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Apollo Hospitals Q1 net declines 51% at Rs 35 cr

The total income has seen an increase of 14.3% to Rs 1,680 cr

Gireesh Babu  |  Chennai 

Apollo Hospital

Apollo Hospitals Enterprise Ltd has posted a decline of 51.2 per cent in net profit at Rs 35.21 crore during the quarter ended June 30, 2017, as compared to Rs 72.17 crore during the same quarter of previous fiscal.

The total income has seen an increase of 14.3 per cent to Rs 1,680.71 crore during the quarter as against Rs 1,469.66 crore during the corresponding quarter of the previous financial year.

The decline in net profit is mainly due to the impact of higher depreciation and interest costs on the over 2,000 new beds created in the last 3 years, the benefits of which will be visible in higher in the next 2-3 years, said the company.

Prathap C Reddy, chairman of the company said that with over 2,400 new beds added in the last 3 years and it has plans to expand operations in specialities like Oncology, Neurosciences, and It has launched an integrated hospital in Guwahati, expanding its presence in Northeast part of the country.

He said that the regulatory environment in the country around Healthcare has of late become a bit challenging, but the company hope the Government will acknowledge the contribution made by the private sector in making available the best global medical advancements at a fraction of the global costs.

"We are looking to the government to create an enabling environment both on the financial and regulatory front: continuing tax breaks for Infrastructure creation, Zero-rating GST for Hospital services, higher FSI for hospitals within city limits, are some measures that need to continue. Every bed created, has the potential to create 5-6 direct jobs and several times over indirect jobs," he added.

Post the effects of demonetisation felt in last two-quarters of the previous fiscal year, volumes have seen a general pickup especially in mature hospitals, like Chennai Main, Hyderabad, Mysore, and Bhubaneshwar during the quarter ended June 30, 2017, which is a positive sign.

Besides, and Vizag, its new units, has shown a healthy pick-up in demand and on the back of strong doctor recruitment and marketing efforts, Nellore and Nashik as well have shown good Quarter-on-Quarter revenue growth, stated the company.

Overall occupancy across the group was at 4,278 beds or 62 per cent, while the occupancy in mature hospitals was at 3,414 beds or 63 per cent. New hospitals had an occupancy was at 865 beds or 55 per cent, it added.

Revenue from healthcare services experienced a growth at Rs 920.39 crore during the quarter compared to Rs 833.09 crore during same period last year. Pharmacy revenue also grew by Rs 764.21 crore as against Rs 632.47 crore during the same quarter of previous year.

Three of the independent directors of the company — Habibullah Badsha, Raj Kumar Menon and Rafeeque Ahamed — has resigned from the board given their existing professional commitments, with effect from August 14, 2017, said the company.

First Published: Mon, August 14 2017. 16:53 IST