Apollo Hospitals shares are in the spotlight today as the company releases its financial results for the July-September 2024 quarter. Analysts expect solid growth across all areas of the business, with revenue likely to rise around 14% year-over-year and profit anticipated to jump by 54%, according to Kotak Equities.
The hospitals segment is forecast to see a 13% increase in sales due to higher patient volumes and occupancy rates. However, Average Revenue Per Occupied Bed (ARPOB) growth might slow slightly due to a focus on secondary procedures. HealthCo, Apollo’s healthcare and pharmacy distribution unit, is expected to show a 15% sales increase, supported by new stores and growth in its 24/7 service.
EBITDA (earnings before interest, tax, depreciation, and amortization) could increase by 14% to ₹720 crore for the quarter, helped by higher volumes in specialty services and lower operating expenses in Apollo 24/7. However, the EBITDA margin might dip slightly year-over-year due to higher costs for clinical staff and marketing.
Offline pharmacies are expected to keep up their strong growth with a 17-18% increase year-over-year. Motilal Oswal predicts that Apollo Health will see 7.8% growth in revenue and a 40% jump in EBITDA, supported by rising foot traffic and a focus on omni-channel services.
In the previous quarter (April-June 2024), Apollo Hospitals reported a consolidated net profit of ₹305 crore, up 83% from the previous year, with revenue increasing 15% to ₹5,086 crore. Investors will be looking closely at the outlook for GMV (Gross Merchandise Value) in Apollo 24/7 and for updates on expansions at facilities in Gurugram, Hyderabad, Kolkata, Pune, and Mysore.
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