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Revenue
₹4,418 Cr
verified against source
Revenue YoY
16%
reported change
EBITDA
₹509 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
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Quarter read
What the record says.
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.
Colored figures show movement against the previous available record.
Guidance to track
- 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 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 expects to reach 70% occupancy over time without requiring significant capital expenditure, leveraging existing capacity.
- 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%.
Risks flagged
- 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.
- 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.
- 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.
- Management deferred providing an update on the lease renewal for Indraprastha Medical, which could impact future operations and expansion plans.
Key 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.
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