Occupancy (Overall)
62%
+2pp YoY
Overall occupancy improved from 60% in Q1 FY23, with mature hospitals at 63% and new hospitals at 60%.
APOLLOHOSP
Healthcare
09 Aug 2023
Apollohosp Ltd — Q1 FY24
Apollo Hospitals reported a solid Q1 FY24 with consolidated revenue of INR 4,418 crore (+16% YoY) and EBITDA of INR 509 crore (+4% YoY).
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Apollo Hospitals reported a solid Q1 FY24 with consolidated revenue of INR 4,418 crore (+16% YoY) and EBITDA of INR 509 crore (+4% YoY). Healthcare services grew 13% YoY, driven by a 6% increase in IP volumes and an 11% ARPOB improvement to INR 57,760. Insurance revenue mix improved to 44% of IP revenues. The pharmacy distribution business grew 24% YoY, while Apollo 24|7 GMV surged 189% YoY to INR 623 crore, with operating losses narrowing to INR 57 crore. Management reiterated guidance for Apollo 24|7 to achieve operational breakeven by Q4 FY24 and for combined pharmacy to reach INR 10,000 crore revenue with 6% EBITDA margins. Key risks include slower-than-expected occupancy ramp-up in new hospitals and margin pressure from investments in clinical talent and marketing.
अपोलो हॉस्पिटल्स ने पहली तिमाही में अच्छा प्रदर्शन किया। कंपनी की कुल कमाई 4,418 करोड़ रुपये रही, जो पिछले साल से 16% ज्यादा है। मुनाफा (EBITDA) 509 करोड़ रुपये रहा, जो 4% बढ़ा। अस्पताल सेवाओं में 13% का इज़ाफा हुआ, क्योंकि मरीजों की संख्या 6% बढ़ी और प्रति बिस्तर कमाई 11% बढ़कर 57,760 रुपये हो गई। बीमा से आने वाली कमाई का हिस्सा 44% तक पहुंच गया। फार्मेसी कारोबार 24% बढ़ा, जबकि अपोलो 24|7 की बिक्री 189% बढ़कर 623 करोड़ रुपये हो गई, और इसका घाटा घटकर 57 करोड़ रुपये रह गया। कंपनी को उम्मीद है कि अपोलो 24|7 साल के अंत तक बराबर आएगा, और फार्मेसी कारोबार 10,000 करोड़ रुपये तक पहुंचेगा। जोखिम: नए अस्पतालों में मरीजों की संख्या धीमी बढ़ सकती है और नए डॉक्टरों व विज्ञापन पर खर्च से मुनाफा कम हो सकता है।
Key Numbers
ARPOB
INR 57,760
+11% YoY
Average revenue per occupied bed increased 11% YoY, driven by case mix improvement and tariff hikes.
Apollo 24|7 GMV
INR 623 crore
+189% YoY
Gross merchandise value grew sharply YoY, though sequentially it was flat due to discount rationalization.
Insurance Revenue Mix
44%
+19pp YoY
Insurance now contributes 44% of total IP revenues, up from ~25% pre-COVID, reflecting payer mix improvement.
Management Guidance
Apollo 24|7 operational breakeven by Q4 FY24
Management reiterated that Apollo 24|7 is on track to achieve operational breakeven in Q4 FY24, with EBITDA loss narrowing to INR 57 crore in Q1.
Management guidance growthCombined pharmacy revenue target of INR 10,000 crore with 6% EBITDA margin
Management guided for combined pharmacy (offline + online) to reach INR 10,000 crore revenue and 6% EBITDA margins, with 500-600 new store additions planned for FY24.
Management guidance revenueOccupancy target of 70% without additional CapEx
Management expects to reach 70% occupancy over time without requiring significant capital expenditure, leveraging existing capacity.
Management guidance growthDiscount rationalization to 13-14% range for online pharmacy
Management guided that online pharmacy discounts will remain in the 13-14% range for the rest of FY24, with offline discounts at 12-12.5%.
Management guidance marginsKey Risks
Occupancy ramp-up slower than expected
Overall occupancy at 62% remains below the 70% target, with new hospitals at 60% and some regions like Tamil Nadu seeing muted volumes due to seasonal factors.
medium · management_commentaryMargin pressure from new store additions and clinical investments
Combined pharmacy EBITDA margins are under pressure due to 20% of stores yet to reach breakeven, and new hospitals face margin drag from doctor hiring and marketing costs.
medium · management_commentaryApollo 24|7 GMV growth may be impacted by discount reduction
The decision to reduce discounts and filter low-value orders led to a sequential decline in pharmacy GMV, and achieving the INR 3,000 crore GMV target may be challenging.
medium · analyst_questionIndraprastha Medical lease renewal uncertainty
Management deferred providing an update on the lease renewal for Indraprastha Medical, which could impact future operations and expansion plans.
low · analyst_questionNotable Quotes
We are pleased to commence FY2024 on a positive note with a strong Q1, characterized by continued growth in top line, improved volumes and payer mix, meaningful network additions, and further growth in the user base for our digital offerings.
The business is on track to achieve operational break-even in Q4 2024.
I think we should be able to hit the target of 3,000. Very early in the stage to kind of say that, you know, we'll not be able to hit.
Frequently Asked Questions
What was Apollohosp's revenue in Q1 FY24?
Apollohosp reported revenue of ₹4,418 Cr in Q1 FY24, representing a +16% change compared to the same quarter last year.
What guidance did Apollohosp management give for FY25?
Apollo 24|7 operational breakeven by Q4 FY24: Management reiterated that Apollo 24|7 is on track to achieve operational breakeven in Q4 FY24, with EBITDA loss narrowing to INR 57 crore in Q1. Combined pharmacy revenue target of INR 10,000 crore with 6% EBITDA margin: Management guided for combined pharmacy (offline + online) to reach INR 10,000 crore revenue and 6% EBITDA margins, with 500-600 new store additions planned for FY24. Occupancy target of 70% without additional CapEx: Management expects to reach 70% occupancy over time without requiring significant capital expenditure, leveraging existing capacity. Discount rationalization to 13-14% range for online pharmacy: Management guided that online pharmacy discounts will remain in the 13-14% range for the rest of FY24, with offline discounts at 12-12.5%.
What are the key risks for Apollohosp in FY25?
Key risks include Occupancy ramp-up slower than expected — Overall occupancy at 62% remains below the 70% target, with new hospitals at 60% and some regions like Tamil Nadu seeing muted volumes due to seasonal factors.; Margin pressure from new store additions and clinical investments — Combined pharmacy EBITDA margins are under pressure due to 20% of stores yet to reach breakeven, and new hospitals face margin drag from doctor hiring and marketing costs.; Apollo 24|7 GMV growth may be impacted by discount reduction — The decision to reduce discounts and filter low-value orders led to a sequential decline in pharmacy GMV, and achieving the INR 3,000 crore GMV target may be challenging.; Indraprastha Medical lease renewal uncertainty — Management deferred providing an update on the lease renewal for Indraprastha Medical, which could impact future operations and expansion plans..
Did Apollohosp meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Apollohosp Q1 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.