Latest news with #Apollo24
Mint
4 days ago
- Business
- Mint
Apollo Hospitals' clinical precision impresses investors in Q1
Apollo Hospitals Enterprise Ltd shares hit a new 52-week of ₹7,859.50 on Thursday after surging around 8% the previous day on the back of impressive June-quarter (Q1FY26) results. Consolidated net profit jumped 42% year-on-year to ₹433 crore, with digital health and pharmacy seeing a turnaround. The segment swung to a net profit of ₹57 crore versus a loss of ₹13 crore in Q1FY25 on the back of revenue growth and narrowing losses in Apollo 24/7, the digital consultation and treatment business. In its mainstay healthcare services or hospitals business, Apollo has changed its traditionally reported metric of average revenue per occupied bed (ARPOB) to average revenue per patient (ARPP). Management believes ARPP blends pricing, length of patient stays and occupancy into one figure. Vital signs ARPP rose 9% year-on-year to ₹1.72 lakh in Q1FY26, driving 11% revenue growth to ₹2,935 crore. ARPP growth was driven by more complex cases that fetch higher realisation, better payer mix and improved tariffs. Cardiac, oncology, neurology, gastro and ortho (or CONGO) patients accounted for 63% of the total. The rise in CONGO patients vis-à-vis general surgeries boosted overall revenue. Insured patients were higher at 45% versus self-pay at 40%. Insured patients tend to choose better rooms, raising charges for all other services, including nursing. In-patient discharges, similar to volume, grew 3% to 1.52 lakh. International patients (about 5% of revenue) hurt the growth rate by 150 bps owing to a drop in Bangladeshi patients because of visa restrictions. Management hopes to offset this with patients from new markets in Africa and the Middle East, including Iraq. International revenue could contribute 7% to total revenue by FY26 and 10% by FY27, it said. Management has guided for hospital business Ebitda margin to improve from 24.5% in Q1FY26 to 25% by the end of FY26, and there could be a 100 bps drop from this point as new hospitals start operations. New hospitals are likely to incur losses of about ₹150 crore over the next couple of years. However, management is confident of achieving breakeven 12 months after commencing operations. Pressure on ROCE The return on capital employed (ROCE) in Apollo's hospital business came in at a healthy 28% for Q1FY26. The capital employed currently excludes capital work-in-progress of ₹842 crore towards new hospitals. Capital employed is likely to rise nearly 40% from the current ₹7,900 crore by the end of FY26 as new hospitals come on stream. Such a large expansion within a year would put pressure on ROCE in the near term, but such lumpy, intermittent investments are typical of the hospital industry. Financing this capital expenditure won't be hard for Apollo as its balance sheet has a net cash position that leaves scope to borrow when needed. Nevertheless, the performance of new hospitals to be commissioned in FY26 must be closely monitored over the next couple of years. If the ramp-up turns out to be good, investors will be less worried about the next phase of expansion, worth ₹4,438 crore. Despite a strong Q1FY26, some analysts are concerned about the stock's valuation. Nomura has 'neutral' rating with a sum-of-the-parts target price of ₹6,856. It values the healthcare services business at 25 times the one-year forward EV/ Ebitda and assigns a multiple of 30 for the asset-light pharmacy business Apollo Health Co.
