Apollohosp Ltd — Q3 FY24
Apollo Hospitals reported a strong Q3 FY24 with consolidated revenue of INR 4,851 crore (+14% YoY) and EBITDA of INR 614 crore (+21% 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.
75%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Margin trajectory for hospital segment over next few quarters
Asked by Damayanti Kerai, HSBC
Gave a target of 200 bps margin improvement but did not specify exact timeline or quantify new hospital impact.
no timeline for 200 bps improvementdeferred guidance on new hospital EBITDA losses
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Question
My first question is on margin trajectory for hospital segment. ... Can you elaborate how should we look at this margin profile over the next few quarters because you have a couple of hospitals commencing operation in FY 2025?
Krishnan Akhileswaran, Group CFO
Internally, we would like to believe that there is an opportunity to increase the margins by at least 200 basis points over the next few quarters.
Evasive
Medium priority
Plans for 24/7 platform including fundraise or IPO
Asked by Damayanti Kerai, HSBC
Did not address IPO or fundraise specifics, only said 'open to the idea'.
no specific planvague on timing
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Question
So what's the plan for this? Are you still looking for fundraise, or do you want to put out a separate IPO, etc.? So any plan for 24/7 in, say, the next two to three years?
Suneeta Reddy, Managing Director
So currently, 24/7 in terms of cash, it's self-sustaining. So it does not require a cash infusion. But we are looking at maybe at some time, if we require some cash, we are open to the idea.
Answered
High priority
24/7 GMV guidance for FY24 and next year, impact of break-even on growth
Asked by Kunal Dhamesha, Macquarie
Provided revised GMV guidance for FY24 and growth outlook for next year.
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Question
So the first question on the 24/7 GMV guidance that we had for FY 2024 of around INR 3,000 crore, we have roughly done INR 2,000 crore plus here to date. So what is our expectation for Q4 and the next year?
Krishnan Akhileswaran, Group CFO
I think we should be able to hit something like INR 2,750 crore to about INR 2,800 crore. ... We expect to continue to show robust growth, anything between 60%-70% for the next year also versus this year.
Partial answer
High priority
Healthcare services revenue growth guidance for FY24 and next year
Asked by Kunal Dhamesha, Macquarie
Revised FY24 growth to 14% but did not give specific next year number.
revised guidance down from 15% to 14%no specific next year guidance
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Question
Now, I think seasonality would not matter on a year-to-date basis, right? So where are we seeing this growth for FY 2024 now for the healthcare services business, and what is the outlook for the next year?
Suneeta Reddy, Managing Director
So I think we are targeted to grow at 15%. ... So leaving out holidays, I think we are confident of achieving at least 14% growth for the healthcare services.
Answered
Medium priority
Pharmacy business margin improvement excluding 24/7 cost
Asked by Bino Pathiparampil, Elara Capital
Explained margin improvement due to cost controls and lower discounts.
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Question
You commented a bit on the pharmacy business margin improvement that is excluding the 24/7 cost. I can see that the other expenses have overall come down quarter-over-quarter a bit. The margin is up compared to last few quarters. Anything changing there?
Obul Reddy, CFO of the Pharmacy Division
Well, I think we have last year, we have informed you that we are interested in the infrastructure required to create online services, and the costs were a little high. As business matures, we have planned those controls, and then you can see that improvement in the margin.
Answered
Medium priority
Reason for delay in commissioning of Pune hospital expansion
Asked by Neha Manpuria, Bank of America
Explained delay due to building superstructure for future expansion.
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Question
If I look at the timeline for Pune, from what I remember from the previous presentation, this was mentioned in the first quarter, but we have seemed to have delayed it to the later part of the fiscal. Any specific reason, I mean, of the significant delay in commissioning of that project?
Suneeta Reddy, Managing Director
So the current hospital project, we have 220 beds, but we have the capacity to add another 200 beds. So we are building the superstructure so that we can gradually add 100 beds every year post this year.
Answered
High priority
Break-even for 24/7 achievable with existing services or need new ones
Asked by Neha Manpuria, Bank of America
Clearly stated that new verticals are needed and provided timeline for them.
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Question
And my second question on 24/7 and the comment that you mentioned of achieving break-even in six to eight quarters, would that be possible with the existing services that we have in 24/7, or would that target require us to add more services to the platform?
