India's Apollo Hospitals posts higher Q2 profit, plans to boost bed count

By Rishika Sadam

HYDERABAD (Reuters) - India's Apollo Hospitals Enterprise reported a 14% rise in second-quarter profit on Thursday as more patients visited its hospitals due to the seasonal flu infections, and the company also laid out plans to expand its operations.

The hospital chain's consolidated attributable net profit rose to 2.33 billion rupees ($28 million) in the quarter ended Sept. 30, from 2.04 billion rupees, a year ago.

Apollo, which runs over 70 hospitals across the country with over 10,000 beds, said revenue from operations rose 14% to 48.47 billion rupees.

Revenue from hospital services rose 12.7% to 25.66 billion rupees.

"Quarterly occupancy rate was at 68%, similar to last year but a decrease in average length of stay of patients was a boost to the occupancy in the second quarter," Chief Financial Officer Krishnan Akhileswaran told Reuters.

"There was also a good uplift in surgical cases volume, which was up 7% compared to last year, which can sustain for next few quarters," he said.

Akhileswaran said Apollo aims to increase occupancy to more than 70% over the next few quarters even as it adds 1,170 more beds by the end of next fiscal year.

That is part of Apollo's plan, announced on Thursday, to add 2,860 beds over the next three years. It has also expanded its facilities in Pune and Kolkata through acquisitions, the company said, without giving further details.

Earlier this week, Max Health Care Institute reported a 38% rise in quarterly profit as it earned higher revenue per bed.

However Apollo's digital health and pharmacy business, its second-biggest by revenue with a 40% contribution, continued to post losses.

Apollo has said it hopes to turn the cash-guzzling unit, which offers online consultations and pharmacy under 'Apollo 24/7,' profitable by end of financial year 2024.

Apollo's shares closed 3.7% higher after the results. ($1 = 83.2800 Indian rupees)

(Reporting by Rishika Sadam; Editing by Savio D'Souza)