Healthcare major Apollo Hospitals Enterprise (AHEL) has reported a 71% growth in its net profit for the quarter ended June 30, 2018 to Rs 60.20 crore, compared with Rs 35.20 crore in the same quarter last fiscal. Q1FY19 standalone revenue grew 16% to Rs 1,910.40 crore compared with Rs 1,650.40 crore in Q1FY18, aided by standalone pharmacies (SAP) growth of 20% and healthcare services growth of 12% y-o-y. Healthcare services growth of 12% y-o-y was led by new hospitals, which reported 23% y-o-y revenue growth while existing hospitals grew 10% y-o-y. Ebitda was at Rs 226.70 crore in Q1FY19 against Rs 173.40 crore in Q1FY18, a y-o-y growth of 31%, the company said in a statement in Chennai.
The strategy around both services pricing as well as cost optimisation has delivered initial results. Healthcare services Ebitda grew 31% y-o-y to Rs 184.90 crore. Existing healthcare services Ebitda margins have improved from 20.4% last year to 21.6% in the current quarter. Apollo Hospitals stands committed to continue on this trajectory to further improve the margins to 23% over the next few quarters. The impact on Ebitda margins from commissioning of new facilities, GST implementation, regulations on stent pricing and knee implants as well as from investments in medical teams has bottomed out.
The recent performance has demonstrated resilience of the business model, which is well diversified across specialties, geographies and maturities. Of the 7,000+ operating beds across the network (excluding AHLL & managed beds), 13 hospitals with 1,650 operating beds are new and the progressive increase in volumes and utilisation in the quarters ahead will aid Ebitda growth and sustain margin expansion through the rest of the fiscal and beyond.