Buoyed by a strong performance by the pharmacy chain and newer hospitals, Apollo Hospitals Enterprise has posted a 49 per cent rise in second quarter net profits at Rs 83.2 crore. Standalone revenues for the quarter rose 19.5 per cent (year on year) to Rs 836 crore.
Chairman Prathap C. Reddy said: “The rising maturity of newer facilities and a focus on complex treatments, such as robotic techniques, have led to a balanced growth. The improving performance of our pharmacy and health insurance businesses is also resulting in an improved contribution.”
With the regulatory framework becoming more conducive (opening up of FDI in retail and insurance), Apollo can realise the long-term potential of these businesses, said Reddy.
The pharmacy chain revenues grew 33 per cent to Rs 277 crore, driven by strong same-store sales growth, improved efficiencies, in-house products and store addition, said the company in a release.
Apollo Pharmacies added 56 stores and closed down 14, to end the second quarter with a network of 1,399 operational stores.
The business reported an EBITDA of Rs 8.1 crore, up from Rs 3.8 crore in the corresponding quarter the previous year.
Apollo Munich Health Insurance, the joint venture with German company Munich Health, turned PAT positive in the second quarter, with a net profit of Rs 0.36 crore, compared with the loss of Rs 7.1 crore in the second quarter last year. The business achieved a gross written premium of Rs 214 crore, a growth of 38 per cent.
Revenues of the hospital division (hospitals services and consulting) increased 14 per cent to Rs 558 crore. Apollo’s newer hospitals in Bhubaneswar, Karaikudi and Karimnagar showed good revenue growth and improvement in occupancy rates, said the company.