This large healthcare stock deals in the business of operating Hospitals, Pharmacies, Primary Care and Diagnostic Clinics including several Retail Health models, are down upto 7 percent despite Q3FY25’s net profit growth of 49 percent year on year.
Share Price Movement
With a market capitalization of Rs. 91,288.88 Crores, the shares of Apollo Hospitals Enterprise Limited were down by 7.10 percent in the day’s trade touching a day’s low of Rs. 6,285 per share.
The stock reiterated from the day’s low and was trading at Rs. 6,349 which is 6.16 percent lower than the previous closing price of Rs. 6,766 apiece. It has delivered a negative return of 4 percent which has underperformed the Nifty Index in the past year.
Q3YF25 Financial Highlights
Apollo Hospitals Enterprise stock was in focus after reporting financial results for the quarter ending December 2024, Its consolidated revenue from operations has increased by 13.94 percent year on year from Rs. 4,850.6 crores in Q3FY24 to Rs. 5,526.9 crores in Q3FY25 and declined by 1.11 percent quarter on quarter from Rs. 5,589.3 crores in Q2FY25.
The company’s consolidated net profit has increased by 49.13 percent year on year from Rs. 254.4 crores in Q3FY24 to Rs. 379.4 crores in Q3FY25. As compared to Q2FY25, the company’s net profit has declined by 4.11 percent quarter on quarter from Rs. 395.7 crore.
Business Segments
The company earned its revenue from operations from Healthcare services which contributed around 50.53 percent, Retail health, and diagnostics contributed around 7.02 percent, Digital health and pharmacy distribution contributed around 42.41 percent and the remaining 0.03 percent from others as of December 2024 quarter.
The healthcare segment contributes to higher operating profit. Retail health revenue segment, despite contributing around 80 percent of Healthcare’s revenue its operating margins are low.
Future Outlook
The company’s Managing Director, Dr. Suneeta Reddy said that the Average Revenue per Occupied Bed (ARPOB) is likely to sustain at the Rs. 60,000 level growing at a steady rate of 4 percent. For this year, the ARPOB growth is expected to close at 8 percent. Apollo Health & Lifestyle Limited is to break even by Q1FY26 with and margin of 15 percent at sustainable levels. Further, Adani Group’s location near the airports will be good for international patients.
Company Overview
Apollo Hospitals was established in 1983 and is a leading healthcare group in Asia. It is India’s first corporate hospital and has a network of 71 hospitals, along with pharmacies, clinics, and digital health services.
Written By Santhosh S
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