Apollo Hospitals Enterprise experienced a 2 percent rise in its share value during early trade on May 30, driven by investor optimism ahead of the company’s fourth-quarter earnings announcement. Shares were trading at Rs 4,697.11 on the NSE, up 1.11 percent from the previous close. Trading volume was also high, indicating heightened market interest.
Analysts predict that Apollo Hospitals‘ net profit for the quarter will reach around Rs 198 crore, reflecting a significant increase compared to Rs 93.99 crore reported in the same quarter last year. This growth is expected to be supported by a favorable base and strong seasonality. Additionally, cost optimization efforts in newer hospitals and improved occupancy rates are likely to contribute to revenue growth.
The company’s topline is projected to rise by 21.3 percent year-on-year to Rs 4,302.7 crore, as compared to Rs 3,546.43 crore in the previous fiscal year. While the HealthCo division may benefit from lower losses as revenues continue to rise and investments reach their peak, expenses are anticipated to remain high for the 24/7 arm, exerting pressure on operational performance.
The EBITDA margin is expected to contract by 110 basis points to 12 percent in the fourth quarter. Apollo HealthCo recorded a net loss of Rs 63 crore in the December quarter, while the costs associated with Apollo 24/7 amounted to Rs 202.4 crore. However, the company’s management has indicated that losses in the HealthCo arm have peaked and a recovery is expected, with a breakeven projected for the second half of FY24.
Looking ahead, investors will closely monitor the management’s commentary on the losses and outlook for the 24/7 segment, as well as the hospital segment, as key factors influencing the company’s performance.
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