India’s Apollo Hospitals Enterprise reported a stronger-than-expected 34% increase in quarterly profit on Wednesday, driven by rising demand for complex medical treatments and growth across its specialty healthcare services.
The Chennai based hospital operator said consolidated net profit rose to 5.81 billion Indian rupees ($60.95 million) for the quarter ended June 30, from 4.33 billion rupees a year earlier. Analysts had expected profit of about 5.62 billion rupees, according to LSEG data.
Apollo said growth was particularly strong in specialty care areas including cardiology, oncology, neurology, gastroenterology and orthopedics, as greater health awareness continues to drive demand for advanced medical treatment in India’s private healthcare sector.
Revenue from operations increased 20.6% year on year to 70.43 billion rupees, supported by a 22% rise in the company’s largest healthcare services segment and stronger performance from its pharmacy business.
Hospital occupancy also improved to 70%, compared with 65% a year earlier. Apollo attributed the increase to a richer case mix and a higher proportion of complex procedures.
The company is expanding its hospital network, particularly in smaller towns and major urban centres. Apollo currently operates about 10,000 beds across India and plans to add more than 5,800 beds over the next five years, Chairman and founder Prathap Reddy said.
Apollo competes with other major private healthcare providers, including Manipal Health Enterprises and Fortis Healthcare, as India’s specialty-care market continues to expand.
Leave a comment