Business
Apollo PAT up 60% on robust growth across businesses
NEW DELHI: Apollo Hospitals reported a 60% growth in consolidated net profit to Rs 245 crore for the quarter ended December 31, driven by a better payor mix and higher volumes in the hospitals business, as well as robust pharmacy and diagnostics operations.
The hospital business for now will not be impacted with the `cashless everywhere’ initiative kicking in last month, its chief financial officer Krishnan Akhileswaran told TOI, in a post-results interaction on Thursday.
The consolidated revenues jumped by 14% y-on-y to Rs 4,851 crore, with healthcare services (hospital) growing by 12% to Rs 2,464 crore, Apollo HealthCo (omnichannel pharmacy) 17% to Rs 2,049 crore, and Apollo Health and Lifestyle (diagnostics and retail) revenues up 8% to Rs 338 crore.
“Apollo is neutral (to it) as we are cashless completely across all our hospitals. It’s more at the fragmented level– across nursing homes and smaller hospitals, where the cashless facility was not there, and many of them were working on reimbursements. Those will see a shift in the way people will access healthcare”, Akhileswaran said.
Our payor mix is 50% from retail or out-of-pocket payments, while the balance is from insurance, he said.
It’s the right step in the right direction. Insurance companies will have to ensure payments happen between 15-30 days, he added.
Medical value tourism now contributes 7% to the hospital’s turnover, up from 4% from the pre-Covid level. The company plans to take it up to 10% over the next few years.
The hospital chain with a presence in metros and non-metros has an average ARPOB (average revenue per occupied bed) of Rs 56,000, with an average length of stay at 3.3 days.
The average ARPOB from hospitals at metros is higher, at Rs 69,000.
Around 30% of the hospital business comes from non-metros.
During the quarter, Apollo HealthCo that houses pharmacy distribution and digital healthcare services platform, Apollo 24/7, achieved EBITDA break-even. As of December, it had 5,790 stores, with the digital business contributing about 10% of sales. The group will continue to focus on an omni-channel strategy.
The GMV on digital is around Rs 2500-3000 crore for this year, with the company planning to double it over 12-18 months, he said.
The hospital business for now will not be impacted with the `cashless everywhere’ initiative kicking in last month, its chief financial officer Krishnan Akhileswaran told TOI, in a post-results interaction on Thursday.
The consolidated revenues jumped by 14% y-on-y to Rs 4,851 crore, with healthcare services (hospital) growing by 12% to Rs 2,464 crore, Apollo HealthCo (omnichannel pharmacy) 17% to Rs 2,049 crore, and Apollo Health and Lifestyle (diagnostics and retail) revenues up 8% to Rs 338 crore.
“Apollo is neutral (to it) as we are cashless completely across all our hospitals. It’s more at the fragmented level– across nursing homes and smaller hospitals, where the cashless facility was not there, and many of them were working on reimbursements. Those will see a shift in the way people will access healthcare”, Akhileswaran said.
Our payor mix is 50% from retail or out-of-pocket payments, while the balance is from insurance, he said.
It’s the right step in the right direction. Insurance companies will have to ensure payments happen between 15-30 days, he added.
Medical value tourism now contributes 7% to the hospital’s turnover, up from 4% from the pre-Covid level. The company plans to take it up to 10% over the next few years.
The hospital chain with a presence in metros and non-metros has an average ARPOB (average revenue per occupied bed) of Rs 56,000, with an average length of stay at 3.3 days.
The average ARPOB from hospitals at metros is higher, at Rs 69,000.
Around 30% of the hospital business comes from non-metros.
During the quarter, Apollo HealthCo that houses pharmacy distribution and digital healthcare services platform, Apollo 24/7, achieved EBITDA break-even. As of December, it had 5,790 stores, with the digital business contributing about 10% of sales. The group will continue to focus on an omni-channel strategy.
The GMV on digital is around Rs 2500-3000 crore for this year, with the company planning to double it over 12-18 months, he said.
