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Apollo Hospitals Enterprise Limited (AHEL) Q1FY22 Result Analysis

Apollo Hospitals Enterprise Limited (AHEL) Q1FY22 Result Analysis

Published on 19 August 2021 Views 25 Comments 0

Apollo Hospitals Enterprise Limited announced its Quarterly Results for the first quarter of FY22 last Friday 13th August 2021. Here is a short analysis of the Q1FY22 Result of Apollo Hospitals.

Introduction:

Apollo Hospitals Enterprise Limited (AHEL) on Friday 13th August 2021 released its Q1FY22 results. The Stock price marked the 52-Week High Levels post Q1 Results. Here is a 4-point detailed analysis of the company:

Apollo Hospitals- 4 Point Analysis

Apollo Hospitals- 4 Point Analysis

1) Q1FY22 Result:

  • The company has posted impressive revenue growth on a year as well as a quarterly basis. The revenue from operations of the company has increased by a significant 73.2% YoY from Rs. 2171.5 Cr. in Q1FY21 to Rs. 3,760 Cr. in Q1FY22. Sequentially, the revenue has increased by 31.1% from Rs. 2,868 Cr. in Q4FY21.
  • The Operating Profit of the company has increased robustly by 1,160.4% YoY from Rs. 43.2 Cr. in Q1FY21 to Rs. 544.51 Cr. in Q1FY22.Quarter on Quarter, the Operating Profit of the company has increased by 26% from Rs. 432.28 Cr. in Q4FY21
  • The Operating Profit Margin of the company stood at 14.5% as of June 2021 up by 1,250 bps YoY and down by 60 bps QoQ.
  • The Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) of the company has also expanded by 1,365% YoY and 26.2% QoQ to Rs. 519.9 Cr. in Q1FY22 against Rs. 35.5 Cr. and Rs. 411.8 Cr. in Q1FY21 and Q4FY21 respectively.
  • The EBITDA margin of the company stood at 13.8% in Q1FY22 up by 1,220 bps YoY and down by 50 bps QoQ.
  • The Net Profit of the company for the quarter ended 30th June 2021 is Rs. 504.8 Cr. against Rs. 152.8 Cr. in Q4FY21 up by 230.5% QoQ. The company reported a loss of Rs. 203.6 Cr. in the quarter ended 30th June 2020.
  • During the quarter, the company recorded an exceptional gain of Rs. 294 Cr. on remeasurement of the previously held equity interest of Gleneagles Development Private Limited. This exceptional gain led to higher profit in Q1FY22.
  • The Net Profit Margin of the company is 13.4% for Q1FY22.

Apollo Hospitals- 4 Point Analysis

Apollo Hospitals- 4 Point Analysis

2) Q1FY22 Result Highlights:

  • Apollo Hospitals Enterprise, a healthcare service provider, reported its results for Q1FY22 with operating revenue of Rs. 3760 Cr, an increase of 73% Y-o-Y compared to Q1FY21 and an increase by 31% Q-o-Q compared to Q4FY21
  •  The EBITDA of the company decreased in the quarter to 13.83% from 14.36% in the previous quarter (Q4FY21). Comparison with the corresponding period of the previous year (Q1FY21) is not possible because of the stringent lockdowns in the country on account of the first wave of the pandemic
  • The PAT of the company in the quarter increased to Rs. 504.83 Cr compared to Rs. 152.77 Cr in the previous quarter – An increase by 230.45% Q-o-Q. The loss in the corresponding quarter of the previous year was Rs. 203.61 Cr
  • During the quarter, the company recorded an exceptional gain of Rs. 294 Cr on remeasurement of the previously held equity interest of Gleneagles Development Pte Ltd (a subsidiary) in its joint venture at the fair value post-acquisition of its balance stake.

Key Business Highlights:

  • Apollo Hospitals is the largest private vaccinator for covid vaccines with 30% of all private vaccinations.
  • The company has been able to perform 3.87 million covid vaccinations to date.
  • Out of the total hospital revenues, the company has earned Rs. 490 Cr. through treatment of Covid-19 Patients.
  • Apollo 24x7, the company’s online platform has 10 million unique users registered on the platform.
  • The company had more than 15,000 teleconsultations per day during the peak of the second wave of Covid-19.
  • The company is currently doing 30,000 deliveries a day in June 2021 in the pharmacy segment.
  • Currently, 5% of the pharmacy revenue is earned through online sales by the company.
  • The company acquired 47 lakh, new customers, during the quarter through either of their segments.
  • Tier-2 cities hospitals have also performed well during the quarter.

3) Revenue and EBITDA Mix:

  • Compared to the previous quarter, the gross revenue of Apollo Hospitals increased by 31% driven mainly through increased hospitalization and testing for Covid patients which earned the company a revenue of Rs. 3760 Cr during the quarter.
  • As evident from the margin comparison, the clinic business had a significant increase in margin due to increased testing during the second covid wave.
  • The Hospitals segment of the company yielded revenue of Rs. 1,939 Cr. in Q1FY22 and EBITDA of Rs. 394 Cr. which led to an EBTIDA Margin of 20.3% in this segment.

Apollo Hospitals- Revenue and EBITDA Mix

Apollo Hospitals- Revenue and EBITDA Mix

4) Other Key Operational Metric:

  • During the quarter, 2355 beds were allocated for Covid-19 patients which are around 30% of the total operating beds of the company
  • The ARPOB has increased significantly Y-o-Y. This does not include the revenue from vaccinations.
  • June 2021 witnessed a rapid drop in Covid-19 occupancy and non-covid admissions have been ramping up since

Apollo Hospitals- Other Key Operational Metric

Apollo Hospitals- Other Key Operational Metric

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