Net addition of 64 stores in Q1 FY19, pan-India network now at 3,085 stores
Q1FY19 standalone revenues grew 16 per cent to INR.19,104 million compared to INR.16,504 million in Q1FY18, aided by SAP growth of 20 per cent and healthcare services growth of 12 per cent YoY. HC services growth of 12 per cent YoY was led by new hospitals which reported 23 per cent YoY Revenue growth while existing hospitals grew 10 per cent YoY. EBITDA was at INR.2,267 million in Q1FY19 as against INR.1,734 million in Q1FY18 a YoY growth of 31 per cent. PAT grew by 71 per cent to INR.602 million in Q1FY19.
The strategy around both services pricing as well as cost optimisation has delivered initial results. Healthcare Services EBITDA grew by 31 per cent YoY to INR. 1,849 million. Existing health care services EBITDA margins have improved from 20.4 per cent last year to 21.6 per cent in the current quarter. Apollo Hospitals stands committed to continue on this trajectory to further improve the margins to 23 per cent over the next few quarters.
The impact on EBITDA margins from commissioning of new facilities, GST implementation, regulations on stent pricing and knee implants as well as from investments in medical teams has bottomed out. The recent performance has demonstrated resilience of the business model which is well diversified across specialties, geographies and maturities. Of the 7,000+ operating beds across the network (excluding AHLL & managed beds), 13 hospitals with 1,650 operating beds are new and the progressive increase in volumes and utilisation in the quarters ahead will aid EBITDA growth and sustain margin expansion through the rest of the fiscal and beyond.
Dr Prathap C Reddy, Chairman, Apollo Hospitals said, “The first quarter of this fiscal has got off to a good start. Our clinical leadership was further reinforced by path-breaking surgeries across our centres. We continue to strengthen our healthcare portfolio to benefit our patients and arm our doctors with the latest in Artificial Intelligence and medical technology. The acquisition of a 50 per cent stake in Medics International Lifesciences, Lucknow provides us a valuable asset in a good location with a highly skilled and proficient medical team clearly enriching our North Indian and pan-India presence.
Dr. Reddy added, “The Government’s Ayushman Bharat initiative will widen healthcare access to millions of under-served families, and will serve as an inflection point in the healthcare journey for the nation. We will work with the government as they roll-out the initiative, and hope that the final framework will enable the private sector to participate in the scheme wholeheartedly and ensure that the highest quality care reaches underserved citizens on a sustainable basis.”
Financial Highlights
Standalone Q1FY19 Performance
- Revenues grew by 16 per cent to INR. 19,104 million compared to INR. 16,504 million in
Q1FY18. - EBITDAR was higher by 28 per cent to INR. 2,892 million as against INR. 2,258 million in
Q1FY18. - EBITDA grew by 31 per cent to INR. 2,267 million as against INR. 1,734 million in Q1FY18. o PAT was INR.602 million compared to INR.352 million in Q1FY18.
- Diluted EPS of INR.4.33 per share in Q1FY19 (not annualised).
Consolidated Q1FY19 Performance
- Revenues were higher by 16 per cent to INR. 22,046 million compared to INR. 19,072 million
in Q1FY18. - EBITDAR was higher by 33 per cent to INR. 3,177 million as against INR. 2,386 million in
Q1FY18. - EBITDA was at INR. 2,323 million against INR. 1,647 million in Q1FY18. o PAT was INR.351 million compared to INR. 9 million in Q1FY18
- Diluted EPS of INR.2.52 per share in Q1FY19 (not annualised).
Segment-wise Performance Update
Hospitals
Standalone revenues of the healthcare services division increased by 12 per cent to INR. 10,183 million in Q1FY19 compared to INR. 9,075 million in Q1FY18. This growth was primarily driven by volumes. The revenue of existing hospitals grew 10 per cent while the new hospitals grew by 23 per cent to INR. 2,120 million.
EBITDA was at INR. 2,267 million in Q1FY19 compared to INR. 1,734 million in Q1FY18. EBITDA was higher by 31 per cent yoy. Navi Mumbai startup losses have compressed to INR. 1.6 crore and it is on the verge of breakeven – this is despite ongoing investment in adding specialties. The Navi Mumbai facility has an average occupancy of 124 beds in Q1FY19 (66 per cent).
Standalone Pharmacies
In Q1FY19, 73 stores were added and nine stores were closed for a net addition of 64 stores. The total
store network as of June 30, 2018 stands at 3,085 operational stores.
Revenues grew by 20.1 per cent to INR. 8,921 million in Q1FY19 from INR. 7,429 million in Q1FY18.EBITDA grew 30.3 per cent from INR.320 million in Q1FY18 to INR.417 million in Q1FY19. The EBITDA margin was at 4.68 per cent in Q1FY19 compared to 4.31 per cent in Q1FY18. Private label sales are now at 6.1 per cent.
Revenue per store grew seven per cent for the pre 2010 batch of stores with EBITDA margins remaining strong at 7.6 per cent. The pre 2010 stores EBITDA growth was at 12 per cent with an EBITDA margin of 7.4 per cent.
AHLL Consolidated Revenues grew to INR. 1,316 million in Q1FY19 compared to INR. 1,059 million in Q1FY18. The business reported an EBITDA loss of INR. (197) million in Q1FY19 compared to a loss of INR. (283) million in Q1FY18.
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