Tag: Apollo Hospitals

Apollo Hospitals’ MD expects rate standardisation discussions with govt post-elections

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Suneeta Reddy, Managing Director at Apollo Hospitals expects discussions with the government on standardising rates for different medical procedures to happen post-elections.

In March, India’s top court, responding to a public interest litigation filed by an NGO, had given the government a month to fix standard rates for different medical procedures.

Private hospitals fear their profits will be severely squeezed if the government imposes a standardised rate like the Central Government Health Scheme (CGHS).

Some procedures are as much as 80% cheaper under the CGHS compared to what they cost at private hospitals.

Reddy said the standardised packages have already been created within the industry. And for Apollo, these packages have been designed in a way that the margins remain intact.

“Our job now is to work with the government as we have done during COVID. To really sensitise people who are looking at these rates about the true cost of health care, and why quality is important. And therefore, why we cannot make compromises. Clearly, it is a discussion which will happen post-elections,” she said.

The company has also been able to absorb the inflation-linked cost increases so far.

“We have absorbed that 5% (inflation last year) and inflation has come down this year compared to previous years. So, I believe that tariff increases will be minimal than what happened in the previous year,” she said.

She also talked about the immediate need to create additional healthcare infrastructure in the country post-COVID to prepare for any future pandemics particularly in non-communicable diseases (NCDs).

In its report titled Health of the Nation 2024 Report released earlier this month, Apollo Hospitals highlighted some alarming trends that suggest that over the last two decades, NCDs have become the leading cause of death in the country.

Also Read | Private hospitals in India fear ‘armageddon’ if costs are standardised

The company had earlier given a revenue growth guidance of 15% for the current financial year (FY25),

Reddy maintained the guidance for now but expects that with new facilities becoming fully operational, the growth could even excess 15%.

The current capitalisation of the company is ₹89,881.23 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals Health of the Nation 2024 Report sounds alarm on rising cancer rates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Apollo Hospitals Health of the Nation 2024 Report has brought some significant and alarming trends regarding the health landscape of the country. Over the last two decades, non-communicable diseases have surged to become the leading cause of death in the country. Among these, cancer stands out prominently, with India poised to become the ‘cancer capital’ of the world.

The number of cancer cases in the country is expected to increase significantly, reaching approximately 15.7 lakh cases by 2025, up from 13.9 lakh cases in 2020. The most common cancers in India are breast, cervix, and ovarian cancer in women, and lung, mouth, and prostate cancer in men.

Disturbingly, cancer diagnoses occur at a younger age in India as compared to other nations, as indicated by the median age statistics. Colon cancer, once associated predominantly with older individuals, is now increasingly affecting younger people, with 30% of colon cancer patients at Apollo Hospitals falling below 50 years of age.

One of the key reasons for drawbacks in India’s fight against cancer is our poor screening rates which are much lower compared to global standards, highlighting the urgent need for proactive measures in preventive healthcare. Other issues are disparities in healthcare guidelines, such as the PSA threshold for prostate cancer screening, which need to be tailored specifically for the Indian demographic.

Screening rates are much lower than global statistics

The report also underscores rising mental health disorders with a sharp increase in mental health conditions of those between 18 and 40 years. Depression is emerging as a significant concern among the younger population those in the 18 to 25 age group with one in five people depressed within that age group.

Other key takeaway is chronic stress, especially seen among young adults and seniors, is adding to the increased incidences of hypertension and diabetes, with women being particularly vulnerable.

Obesity which is a risk for non-communicable diseases has risen, with a majority living with unhealthy waist-to-hip ratios and belly fat. Three in four people are either obese or overweight. The report said 90% of women and 80% of men had a higher waist-to-hip ratio than recommended.

The report indicated that high blood pressure and prediabetes are becoming increasingly common, particularly among the younger demographic. Sixty-six out of 100 people are pre-hypertensive, one in three people have pre-diabetes and 20% below 45 years of age had pre-diabetes.

The report emphasized the importance of early screening and proper monitoring. Early detection of conditions such as breast cancer significantly improves survival rates, while regular health monitoring leads to tangible improvements in blood glucose, blood pressure, and body weight management.

