Apollo Hospitals Q1: Net profit dips over 47% to Rs 167 crore, revenue rises 16%

Apollo Hospitals Enterprise on Friday posted a larger-than-anticipated decline of 47.5 per cent in its first-quarter profit on Friday, citing operational expenditures linked to its digital healthcare platform.

The consolidated net profit for the quarter ending June 30 dropped to Rs 167 crore. Analysts, whose average forecast was Rs 225 crore, according to Refinitiv IBES data, as quoted in a Reuters report.

In the same period last year, the company's profit of Rs 317 crore was amplified by a deferred tax gain of Rs 155 crore.

Apollo, renowned for overseeing more than 73 private hospitals, pharmacies, and diagnostic clinics across India, disclosed that revenue from its operations witnessed a growth of over 16 per cent, reaching Rs 4,418 crore.

While revenue from its hospitals, comprising 52 per cent of the overall revenue, expanded by nearly 14 per cent, its digital health and pharmacy division, constituting almost 41 per cent of Apollo's revenue, reported a widened loss of 830 million rupees, compared to Rs 46 crore in the prior year.

Aiming to rein in expenses, the Chennai-based hospital chain intends to transform its pharmacy division into a profitable venture by the close of fiscal year 2024, as stated by its finance chief to news agency Reuters last year.

Furthermore, the company's diagnostic business also underwent an escalated loss, expanding to Rs 15 crore due to the absence of Covid-related revenue, in contrast to Rs 60 crore from a year ago.

Detailing the financial landscape, the company explained that total expenses, inclusive of those tied to procurement within its business sphere, escalated by 18 per cent, as revealed on Friday.

Apollo's shares witnessed a dip of up to 2.3 per cent post-results before recouping some losses to conclude at a decrease of 0.7 per cent.