Profit before tax in Q2 September 2020 stood at Rs 65.58 crore, down by 50.9% from Rs 133.65 crore in Q2 September 2019. The company wrote back taxes worth Rs 17.50 crore during the quarter.

Separately, Apollo Hospitals said that it has signed a definitive share purchase agreement with IHH Healthcare (IHH), its JV partner in Apollo Gleneagles Hospital, Kolkata (AGHL) to acquire its existing 50% equity stake in AGHL for a cash purchase consideration of Rs 410 crore. AGHL runs a 750 bedded state of the art multi-speciality hospital at Kolkata and is currently a 50:50 joint venture between Apollo Hospital s and IHH.

Upon transaction closure which is expected by mid-December 2020, AGHL would become a 100% subsidiary of Apollo Hospitals and enable full financial consolidation of AGHL' operating results. AGHL is currently an associate Company of Apollo Hospitals.

Dr. Prathap C. Reddy, founder chairman of Apollo Hospitals, commented, "Apollo Hospitals, Kolkata is one of the most prized hospital assets operating within the Apollo eco system. We have had a good partnership so far with IHH in creating the Eastern Region's only internationally accredited healthcare facility which has been recognized as amongst the best Hospitals in the Eastern region and in Kolkata for many years continuously due to its single-minded focus on ensuring outstanding clinical work and medical outcomes.

Consequent to IHH's decision to exit the JV, the Apollo Hospitals Board reiterated its commitment to secure full ownership of the balance stake in AGHL and ensure that the Apollo Kolkata Hospital continues to set the bar in terms of clinical excellence and patient service standards in Kolkata as well as the Eastern Region"

Further, Apollo Hospitals' board approved the proposal to acquire an additional 1% equity stake in Medics International Life Sciences, an unlisted public limited company which runs a 330 bedded multi-speciality hospital in Lucknow, in which it already holds a 50% equity stake for a consideration of Rs. 3.976 crore. Consequently, Medics International Life Sciences will become a subsidiary of the company.

The board of Apollo Hospitals has approved a proposal to raise funds not exceeding in the aggregate, a sum of Rs 1500 crore by way of a further issue of securities on a preferential basis and/or through qualified institutional placement (QIP) or any equivalent capital raising method permitted by applicable laws, subject to approval of the members.

The funds will be utilized in financing the proposed acquisition of the 50% equity stake held by GDPL in Apollo Gleneagles Hospital, Kolkata. The funds will also help the company to capitalise on any potential inorganic growth opportunities in the healthcare space. The funds will also enable reduction of debt especially given the COVID-19 related scenario.

Apollo Hospitals Enterprise is a private sector healthcare provider. It owns and operates hospitals across the country.