Apollo Hospitals' net sickens; misses street expectations

Healthcare facilities provider Apollo Hospitals Enterprise has posted its Q1FY17 results wherein the top line witnessed growth but net profits were eaten up on increased non-operating expenses. The company operates nearly 7000 beds, and has added 1600 beds in the recent quarter.

The stock of Apollo Hospitals opened on a positive note and traded higher until the results were out. The stock corrected post results to close marginally up with 0.66 per cent at Rs 1357.7 levels. The stock has been trending in consolidation since January 2015.

Company’s year on year revenues have come in at Rs 1465.43 crores in this quarter as against Rs 1264.96 crores in Q1FY17, an increase of 15.8 per cent. Revenues from Healthcare services stand at Rs 833.09 crores as against Rs 786.6 crores, with an increase of 5.9 per cent. Revenues from Pharmacy segment have grown 21.8 per cent to Rs 632.47 crores.

Company’s EBITDA has come in at Rs. 186.88 crores as against Rs. 181.05 crores, an increase of 3.2 per cent. Net profits, however, have fallen by 20.6 per cent to Rs 72.17 crores as compared to Rs 90.84 crores in the corresponding quarter of previous year, driven by increased interest expenditure.

The quarter on quarter results show that Company’s revenues have risen by 5 per cent which was Rs 1396.26 crore in the previous quarter. EBITDA of company has risen 1.7 per cent from Rs 183.83 crore QoQ. Net profit has fallen 4.7 per cent from Rs 284.76 crore.