India's Apollo Hospitals posts higher Q2 profit, plans to boost bed count

Max Healthcare Institute

09/11/2023 10:44

By Rishika  Sadam
       HYDERABAD, Nov 9 (Reuters) - India's Apollo Hospitals
Enterprise  APLH.NS  reported a 14% rise in second-quarter
profit on Thursday as more patients visited its hospitals due to
the seasonal flu infections, and the company also laid out plans
to expand its operations.
    The hospital chain's consolidated attributable net profit
rose to 2.33 billion rupees ($28 million) in the quarter ended
Sept. 30, from 2.04 billion rupees, a year ago.
    Apollo, which runs over 70 hospitals across the country with
over 10,000 beds, said revenue from operations rose 14% to 48.47
billion rupees.
    Revenue from hospital services rose 12.7% to 25.66 billion
rupees.
    "Quarterly occupancy rate was at 68%, similar to last year
but a decrease in average length of stay of patients was a boost
to the occupancy in the second quarter," Chief Financial Officer
Krishnan Akhileswaran told Reuters.
    "There was also a good uplift in surgical cases volume,
which was up 7% compared to last year, which can sustain for
next few quarters," he said.
    Akhileswaran said Apollo aims to increase occupancy to more
than 70% over the next few quarters even as it adds 1,170 more
beds by the end of next fiscal year.
    That is part of Apollo's plan, announced on Thursday, to add
2,860 beds over the next three years. It has also expanded its
facilities in Pune and Kolkata through acquisitions, the company
said, without giving further details.
    Earlier this week, Max Health Care Institute  MAXE.NS 
reported a 38% rise in quarterly profit as it earned higher
revenue per bed.
    However Apollo's digital health and pharmacy business, its
second-biggest by revenue with a 40% contribution, continued to
post losses.
    Apollo has said it hopes to turn the cash-guzzling unit,
which offers online consultations and pharmacy under 'Apollo
24/7,' profitable by end of financial year 2024.  urn:newsml:reuters.com:*:nL4N34V26L
    Apollo's shares closed 3.7% higher after the results.
 
 ($1 = 83.2800 Indian rupees)

 (Reporting by Rishika  Sadam; Editing by Savio D'Souza)
 ((Rishika.S@thomsonreuters.com;))