Apollo Hospitals FY19 EBITDA crosses landmark Rs 1000 crore for the first time

Total EBITDA margins have improved to 12.3% in Q4FY19 from 11.5% in Q4FY18

Dr Prathap C Reddy, Apollo Hospitals, Total EBITDA margins

Apollo Hospitals has delivered a strong performance in the final quarter of the year, with continued growth of volumes, revenues and margins. There was a good performance, both in the hospitals and in the pharmacy division. The overall strategy of continuing to focus on improving asset utilisation, superior margin profile through case mix and quality of revenue, along with optimisation in costs. This approach is paying off with the Healthcare Services EBITDA growing by 21% YoY to Rs. 2,101 million.

Q4FY19 Standalone Revenues grew 16% to Rs. 21,671 million compared to Rs. 18,634 million in Q4FY18, aided by Healthcare services growth of 15% YoY and SAP growth of 18%. HC services growth of 15% YoY was led by new hospitals which reported 25% YoY Revenue growth while mature hospitals grew 12% YoY. EBITDA was at Rs. 2,658 million in Q4FY19 as against Rs. 2,141 million in Q4FY18 a YoY growth of 24%. PAT grew by 29% to Rs.767 million in Q4FY19.

Total EBITDA margins have improved to 12.3% in Q4FY19 from 11.5% in Q4FY18. Existing healthcare services EBITDA margins have improved to 22.1%. New hospitals reported EBITDA margins of 7% in Q4FY19 as compared to 4% in the previous year. SAP reported an EBITDA margin of 5.5%. The reorganisation of the Pharmacy business continued to progress during the quarter, and is expected to be completed by November 2019.

Dr Prathap C Reddy, Chairman, Apollo Hospitals said, “I am pleased that we have consolidated our position as India’s largest private healthcare provider in FY18-19, with our numbers signalling robust growth across multiple verticals. We continue to lead in laying down the benchmark for modern medicine in the country and the launch of the Apollo Proton Cancer Centre is testament to the intensity of our efforts. We have repeatedly delivered world-class clinical outcomes at scale, at a fraction of the international cost, and have helped position India as a global destination for medicine. We are committed to help the nation fight the tsunami of NCDs, and we believe our focused efforts in Cardiology, Neurosciences, Orthopaedics and Critical Care will help us win the fight. We will continue to strive for widespread screening and early detection of cancer, because with the treatment options now at our disposal, cancer is curable.”