On Consolidated basis, The Sales grew by 16% YoY to Rs 1128.8 crore for the quarter ended December 2013. However, EBITDA margins fell by 100 bps to 15.3% and accordingly EBIDTA grew by 9% YoY to Rs 172.4 crore. Further, the PAT grew by 4% to Rs 77.8 crore for the same period.

• Stable Revenue Growth Continues: The Sales grew by 16% YoY to Rs 993.34 crore for the quarter ended December 2013 driven by the good growth from Healthcare Services (13%) and Pharmacy business (23%). It has launched 3 new hospitals in the last 12 months - a 200 bed Multispecialty hospital at Vanagaram ©\ Ayanambakkam, Chennai; a 140 bed Ortho and Spine Specialty Hospital at Jayanagar, Bangalore and a 200 bed Specialty Hospital in Trichy. Further, The Expansion plans are on track and plans to add 8 hospitals (Over 1000 beds) in FY15. The Nellore (200 beds), Nasik (125 beds) and Indore (120 beds) are to be operational by Q1FY15.

• Margins Decline: The margins fell by 120 bps YoY to 15.9% on the back of higher other expenses (up by 100 bps YoY) and increase in Staff cost (up by 40 bps YoY) and Selling and Distribution cost (up by 20 bps YoY) as percentage to Sales and net of stock adjustments. Eventually, Operating profit growth moderated to 8% YoY to Rs 157.76 crore. After the 53% fall in other income to Rs 3.81 crore, EBIDTA growth further moderated to 5% YoY to Rs 161.57 crore.

• PAT grew by 3% after lower tax rate: With the higher interest cost (up by 20% YoY to Rs 23.11 crore) and after higher depreciation (up by 22% YoY to Rs 33.51 crore), PBT declined by 2% YoY to Rs 104.95 crore. Thanks to sharp fall in effective tax rate (down by 450 bps YoY to 20.5%), PAT grew by 3% YoY to Rs 83.44 crore.

• Revenue Mix ¨C Hospitals up by 13% and Pharmacy up by 23%: The Sales from the Hospitals/healthcare business (64% of total) grew by 13% YoY to Rs 636.28 crore for the quarter ended December 2013. However, the Segment margins fell by 200 bps YoY to 18% and after this segment profit witnessed subdued 1% growth to Rs 114.66 crore. The Sales from Pharmacy business grew by robust 23% YoY to Rs 357.13 crore for the quarter ended December 2013. Also, the Segment margins expanded by 80 bps YoY to 2.7% and after this PAT grew by 3% YoY to Rs 83.44 crore.

• Bed Capacity@ 8488 beds, Pharmacy stores net addition@26: It has 51 hospitals with total bed capacity of 8488 beds as on Dec 31^st 2013. The 39 owned hospitals including JVs/ Subsidiaries and associates with 6600 beds and 12 Managed hospitals with 1888 beds. Of the 6600 owned beds, 5732 beds were operational and had occupancy of 72%. Also, The Company Plans to add 12 more hospitals from the current 39, and 2310 beds to the current 6600 beds by FY¡¯17. The Total estimated Capex for this Rs 2151.8 crore out of this AHEL share is Rs 2123.1 crore, and out of this Apollo has already invested Rs 616.7 crore as on 31^st December 2013. During the quarter, Apollo Pharmacies added 35 stores and closed 9 stores for a net addition of 26 stores ¨C total store network as of December 31 stands at 1,586 operational stores.

Standalone Nine Months Performance:

The Sales grew by 16% YoY to Rs 2863.45 crore for the nine months ended December 2013. However, margins fell by 80 bps YoY to 16.2% and accordingly Operating profit grew by 10% YoY to Rs 463.81 crore. After the 42% fall in other income to Rs 15.43 crore EBIDTA growth moderated to 7% YoY to Rs 479.24 crore. With the higher interest cost (up by 28% YoY to Rs 66.13 crore) and Depreciation (up by 20% YoY to Rs 95.96 crore), PBT growth was flat at Rs 317.15 crore. Thanks to the sharp fall in effective tax rate (down by 470 bps YoY to 21.4%) PAT grew by 7% YoY to Rs 249.38 crore.

