Apollo Hospitals (APOLLOHOSP) Q4 99/00 earnings summary

Executive summary

• FY00 results reflect the amalgamation of three entities effective 1 Apr 1999; FY00 and FY99 figures are not comparable. Turnover was Rs 2,789.0m and PAT Rs 278.3m.

• Expansion combined new hospitals, telemedicine and technology investments with plans to grow through franchising and managed properties.

Financial highlights

• Turnover Rs 2,789.0m vs Rs 1,016.6m; profit before depreciation, financial expenses and tax Rs 714.9m vs Rs 308.9m; comparisons are not like-for-like after the merger.

• Collections were Rs 2,557.7m and other income Rs 231.2m; operating expenses Rs 1,402.1m, employee costs Rs 302.0m, administrative expenses Rs 349.3m and financial expenses Rs 210.9m.

• PBT Rs 329.7m, tax provision Rs 51.5m and PAT Rs 278.3m; prior-year PAT was Rs 92.7m, with merged-entity comparability limitations.

• Interim dividend Rs 2 per equity share and proposed final dividend 5%; together these represent a 25% total dividend on enlarged equity capital.

Outlook and guidance

• Target combined bed capacity of 6,000 within five years, from 2,100, using the Apollo brand and shifting toward managed properties to reduce capital intensity and improve shareholder returns.

• Plans to expand the 24-hour pharmacy network from 40 outlets to 1,000 franchise outlets in five years; an MOU with Indian Oil covered pharmacies at selected petrol stations.

• Energy conservation measures are expected to save Rs 64m over six years.