Time of India
31-07-2025
- Business
- Time of India
Apollo entities seek CCI nod for recast plan
Apollo Group entities have sought the Competition Commission of India 's (CCI) approval for a composite restructuring plan that would eventually lead to the separate listing of the group's omnichannel pharmacy and digital health businesses within 18-21 months. The proposal involves the demerger of omnichannel pharmacy distribution, Apollo 24|7 digital platform and remote telehealth division of Apollo Hospitals Enterprise (AHEL) into a new company-Apollo Healthtech (AHTL). Explore courses from Top Institutes in Please select course: Select a Course Category CXO Project Management PGDM Cybersecurity Product Management Degree Leadership Technology Finance Public Policy Others Artificial Intelligence MBA Data Science Data Analytics Design Thinking others Management Operations Management healthcare MCA Digital Marketing Data Science Healthcare Skills you'll gain: Customer-Centricity & Brand Strategy Product Marketing, Distribution, & Analytics Digital Strategies & Innovation Skills Leadership Insights & AI Integration Expertise Duration: 10 Months IIM Kozhikode IIMK Chief Marketing and Growth Officer Starts on Apr 7, 2024 Get Details Skills you'll gain: Operations Strategy for Business Excellence Organizational Transformation Corporate Communication & Crisis Management Capstone Project Presentation Duration: 11 Months IIM Lucknow Chief Operations Officer Programme Starts on Jun 30, 2024 Get Details Skills you'll gain: Technology Strategy & Innovation Emerging Technologies & Digital Transformation Leadership in Technology Management Cybersecurity & Risk Management Duration: 24 Weeks Indian School of Business ISB Chief Technology Officer Starts on Jun 28, 2024 Get Details Skills you'll gain: Digital Strategy Development Expertise Emerging Technologies & Digital Trends Data-driven Decision Making Leadership in the Digital Age Duration: 40 Weeks Indian School of Business ISB Chief Digital Officer Starts on Jun 30, 2024 Get Details Subsequently, Keimed, another group entity that focusses on wholesale pharmacy business, will be merged into this new company. This will create a formidable listed omnichannel pharmacy distribution and digital health platform leader in India with ₹16,300 crore in revenues in FY25, AHEL had said in June. This combined entity was proposed to be listed in 18-21 months. According to the filing of the group entities with the antitrust regulator dated July 30, the new company will then acquire 74.5% shareholding of Apollo Medicals (AMPL) from existing shareholders in accordance with the applicable regulatory framework and a share purchase agreement already executed for this purpose. Manipal seeks nod too Live Events Separately, Manipal Hospitals , an arm of Manipal Health Enterprises, has sought the CCI clearance to acquire 100% of Sahyadri Hospitals in multiple tranches, according to a separate filing with the regulator dated July 30.
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Business Standard
01-07-2025
- Business
- Business Standard
Apollo Hospitals shares hit record on plan to list pharmacy, digital biz
Shares of Apollo Hospitals Enterprise Ltd. surged over 4 per cent to hit a record high on Tuesday, after the company said it will spin off and separately list its digital health and pharmacy unit within 18 to 21 months. The hospital firm's stock rose as much as 4.42 per cent during the day to a life high of ₹7,569.5 per share. The stock pared gains to trade 3.5 per cent higher at ₹7,500 apiece, compared to a 0.22 per cent advance in Nifty 50 as of 9:46 AM. Shares of the company saw their steepest intraday gain since November 7 last year. The counter has fallen 2.8 per cent this year, compared to an 8.2 per cent advance in the benchmark Nifty 50. Apollo Hospitals Enterprise has a total market capitalisation of ₹1.08 trillion. Apollo Hospitals to list digital health, pharmacy unit Apollo Hospitals plans to demerge its omnichannel pharmacy distribution, Apollo 24|7 digital platform, and remote telehealth division into a new entity, according to an exchange filing on Monday. Simultaneously, Keimed Pvt Ltd will be merged into the same entity. This move will allow Apollo Hospitals shareholders to directly own shares in the newly created, integrated healthcare entity, the company said in the statement. The combined company is projected to have revenues of approximately ₹16,300 crore in the financial year 2024–25. It aims to reach a revenue run-rate of ₹25,000 crore by the end of the financial year 2026-27, with a gross merchandise value (GMV) of ₹28,000 crore and targeted Ebitda margins of around 7 per cent, according to the investor presentation report. The listing of the entity is expected to take place within 18 to 21 months. Under the scheme, shareholders of AHEL will receive 195.2 shares of the new company for every 100 shares held in AHEL. In addition, subject to regulatory approvals, AHEL also plans to increase the new entity's stake in Apollo Pharmacies Ltd by acquiring the remaining 74.5 per cent stake in Apollo Medicals Pvt. Ltd (AMPL), of which APL is currently a wholly owned subsidiary. JM Financial on Apollo Hospitals With approximately 6,600 outlets, 1.4 times that of the second-largest player, the company operates the largest pharmacy network in India. The integration of the Apollo 24|7 online platform and the merger with Keimed are expected to accelerate growth, enabling expansion in online sales and strengthening of private label offerings, the brokerage said. With a better product mix, realisation of synergies, and increased operating leverage, segmental Ebitda margins are projected to improve from 1.8 per cent to 6.5 per cent by financial year 2027–28, supported by a top-line compound annual growth rate (CAGR) of 20.2 per cent between financial years 2024–25 and 2027–28, it said. Apollo Hospitals Q4 results The company reported a consolidated net profit of ₹389.6 crore for the quarter ended March 31, 2025 (Q4 FY25), marking a growth of nearly 54 per cent from ₹253.8 crore in the year-ago period (Q4 FY24). Revenue from operations in Q4 FY25 stood at ₹5,592.2 crore, up around 13.11 per cent from ₹4,943.9 crore in Q4 FY24. On a quarter-on-quarter basis, revenue rose moderately from ₹5,526.9 crore in Q3 FY25.
