Apollo Hospitals rallies 5%, hits new record high on strong Q1 revenue

The consolidated revenue grew 31% QoQ and 73% YoY at Rs 3,760 crore

Shares of Apollo Hospitals Enterprises hit a new record high of Rs 4,264, ralling 5 per cent on the BSE in the intra-day trade on Monday, after the company reported a strong 31 per cent quarter on quarter (QoQ) growth in consolidated revenue at Rs 3,760 crore for the quarter ended June 2021 (Q1FY22). On a year-on-year (YoY) basis, consolidated revenues rose 73 per cent from Rs 2,172 crore.

The healthy revenue growth was mainly driven by hospital segment, which grew 26.2 per cent QoQ to Rs 1,941 crore, while revenue from the pharmacy distribution segment grew 35 per cent QoQ to Rs 1,512 crore.

In Q1FY22 occupancy across the group was at 5,108 beds (67 per cent occupancy) as compared to 2,742 beds (38 per cent occupancy) in Q1FY21. The Q1FY22 occupancy in mature hospitals was at 3,500 beds (64 per cent occupancy). New hospitals had an occupancy of 1,607 beds (73 per cent) occupancy) in Q1FY22, Apollo Hospitals said.

The company further said average revenue per occupied bed or ARPOB (excluding vaccination) was at Rs 41,102 compared with Rs 38,065, registering a growth of 8 per cent in Q1FY22 as compared to the previous year.

Ebitda (earnings before interest, taxes, depreciation, and amortization) margins de-grew 53 basis points (bps) QoQ to 13.8 per cent mainly due to lower gross profit margins, which is attributable to case mix, ICICI Securities said.

"After Covid related hindrances last year, the healthcare business is more or less back to normalcy albeit due to Covid traction. Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals and Apollo Health & Lifestyle Limited (AHLL) remain key management focus areas. The pharmacy business remains a steady growth engine albeit in a changed structure," the brokerage firm said in a note.