Apollohosp Ltd — Q1 FY25
Apollo Hospitals delivered a strong Q1 FY25 with consolidated revenue of INR 5,086 crore (+15% YoY) and EBITDA of INR 675 crore (+33% YoY).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Link between inpatient volume pickup and insurance coverage increase?
Asked by Binay Singh, Morgan Stanley
Management directly confirmed the link and provided context across geographies.
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Question
We've seen a nice pickup in the inpatient volumes. At the same point, we are also seeing a sharp pickup in the insurance coverage. Like, in the last call, we called it out to 40%-43% is insurance cover. This time it's around 47%. So are they two in some ways linked?
Krishnan Akhileswaran, Group CFO
We are seeing insurance growth actually happening across. It's not necessarily connected only to the urban locations. And we are seeing it across both Tier One and Tier Two locations as we speak.
Partial answer
High priority
Is the 7% ARPOB outlook visible after election and monsoon?
Asked by Binay Singh, Morgan Stanley
Management gave a qualitative positive but did not confirm if 7% is on track.
no specific ARPOB number givenvague timeline
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Question
When we talk about ARPOB, 7% outlook for the year, and we've said that we do expect the case mix to improve in the coming quarter, is that already visible to us after the, as we are sort of getting out of this election season and moving out of, the monsoon season?
Krishnan Akhileswaran, Group CFO
July has been good, and I think we should be able to see better pickup in this quarter.
Answered
Medium priority
Reason for sequential margin drop in diagnostics?
Asked by Binay Singh, Morgan Stanley
Management explained seasonality and investments as reasons for margin drop.
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Question
Anything else you want to call out for, the sequential margin drop that we've seen in the diagnostic side?
Sriram Iyer, CEO, Apollo Health and Lifestyle
It was a bit of a seasonal impact that we had. And, I think, we have also made certain investments on adding specialty manpower and focusing on, some of the segments that we are not present earlier.
Answered
High priority
Does margin expansion depend on occupancy improvement given insurance headwind?
Asked by Neha Manpuria, Bank of America
Management listed specific levers and did not rely solely on occupancy.
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Question
You mentioned 100 basis points margin expansion over the next 3 or 4 quarters. You know, plus the fact that, you know, it seems like increasing insurance penetration could be a headwind for ARPOB. So would this margin expansion essentially depend on our ability to improve occupancy from here?
Suneeta Reddy, Managing Director
I think there are three levers for margin expansion. The first, of course, is payer mix... The second is, you know, over a period of time, we will be focusing on international and therefore better ARPOB. The third, of course, is case mix... And of course, there is tariff revision of 4% that will play out within the next four quarters.
Partial answer
High priority
How to balance GMV growth with breakeven target for 24/7?
Asked by Neha Manpuria, Bank of America
Management explained strategy but did not quantify when GMV growth would resume.
no specific GMV growth timelinedeferred to future quarters
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Question
It seems like our GMV is sort of, you know, on a sequential basis, on a very slow growth. I understand we have tweaked the discount rates... How should we think about balancing how we get back GMV growth with the target of achieving breakeven?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
We have changed that operating model from a pure digital kind of an origination to a much stronger omni approach. Give us around another quarter or so for us to get back into a growth path.
Answered
High priority
Revised GMV guidance for 24/7 given slower growth?
Asked by Kunal Dhamesha, Macquarie
Management explicitly stated no revision to guidance.
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Question
I think we had earlier put out a guidance of around 50% growth. And since we are now expecting the growth to start from quarter three, quarter four, is there a revised guidance that we are putting out for this, GMV, for 24 months then?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
No, no, we are not putting... We are on course. It's just that we- see, originally we were expecting the Q2 closure will happen maybe a month here or so, but we are very much on, so we are not revising the guidance from our perspective.
Partial answer
High priority
Why hasn't higher occupancy driven higher profitability?
Asked by Kunal Dhamesha, Macquarie
Management gave reasons but did not quantify when operating leverage would materialize.
deferred to future quartersno quantification of cost absorption
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Question
The volume growth is good this quarter, and it has also led to uptick in occupancy, but the same has not played out in terms of operating leverage, in terms of profitability. Right? So, and ARPOB has also been much lower... why has the higher occupancy not driven higher profitability?
