Apollo Hospitals Enterprise Ltd.’s first-quarter profit fell but beat estimates.
The Chennai-headquartered healthcare group, which replaced Indian Oil Corp. Ltd. in the Nifty 50 index from March 31, reported a net profit of Rs 317 crore in the three months ended June, down 35% over a year earlier, according to its exchange filing. That compares with the Rs 196-crore consensus estimate of analysts tracked by Bloomberg.
While the hospital segment seems to be performing well for the company, the digital business, and clinics and diagnostics segment are a drag on its profitability.
Apollo Hospitals Q1 FY23 Highlights (YoY)
Revenue rose 1% to Rs 3,796 crore, compared with an estimate of Rs 3,868 crore.
Ebitda was down 6% to Rs 491 crore, against the Rs 536-crore forecast.
Margin contracted to 12.9% from 13.8%. Analysts had projected it at 13.9%.
Other Highlights (YoY)
The company’s healthcare division that represents hospitals and hospital-based services saw its operating profits rise 29% to Rs 370 crore.
Its 24/17 Digital, which represents business from various services using the digital platform, has incurred operating losses of Rs 141 crore this quarter. The corresponding losses are not available since it was a part of the pharmacy distribution in June last year.
Pharmacy distribution, which includes the business of procurement and distribution of pharmaceutical, fast-moving consumer goods and private label products, has thereby witnessed growth of 59% in its operating profit at Rs 107 crore.
Segmental operating profit from clinics, which also includes diagnostics, is down 77% to Rs 6 crore.
Shares of Apollo Hospitals closed 1.88% lower before the results were announced, compared with a 0.88% rise in the benchmark Sensex.