Q2FY24 Preview: Apollo Hospitals Enterprise: Revenue seen at Rs. 49,039 million, PAT at Rs. 2,415 million

2 Nov 2023 , 11:38 AM

Result date: November 9, 2023

Recommendation: Buy  

Target price: Rs. 5,750

Historically, September quarter has been better for hospitals owing to the seasonality factor.  This time though, this benefit will be lower owing to weak monsoons.

Analysts at IIFL Securities expect the company’s revenue to grow 15% over the year-ago quarter and 11% sequentially. They expect sequential improvement in occupancies due to the seasonality factor. At the same time they expect Average Revenue Per Operating Bed (ARPOB) to be lower on a sequential basis. Losses of Apollo 24/7 have been in the range of Rs. 1.8-1.9 billion over the past 3 quarters and analysts at IIFL Securities assume it to reduce as compared to the year-ago quarter.

The company’s Profit After Tax (PAT) could grow 18% over the year-ago quarter and 45% sequentially.

Rs. Million	September 2023 estimates	YoY change	QoQ change
Revenue	49,039	15.4%	11.0%
EBITDA	6,030	6.6%	18.5%
EBITDA margin (%)	12.3%	(100) bps	77 bps
Profit After Tax	2,415	18.4%	45.0%

Source: IIFL Research