Almost 98% of women with breast cancer diagnosed at an earlier stage had a better 5-year survival rate. Those who monitored health statistics more than thrice in the last five years reported a lowering in blood glucose, blood pressure, and body weight.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato, Apollo Hospitals among companies with higher number of women on board

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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At a time when women constitute just a fifth of the total directorships in India Inc, there are some outliers with a higher number of female representations on their boards. While women directors outnumber men in eight companies, there are another 15 firms in which they have an equal say as their male counterparts. To be sure, the study includes companies with a minimum revenue of ₹100 crore.

The list includes a diverse range of companies, from the food delivery platform Zomato to Apollo Hospitals Enterprise, Godrej Consumer Products, Hindustan Zinc, and Cummins India, among others. While the state-owned HMT tops the list with three out of the four directors being from the female category, Brightcom Group and SBC Exports have 60% and 71% women participation on their boards.

With a total directorship of 3,608, women currently account for 20.2% of all independent directors in India. As of February end, the country’s 2,278 listed companies had a total of 17,853 independent directors, according to the latest available data from tracker primeinfobase.com.

Interestingly, more than half, or 1,187 companies in India, are essentially complying with the rule by having just one woman director, whereas another 771 companies have two women directors on their board. Furthermore, four to six women are designated as directors in 58 companies, and the remaining 209 companies each have three women directors.

Surprisingly, a decade after the Companies Act 2013, which made it mandatory for all companies to have at least one-woman director on their boards, there are still 43 companies that have yet to comply with the regulation.

Obviously, the list features many state-owned companies as they lead the unenviable list of diversity stragglers. The names like UCO Bank, BEML, Bank of Maharashtra, Bharat Dynamics, and Garden Reach Shipbuilders & Engineers are some of them with zero women participation on the board.

However, the initiative that came with the Companies Act has somewhat helped narrow the gap in gender participation. About 10 years ago, women occupied just 6% of boardroom seats in NSE500 companies.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals targets ₹500 crore in diagnostics revenue in FY24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apollo Hospitals is eyeing diagnostics revenue of ₹500 crore for the current financial year (FY24). The company’s Managing Director, Suneeta Reddy, believes there is huge potential for growth in the diagnostics business, and Apollo is all set to capitalise on its network to become the number three player in the diagnostics space soon.

Reddy noted that the diagnostics revenue grew at 19% to ₹111 crore for the third quarter of FY24. The segment’s earnings before interest, tax, depreciation, and amortisation (EBITDA) margin is already at around 10% and with the company’s recent investments in speciality diagnostics, there is scope for further improvement.

Apollo Health and Lifestyle (AHLL), which includes the clinics and diagnostics business of the company, has a revenue of ₹1,011 crore for the first nine months of the financial year (FY24).

Apollo Hospitals Enterprise‘s revenue for the third quarter of FY24 was up 14% year-on-year (YoY) at ₹4,850.6 crore from ₹4,263.6 crore. Profit rose 60% YoY to ₹254 crore from ₹162 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin improved to 12.7% from 12% in the same quarter last year.

Read Here | Apollo Hospitals eyes expansion with ₹3,000 crore investment over 3 years

Reddy also hinted at potential investments in Apollo Health Co, indicating that the company is open to exploring opportunities and will present a comprehensive plan to the board and investors at the appropriate juncture.

Apollo HealthCo, the company’s digital healthcare and omni-channel pharmacy platform, reported a revenue of ₹2,049.3 crore in Q3FY24 compared to ₹1,757.8 crore last year. The segment’s EBIT loss narrowed to ₹10 crore from ₹74.2 crore in the previous year.

The market capitalisation of Apollo Hospitals is ₹88,850 crore and it competes with industry peers Max Healthcare Institute, and Fortis Healthcare.

Shares of Apollo Hospitals have gained more than 43% in the past year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals Q3 Results: Numbers in-line with expectations, margin expands 90 bps

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Apollo Hospitals recovered from the day’s low after the hospital chain reported its December quarter results.

Revenue for the quarter grew by 14% from last year to ₹4,851 crore, a number marginally higher than the CNBC-TV18 poll expectations of ₹4,770.3 crore.

EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation increased by 22% from last year to ₹615 crore, in-line with expectations of ₹601.1 crore.

EBITDA margin for the quarter though, expanded by 90 basis points to 12.7%, while the street was working with an estimate of 12.6%. The company’s margin remained above the 12% mark for the second quarter in a row.

