Apollo Hospitals to invest Rs 3435 crore on capacity expansion, posts Rs 233 cr net profit in Q2
Apollo Hospitals, Enterprise, India's largest private healthcare provider on Thursday said it will be investing Rs Rs 3435 crore on expanding its bed capacity.
Apollo said it will be adding 2300 beds across 8 locations to its network over the next three financial years.
The capacity expansion will be met through internal accruals and debt financing, the company added.
The new expansion will mainly come in West, East and North India, where Apollo is strengthening its foothold. Apollo is traditionally dominant in the South.
As part of the expansion plan, the company announced a 250-bed new hospital in Pune expandable to 425 beds in 2 years at an overall cost of Rs 675 crores.
The hospital is expected to be commissioned by Q1 FY25. With this expansion, Apollo will have over 1000 beds in Maharashtra including Mumbai, Pune and Nashik.
The company expanded its footprint in Eastern India with an acquisition of a 225 bed hospital in Kolkata in September which is expandable to 325 beds.
Following the expansion, Apollo will become the largest healthcare provider in the East with over 1800 beds across Kolkata, Bhubaneswar and Guwahati.
«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 company said.
Apollo on Thursday reported a 14% year-on-year (YoY) jump in net profit to Rs 233 crore in Q2FY24, led by growth across hospital, diagnostics, specialty and pharmacies businesses.
Revenue grew 14% YoY to Rs.4847 crore in Q2FY24.
The earning before interest, tax, depreciation and ammortisation (EBITDA), EBITDA at Rs.6,276 mn vs Rs.5,654 mn in Q2FY23. This
