Apollo Hospitals Q3 net up 75.1% yoy at Rs228.37cr on smart top line boost and cost efficiencies

Apollo Hospitals reported 31.85% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs3,639cr. On a sequential basis, the revenues were marginally lower by -2.10%.

During the December 2021 quarter, revenues from the core healthcare services business saw an increase of 40.3% at Rs2,024cr. The pharmacy distribution vertical saw revenues grow yoy by 16% at Rs1,307cr.

The clinics verticals also saw growth of 59% yoy at Rs313cr. The retail pharmacy business has already been transferred to Apollo Pharmacy. During the quarter, the company raised Rs1,170cr via a QIP placement of 46.6 lakh shares at a price of Rs2,511.

For the Dec-21 quarter, the operating profits were up 65.14% at Rs438.03cr. However, on a sequential basis, the operating profits were lower by -6.85%.

In terms of the operating performance of various verticals, the principal healthcare services vertical saw operating profits grow by 102% you at Rs382cr. The clinics vertical was the surprise package with operating profits in the quarter growing by nearly 4-fold at Rs25cr while the pharmacy distribution business saw operating profits fall sharply by -55% at Rs32.1cr on a yoy basis.

The cost of materials and consumables were up 35% yoy but was offset by inventory efficiency gains in the quarter. Operating margins improved from 9.61% in Dec-20 quarter to 12.04% in the Dec-21 quarter. However, the operating margins were about 61 bps lower on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up 75.09% yoy at Rs228.37cr as the strong operating performance in the quarter got transmitted to the bottom line. Other Expenses escalated sharply in the quarter .

PAT margins improved from 4.73% in the Dec-20 quarter to 6.28% in the Dec-21 quarter. The PAT margins were lower by 49 bps on a sequential basis.