The Hindu
04-06-2025
- Business
- The Hindu
Bringing down costs, making our economic costs better to help drive profitability, Apollo HealthCo CEO
Excerpts: Medical inflation is often being mentioned about in the industry. In this paradigm, which product serves better – a co-branding card or insurance, considering you have also forayed into insurance recently? Mr. Balakrishnan: I do not see it as a conflict. A credit card is an emergency and convenience-driven device whereas insurance is a purely emergency device for which you have been paying for over a period. It is complementary and one of the reasons why Apollo 24|7 got into both is because card as a payment mechanism and insurance as a protective mechanism are very mandatory, and core to my business. They are not extra-curricular. In fact, they cover my proposition. Our aspiration is to bring in both the provider (hospitals, pharmacy, diagnostics and wellness) and payer (cards, UPI and insurance) under one umbrella. Thus, providing our customers both affordability and best possible services. That is how we endeavour to build our circle of health. How do you look at insurance and co-branding ensuring profitability for Apollo? Mr. Balakrishnan: Our pharmacy business is the primary driver. We do about 59,000-60,000 deliveries every day which touches 1,00,000 if you consider home deliveries utilising through our digital platforms. With respect to diagnostics, we test around 80,000 to 1,00,000 samples every month primarily from our pharmacy customers as well as independent customers. Finally, we do about 3,000 consultations every day. All of it pertains to our digital platforms and not the offline centres. So, this business is growing slowly and steadily unlike quick commerce - we are not growth on steroids. Our growth is built on a sustainable model. We start by focussing on top six cities, then the next ten cities and so forth. While we are servicing 19,000 pin codes, a big chunk of our business is derived from these markets. For me, growing my pharmacy, diagnostics and consult business is core. With credit card or an insurance ensure, I get more repeat business and thereby the core business continue to grow. The insurance customers also become my primary customers. In the sense that we would be able to give them a much better experience within the Apollo ecosystem and other hospitals outside it as well. While we earn some margins from the insurance business, for it is viable as a standalone business, we might not make too much money with credit card business. However, it is imperative to note that we do not lose money with the latter, for the credit card customers become a driver of growth for the three core businesses, that is, pharmacy, diagnostics, and consultations. What is the outlook for profitability? Mr. Balakrishnan: We hope to break profitability between the five units of business, that is, pharmacy, diagnostics, consultations, insurance and cards, by the end of this financial year. We have been bringing down costs dramatically and making our unit economics better. I believe this would help drive profitability much faster. Hopefully, by the third or fourth quarter we should be able to turn this around. As an entity we are positive but as a pure digital line, we are still burning cash. We should be able to eliminate that by the end of this year. How do you see the evolving landscape with quick commerce? Mr. Balakrishnan: We are typically compared with quick commerce entities experiencing breakneck growth and spending a lot of money. Although we would want to build a sustainable model because we feel healthcare is a long-term business and build a much stronger proposition. Although, consumer behaviour is changing with quicker ten-minute deliveries, and we do not live in a vacuum. Thus, we brought in the 19-minute delivery model. However, ours is also a much more complicated and regulated product. It requires validating prescriptions alongside adhering to rules for disbursing medicines. At this point, we have the 19-minute delivery service in top 6 cities and intend to roll it out selectively in others. This has genuinely helped us get better propositions. While it may not be economically viable at this point of time, but it helps get customers. Our focus has been to ensure that deliveries are either within 19 minutes, especially emergencies, or 