|
Apollo Hospitals announced the results for the quarter ended March 2014 and recently held a conference call to discuss the results and future growth strategies. The key takeaways of the call are as follows.
Highlights of the call:
The Consolidated Revenues up 16% to Rs 4384 crore for the quarter ended March 2014 and PAT was up 4% to Rs 317 crore for the same period.
It has 50 hospitals with total bed capacity of 8617 beds as on Mar 31st 2014. The 39 owned hospitals including JVs/ Subsidiaries and associates with 6684 beds and 11 Managed hospitals with 1933 beds. Of the 6684 owned beds, 5811beds were operational and had occupancy of 71%.
The Company Plans to add 12 more hospitals from the current 39, and 2175 beds to the current 6684 beds by FYf17. The Total estimated Capex for this Rs 2100.2 crore out of this AHEL share is Rs 2032.7 crore, and out of this Apollo has already invested Rs 590.1 crore as on 31st March 2014.
The New Units in initial stages of operations have reported operating losses of Rs 21 crore in FY14.
The major clusters in Chennai and Hyderabad reported y]on]y revenue growth of 11% each for FY14.
The Hyderabad cluster has reported marginal improvement in occupancy of 628 beds (67% utilization on 930 beds) in FY14 as compared to 615 beds (66%) in FY13. More importantly the cluster witnessed EBITDA expansion aided by higher numbers of international patients, focused efforts on case mix rationalization, growth in robotics and transplants as well as cost management.
It adds over 300 beds during the year and planned addition of 1000 beds across 8 hospitals in FY15 is in progress. The Nellore (200 beds) and Nashik (125 beds) are to be commissioned in Q1FY15. It also acquired 51% stake in Indore (125 beds); plans to upgrade to 175 beds in the next 12-18 months.
The Hospitals outside of the Major Cluster also displayed steady progress and improvement in operating parameters.
The Bhubaneswar occupancy at 209 beds (83% utilization on an increased capacity of 250 beds) during the year as compared to 185 beds in FY13. The Revenues grew 23% accompanied by improvement in EBITDA margin. There are an additional 40 beds which are yet to be operationalised at this facility.
The Mysore occupancy increased to 154 beds in FY14 compared to 142 beds in FY13. The Revenues grew 22% with a marginal improvement in EBITDA Margin.
The rationalization of the case mix led to a dip in occupancy at Madurai. However, Revenues grew 11% accompanied by an improvement in the EBITDA margin. The Similar initiatives to rationalize the case mix at Hospitals at Karur and Karaikudi have led to slightly lower occupancy. However, these initiatives have been instrumental in improved operating profile of both these hospitals.
The 140 bed Ortho and Spine Specialty Hospital at Jayanagar, Bangalore has achieved EBITDA breakeven in the last quarter while the 260 bed Multi]specialty hospital at Vanagaram is nearing breakeven. The 200 bed Specialty hospital in Trichy was operationalized in Q3 and is expected to achieve EBITDA breakeven within 12 months from its launch.
The Hospital projects in the Mumbai are in progress and expected to start operations in the FYf16.
During the quarter, it added 71 Pharmacy stores and closed 25 stores for a net addition of 46 stores. It also added 206 stores and closed 77 for a net addition of 129 stores during the year. The total store network stands at 1632 operational stores as of March 31st 2014.
The blended EBITDA margin of Pharmacies increased by 63 basis points from 2.66% in FY13 to 3.29% in FY14. The increasing proportion of Private label products in the revenue mix has helped to mitigate the impact of the Drug Price Control Order. The Standalone Pharmacy segment reported an ROCE in excess of 10% in FY14.
|