Apollo Hospitals Enterprise shares jumped more than 6% on Thursday, November 7, to hit a record high of Rs 7,433.65 apiece, on the back of strong earnings for the July-September quarter.
At 1:30 AM, Apollo Hospitals shares were trading at Rs 7,395.85 apiece on the NSE.
The hospital chain operator reported a 59% increase in its consolidated net profit to Rs 395.70 crore for the quarter ending September 2024. In comparison, the company had reported a net profit of Rs 248.80 crore in the same quarter a year ago.
On the other hand, Apollo’s revenue grew by over 15% to Rs 5,589.30 crore in the second quarter of the ongoing fiscal, up from Rs 4,846.90 crore in the same period last year, on the back of increased demand for healthcare services, which led to mid-teens growth across all segments.
The company’s performance exceeded analyst expectations, with estimates pegging net profit and revenue at Rs 361 crore and Rs 5,518 crore, respectively.
Meanwhile, Apollo HealthCo, the company’s digital health and pharmacy division, reported a profit of Rs 38.90 crore this quarter, compared with a loss during the same period last year. The division, which operates the ‘Apollo 24/7’ platform, also contributed to margin expansion in the quarter.
Another factor that worked well for the healthcare company was improved occupancy. To be sure, its occupancy in its hospital business and stronger segmental performance supported its margin growth.
For instance, Apollo’s EBITDA margin increased to 14.16% for the quarter, up from 12.9% year-on-year. At the same time, occupancy for its flagship hospitals stood at 73%, up from 68% a year earlier due to higher patient inflows.
Moreover, the company has announced plans to expand its footprint, with a 500-bed hospital in Mumbai and a 200-bed expansion in Lucknow, as part of its strategy to add over 3,500 beds across 11 locations in India over the next four years.