The company has also declared dividend worth ₹6 per share.

Apollo Hospitals’ healthcare services revenue increased year-on-year but declined marginally when compared to the September quarter. However, the digital health and pharmacy business saw revenue growing both year-on-year as well as compared to the previous quarter. The business has also seen its EBIT loss narrow to ₹10.4 crore from a loss of ₹74.2 crore last year.

Shares of Apollo Hospitals, after a brief spike, are currently up 0.4% at ₹6,202. The stock is up 41% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals eyes expansion with ₹3,000 crore investment over 3 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apollo Hospitals is looking to invest ₹3,000 crore over three years to fund its expansion.

Suneeta Reddy, Managing Director of Apollo Hospitals, told CNBC-TV18 that, as part of the expansion,  the group is also planning to add 2,000 beds to its facilities over the next three years.

Highlighting Apollo Hospitals‘ commitment to cutting-edge medical technology, Reddy revealed an investment of ₹8 crore in the upcoming AI-precision oncology centre in Bangalore.

“We plan to open another 25 such centres across the country over a period of time,” she added.

Commenting on current occupancy trends, Reddy expressed optimism, particularly noting robust occupancies in Karnataka. “We are witnessing very healthy occupancies, especially in Karnataka. It’ll be a strong growth trajectory for us this year,” she remarked.

Despite the ambitious expansion plans, Reddy clarified that the company is not currently exploring private equity (PE) investments.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IBLA 2023 19th Edition: Apollo Hospitals awarded ‘Outstanding Company of the Year’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apollo Hospitals, a trailblazer in India’s healthcare sector, has been named the ‘Outstanding Company of the Year’ at the 19th edition of CNBC-TV18’s India Business Leader Awards (IBLA), held in Mumbai on December 2.

In a journey spanning 40 years, Apollo Hospitals has become synonymous with healthcare in India. As India’s first corporate healthcare provider, Apollo laid the foundation for India’s private healthcare sector, and has been instrumental in building it onto one that addresses over 70% of the country’s medical needs.

Apollo Hospitals has repeatedly pushed into new frontiers — from pioneering life-saving treatments and using cutting-edge technology to bringing MRI and CT scans to India to launching Apollo Proton Cancer Center, the first proton therapy centre in South Asia and the Middle East.

Considered Asia’s foremost healthcare provider, Apollo Hospitals has grown into an integrated healthcare ecosystem over the past 40 years. It boasts 70 hospitals, 5,541 pharmacies, 530 clinics and 1,750 diagnostic centres across the country.

It has a 5-year compound average growth rate (CAGR) of 15% in revenue and nearly 50% in profits, even as it continues to focus on providing patients from over 150 countries with accessible, tech-first healthcare solutions.

Apollo has conducted over 2,400 robotic surgeries in financial year 2023, 1,300+ kidney transplants, and 250+ liver transplants. Adopted telemedicine early to bridge the urban-rural divide; and on-boarded tech-based solutions including AI & AR into its bouquet of services.

Its integrated digital platform Apollo 24/7 has over 6,000 doctors and 25 million registered users. Apollo 24/7’s GMV was ₹1,643 crore in the previous financial year, and the company expects it to cross ₹3,000 crore in FY24.

For its unflagging drive in bridging the divide between cutting-edge medicine and affordable healing, the Jury of the CNBC-TV18 India Business Leader Awards 2023 unanimously chose to bestow on Apollo Hospitals the title “Outstanding Company of the Year “.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals targets ₹500 crore revenue from diagnostics; talks on for e-pharmacy stake sale

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apollo Hospitals Enterprise is actively engaging in stake sale talks for its omnichannel business, Apollo 24/7, the company’s Managing Director, Suneeta Reddy said while emphasising the importance of fair valuation.

“We have built a lot of value in this company and it should be valued appropriately so that all stakeholders benefit,” Reddy said in an exclusive conversation with CNBC-TV18 on Friday (November 10).

Apollo plans to raise $200 million by diluting a 5-7% stake in the Omnichannel business. The business is expected to reach operational breakeven by the March quarter of the financial year 2024.

Reddy also highlighted the success of the company’s diagnostics business, which is on track to generate ₹500 crore in revenue. Apollo Hospitals plans to expand by opening 200 new diagnostic centres.

