Due to increased patient flows across hospitals and the digital healthcare platform HealthCo reaching break-even, Apollo Hospitals Enterprise (AHEL) reported a 60% increase in consolidated net profit to Rs 245.3 crore for the third quarter of Financial Year 2023–24 (Q3 FY24) on Thursday, compared to Rs 153.5 crore in the same period in FY23.
From Rs 4,263.6 crore in the third quarter of FY23 to Rs 4850.6 crore in Q3 FY24, AHEL's operating revenue increased by 14%. "We anticipated that the HealthCo division would break even in the upcoming quarter. But we did that in the third quarter alone. We anticipate a 20% growth in this business going forward," Apollo Hospitals Chief Financial Officer Krishnan Akhileswaran stated. The Q3 FY24 earnings of the company, before interest, taxes, depreciation, and amortization (EBITDA), was Rs 6,13.7 crore, while Q3 FY23 earnings were Rs 505.3 crore.
Between 2025 and 2027, the business plans to invest Rs 3,400 crore to build seven additional hospitals with 2,300 beds, he said. With the exception of managed beds and Apollo Health and Lifestyle Limited, AHEL had 7,911 operating beds as of December 31, 2023, of which 1,584 were occupied and 2,528 were new. Within the healthcare services sector, the overall hospital occupancy rate in Q3 FY24 was 65 percent, down from 64 percent during the corresponding quarter in FY23.
In Q3 FY24, the healthcare services division's consolidated revenue of Rs 2463.5 crore grew by 12% from Q3 FY23's Rs 2194.4 crore. In Q3 FY24, revenue increased in all regional clusters: 10% in Andhra Pradesh and Telangana, 9% in Tamil Nadu, 12% in Karnataka, 15% in the eastern area, 25% in the west, and 1% in the north.
The omnichannel pharmacy and digital healthcare platform, Apollo HealthCo, reported robust growth in the third quarter of FY24. In Q3 FY24, revenue from offline pharmaceutical distribution was Rs 1,824.4 crore, whilst income from digital platforms was Rs 2,24.9 crore. HealthCo's revenues increased by 17% year over year (YoY) to Rs 2,049.3 crore. In Q3 FY24, over 119 new stores opened, bringing the total to 5,790.
The company's diagnostics and retail healthcare sector, Apollo Health and Lifestyle Limited, recorded sales of Rs. 337.7 crore in Q3 FY24, an 8% YoY increase. The diagnostics company opened 388 more collecting centers, bringing the total number of locations to 2,041 across 260 cities. By the end of the current fiscal year, 2,141 collection centers are the target number. Revenue from diagnostics was Rs 112.2 crore in Q3 of FY24.
