Apollo Hospitals Q2 Results: PAT Surges 26% YoY to Rs 477 Crore
Apollo Hospitals Enterprise Ltd, India’s largest integrated healthcare provider, announced a 26% year-on-year (YoY) jump in consolidated Profit After Tax (PAT) to Rs 477 crore for Q2 FY24, up from Rs 379 crore in Q2 FY23. The strong performance was led by growth across its hospitals, pharmacy, and digital health divisions.
Key Financial Highlights
- Revenue up 14% YoY: Consolidated revenue rose to Rs 4,853 crore (vs. Rs 4,250 crore in Q2 FY23).
- EBITDA margin expands to 12.3%: Improved from 10.8% YoY, driven by cost efficiency.
- Hospital segment grows 15%: Contributed 60% of revenue, with higher occupancy and ARPOB.
- Pharmacy & digital health rise: Pharmacy revenue grew 12%, while Apollo 24/7 saw strong telemedicine adoption.
Growth Drivers
- Increased patient volumes: Post-pandemic recovery boosted surgeries and OPD visits.
- Cost optimization: Better procurement and staffing improved margins.
- Digital health expansion: Apollo 24/7 saw higher consultations and diagnostics demand.
- Brand strength: Trusted reputation attracted more patients and corporate partnerships.
Management Insights
Dr. Prathap C. Reddy, Founder & Chairman:
“Our Q2 results reflect India’s growing healthcare demand. We’re expanding hospitals and digital solutions to serve more patients.”
Suneeta Reddy, Managing Director:
“EBITDA margin growth shows our operational focus. We’re confident in sustaining momentum via new beds and digital upgrades.”
Analyst Reactions & Market Performance
Shares rose 3% post-earnings, with brokers upgrading targets due to Apollo’s leadership in India’s healthcare sector.
Challenges & Risks
- Cost pressures: Rising labor and medical supply costs.
- Competition: Rival chains and digital platforms.
- Regulatory changes: Potential policy shifts.
Future Strategies
- Add 2,200 beds in Tier-2/3 cities by 2026.
- Scale Apollo 24/7 with AI diagnostics.
- Expand preventive care offerings.
Conclusion
Apollo Hospitals’ strong Q2 underscores its market leadership. With hospital expansions and digital innovation, it’s poised for long-term growth in India’s booming healthcare industry.