Reddy pointed out that these centres “are already EBITDA (earnings before interest, tax, depreciation, and amortisation) positive, with a margin of 9.8%, which is expected to expand as we set up our clinical labs.”

Apollo Hospital posted a 14.2% year-on-year (YoY) increase in net profit at ₹233 crore for the July-September quarter, lower than Street estimates. The revenue, however, was better-than-expected at ₹4,846.9 crore, a 14% YoY growth. EBITDA was at ₹627 crore compared to ₹565 crore the previous year, with the margin at 12.9% versus 13.3%.

Shares of Apollo Hospitals Enterprise were trading 1.09% lower at ₹5,239.80 apiece on the NSE during Friday’s noon deals.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals gears up for ₹3,435 crore expansion; to add 2,300 beds in 3 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Healthcare major Apollo Hospitals on Thursday, November 9, announced a ₹3,435 crore capex plan to add 2,300 beds to its existing capacity in the next three financial years, which will be funded through internal accruals and debt financing.

This expansion plan is in line with the plan to expand footprint in identified strategic locations to drive continued business growth and cater to the increasing demand for quality healthcare services across the country, the healthcare provider said in a filing.

“The Board, based on the recommendations of the Investment Committee, has evaluated and approved an expansion plan of the company involving a balance capital outlay of around ₹34,350 million after reckoning for land/ asset acquisition costs already incurred,” it said.

Apollo Hospitals expanded its footprint in East India by acquiring a partially built hospital in Kolkata, with a total capacity of 325 beds. The total bed count in the Eastern region is over l 800, with plans for an additional 700 beds over the next three years, bringing the total bed count in the region to 2500.

The company entered into binding agreement for a 2 50 bed new hospital asset in Pune, expandable to 425 beds. With this expansion, Apollo will have over l 000 beds in Maharashtra including Mumbai, Pune and Nashik, it said in a statement.

“We are happy to have announced our new hospitals at Pune and Kolkata, and we are forging ahead with our plans to add 2300 high-quality beds in key geographies over the next three years,” said Prathap C Reddy, Chairman at Apollo Hospitals Group.

Apollo Hospitals Q2 earnings

Apollo Hospitals also reported its financial results for the September quarter. It posted a 14.2% year-on-year (YoY) rise in net profit at Rs 233 crore for the July-September quarter.

The hospital chain reported better-than-expected revenue at Rs 4,846.9 crore, reflecting a 14% YoY rise.

EBITDA or earnings before interest, taxes, depreciation, and amortization stood at Rs 627 crore in the quarter under review as against Rs 565 crore in the same period last year. The operating margin for the second quarter was reported to be 12.9%.

Following the earnings announcement, shares of Apollo Hospitals Enterprise Limited rallied 4% to trade at ₹5,312.50 on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals Q2 Results: Revenue rises 14% to ₹4,847 crore, in-line with estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apollo Hospitals reported its earnings for the quarter ended September 2023 on Thursday, November 9. The revenue for the quarter under review rose 14% to ₹4,847 crore. 

According to a CNBC-TV18 poll, the second quarter revenue growth was expected at ₹4,770 crore. In the July-September quarter in the previous fiscal, the healthcare company had reported a revenue of ₹ 4,251.07 crore.

However, as expected, the margin fell during the quarter. Profit after tax also gained 14% year-on-year to ₹233 crore, but failed to beat poll estimate. In the corresponding period in the previous year, the company had reported a PAT of ₹213 crore.

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CNBC-TV18 poll had predicted that the second quarter will be relatively soft due to factors such as slightly delayed rains. The healthcare services revenue stood at ₹2,547 crore, up 12% year-on-year. Apollo Diagnostics revenue gained 19% to ₹124 crore, while the digital health and pharmacy distribution revenues came at ₹1,945 crore.  

Healthcare Services EBITDA stood at ₹635 crore, and margin at 24.9%, a 32 basis points year-on-year decline. 

Apollo HealthCo, comprising Apollo 24/7 and the backend pharmacy business, reported the opening of 98 net new stores during the quarter, taking the total number to 5,671 stores. The GMV stood at ₹725.6 crore, a surge of 147% from the previous year.  

Meanwhile, Apollo Health & Lifestyle, the company’s clinic business, posted a 11% rise in revenue during the quarter at ₹354.2 crore. The diagnostic business added over 400 collection centres during the quarter.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow