Apollo Hospitals Enterprise Ltd plans to increase its revenue by over 30% to ₹25,000 crore within the next three years. Dr. Madhu Sasidhar, the CEO, says the company will focus on expanding into smaller cities and improving occupancy rates.
“We see a lot of potential for growth, especially in tier-two cities,” Sasidhar told Mint. “With more people getting health insurance and preferring quality hospitals like ours, we believe there’s room to grow both in big cities and smaller towns.”
Currently, Apollo’s hospitals are at 68% occupancy overall, with metro locations at 70% and non-metro locations at 65%. The goal is to boost the occupancy rate to 70% by focusing more on non-metro areas.
To support this expansion, Apollo will invest ₹3,400 crore over the next three years to add more hospital beds. They plan to grow in cities like Gurugram, Hyderabad, Kolkata, Pune, and Bengaluru. As of the first quarter of FY25, Apollo had 7,942 beds, with 4,535 in metro areas.
In the first quarter, Apollo reported a net profit of ₹305.2 crore, an 83% increase from the previous year. Revenue from operations rose 15% to ₹5,085.6 crore. This aligns with Bloomberg’s analyst estimates. The company’s shares have also increased by more than 36% over the past year.
Volume Growth and Expansion
Apollo’s hospitals saw an 11% increase in inpatient volume and a 13% rise in new outpatient registrations. The company operates in healthcare services, diagnostics, retail health, and digital health.
The EBITDA (earnings before interest, tax, depreciation, and amortization) rose 33% to ₹675 crore, with a margin of 13.27%.
Apollo Health and Lifestyle Ltd, which offers primary care and diagnostics, reported a revenue increase of 15% to ₹366 crore but a loss of ₹10.2 crore. The HealthCo business, which includes pharmacy distribution and digital health, also posted a loss of ₹12.9 crore, despite a 15% revenue increase to ₹2,082 crore.
Overall, Apollo’s revenue from operations for FY24 was ₹19,059 crore.
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