Apollo Hospitals second-quarter profit jumps 63% on sales and online growth

Apollo Hospitals reported strong September quarter results, with consolidated net profit up 63% year-on-year $379 crore, mainly due to growth in its healthcare services volume and lower losses at its online pharmacy business HealthCo.

The hospital chain reported second-quarter fiscal 2025 results on Wednesday that beat expectations. Its overall comprehensive revenue increased by 15% year-on-year $5,589 Crores Rs. $4,847 crore in FY24. Revenue is expected to be $5,532 Crores Rs. Bloomberg. Profit after tax (PAT) rose to $3.79 billion rupees, a year-on-year increase of 63% $2.33 billion in the same period last year. The company’s Ebitda also increased by 30% year-on-year to $816 Crores.

Consolidated revenue in the company’s healthcare services segment increased 14%, driven by strong volume growth of 8%. As of September 30, 2024, the Apollo hospital network had 7,994 surgical beds. The company said overall hospital occupancy rate was 73%, compared with 68% in the same period last year, driven by strong growth in hospital patient numbers.

HealthCo’s omnichannel pharmacy business, which includes its online platform Apollo 24/7, also posted strong growth of 17%. HealthCo said it had been able to reduce Ebitda losses to $169 Crores Rs. $Online business grew by Rs 100 crore year-on-year during the quarter. Group chief financial officer Krishnan Akhileswaran said the company is on track to achieve its online business break-even target in the next five quarters Mint.

“None of PAT’s expansion is a one-off. We should be able to continue to see this momentum and even move forward,” he added.

Private equity firm Advent International makes first investment in Apollo HealthCo $Rs 1,732 crore has been injected. Advent announces capital injection $In April, the revenue of the Apollo Hospitals Enterprise (AHEL) subsidiary was Rs 2,475 crore. The agreement also includes the merger of Apollo’s wholesale pharmaceutical distribution arm Keimed Pvt. Ltd and Apollo 24/7, the online healthcare business of Apollo HealthCo. Akhileswaran said the balance infusion and merger of Advent is expected to be completed within 12 months.

“Once we merge it into Apollo Healthco, you’ll see a very integrated pharmaceutical platform there… Three years from now, we should be able to acquire the combined Healthco business at a much faster pace. $Revenue at the Rs 25,000-crore level and Ebitda margins of 7-8 per cent,” he added.

The company recently announced that it will add a 500-bed hospital in Worli, Mumbai and expand its existing hospital facility in Lucknow to 500 beds from the current 300 beds. In FY26, the hospital chain plans to add around 1,400 beds in four key markets: Gurgaon, Hyderabad, Pune and Kolkata.

AHEL’s revenue fell 15% in the first half of the year following political unrest in Bangladesh. Dr. Madhu Sasidhar, president and CEO of the hospital division of Apollo Hospitals, said the hospital chain is seeing growing demand for healthcare and medical value tourism in several countries including Africa and the CIS.

“We are seeing demand from Africa, CIS countries and these markets for India and Apollo for high-end differentiated care, such as proton beam therapy, cancer T-cell therapy and complex aortic and cardiac surgeries. ,” Sasidhar Doctor told Mint.

Shares of Apollo Hospitals closed flat on Wednesday ahead of earnings.