Apollo Hospitals (Q3 FY13)

India Infoline News Service | Mumbai |

Apollo Hospitals recorded standalone revenues growth of 19.7% yoy to Rs.8.5bn, slightly below our estimate of Rs8.8bn.

CMP Rs835, Target Rs900, Upside 7.8% 
  • Apollo Hospitals recorded standalone revenues growth of 19.7% yoy to Rs.8.5bn, slightly below our estimate of Rs8.8bn. Consolidated revenue grew by 22.2% yoy to Rs9.8bn driven by strong growth in retail pharmacy (+29.3%) business.

  • Chennai cluster recorded growth of 11.6% yoy by strong inpatient growth along with ARPOB growth of 9.8% yoy on the back of better case mix and pricing. Hyderabad clusters’ revenues grew by 16.5% yoy. Others cluster revenues grew by 27.1% yoy largely led by 17.8% yoy growth in occupied beds. Even the newer hospitals continued to display steady progress and improvement in operating parameters. The expected date of completion for the 185-bed super specialty Indore facility has been delayed to FY15.

  • Apollo Pharmacies (SAPs) added 53 stores and closed down 7 stores, in Q3 FY13 leading to total capacity of  1,445 operational stores currently. Revenue growth on an overall basis continued to post robust growth (+29.3% yoy to Rs2.2bn) even in Q3FY13. The business also reported further improvements in profitability with an EBITDA margin expansion of 70 bps yoy to 2.7%.

  • The company proposed to offload its 39.4% stake in the BPO associate Apollo Health Street for ~Rs2bn to US based Sutherland Global Services. It intends to use the amount for further expansions.

  • Apollo Munich achieved a gross written premium of Rs3.6bn in Q3 FY13 representing a growth of 37% yoy. Similarly, the earned premium demonstrated traction expanding 44% to Rs1.2bn. The claim loss ratio has been higher at 59.5% in this quarter compared to 58% last quarter. The company has Rs4.7bn assets under management as on date.

  • Consolidated EBITDA was up by 18.9% yoy to Rs1.3bn whereas stadalone operating profit was up by 20.5% yoy to Rs1.5bn. The standalone margin was maintained at 17.1% even with the addition of new beds.

  • Consolidated PAT grew 22.2% to Rs610mn in Q3 FY13 whereas Standalone PAT grew by 24.7% yoy to Rs806mn. The growth was largely led by lower taxes on account of effective tax rate lower at 25%.

Quarterly Business mix
Particulars Q3FY13 Q3FY12 %yoy Q2FY13 % qoq
Income From Each segment        
Healthcare Services 5,653 4,903 15.3 5,589 1.1
Pharmacy 2,905 2,246 29.3 2,776 4.7
Others 80 104 (22.4) 144 (44.1)
Less: Inter-segmental Revenue 0 0 33.3 2 (88.2)
Total 8,638 7,252 19 8,507 2
Profit before Tax and Int          
Healthcare Services 1,134 950 19.4 1,111 2.0
Pharmacy 55 22 150.5 59 (7.0)
Others 80 104 (22.4) 144 (44.1)
Less:Interest 193 157 23.3 188 2.6
PBT 1,076 918 17 1,125 (4)
Capital Employed          
Healthcare Services 28,687 26,888 6.7 26,888 6.7
Pharmacy 3,023 2,935 3.0 2,935 3.0
Others 5,716 5,344 7.0 5,344 7.0
Total 37,426 35,167 6.4 35,167 6.4
Source: Company, India Infoline Research
 
Results table (Standalone)
QUARTERLY -(Rs mn) Q3FY13 Q3FY12 % yoy Q2FY13 % qoq
Net Sales 8,558 7,148 19.7 8,363 2.3
(Inc)/Decrease in stock (402) 8 - (36) -
Material consumption (2,606) (1,869) 39.4 (2,134) 22.1
Purchase of Traded Goods (2,222) (1,855)
BSE 1,190.00 [1.80] ([0.15]%)
NSE 1,190.05 [0.05] (-0%)

***Note: This is a NSE Chart

 

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