On Consolidated basis, The Revenues grew by 18% YoY to Rs 1202.5 crore for the quarter ended June 2014. However, The EBIDTA margins fell by 130 bps YoY to 14.4% and EBIDTA grew by 8% YoY to Rs 173.1 crore during the quarter. Further, PAT grew by mere 2% YoY to Rs 79.5 crore for the same period.

• Stable Revenue Growth Continues: The Revenues grew by 18% YoY to Rs 1053.72 crore for the quarter ended June 2014. The growth in Sales was primarily driven by the robust growth from Pharmacy business (27%) coupled with continued mid-teen growth from Hospitals business (13%) during the quarter. In Hospitals business, The Revenues from the Chennai cluster grew by 8% YoY to Rs 288.7 crore, Hyderabad grew by 11% YoY to Rs 120.4 crore respectively during the quarter. Also, The Subs/Jvs/Associates grew by 12% YoY to Rs 380.1 crore and Others Hospitals grew by strong 22% YoY to Rs 149.1 crore respectively.
• Margins down: The Operating Profit Margins fell by 150 bps YoY to 14.8% on the back of higher consumption cost (up by 200 bps YoY) coupled with increase in Selling and Distribution expenses (up by 40 bps YoY), Staff cost (up by 20 bps YoY) despite the fall in Other expenses (down by 70 bps YoY) as percentage to Sales and net of stock adjustments. Eventually, Operating Profit growth moderates to 7% YoY to Rs 156.29 crore. After the 5% growth in other income to Rs 6.45 crore, EBIDTA grew by same 7% YoY to Rs 162.74 crore.
• PAT grew by moderate 6% YoY: The interest cost was lowered by 8% YoY to Rs 18.92 crore. However, there was sharp 30% increase in depreciation to Rs 39.92 crore during the quarter. Consequently, PBT grew by subdued 3% YoY to Rs 103.90 crore. Thanks to the fall in effective tax rate (down by 210 bps YoY to 20.4%) PAT grew by 6% YoY to Rs 82.74 crore.
• Revenue Mix – Hospitals grew by 13%, Pharmacy by 27%: The Revenues from the Healthcare business (63% of Sales) grew by 13% YoY to Rs 667.59 crore for the quarter ended June 2014. However, Segment PBIT Margins fell by 210 bps YoY to 16.3% and accordingly segment profit was flat at Rs 109.13 crore. The Pharmacy business grew by robust 27% YoY to Rs 386.22 crore during the quarter. Also, the Segment profit grew by 11% YoY to Rs 7.23 crore for the same period.
• Plans to add 1000 beds in the current fiscal: The Company has 53 hospitals with total bed capacity of 9,015 beds as on Jun 30^th 2014. This includes 41 owned hospitals including JVs/ Subsidiaries and associates with 6,932 beds and 12 Managed hospitals with 2,083 beds. Of the 6,932 owned beds, 6,027 beds were operational and had occupancy of 69%. It Plans to add 10 hospitals from the current 41(owned) with addition of 2,065 beds to the current owned bed capacity of 6,932 (owned) by FY'17. The Apollo has already invested Rs 658.6 crore of the Rs 2009.7 crore of its share of total capex as on Jun 30, 2014. The Company is on track to commission 3 Hospitals in Q2FY15 - Nellore (200 beds) and 2 hospitals in Chennai OMR- Perungudi (170 beds) and Chennai OMR - Women & Child (45 beds). Notably, it plans to operationalize the 1000 beds in the current fiscal.

Standalone Hospitals Cluster wise Performance for the quarter ended June 2014

The Hospitals continues grew mid double digit (up by 13% YoY to Rs 667.59 crore) for the quarter ended June 2014 on the back of good growth in outpatient volumes (8%) coupled with good growth from inpatient volumes (9%). The no of Operating beds increased to 6027 in Q1'FY15 compared to 5648 in Q1'FY15. Also, The ARPOB grew by 6% to Rs 24939 for the same period. However, Occupancy decreased to 69% during the year compared to 70% in the corresponding previous period. This is due to the new hospitals and also due to the elections in the month of April and May during the quarter. Notably, the ALOS declined to 4.41 days compared to 4.53 days in the corresponding previous period.

• Chennai Cluster: The total net revenues grew by 8% YoY to Rs 288.7 crore for the quarter ended June 2014 on the back of robust growth in outpatient revenues (up by 18% YoY to Rs 75.2 crore despite mute volume growth) coupled with moderate growth from inpatient revenues (up by 5% YoY to Rs 213.5 crore on 7% volume growth). Notably, the Number of operating beds increased to 1305 beds (as against 1229 beds), Where as the Occupancy has declined to 70% (compared to 71%), but ARPOB (Rs/day) increased to Rs 34840 (up by 4%, as against Rs 33413) for the same period.
• Hyderabad Cluster: The Total net revenues grew by 11% YoY to Rs 120.4 crore for the quarter ended June 2014 on the back of robust inpatient revenue growth (up by 12% YoY to Rs 99.4 crore) coupled with good growth from Outpatient Revenues (up by 7% YoY to Rs 21 crore). The Inpatient volume growth was at 10% and outpatient volumes were at 17% during the quarter. Notably, the Operating beds remained at 930 beds, but Occupancy improved to 65%, ARPOB improved to Rs 21929 (up by 9% YoY, as against Rs 20166) ALOS slightly declined to at 4.1 days (as against 4.45 days) for the same period.
• Other and Significant Subs/Jvs/Associates: The total net revenues from the Subs/Jvs/Associates grew by 12% YoY to Rs 380.1 crore for the quarter ended June 2014 on the back of good growth inpatient revenues (12%) coupled with strong growth from outpatient revenues (16%). Also, the total net revenues from the Others Hospitals grew by strong 22% YoY to Rs 149.1 crore for the quarter ended June 2014 on the back of robust growth from the inpatient revenues (23%) and outpatient revenues (16%).

Standalone Yearly Performance:

The Sales grew by 16% YoY to Rs 3861.63 crore for the year ended March 2014. However, OPM fell by 80 bps YoY to 15.9% and accordingly Operating Profit grew by 11% YoY to Rs 613.86 crore. After the 28% fall in other income to Rs 22.46 crore, EBIDTA grew by 9% YoY to Rs 636.32 crore. After the higher interest cost (up by 20% YoY to Rs 87.07 crore) and rise in depreciation (up by 19% YoY to Rs 129.08 crore), PBT grew by subdued 4% YoY to Rs 420.17 crore. Thanks to the sharp fall in effective tax rate (down by 320 bps YoY to 21.3%) PAT grew by 9% YoY to Rs 330.72 crore.

Other Information:

• The scrip is hovering at Rs 1103.2 at BSE, India on 14^th August 2014.