Apollo Hospitals’ Shares Fall After Q2 Results
The hospital chain operator’s stock has declined in four of the last five trading sessions.
Shares of Apollo Hospitals Ltd. fell after it reported a drop in profit and revenue in the quarter ended September.
The hospital chain operator reported a 29% year-on-year decline in net profit at Rs 59 crore in the July-September period, according to an exchange filing. The consensus of analysts’ estimates tracked by Bloomberg had forecast a net loss of Rs 46 crore.
Its revenue fell 3% to Rs 2,760.7 crore in the reported period, compared with the Rs 2,556-crore estimate. Revenue from the company’s healthcare services fell 17% year-on-year to Rs 1,242.7 crore, while the retail pharmacy business saw a decline of 16% to Rs 990.7 crore.
Other highlights (year-on-year)
- Operating profit declined 27% to Rs 299 crore
- Margin contracted 370 basis points to 10.9%
Apollo Hospitals has also approved the acquisition of the balance 50% stake in Apollo Gleneagles Hospitals, Kolkata for a cash consideration of Rs 410 crore, it said in a separate filing. Apollo Gleneagles will become a 100% subsidiary of Apollo Hospitals after the acquisition.
Of the 21 analysts tracking Apollo Hospitals, 19 have a ‘buy’ rating and one each suggests a ‘hold’ and a ‘sell’. The stock is trading 1.8% higher than its Bloomberg consensus 12-month price target of Rs 2,075.1 apiece. Shares of the company fell as much as 4.6% to Rs 2,094 apiece in early trade on Thursday. The stock has declined in four of the last five trading sessions.