Krishnan Akhileswaran, Group CFO
I think the first one, it has to be a mix of the new set of verticals also which provide you better margin. ... digital therapeutics, insurance, and app monetization, these are the three segments which would give you a better margin line.
Partial answer
Medium priority
Slow growth in AHLL segments other than diagnostics, outlook for double-digit growth
Asked by Shyam Srinivasan, Goldman Sachs
Gave qualitative outlook but no quantitative growth target.
no specific growth rate givenblamed transition and Chennai floods
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Question
Just first, one on AHLL. Apart from diagnostics, I think the other segments of it have been slow growth for the nine-month, even for quarter three. Anything that we need to keep in mind? Is there a would we see an outlook where it goes back to a double-digit growth for the other segments as well?
Sriram Iyer, CEO of Apollo Health and Lifestyle Limited
We are confident that we should go back to double-digit growth starting the next financial year.
Answered
Medium priority
GMV split for 24/7 platform in Q3
Asked by Shyam Srinivasan, Goldman Sachs
Provided clear percentage breakdown of GMV components.
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Question
Last question is on the GMV split. If you could give us some breakdown on what are the key line items in the GMV.
Krishnan Akhileswaran, Group CFO
INR 658 crore of GMV for Q3 is about 50% on the pharmacy, about 35% is the IP/OP, which is the funnel to the hospitals, and the rest about 20% is towards the diagnostic and the consultation.
Partial answer
High priority
Offline pharmacy growth and profitability outlook for next couple of years
Asked by Nitin Agarwal, DAM Capital
Provided growth rate but refused to quantify profitability improvement.
no specific profitability guidancedeclined to give exact number
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Question
On the offline pharmacy, can you give us a nine month growth number for the offline business and the outlook that we have for the growth and profitability for this piece for the next couple of years?
Obul Reddy, CFO of the Pharmacy Division
Our offline business has grown at 19.4%, and we continue to grow around 20%-22%. ... Profitability, we have improved a lot. It will improve further, but I can't guide you with the exact number.
Answered
Medium priority
Clarification on omnichannel pharmacy revenue and 24/7 revenue split
Asked by Dheeresh Pathak, White Oak
Clarified that omnichannel excludes 24/7 and provided digital revenue figure.
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Question
So there on the right-hand side, you mentioned omnichannel pharmacy revenue, right, which is INR 2,583 crore. ... So obviously, there is some 24/7 revenue also in here, but the bulk of the difference is the front-end Apollo Pharmacy, right? That is the way to understand, right?
Obul Reddy, CFO of the Pharmacy Division
We exclude the 24/7 revenue. ... Digital revenue is in the same slide, you can refer to digital revenue of INR 325 crore.
Answered
Medium priority
Impact of 100% cashless health insurance on hospital industry and Apollo
Asked by Kunal Dhamesha, Macquarie
Clearly stated no negative impact and explained potential positive effect on receivables.
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Question
This proposed move to the 100% cashless health insurance. What could be the impact on the hospital industry, and specifically for Apollo?
Sriram Iyer, CEO of Apollo Health and Lifestyle Limited
For us, I don't see any impact coming out of this, any negative impact coming out of this because all our insurance businesses are all cashless.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| FY24 digital GMV guidance revised to INR 2,750-2,800 crore | ₹2,800 cr | ₹4,851 cr | Understated vs filing |
| Next year digital GMV growth expected 60%-70% | 70% | 14% | Overstated vs filing |
| Healthcare services revenue growth at least 14% for FY24 | 14% | 14% | Matches filing |
| Offline pharmacy business grew 19.4% in nine months | 19.4% | 14% | Overstated vs filing |
| Offline pharmacy growth outlook 20%-22% | 22% | 14% | Overstated vs filing |
| Q3 24/7 GMV of INR 658 crore | ₹658 cr | ₹4,851 cr | Understated vs filing |
| Digital revenue for Q3 is INR 325 crore | ₹325 cr | ₹4,851 cr | Understated vs filing |
| 24/7 IP/OP and diagnostics revenue about INR 15 crore for Q3 | ₹15 cr | ₹4,851 cr | Understated vs filing |
| Omnichannel pharmacy EBITDA margin currently at 5.85% | 5.85% | 13% | Understated vs filing |
| Diagnostics revenue expected INR 470 crore for FY24 | ₹470 cr | ₹4,851 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.