Apollo Hospitals Q2 results: Profit rises 26% to ₹477 cr, misses estimates

India's Apollo Hospitals reported a smaller-than-expected second-quarter profit on Thursday, hurt by higher costs and low occupancy rates. 

The hospital chain's consolidated net profit rose 26 per cent to ₹477 crore ($54.3 million) for the July-September quarter, its sixth straight quarter of profit rise. However, this was below analysts' average estimates of ₹487 crore, as per data compiled by LSEG. 

Medical admissions fell, compared to the same year-ago quarter that had a higher incidence of seasonal medical admissions, the company said in a statement of Thursday. 

"The overall occupancy for hospitals was at 69 per cent (for the quarter) vs 73 per cent in the same period in the previous year," it added. 

Apollo Hospitals, like its peers, has looked to boost its market share by acquiring smaller hospitals and increasing its bed capacity. Total expenses rose 12 per cent to ₹5,690 crore. 

The company, which plans to add nearly 5,000 beds over the next three to four years, forecast double-digit revenue growth for the current financial year. 

Overall revenue for the quarter climbed 12.8 per cent to ₹6,304 crore, surpassing estimates of ₹6,284 crore, aided by a 10 per cent growth in the healthcare services business. The segment contributes more than half of the total revenue.