90% within the same day. Thus, our underlined objectives now also entail quick turnaround time alongside authenticity, discount and accessibility. The faster I can deliver, I become more efficient, and it becomes a better paradigm. What purpose would the recently introduced SBI co-branding credit serve? Mr. Balakrishnan: A typical patient in SEC-A (top socio-economic class in India) would be spending anything between ₹30,000-45,000 on an annualised basis. If we were to take Apollo 24|7 as a yardstick, 27% of the pharmacy transactions happen on a credit card. Further, it is not more than 6-7% at the physical outlets. We observed more people are using digital means to make payments because it convenient and effective. Additionally, with credit cards one can push the expenses to the end of the month. Thus, the first objective was to consolidate the mechanism of payment for purchasers in a more organised way. Secondly, giving value to customers. Partnering with SBI drives better value for our customers. This would be by pooling in our (respective) resources and offering customers up to 25% cash back as savings. This can only be done through a credit card and not a debit card. With UPI as well, the economics would be sustainable neither for the bank nor for us. Furthermore, we are ascertaining that the savings, which is not just at the pharmacy outlet but overall spend, can be ploughed back. Imagine availing cash back and/or points on the entire spending and investing it back for health needs itself. The final objective relates to testing. This is to facilitate pro-active care especially in a market like ours bearing considerable potentiality for non-communicable diseases. We are putting in some annual tests free of cost as part of the proposition. How does the co-branding card help the overall business? Mr. Balakrishnan: We hope to spur the 27% figure on pharmacy transactions through credit cards to about 35-40% because this would help enhance our efficiencies. As for numbers, it would be a steady growth because credit card business also entails underwriting, that is, not everybody gets a card. We hope to touch anything between 7,50,000 to 1 million cards over the next 18 months as we build it slowly and steadily. We intend to target it to our existing customers and are not exploring anybody coming up. The objective is to reach out to our huge (customer) base and rewarding those who engage with us by providing a product that enhances value (for them) and present a loyalty tool for offering them better. Finally, you would also be able to build further value propositions by building a strong core. With respect to co-branding cards in general, does the proposition of deep discounting not affect the unit economics of a company? Mr. Balakrishnan: When this industry started, discount was the only product-market fit. Why would anyone want to learn a new mechanism of buying (medicines) digitally. While the coronavirus pandemic did serve as a catalyst, the paradigm was retained for the (assured) availability of trusted medicines, because the industry is unfortunately plagued by a lot of counterfeit and duplicate medicines. The Apollo brand affirmed trustworthiness. Further, the digital proposition ensured greater reach and trusted medicines were available at any point of time. What is also essential to note is that an offline store can hold 6,000-7,000 SKUs at a given point of time, compared to online where it could be about 60,000. About discounting, it used to be as high at 20-22% when it started off. There has been a constant winding down since then. At present, it hovers at around 14-16% in the digital space at least depending on varied retailers. The sustainability of the model however, according to me, would be in the range of around 13% weighted average. The co-branding card (referring to SBI) ensures a more seamless experience and efficiency. The cost of collecting cash (for deliveries) is very high. Thus, the uptake effectively brings down the cost of operation. It should also not affect unit economics if I am able to grow 30-40% with more repeating customers, instead, the unit economics would start looking better. However, beyond 13-14% in the industry, it will start eating into the unit economics.
Mint
22-05-2025
- Business
- Mint
Apollo SBI Card Select offers huge savings on medical expenses: Should you take it?
