Tuesday, March 5, 2024
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HomeBusinessApollo PAT up 60% on strong growth across businesses - Times of...

Apollo PAT up 60% on strong growth across businesses – Times of India

NEW DELHI: Apollo Hospitals reported 60% growth in consolidated net profits to Rs 245 crore for the quarter ended December 31, driven by better payer mix and higher volumes in the hospital business, as well as strong pharmacy and diagnosis.
The hospital business for now will not be affected by the “cashless everywhere” initiative that came into effect last month, its chief financial officer said. Krishnan Akhileswaran he told TOI, in a post-results interaction on Thursday.
Consolidated revenue increased 14% year-on-year to Rs 4,851 crore, with healthcare services (hospital) growing 12% to Rs 2,464 crore, Apollo HealthCo (omnichannel pharmacy) growing 17% to Rs 2,049 crore, and Apollo Health and Lifestyle (diagnostics and retail) revenue increased 8% to Rs 338 crore.
“Apollo is neutral (on this), as we are cashless in all of our hospitals. It is more at a fragmented level: in nursing homes and smaller hospitals, where the cashless facility was not there, and many of them were working in reimbursements. You will see a change in the way people will access healthcare,” Akhileswaran saying.
“Our payer mix is ​​50% coming from retail or out-of-pocket payments, while the rest comes from insurance,” he said.
It’s the right step in the right direction. Insurance companies will have to ensure payments are made within 15 to 30 days, he added.
Tourism of medical value now contributes 7% of the hospital’s turnover, compared to 4% at the pre-Covid level. The company plans to increase it to 10% in the coming years.
The hospital chain with presence in metro and non-metro areas has an average ARPOB (average revenue per occupied bed) of Rs 56,000, with an average length of stay of 3.3 days.
The average ARPOB of hospitals in metros is higher at Rs 69,000.
About 30% of hospital business comes from non-metropolitan areas.
During the quarter, Apollo HealthCo, which hosts digital healthcare services and pharmacy distribution platform Apollo 24/7, achieved break-even EBITDA. In December it had 5,790 stores and the digital business contributed around 10% of sales. The group will continue to focus on an omnichannel strategy.
He GMV in digital is around Rs 2,500-3,000 crore for this year, and the company plans to double it in 12-18 months, he said.

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