• Stable Growth in Sales continues: The revenues growth of 20% to Rs 855.79 crore for the quarter ended December 2012 on the back of 15% growth in Healthcare services coupled with robust 29% growth on the Pharmacies during the quarter. The growth in the healthcare services is on the back of overall healthy growth in volumes and this coupled with healthy performance from Chennai and strong traction from other hospitals.
• Bed Capacity @ 8020 beds with 49 hospitals– to add 15 owned hospitals by FY'15: Apollo Hospitals has 49 hospitals with total bed capacity of 8020 beds as on Dec 31, 2012, with 36 owned hospitals including JVs/ Subsidiaries and associates with 5982 beds and 13 Managed hospitals with 2038 beds. Of the 5982 owned beds, 5332 beds were operational and had occupancy of 75%. It plans to add 15 hospitals (current 36) with 2990 beds (current 5982) by FY'15. It has already invested Rs.506.7 crore of the Rs. 2170.1 crore of its part of total Capex Plans.
• Standalone Pharmacies –EBIDTA Continue to improve: The retail pharmacies witnessed another strong quarter as the Standalone Pharmacies continued to report stellar growth – Q3 revenues grew 29.3% on a y-on-y basis to Rs. 290.54 crore aided by robust same store sales growth, focus on private labels and renewed momentum in expansion of the pan-India network of stores. The SAP continues its EBITDA expansion trajectory during the quarter. It added 53 stores in Q3 FY13 & 7 stores were closed taking the total count of stores to 1445 as on 31st December 2012. It anticipates further improving the standalone Pharmacies performance and valuation further indicated that will take another six months to form any other strategy.
• To establish first Proton Therapy center: It plans to establish a Proton Therapy Center in Chennai. The center, with an approximate investment of Rs. 400 crores (Rs 200 crore for the equipment) is designed with state-of-the-art technology, Proteus PLUS from IBA (Ion Beam Applications S.A.) to provide best-in-class treatment for cancer treatment. This center will be the first of its kind in the region covering Asia, Africa and Australia.

Healthcare Services – Stable Growth Continues: Revenues from the Healthcare services (65% of sales) grew by 15% YoY to Rs 565.27 crore for the quarter ended December 2012. Also, margins were improved 70 bps YoY to 20.1% and accordingly segment profit grew by 19% YoY to Rs 113.38 crore.

Pharmacy – Robust Growth: Revenues from the Pharmacy business grew by robust 29% YoY to Rs 290.54 crore for the nine months ended December 2012. At PBIT level, margins expanded by 90 bps YoY to 1.9% and after this segment profit grew by sharp 150% YoY to Rs 5.46 crore.

Nine Months Performance:

Net sales grew by robust 20% YoY to Rs 2469.50 crore for the nine months ended December 2012. However, margins expended by 30 bps YoY to 17% and after this operating profit grew by 22% YoY to Rs 420.77 crore. After the 24% growth in other income to Rs 26.48 crore, PBIDT grew by 22% YoY to Rs 447.25 crore. With the meager 8% increase in interest cost to Rs 51.84 crore coupled with the 19% rise in depreciation to Rs 79.65 crore, PBT grew by 26% YoY to Rs 315.76 crore. Thanks to the sharp fall in effective tax rate by 550 bps YoY to 26% PAT grew by robust 36% YoY to Rs 233.61 crore.

• Chennai Cluster: Total net revenue grew by strong 14% YoY to Rs 744.8 crore for the nine months ended December 2012 driven by the strong growth from Inpatient revenues (13%) and Outpatient revenues (13%). The inpatient volume growth was mere 3% but outpatient volume was at 11% for the same period. Notably, ARPOB (Rs/day), Inpatient ALOS, Bed occupancy all re improved for the same period. However, the No. of operating beds declined to 1136 beds as on 31^st December 2012 as against the 1194 beds as on 31^st December 2011.
• Hyderabad Cluster: Total net revenue grew by 14% YoY to Rs 309.7 crore for the nine months ended December 2012 driven by good growth from Inpatient revenues (14%) and Outpatient revenues (15%). The Inpatient volume growth was 8% but outpatient volumes were muted for the same period. Notably, ARPOB (Rs/day), Inpatient ALOS, Bed occupancy all are improved for the same period. Also, the number of operating beds remained at 930 beds as on 31st December 2012.
• Others and significant subs/Jvs/Associates: Total net revenue from the Others hospitals grew by robust 28% YoY to Rs 322.5 crore for the nine months ended December 2012 driven by the strong growth from the Inpatient revenues (30%) coupled with the good growth from the outpatient revenues (20%). Also, the Total net revenue from the subs/Jvs/Associates grew by 19% YoY to Rs 941.1 crore for the nine months ended December 2012.

• The scrip hovering at Rs 840 at BSE, India on 11^th February 2013.

Other Information:

• The Consolidated Debt is at Rs 1226.2 crore and Cash & Cash equivalents (includes investment in liquid funds) is at 509 crore as on 31^st December 2012

He added, "The improving performance of our pharmacies business is contributing to balanced growth. The sale of our stake in Apollo Health Street has also strengthened our balance sheet as we are embarking on a never before expansion plan with 14 hospitals scheduled to be added to our network over the next 30 months."