On Consolidated basis, The Revenues were up 17% YoY to Rs 1111 crore for the quarter ended September 2013 and PAT was up 7% to Rs 90 Crore for the same period.

• Good Growth – Sales up by 17%: The Sales were up by 17% YoY to Rs 975.07 crore for the quarter ended September 2013 driven by good growth from Hospitals (14%) and Pharmacy business (22%). It has witnessed good QoQ traction in most of large hospitals in both Standalone and Consolidated. The larger units like Ahmedabad, Hyderabad, and Bangalore & Kolkata have improved their performance over Q1. Also, it focus is to aggressively strengthening medical teams in new startups in Vanagaram, Chennai and Jayanagar, Bangalore while adding new specialties too.
• Margins down – EBIDTA growth moderates: The margins went down by 80 bps YoY to 16.4% (impacted by the ne hospitals at Bangalore and Chennai) on the back of higher other expenses (up by 140 bps) despite decrease in Consumption cost (down by 40 bps) and Selling and Distribution costs (down by 30 bps) as percentage to sales and net of stock adjustments. Accordingly, Operating profit grew by 11% YoY to 160.11 crore. Further, the EBIDTA growth moderate to 5% to Rs 165.57 crore on the back of sharp 62% fall in other income to Rs 5.46 crore during the quarter.
• Lower tax rate in Q2 – PAT grew by 5%: After the higher interest cost (up by 20% YoY to Rs 22.55 crore) and depreciation (up by 18% to Rs 31.72 crore), PBT decline by 1% YoY to Rs 111.30 crore. Thanks to the sharp fall in effective tax rate (down by 420 bps YoY to 21.8%) PAT grew by 5% YoY to Rs 97 crore.
• Revenue Mix- Hospitals up by 14% Pharmacy up by 22%: The Sales from the Hospitals (65% of total) grew by 14% YoY to Rs 636.52 crore for the quarter ended September 2013. However, margins fell by 110 bps YoY to 18.8% and after this segment profit grew by moderate 8% to Rs 119.9 crore. Also, the Pharmacy business grew by robust 22% YoY to Rs 338.64 crore for the same period. But the segment margins expanded by 40 bps YoY to 2.5% and after this Segment profit grew by sharp 45% YoY to Rs 8.49 crore.
• Bed –Capacity @8438, Pharmacy stores net addition@57: It has 51 hospitals with total bed capacity of 8438 beds as on Sep 30 2013, which includes 38 owned hospitals including JVs/ Subsidiaries and associates with 6400 beds and 13 Managed hospitals with 2038 beds. Of the 6400 owned beds, 5659 beds were operational and had occupancy of 72%. Further, The Company has Plans to add 13 owned hospitals from the current 38, is to add 2685 beds to the current 6400 by FY'16. The estimated Capex is Rs 2245.9 crore and out of this AHEL share of Capex is Rs 2220.5 crore. It has already invested Rs 559 crore of the Rs 2220.5 crore of its total Capex as of 30^th September 2013. Notably, it added 57 Pharmacy stores on net basis with gross addition of 100 stores and closing 43 stores taking the total number of pharmacies to 1560 as on Sep 30 2013.

Standalone Half-Yearly Performance:

The Sales grew by 16% YoY to Rs 1870.11 crore for the Half-year ended September 2013. However, the margins fell by 60 bps YoY to 16.4% and after this Operating Profit grew by 12% YoY to Rs 306.05 crore. After the 37% fall in other income to Rs 11.62 crore, EBIDTA grew by 8% YoY to Rs 317.67 crore. With the higher interest cost (up by 32% YoY to Rs 43.02 crore) and depreciation (up by 20% YoY to Rs 62.45 crore), PBT growth was subdued 2% YoY to Rs 212.20 crore. Thanks to the sharp fall in effective tax rate (down by 470 bps YoY to 21.8%) PAT grew by 8% YoY to Rs 165.94 crore.

Hospitals Cluster wise performance for the half-year ended September 2013

The good growth in Hospitals during the H1 was on the back of good growth in outpatient revenues (8%) and inpatient revenues (6%) as well. The no of Operating bed increased due to 5659 in H1'FY14 compared to 5265 in H1'FY13. The increase in no of operating beds is due the new hospitals at Chennai and Bangalore coupled with additions in others at Madurai, Karimnagar, karaikudi etc. Also, The ARPOB grew by 11% to Rs 23502 for the same period. However, Occupancy decreased to 72% during the half year compared to 76% in the corresponding previous period. This is due to the new additions as the absolute occupancies have increased. Notably, the ALOS declined to 4.55% compared to 4.70% in the previous half year.

• Chennai Cluster: The total net revenues grew by 12% YoY to Rs 552.3 crore for the half-year ended September 2013 on the back of good growth from Inpatient revenues (up by 12% YoY to Rs 416.3 crore) and Outpatient revenues (up by 14% YoY to Rs 136 crore). The inpatient volume growth was 4% and outpatient volume growth was 11% during the half-year. Notably, the Number of operating beds increased to 1228 beds (as against 1136 beds), Where as the Occupancy has declined to 73% (compared to 80%), but ARPOB (Rs/day) increased to Rs 33505 (as against Rs 29449) for the same period.
• Hyderabad Cluster: The Total net revenues grew by 10% YoY to Rs 224.4 crore for the half-year ended September 2013 on the back of robust outpatient revenue growth (up by 16% YoY to Rs 40.2 crore) coupled with the moderate growth in inpatient revenues (8% YoY to Rs 184.2 crore). The volume growth was sluggish as the Inpatient volumes were at 2% and outpatient volumes were at 3% for the H1. Notably, the Operating beds remained at 930 beds, whereas Occupancy is improved 67% (as against 66%), ARPOB improved to Rs 19707 (as against Rs 18237) ALOS flat at 4.54 days for the same period.
• Other and Significant Subs/Jvs/Associates: The total net revenues from the Subs/Jvs/Associates fell by 13% YoY to Rs 702.6 crore for the half-year ended September 2013 on the back of good growth inpatient revenues (14%) and outpatient revenues (8%). Also, the total net revenues from the others grew by 23% YoY to Rs 257.5 crore half-year ended September 2013 on the back of robust growth from the inpatient revenues (22%) and outpatient revenues (31%).

• The scrip was up by 0.51% to Rs 878.35 at BSE, India on 13^th November 2013.