Apollo Hospitals: In the 'green' of health
9,015 bedded Apollo Hospitals is up 5% at Rs. 1,128 a share, having receded a bit, from its new 52 high of Rs. 1,149.85, touched during this morning trade, after reporting excellent results for June quarter. While the result were out during market hours yesterday, the exuberance continues this morning, as standalone revenue grew 18% YoY and 6% QoQ to Rs. 1,054 crore, thanks to improved occupancy at older hospitals and 2 new hospitals (Trichy and Nashik) getting operational.
EBITDA expanded to Rs. 163 crore (up 7% YoY and 4% QoQ) due to higher international patients, case mix rationalization and growth in robotics and transplants. Despite higher rates of depreciation due to the new Companies Act of 2013 coming into force from 1st April 2014, net profit grew 5% YoY and 2% QoQ to Rs. 83 crore, leading to EPS of Rs. 5.95. FY14 EPS stood at Rs.23.77. 1,664 Apollo pharmacies showed an increase in blended EBITDA margin to 3.11%, with revenues touching Rs. 386 crore in Q1, as same-store sales reported double digit growth.
Net debt (30-06-14) of Rs 800 crore and market cap soaring to Rs. 15,700 crore, current enterprise value per bed stands at Rs. 1.8 crore. Share is trading at PE value of 45 times, based on expected EPS of close to Rs. 25 for FY15. With the company being on track to commission 3 news hospitals (415 beds) in Q2FY15 in Nellore and Chennai, with target to add 1,000 beds in FY15, its current year as well as FY16 performance are likely to be fare well both on the topline and operating level.