Apollo Hospitals Q2 results preview: Healthcare revenues to grow supported by higher occupancy
Apollo Hospitals Enterprise Ltd is expected to continue benefiting from the rising occupancy levels, improving average revenues per operating bed (APROB) as higher non covid revenues are also adding to profitability. Analysts expect revenue to grow, marking a recovery, post the muted trend in occupancy seen in Q1FY24 seen in Q1 for industry as a whole.
For Apollo Hospitals, the rising occupancy at new hospitals already has been adding to company’s performance as mature hospitals are doing well. Also Read- Lupin share price gains up to 1.7% as US sales drive Q2 earnings beat We expect profitability to improve due to favorable seasonality and improved operating leverage, said analysts at Motial Oswal Finacial Services Ltd in their preview report.
They expect Apollo to deliver sales, net profit growth of 8% and 9% year on year respectively in 2QFY24. However, Earnings before interest tax depreciation and amortization (Ebitda) is likely to decline 2% YoY due to high operating expenses for Apollo 24/7.
Apollo 24/7 is the online platform which houses a wide range of services such as online pharmacy, online doctor consultations, and diagnostic lab tests at home. MOFSL analysts expect hospitals sales, Ebitda to grow by 5% and 3% year on year to ₹2370 Crore and RS 590 crore b on favorable seasonality, better occupancy.
Store addition and higher sales from existing stores are expected to drive 13% YoY growth in pharmacy sales to ₹1890 Crore The consolidated reveneus at ₹4592.6 are expected to rise 8.0% year on year while Ebitda at ₹555.7 crore is expected to decline 1.7%. Consolidated net profit at ₹222.6 crore are expected tp rise 9.1% year-on-year as per MOFSL Also Read- Mamaearth-parent Honasa Consumer stock now down over 5%
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