Apollo Hospitals Enterprise Ltd Q1 FY23 Result Updates. Strong revenue growth in hospitals business.
Apollo Hospitals Enterprise Ltd Q1 FY23 Result Updates.
Strong revenue growth in hospitals business.
Apollo Hospitals Enterprise Ltd reported net profit of Rs. 223.78 crores, down by 35.2% YoY from Rs. 500 crores in June 2021.
Consolidated revenue from operations during the quarter under review stood at Rs 3,795.6 crore as against Rs 3,760.21 crore in the year-ago period
Total expenses during the quarter were higher at Rs 3,545.36 crore as compared to Rs 3,475.58 crore.
Apollo reported subdued set of numbers for Q1FY23. While on a YoY basis the growth was flat, however on QoQ basis there was growth of 7%.
Higher expenses to hamper margins.
EBITDA margin for Q1FY23 decreased by 90 bps YoY respectively. EBITDA margin stood at 12.9%. Occupancy across the group was 60% in Q1FY23. ARPOB (excluding vaccination) was Rs 51,999 in Q1FY23 as compared to Rs 41,102 in Q1FY22 registering growth of 27%. ALOS for Q1FY23 was 3.38 days. During the quarter, Healthcare services posted an EBITDA margin of 23.9%, Pharmacy has margin of -1.6% (after adjusting for 24×7 operating costs) and AHLL—10%. Inpatient Volumes across the group increased by 9% from 115,902 in Q4FY22 to 126,511
The combined pharmacy business degrew by 1% YoY. The private label sales in the Pharmacy Distribution business was 10.3% during the quarter. Apollo 24/7 had a GMV of Rs 215 cr in Q1FY2023 and the company is on track to deliver GMV of 1500 cr in FY22-23. For Apollo 24/7, number of orders are 35k per day as compared to 25k in Mar Q1FY22.
AHLL showed very impressive topline growth and the margins have also improved on a YoY basis. Lot many collection centres in the diagnostics vertical have been added during this period and home collection has also improved. The diagnostics business within AHLL degrew by 5% over Q1FY22. Expansion of network and phlebotomist count continues. B2C segment is now contributing to 55% of revenue. After 3 years the contribution is expected to rise to 60%. Rs 1000 cr revenue. Despite lower vaccine sales, revival in primary and secondary care, along with continued strong performance in diagnostics led to AHLL EBITDA of Rs 294 mn.
Q1FY23 saw increase in Average revenue per occupied bed (ARPOB)s for the mature and new hospitals of Apollo. The proportion of local patients being treated in Apollo Hospitals continued to improve. There has been an improvement in EBITDA margins of new and existing hospitals both on a YoY and QoQ basis. The management is guiding for robust mid-teens growth and 20% yoy growth in hospitals and pharmacies respectively, in FY23. For hospitals, the management is also guiding for margin expansion of 150- 200 bps yoy in FY23, led by improved mix and cost optimization. IP Volumes across the group grew by 9% QoQ. Mature hospital volumes grew 13% QoQ, while new hospitals volumes grew by 1% QoQ in Q1FY23. Diagnostics and Primary care are being ramped up in AHLL (Apollo Health and Lifestyle Limited). The Diagnostics sub segment registered a degrowth of 23%YoY during the quarter due to high base of Covid. Gross margins at a consolidated level have improved because of less Covid contribution.
The shares of Apollo Hospitals Enterprise Ltd
are trading at Rs. 4059.50, up by 1.46%.
Valuations:
The return on equity (ROE) is 16.6% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 66.4. The return on capital employed (ROCE) for the company is 17.8%. The price to book value of Apollo Hospitals Enterprise Ltd
is 10.4. The EV/EBITDA is 27.7. EPS during the quarter came at Rs. 61.4
