Q3FY23 Preview: Apollo Hospitals Enterprise: Revenue seen at Rs 43,817 million, PAT at Rs 2,237 million

9 Feb 2023 , 10:20 AM

Result date: 14^th February, 2023

Recommendation: Buy

Target price: Rs 5,150

Apollo Hospitals Enterprise could post revenue growth of 20% over the year-ago quarter and 3% sequentially. Store addition and higher sales from existing stores could drive strong growth in pharmacy revenue.

EBITDA margin though could decline both over the year-ago quarter and sequentially during the quarter. Analysts at IIFL Capital Services expect Apollo’s growth momentum to sustain across all verticals, thereby leading to 17% EBITDA CAGR for the company over FY22-25.

Profit After Tax (PAT) could decline 2% over the year-ago quarter, but grow 10% sequentially.

Important management insights to watch out for:

• Update on stake dilution in Healthco
• Momentum of services provided on online Apollo 24/7 platform

	December 2022 estimates	YoY change	QoQ change
Revenue (Rs mn)	43,817	20%	3%
EBITDA (Rs mn)	5,674	(3)%	0%
EBITDA margin	12.9%	(318) bps	(35) bps
Profit After Tax (Rs mn)	2,237	(2)%	10%

Source: IIFL Research