HYDERABAD (Reuters) -India’s Apollo Hospitals Enterprise on Tuesday reported its fifth straight quarterly profit rise, beating analysts’ estimates on higher demand for its healthcare services.
The hospital chain operator reported a consolidated net profit that rose 41.8% to 4.33 billion rupees ($49.40 million)for the April-June quarter.
Analysts, on average, had expected of 3.86 billion rupees, according to data compiled by LSEG.
Indian hospital chains such as Apollo and Manipal have been increasing their bed count for a larger share of the market, including through acquisitions of smaller hospital operators. Temasek-backed Manipal acquired a majority stake in local peer Sahyadri Hospitals last month.
Apollo said it is on track to add 4,370 beds over the next 3-4 years through acquisition, setting up new hospitals, as well as expansion of existing facilities. The hospital operator had 8,030 operational beds as of June 30.
Occupancy rate for the quarter, however, saw a slight dip to 65% from 68% last year.
Total revenue for the first quarter rose 15% to 58.42 billion rupees beating estimates of 57.44 billion rupees, aided by a 12% growth in the healthcare services business that contributes more than half of the total revenue.
The company expects double-digit revenue growth for the current financial year.
Its offline pharmacy and digital healthcare business reported a 19% rise in revenue. Apollo spun off the business recently and aims to list it as a separate entity in the next 18-21 months.
($1 = 87.6520 Indian rupees)
(Reporting by Rishika Sadam; Editing by Leroy Leo)