Do you or someone in the family require regular medical support? It may be in the form of doctor consultations, diagnostic tests, medicines, etc. If yes, you can save money on these medical expenses with the Apollo SBI Card Select. The savings can go up to a whopping 25%. In this article, we will look at the features and benefits of this card and whether you should take it. The Apollo SBI Card Select is a co-branded credit card launched by Apollo 24|7 in partnership with SBI Card. It offers healthcare and wellness benefits across the Apollo ecosystem. It also gives rewards on non-healthcare spends like dining, entertainment, and travel, along with complimentary domestic airport lounge access. The features and benefits of the Apollo SBI Card Select include the following. Welcome benefit: The cardholder gets a welcome benefit of Rs. 1,500 Apollo 24|7 e-gift voucher on payment of joining fee. The voucher can be redeemed offline at Apollo Pharmacy stores and online through the Apollo 24|7 platform. It can be redeemed against medicines, Apollo private label products, FMCG and other healthcare products. Apollo Circle benefits: The cardholder gets complimentary in-built Apollo Circle benefits in the form of value back and savings. The benefits apply when transacting using the Apollo SBI Card Select at Apollo Pharmacy stores and on the Apollo 24|7 website/App. Some of these benefits include: Up to 15% value back on medicines Up to 20% value back on diagnostic services Up to 10% value back on doctor consultations The value back is credited as Health Credits to the Apollo 24|7 wallet. The value of each Health Credit is Rs. 1. Health benefits: You get to enjoy a 1-year complimentary Fitpass Pro membership on payment of the joining fee and doing one retail transaction. The membership gives access to a network of gyms and other fitness centres. On spending Rs. 50,000 within 90 days of card membership, you get a complimentary comprehensive health check-up. The complimentary health check-up can be availed every year on spending Rs. 50,000 within 90 days of card renewal. The reward points awarded on the card are as follows: 10 reward points for every Rs. 100 spent on Apollo 24|7 and Apollo Pharmacy stores. A cardholder can earn a maximum of 5,000 reward points in this category per statement cycle. 2 reward points for every Rs. 100 spent on dining, movies and entertainment, and travel. A cardholder can earn a maximum of 5,000 reward points in this category per statement cycle. 1 reward point for every Rs. 200 spent on other purchases Reward points must be converted into Health Credits on the SBI Card website and App. The value of 1 reward point equals 1 Health Credit. The converted Health Credits will reflect in the Apollo 24|7 wallet. The value of each Health Credit is Rs. 1. Health Credits can be used within the Apollo ecosystem, including Apollo 24|7, Apollo Diagnostics, Apollo Medical Centres, and Apollo Pharmacy. Health Credits can be used to pay for doctor consultations, diagnostic tests, medicine orders, etc. The Health Credits wallet balance will be auto-applied at checkout for eligible transactions. Milestone benefits: On annual spends of Rs. 6 lakhs on the card, the cardholder gets complimentary Noise Smartwatch worth Rs. 7,999. Airport lounge access: The cardholder can enjoy 4 complimentary domestic airport lounge access per year (1 per quarter). The cardholder gets a 2-year complimentary Priority Pass membership worth $99. Fuel surcharge waiver: The 1% fuel surcharge is waived across all petrol pumps in India. The waiver applies to fuel transactions between Rs. 500 and Rs. 4,000. The maximum surcharge waiver is Rs. 100 per month. When you purchase medicines from an Apollo Pharmacy or the Apollo 24|7 platform, you get two benefits. You get 10 reward points for every Rs. 100 spent. The 10 reward points are equivalent to 10 Health Credits. As part of Apollo Circle benefits, you get up to 15% value back as Health Credits in your Apollo 24|7 wallet. Clubbing the two benefits: Reward points (10% value back) on the card and Health Credits (up to 15% value back) on the Apollo Circle membership. When you combine the two benefits, you can get total benefits of up to 25% value back. That is an excellent value back on medicine purchases. Similarly, clubbing the two benefits on doctor consultations gives up to 20% value back and on diagnostic tests gives up to 30% value back. All these benefits will result in a lot of savings on medical expenses. As the Apollo SBI Card Select is a co-branded card issued in partnership with Apollo 24|7, it limits the cardholder to the Apollo ecosystem. The only way to redeem the reward points is to convert them into Health Credits by transferring them to the Apollo 24|7 wallet. The reward rate falls sharply when you use the card outside the Apollo ecosystem. Members who are already a part of the Apollo ecosystem will find a lot of value in this credit card. Others will have to move to the Apollo ecosystem to get good value out of this card. The joining fee for the card is Rs. 1,499 + Taxes. The renewal fee is Rs. 1,499 + Taxes. The renewal fee is waived on spending Rs. 3 lakhs in the previous year. If you or someone in your family needs regular medical support, you may consider the Apollo SBI Card Select. It gives benefits like healthcare discounts and value back within the Apollo ecosystem, a complimentary Fitpass Pro membership, a health check-up, etc. It also offers other benefits like complimentary domestic airport lounge access, complimentary Noise Smartwatch on annual milestone spend, reversal of renewal fee based on spends in the previous year, etc. Overall, it is a good credit card packed with powerful features and benefits. Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.
