India's Apollo Hospitals beats Q2 profit view on strong healthcare services demand (updated)

Apollo Hospitals Enterprise

06/11/2024 10:36

(Adds details paragraph 3 onwards)
       Nov 6 (Reuters) - India's Apollo Hospitals Enterprise
 APLH.NS  topped second-quarter profit expectations on
Wednesday, driven by higher demand for its healthcare services.
    The hospital chain operator's consolidated net profit surged
nearly 63% year-on-year to 3.79 billion rupees ($45 million) in
the quarter ended Sept. 30, beating analysts' average estimate
of 3.64 billion rupees, as per data compiled by LSEG.
    Hospital chain operators such as Apollo and Max Healthcare
 MAXE.NS  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. 
    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. 
    Apollo Hospitals' shares ended flat ahead of results. They
climbed about 16% during September quarter.
 
 ($1 = 84.2760 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio
D'Souza and Eileen Soreng)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))