Apollo Hospitals (APOLLOHOSP) Q4 00/01 earnings summary

Executive summary

• FY01 revenue rose 15.66% YoY to Rs.3,225.85m; PAT increased 10.24% to Rs.306.83m. Growth initiatives prioritized managed hospitals, service efficiency and an integrated healthcare network.

• The year included post-merger restructuring and expansion of hospital, clinic, pharmacy, telemedicine and online healthcare activities.

Financial highlights

• Revenue Rs.3,225.85m vs Rs.2,788.98m; operating income Rs.3,098.25m, with other income of Rs.127.59m.

• PBT Rs.396.67m vs Rs.329.74m; PAT Rs.306.83m vs Rs.278.28m.

• Operating profit Rs.771.96m vs Rs.714.85m; financial expenses Rs.215.43m, depreciation Rs.159.85m and right of recompense Rs.40.40m in FY01.

• EPS Rs.7.76 vs Rs.7.58; proposed final dividend 25% (Rs.98.80m), in addition to interim dividend of 20% (Rs.73.45m).

Outlook and guidance

• Managed beds were expected to exceed 4,000 in FY02, with a further 2,000 planned for the following year.

• Plans called for 28 managed hospitals and 4,175 beds to be commissioned during 2001–03; 14 managed hospitals with 1,426 beds were operating.

• Pharmacy expansion target: 1,000 outlets within three years, from 72 outlets; five hospital projects and 30 independent projects were in development, including nine international projects.

• Efficiency, managed-hospital growth, overseas marketing and cost control were expected to support a 26% ROCE target within three years.