Apollo Hospitals revenue from operations grew 14% YoY to Rs 4,851 crore, and topped the estimated Rs 4,771 crore. The healthcare services business saw a healthy 13% YoY growth in revenue during the quarter to Rs 2,483 crore, followed by the pharmacy distribution business housed under Apollo Pharmacy, which registered 17% growth in revenue to Rs 2,049 crore.
“This year, there is no need for immediate cash infusion in Apollo HealthCo. It is being supported by Rs 130 crore of EBITDA coming from the backend pharmacy. So, there is cash for growth existing within the company and at the right valuation, we will look at a 10% dilution.”
The stock hit a 52-week high of Rs 5362 on 28 July 2023 but failed to hold on to the momentum. It then retested the support above Rs 4700 once in August 2023 and then again in October 2023 — which resulted in a double-bottom formation. The neckline of the double-bottom pattern is placed around Rs 5150 on the upside. A close above the same could open room for the stock to head towards Rs 5400 levels.
As part of the expansion plan, the company announced a 250-bed new hospital in Pune expandable to 425 beds in 2 years at an overall cost of Rs 675 crores. The hospital is expected to be commissioned by Q1 FY25. With this expansion, Apollo will have over 1000 beds in Maharashtra including Mumbai, Pune and Nashik.