Apollo Hospitals (APOLLOHOSP) Q4 04/05 earnings summary

Executive summary

• FY05 revenue rose 19% to Rs. 5,956m; PAT after extraordinary items rose 33% to Rs. 492m, while adjusted PAT before extraordinary items grew 48.5%.

• Consolidated revenue reached Rs. 6,621m and profit after share of associates was Rs. 384m, versus Rs. 5,420m and Rs. 282m in FY04.

• Growth reflected higher occupancy, a richer mix of higher-fee clinical services, shorter patient stays, and pharmacy and consultancy expansion.

Financial highlights

• Standalone operating profit (PBIDTA) was Rs. 1,216m, up 17%; operating profit/revenue was 20.4% versus 20.8% in FY04.

• Adjusted PAT before extraordinary items was Rs. 586m versus Rs. 395m; reported PAT was Rs. 492m versus Rs. 371m.

• Standalone basic and diluted EPS rose to Rs. 12.12 from Rs. 9.40; consolidated EPS was Rs. 9.46 versus Rs. 7.15.

• Consolidated cash from operations was Rs. 406m versus Rs. 566m; investing activities used Rs. 811m, including Rs. 604m of fixed-asset purchases.

Outlook and guidance

• Target average patient stay of four days within five years through more day surgeries and shorter stays; FY05 occupancy rose to 68% from 63%.

• Plan to add 200 pharmacies within 24 months to the 206 outlets operating at 31 March 2005.

• Plans call for a First Med network of 100–125-bed secondary-care hospitals and further expansion of telemedicine coverage.

• High-end acute care, medical tourism, quality initiatives, and JCI accreditation for tertiary-care hospitals remain strategic priorities; the National Cardiac Plan was planned for launch.