Suneeta Reddy, Managing Director
Higher occupancy not driven higher profitability will start playing out in the next few quarters. Like we said, we have absorbed a lot of, a lot of costs. The second thing that we had mentioned is that we had a lot of medical admissions this quarter, and therefore, you know, medical admissions resulted in an increase of ARPOB of only 2%.
Answered
High priority
Can Apollo 24/7 pre-OpEx EBITDA margin improve further?
Asked by Madhav Marda, Fidelity
Management gave a specific target of 20% in 1-2 quarters.
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Question
If you look at the pre-OpEx EBITDA margin at 13.6%, which you reported in Q1, that seems to be moving up steadily through the past few quarters. Should we think that this number kind of has more legs to improve as we go through rest of FY 2025?
Krishnan Akhileswaran, Group CFO
We expect this to, continue to, you know, move upwards. Would it be 25%? Can't say at this stage, but, you know, we are looking at to, hit a number closer to 20% in next, one to two quarters.
Partial answer
Medium priority
Is ARPOB growth peaking out, with growth driven by volume?
Asked by Tushar Manudhane, Motilal Oswal
Management did not directly address whether ARPOB growth is peaking.
did not directly confirm peakingreframed to inflation and occupancy
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Question
If I look at the region-wise ARPOB growth, like except North, most of the other regions have been muted or, in fact, decline in the ARPOB. So, is this like sort of peaking out in terms of ARPOB growth? And then, so subsequently, the growth would be more driven by the volume, as is reflected in this quarter.
Krishnan Akhileswaran, Group CFO
We would still like to believe that our, the inflation of 4%-5% is something that we will continue to do, and hence, that will start reflecting clearly. The other thing is the function of occupancy as well as ALOS, as I said.
Answered
Medium priority
Impact of Bangladesh situation on international patient revenue?
Asked by Damayanti Kerai, HSBC
Management quantified the exposure and acknowledged the impact.
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Question
What was the contribution from international patients during the quarter? And what kind of impact you're expecting due to change in Bangladesh, which I suppose is one of the largest market for you in terms of international business contribution.
Krishnan Akhileswaran, Group CFO
Bangladesh is about 30% in terms of our international, but as a percentage of our total revenue is about 2%. We've seen some throughout the Q1 and into this quarter, as a combination of elections and the more recent political issues, some drop in volume. We are hopeful that this will come back very quickly.
Partial answer
Medium priority
What explains slower GMV growth of 9% despite pharma AOV growth?
Asked by Shyam Srinivasan, Goldman Sachs
Management cited seasonality but did not provide segment-level numbers.
did not quantify decline in other segmentsattributed to seasonality
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Question
Just going back to the platform GMV growth of 9%, right? The pharma AOV has grown 15%. So is it the other businesses, like consultancy, right, or diagnostics that have declined? So what explains the slower growth?
Krishnan Akhileswaran, Group CFO
Q1 has always been slight. You know, we are seeing that you know IPP transactions also fall down from, you know, the online side a little bit, during Q1. But, I think as far as the diagnostic and the other side of the business is concerned, they were okay.
Evasive
High priority
Confidence in 7% ARPOB growth given higher medical mix?
Asked by Kunal Saraogi, Equirus Securities
Management deflected from the specific 7% ARPOB guidance.
downplayed ARPOB metricrefused to confirm 7% guidance
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Question
We are seeing that the medical, you know, mix was higher in this quarter, but then quarter to quarter three, again, is a higher medical mix because of the overall monsoon seasonality, right? So just trying to understand that, you know, how confident are we in achieving that 7% ARPOB growth?
Krishnan Akhileswaran, Group CFO
ARPOB is not as much a lever for our EBITDA growth... The focus is not on ARPOB. You know, ARPOB is just a derived number. Let's see how it goes during the year. You know, it will be higher than the current levels, and I don't want to guide specifically for that 7% either.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin improved 0.5% QoQ to 23.6% | 23.6% | 13% | Overstated vs filing |
| Pre-OpEx EBITDA margin of Apollo 24/7 at 13.6% | 13.6% | 13% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.