On Consolidated basis, Revenues grew by 13% YoY to Rs 944.5 crore for the quarter ended March 2013. However, EBIDTA margins fell by 100 bps YoY to 14.8% and after this EBIDTA grew by moderate 6% YoY to Rs 139.5 crore. Also, PAT grew by sharp 53% YoY to Rs 69.2 crore for the same period.

• Lower than Usual sales growth in Q4 – Impacted by Holidays: The Sales grew by 14% YoY to Rs 848.29 crore for the quarter ended March 2013. The slightly lower than usual growth (generally 20% run rate) impacted due to the extended holidays during the quarter. However, the management indicated that it is one-off quarter and the sales growth expects to be normalizing going forward. Also, the Hospitals grew by 11% YoY to Rs 562.68 crore and Pharmacy business grew by 20% YoY to Rs 285.87 crore for the same period.
• Slight dip in Margins – EBIDTA grew by 9%: The margins fell by 50 bps YoY to 15.7% on the back of higher staff cost (60 bps YoY) and Selling and Distribution expenses (90 bps YoY) despite the fall in other expenses (110 bps YoY) and consumption cost (20 bps YoY) as percentage to sales and net of stock adjustments. Eventually, Operating profit grew by 11% YoY to Rs 132.79 crore. After the 29% fall in other income to Rs 4.56 crore, EBIDTA grew by 9% YoY to Rs 137.35 crore.
• Sharp fall in Tax rate – PAT grew by 20%: With the higher interest cost (34% YoY to Rs 20.79 crore) and depreciation (20% YoY to Rs 28.87 crore), PBT grew by flat 1% YoY to Rs 87.69 crore. However, after the sharp fall in effective tax rate by 1270 bps YoY to 19.1%, PAT grew by 20% YoY to Rs 70.98 crore. After adjusting for EO gain related to the profit on sale of the Company's equity investment in Apollo Health Street (erstwhile Associate) PAT after EO grew by 27% YoY to Rs 75.52 crore.
• Bed Capacity @ 8420 and Added 139 Pharmacy stores: It has 51 hospitals with total bed capacity of 8420 beds as on March 31, 2013. It has 38 owned hospitals including JVs/ Subsidiaries and associates with 6382 beds and 13 Managed hospitals with 2038 beds. Notably, of the 6382 owned beds, 5549 beds were operational and had occupancy of 72%. It also commissioned 200-bed multi-specialty hospital at Aynambakam in Chennai and 140-bed Ortho & Spine specialty hospital in Bangalore in Q4 and entered into long term lease of Lifeline Hospital facility in OMR, South Chennai ( 170 beds ). Further, The total number of pharmacies as on March 31 2013 was 1503 and Gross additions of 215 stores with 76 stores closures thereby adding 139 stores on a net basis.
• Plans to add 1000 beds in FY'14 – Capex to be Rs 450 crore: It Plans to come up with the 300 beds across 3 hospitals in Chennai, 170 beds in OMR South Chennai (Life Line Facility lease), 60 beds Women & Child hospital (adjacent to Apollo Children's hospital), 45 beds Women & Child hospital (OMR) during the quarter. Also, 180 beds in Malleswaram, Bangalore and 525 beds across 3 Reach hospitals - 200 beds at Nellore, 200 beds at Trichy and 125 beds at Nasik. The Capex was Rs 300 crore for the FY'13 and expected to be Rs 450 crore for the FY'14.
• Revenue Mix – Healthcare up by 11% and Pharma up by 20%: The sales from the core Healthcare Services (66% of total) grew by 11% YoY to Rs 562.68 crore for the quarter ended March 2013. At segment level, margins fell by 60 bps YoY to 17.6% and accordingly segment profit growth moderated to 7% YoY to Rs 99.04 crore. Also, the Sales from the Pharmacy business grew by 20% YoY to Rs 285.87 crore for the quarter ended March 2013. Also, margins improved by 20 bps YoY to 1.7% and accordingly segment profit grew by robust 34% YoY to Rs 4.87 crore for the same period.

Standalone Yearly Performance:

The Sales grew by 18% YoY to Rs 3317.79 crore for the year ended March 2013. Also, OPM marginally improved by 10 bps YoY to 16.7% and after this OP grew by 19% YoY to Rs 553.56 crore. After the 11% growth in other income to Rs 31.03 crore, PBIDT grew by 19% YoY to Rs 584.59 crore. With the higher interest cost (up by 14% YoY to Rs 72.63 crore) and depreciation (19% YoY to Rs 108.52 crore), PBT was up by 20% YoY to Rs 403.44 crore. However, after the sharp fall in effective tax rate by 710 bps YoY to 24.5% PAT grew by 32% YoY to Rs 304.58 crore. Further, after adjusting for EO gain Rs 4.54 crore PAT after EO gain grew by 34% YoY to Rs 309.12 crore.

• Chennai Cluster: The total net revenues grew by 13% YoY to Rs 998.7 crore for the year ended March 2013 on the back of strong growth from the Inpatient revenues (14% YoY to Rs 761.9 crore) and Outpatient Revenues (11% YoY Rs 236.8 crore) on account of 3% inpatient volume growth and 11% outpatient volume growth respectively. Notably, the Number of operating beds increased to 1237 beds (as against 1159 beds), Where as the Occupancy has declined to 74% (compared 75%), but ARPOB (Rs/day) increased to Rs 29996 (as against Rs 27853) for the same period.
• Hyderabad Cluster: The Total net revenues grew by 13% YoY to Rs 411.8 crore for the year ended March 2013 on the back of good growth from Inpatient Revenues (12% YoY to Rs 340.5 crore) and Outpatient Revenues (13% YoY to Rs 71.3 crore) on account of 8% inpatient volume growth and 2% outpatient volume growth for the same period. Notably, the Operating beds remained at 930 beds, whereas Occupancy is improved 66% (as against 62%), ARPOB improved to Rs 18280 (as against Rs 17307) and ALOS improved 4.55 days (as against 4.64 days) for the same period.
• Other and Significant Subs/Jvs/Associates: The total net revenues from the Subs/Jvs/Associates grew by 16% YoY to Rs 1274.7 crore for the year ended March 2013 on the back of robust 18% growth in revenues and 7% growth in outpatient revenues for the same period. Also, the total net revenues from the others grew by 25% YoY to Rs 433 crore for the quarter ended March 2013 on the back of 26% inpatient revenues growth and 20% outpatient revenues growth for the same period.

• The scrip was down by 1.98% to Rs 976.4 at BSE, India and currently trading at 45 times to the FY'13 EPS Rs 21.9.

Other Information:

• The Board has recommended a dividend of Rs 5.50 per share (110%) of face value of Rs 5 each share for the financial year 2012-2013.

Dr. Prathap C Reddy, Chairman said, "Our focus on Patient Service having Clinical outcomes as the nucleus is not only a way of life but a reason for our existence, this is supplemented by our robust DNA of operational excellence thereby enabling us to ensure consistent and Industry leading financial performance for over three decades. Going beyond continuous improvement, we have looked at value addition and innovation in all that we do."

He added, "Aligned with the Disease burden of the nation, we have built a scientific expansion strategy of commissioning over 1,000 beds across seven locations in the coming year. Internal resources have also been upgraded to execute on this plan on time and on budget. This would add to our commendable achievement that we just passed of touching a million patients per Quarter"

Suneeta Reddy – Joint managing Director stated "Ahead of the impending legislation on CSR, I am delighted to state that our allocation towards multiple community programmes such as SACH (Save a Childs Heart), exceeds the proposed 2%.