Apollo Hospitals Q4 results preview: Net profit to likely grow 75%; margins may expand by 200 bps

Apollo Hospitals, part of the Nifty Healthcare index, is slated to report its March-quarter earnings on Thursday (May 30, 2024). The company will also consider its final dividend for the fiscal year 2024.

Zee Business research desk anticipates the company to post a good show in the quarter ended March of the previous FY2. The consolidated revenue during the reporting quarter to be at Rs 4,884 crore as against Rs 4,302 crore, a 14 per cent on-year growth. Likewise, EBITDA at the company is seen to log 27 per cent year-on-year growth and come in at Rs 621 crore versus Rs 488 crore in the same period last year. Margins at the company are also estimated to see an expansion with margins for the January-March quarter expected at 13 per cent versus 11 per cent in Q4FY23.

Consequently, net profit at the company is expected to clock 75 per cent growth on-year to Rs 255 crore versus Rs 146 crore in the same period last year.

The company’s hospital segment is estimated to log 11 per cent growth in revenue year-on-year (YoY), while EBITDA may rise 8 per cent. The desk expects occupancy level to improve at the company. 

For Apollo HealthCo that administers the company’s Apollo 24/7 business, the revenue is expected to soar 14 per cent on-year on the back of pharmacy distribution sales and store expansion.

Key monitorables

Investors and other stakeholders will keep an eye on the expansion plans of Apollo 24/7. Also, company’s expansion plans in major cities including Pune, Hyderabad, Kolkata and  Bengaluru will be on radar.

Apollo Hospitals share price performance

Over the past one year, shares of Apollo Hospitals have underperformed the Nifty Healthcare index with a return of 28 per cent as against Nifty Healthcare’s return of 49 per cent. Ahead of its results tomorrow, shares of Apollo Hospitals traded higher by 0.25 per cent at Rs 5,919.45, a nearly 31 per cent gain from the stock’s 52-week low price.