Apollo Hospitals (APOLLOHOSP) Q4 96/97 earnings summary

Executive summary

• FY97 turnover reached Rs.7,696 lakh versus Rs.6,530 lakh; net profit after tax was Rs.1,158 lakh versus Rs.1,127 lakh.

• Expansion added 300 beds in FY97, including the leased Orient Hospital in Madurai and the Pinakini Hospital investment in Nellore.

Financial highlights

• Hospital collections rose to Rs.7,296.08 lakh from Rs.6,125.96 lakh; other income was Rs.399.52 lakh versus Rs.403.97 lakh.

• Profit before tax was Rs.1,207.37 lakh versus Rs.1,180.66 lakh; tax provision was Rs.49 lakh versus Rs.54.08 lakh.

• Net profit after tax was Rs.1,158.37 lakh versus Rs.1,126.58 lakh; EPS was Rs.7.33 versus Rs.7.13.

• Proposed dividend was Rs.2.50/share, or 25%; Rs.500 lakh was transferred to General Reserve.

Outlook and guidance

• Plans included further hospital expansion and modernisation, supported by a proposed preference-share issue of up to Rs.30 crore for capital expenditure.

• Unique Home Health Care was planned to extend consultations, diagnostics, therapy and post-operative care into patients’ homes.

• The 100-bed Madurai hospital was to be modernised as a secondary-care facility; about Rs.10 crore of project cost was planned through privately placed debentures.

• Energy-saving technology and a new 1,000 KVA generator were intended to improve operating efficiency and reduce electricity costs over time.