0.5 mm thick elements can scan an entire organ like heart or brain in a single rotation within 0.5 seconds. The efficacious performance of the system has been proven in the large number of cases completed since inception.

2. Cyberknife radio surgery system

This robotic controlled linac system from ACCURAY, USA, was commissioned at Apollo Speciality Hospital, Chennai in February 2009. This is the most advanced model in the Asia-Pacific region and has already attracted a number of foreign patients preferring this sophisticated system for cancer treatment. This non-invasive technique is able to treat all tumors previously considered inoperable. Anaesthesia is not required as the treatment is painless, lasting between 30 and 45 minutes per sitting and can be completed as an outpatient procedure. The total number of sittings is reduced to 3-5 as compared to 25-30 sittings in the conventional technique. The real time image guidance system along with tumor tracking software ensure that any tumor or patient motion

3. Novalis radio surgery system

This first-of-its-kind system in India, procured for Apollo Hospitals, Hyderabad, is the result of synergy of the latest technologies from Brainlab and Varian, including Rapid arc technique. Brainlab’s network-based infrastructure includes Exac-Trac X-ray 6D which offers highly precise image guidance and automatic positioning for initial set-up and snap verification during treatment. The Varian on-board imaging device is useful for pin-pointing the tumor and positioning the patient with sub-millimeter accuracy. This system utilizes high-resolution X-rays to pin-point internal tumor sites seconds before treatment,robotically corrects patient set-up errors and tracks any patient movement throughout the treatment. Using the Rapid arc procedure, treatment is delivered in a single rotation of the gantry around the patient within 2 minutes. Precisely sculpted 3D dose distribution with a 360-degree gantry rotation is achieved using dynamic high-resolution multileaf collimator, variable dose rate and variable gantry speed. The advantage of Novalis TX is that it can be used for both single stage and fractionated radio surgery and conformal intensity modulated radiotherapy.

Foreign Exchange Earnings & Outgo

Foreign Exchange Earnings : Rs. 195.89 million (This is exclusive of Rupee payment made by NonResident Indians and Foreign Nationals) Foreign Exchange Outgo : Rs. 1,082.07 million

   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Apollo Hospitals 8,526.78 38.98 4.09 16.26 11.2 14.0 0.44
Fortis Health. 4,059.90 80.81 1.35 31.76 6.0 6.1 0.37
Indrapr.Medical 321.30 11.88 2.02 5.35 21.6 25.5 0.37
Poly Medicure 275.19 12.96 3.54 9.11 31.6 27.8 0.53
Transgene Biotek 186.46 42.95 0.78 136.43 0.1 0.6 0.10
Kovai Medical 108.31 7.99 2.13 7.93 26.6 15.7 3.30
Fortis Malar 51.12 7.28 1.52 5.37 19.4 23.6 0.55
Emed.com Techno 46.71 0.00 11.28 0.00 0.0 0.0 0.00
Regency Hospital 46.71 17.76 1.66 6.43 9.2 14.4 0.92
Secund. Health. 45.18 147.14 0.98 70.60 0.3 0.4 0.00
Dr Agarwal's Eye 29.77 15.49 2.58 4.93 19.0 18.9 2.86
KMC Speciality 28.54 0.00 2.46 29.41 0.0 0.0 1.94
Span Diagnostics 27.66 0.00 1.02 4.83 18.5 22.3 0.79
N G Inds. 23.57 9.74 1.93 6.32 12.5 17.2 0.00
Advanced Micron. 20.86 30.15 1.03 5.00 6.9 11.8 0.64

Futures & Options Quote

 
Expiry Date
NA
Instrument: NA
Expiry Date: NA
Strike Price: NA
Open Price: NA
Average Price: NA
No. of Contracts Traded: NA
Open Interest: NA
Underlying: NA
Option Type: NA
Market Lot: NA
Previous Close: NA
Day’s High | Low: NA | NA
Turnover (Cr.): NA
Open Int. Change: NA | NA
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Key Information

Key Executives:

Prathap C Reddy , Executive Chairman 

Preetha Reddy , Managing Director 

Suneeta Reddy , Joint Managing Director 

Sangita Reddy , Executive Director (Operation) 


Company Head Office / Quarters:
19 Bishop Gardens,
Raja Annamalaipuram,
Chennai,
Tamil Nadu-600028
Phone : 91-044-28277447/4749-54/28290956
Fax : 91-044-28290956
E-mail : investor.relations@apollohospitals.com
Web : http://www.apollohospitals.com
Registrars:
Integrated Enterprises (I) Ltd
Kences Tower
2nd Floor No 1
Ramakrishna Street
Chennai - 600 017

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