Apollo Hospitals exceeds Q2 profit forecast on strong demand for healthcare services
Written By : Ruchika Sharma
Published On 2024-11-07 06:00 GMT | Update On 2024-11-07 06:00 GMT
Bengaluru: Apollo Hospitals Enterprise exceeded profit expectations for the second quarter, with increased demand for healthcare services driving strong results. The company's consolidated net profit rose by nearly 63% year-over-year to 3.79 billion rupees ($45 million) for the quarter ending September 30, surpassing analysts' average estimate of 3.64 billion rupees, according to data from LSEG.
Hospital chain operators such as Apollo and Max Healthcare have been focused on improving their occupancy rates by adding new beds and accommodating more expensive elective surgeries.
The Chennai-based hospital chain said it had 7,994 operating beds as of September end and its overall occupancy rose to 73% during the second quarter from 68% last year.
The company's investments in new technology in oncology and neurology therapies, made in the last three quarters, has resulted in higher surgery volumes in these areas, group CFO Krishnan Akhileswaran told Reuters.
This helped its revenue from the healthcare services business - which contributes more than half its total revenue - rise 14%, pushing up overall revenue by 15% to 55.89 billion rupees. Analysts, on average, expected revenue of 55.13 billion rupees.
The company's digital health and pharmacy vertical, which offers online consultations and operates the 'Apollo 24/7' platform, reported a profit of 389 million rupees, compared with a loss a year ago, further boosting the hospital chain operator's margins.
This segment was helped by a drop in losses in the pharmacy vertical, which the company is confident to break even in the next five to six quarters, Akhileswaran said.
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