Hospitals Cluster wise Performance for the Nine Months ended December 2013:

The good 13% growth in Hospitals during the nine months ended December 2013 was on the back of good growth in outpatient volumes (7%) coupled with the good growth from inpatient volumes (6%). The no of Operating bed increased to 5732 in 9M¡¯FY14 compared to 5332 in 9M¡¯FY13. Also, The ARPOB grew by 9% to Rs 23366 for the same period. However, Occupancy decreased to 72% during the nine months compared to 75% in the corresponding previous period. This is due to the new additions but the absolute occupancies have increased. Notably, the ALOS declined to 4.56% compared to 4.64% in the previous nine months.

• Chennai Cluster: The total net revenues grew by 12% YoY to Rs 832.4 crore for nine months ended December 2013 on the back of good growth from Inpatient revenues (up by 11% YoY to Rs 628 crore) and Outpatient revenues (up by 14% YoY to Rs 204.4 crore). The inpatient volume growth was 4% and outpatient volume growth was 8% during the First nine months period. Notably, the Number of operating beds increased to 1228 beds (as against 1136 beds), Where as the Occupancy has declined to 74% (compared to 78%), but ARPOB (Rs/day) increased to Rs 33280 (up by 9%, as against Rs 30682) for the same period.

• Hyderabad Cluster: The Total net revenues grew by 11% YoY to Rs 342.6 crore for the nine months ended December 2013 on the back of robust outpatient revenue growth (up by 17% YoY to Rs 61.4 crore) coupled with the moderate growth in inpatient revenues (9% YoY to Rs 281.2 crore). The volume growth was sluggish as the Inpatient volumes were at 3% and outpatient volumes were at 5% for the first nine months period. Notably, the Operating beds remained at 930 beds, whereas Occupancy is improved 68% (as against 66%), ARPOB improved to Rs 19827 (as against Rs 18213) ALOS slightly declined to at 4.53 days (as against 4.59 days) for the same period.

• Other and Significant Subs/Jvs/Associates: The total net revenues from the Subs/Jvs/Associates fell by 12% YoY to Rs 1052.7 crore for the nine months ended December 2013 on the back of good growth inpatient revenues (11%) and outpatient revenues (16%). Also, the total net revenues from the others grew by 23% YoY to Rs 397.6 crore nine months ended December 2013 on the back of robust growth from the inpatient revenues (22%) and outpatient revenues (29%).

Other information:

• The scrip is hovering at Rs 928 at BSE, India on 13^th February 2014.

Dr. Prathap C Reddy, Chairman said, "I am happy to state that core investments and strategies focused by us are on track to realize the results. We have further enhanced our focus on both clinical excellence and customer experience at all our hospitals across the group. The last quarter also validated our strategy on calibrated expansion plan with respect to new locations as our new unit at Jayanagar, Bangalore achieved EBITDA breakeven in December and Vanagaram in Chennai is on track for breakeven soon. This has helped in chalking out a robust roadmap of expansion right up to 2017. We expect this strategy to usher in greater predictability in the years ahead. The launch of the global first Apollo Personalized Health Check, the high growth potential program that we invested significant resources until last quarter is now seeing good momentum since launch. Given the disease burden facing the country, this I believe is a imperative need of the society. Calendar 2013 also marked the 15th Anniversary of the Solid Organ transplant Program at Apollo Hospitals. The one year old infant on whom our surgeons conducted a liver transplant in 1998 is now a healthy and lively 16 year old. We continue to be the World¡¯s busiest solid organ transplant centre." He added, "Our hospitals have been repeatedly recognized as some of the best healthcare institutions in the country and I would like to give due credit to every single member of the Apollo Hospitals family."