The Indian multinational healthcare group, Apollo Hospitals Enterprise Ltd, announced its financial results for the first quarter of FY23 on 11th August 2022. The company reported its profit after tax (PAT) at Rs. 317.11 crore in Q1 FY23, down 35.19% YoY (year on year) from Rs. 489.28 crore in Q1 FY22. However, there was a 251.8% QoQ (quarter on quarter) increase in the profit from Rs. 90.14 crore in Q4 FY22.
The decline in profits of Apollo Hospitals on a YoY basis can be attributed to an increase in the company’s total expenses, including a rise in the cost of material consumed, employee benefit expenses, depreciation and amortisation expenses, as well as other expenses of the company. Apollo Hospitals also saw an increase in its current tax liability during the quarter.
However, the company recorded a marginal increase in its revenue from operations, which stood at Rs. 3,795.60 crore in Q1 FY23, up 0.94% YoY from Rs. 3,760.21 crore in Q1 FY22.
The earnings per share (EPS) of the company stood at Rs. 22.05 in the current quarter, a 35.20% YoY decline from Rs. 34.03 in the same quarter of the previous year. Ahead of the result announcement, which was made after the market closed on Thursday, the Apollo Hospitals scrip closed in the red at Rs. 4,422.95 apiece, down 2.09% from the previous day’s closing.
Hits of Apollo Hospitals Q1 Results
- Revenue from operations stood at Rs. 3,795.60 crore in Q1 FY23, up 0.94% YoY.
Misses of Results of Apollo Hospitals
- Profit after tax stood at Rs. 317.11 crore in Q1 FY23, down 35.19% YoY.
- The company saw an increase in its total expenses, as well as in its current tax liability during the quarter.
- Earnings per share of the company stood at Rs. 22.05 in the current quarter, a 35.20% YoY decline from Rs. 34.03 in Q1 FY22.
- Healthcare Services: Revenue up 4.68% YoY to Rs. 2,032.07 crore in Q1 FY23 from Rs. 1,941.24 crore Q1 FY22.
- 24/7 Digital: Revenue stood at Rs. 626 crore in Q1 FY23.
- Clinics: Revenue down 5.17% YoY to Rs. 293.01 crore in Q1 FY23 from Rs. 309 crore Q1 FY22.
- Others: Revenue up 9.43% YoY to Rs. 1.16 crore in Q1 FY23 from Rs. 1.06 crore Q1 FY22.
- Pharmacy Distribution: Revenue down 2.58% YoY to Rs. 1,472.92 crore in Q1 FY23 from Rs. 1,512 crore Q1 FY22.
Other things to know
- Assam Hospitals Limited (AHL), a subsidiary of the company, completed the acquisition of 64.42% of equity stake in Asclepius Hospitals and Healthcare Private Limited (AHHPL), Guwahati, on November 12, 2021, for a consideration of Rs.10,000 lakhs.
- The Company completed the provisional purchase price allocation in respect of the identifiable assets acquired and liabilities assumed, resulting in a goodwill of Rs. 1,153 lakhs. The goodwill arising out of the acquisition was presented within the Healthcare segment.
- The P/E ratio of Apollo Hospitals stood at 61.53 as against the sector P/E ratio of 38.37.
- The P/B ratio of Apollo Hospitals stood at 11.05 as against the sector P/B ratio of 4.84.
- The dividend yield of Apollo Hospitals stood at 0.26% as against the sector dividend yield of 0.91%.