Q1FY24 Preview: Apollo Hospitals Enterprise: Revenue seen at Rs. 45,149 million, PAT at Rs. 1,829 million

10 Aug 2023 , 10:56 AM

Result date: 11^th August, 2023

Recommendation: Buy

Target price: Rs. 5,550  

Analysts at IIFL Securities Apollo Hospitals Enterprise could witness decline in patient occupancies. However, continued traction in ARPOB (Average Revenue Per Occupied bed) could aid growth in revenue. Growth in realization is likely to be driven by an improving payer and specialty mix. The company’s revenue could grow 19% over the year-ago quarter and 5% sequentially.

Apollo Hospitals Enterprise could post about 5% growth in EBITDA, both over the year-ago quarter as well as sequentially. However, analysts at IIFL Securities expect increase in EBITDA losses of the 24/7 business to Rs. 2 Billion in the quarter under review, which will restrict the company’s overall consolidated EBITDA growth.

The company’s Profit After Tax or PAT could grow 7.3% over the year-ago quarter and 26.6% sequentially.

	June 2023 estimates	QoQ change	YoY change
Bed occupancy (%)	62.9%	(36) bps	345 bps
ARPOB (Rs ‘000 per day)	54.8	3.0%	6.8%
Revenue (Rs. mn)	45,149	4.9%	19.0%
EBITDA (Rs. mn)	5,150	5.5%	4.9%
EBITDA margin	11.4%	6 bps	(152) bps
Profit After Tax (Rs. mn)	1,829	26.6%	7.3%

Source: IIFL Research