Apollo Hospitals’ Shares Fall After Q2 Results
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.