We expect the Navi Mumbai hospital to break even this quarter, said Suneeta Reddy, Managing Director, Apollo Hospitals.
Speaking to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, she said, “New hospitals grew by about 24% and the matured hospitals grew about 7% this is on a larger base. So you must think of 7% on a larger base.”
Speaking about the occupancy rate, she said, “The operational beds are 7,176, occupancy is at 65% and the average length of stay is 4.4 days and the average rate per bed has increased.”
“In Navi Mumbai, we have opened 150 beds, currently 128-130 beds are occupied, last year it was 98 beds. For the last year, it was Rs 23 crore negative earnings before interest, taxes, depreciation, and amortization (EBITDA), but we are now moving to a positive EBITDA. For the whole year, there was a loss of Rs 35 crore,” said Reddy.
India’s largest hospital chain, Apollo Hospital, reported a net profit of Rs 59.6 crore in the quarter ended March on standalone year-on-year basis.
The company has shown good growth in the pharmacy business though margins were subdued. In the hospital business, margins have improved almost 200 basis points.