Apollo Hospitals (APOLLOHOSP) Q4 03/04 earnings summary

Executive summary

• FY04 revenue rose 11.4% to Rs 4,998 million; operating profit increased 17% to Rs 778 million and PAT reached Rs 371 million.

• Group turnover grew 16%, with bottom line up 45%; consolidated revenue was Rs 5,420 million and profit after share in associates was Rs 282 million.

• Growth priorities included asset-light expansion, better utilization of existing hospitals, pharmacy and consultancy growth, and international patient services.

Financial highlights

• FY04 revenue Rs 4,998 million vs Rs 4,485 million; EBITDA Rs 1,041 million vs Rs 928 million; PBT Rs 586 million vs Rs 433 million.

• PAT increased to Rs 371 million from Rs 275 million; basic and diluted EPS rose to Rs 9.40 from Rs 6.96.

• Consolidated revenue reached Rs 5,420 million vs Rs 4,676 million; consolidated PAT after minority interest was Rs 284 million and EPS Rs 7.15.

• Operating cash flow increased to Rs 617 million from Rs 505 million; capital expenditure on fixed assets was Rs 359 million.

Outlook and guidance

• Asset-light strategy targets market-share gains, wider global reach and profitability, emphasizing occupancy, asset turnover, pharmacy and hospital consultancy over major capex.

• FY05 growth expected from group businesses, including health technology/BPO, clinics and hospitals in Kolkata and Colombo; existing operations to focus on efficiency and priority departments.

• Medical tourism promotion targeted the Middle East, Europe and Africa; more than 14,200 foreign patients from over 50 countries received treatment in FY04.

• JCI accreditation preparation was underway at hospitals in Chennai, Hyderabad, Delhi and Colombo; clinical trials and international consulting were identified as growth opportunities.