Latest news with #KrishnanAkhileswaran
Mint
3 days ago
- Business
- Mint
Apollo Hospitals to deepen presence in Bengaluru, Hyderabad
Apollo Hospitals Enterprise Ltd is increasing its penetration in Bengaluru and Hyderabad through a mix of greenfield and brownfield projects, as it embarks on a large-scale expansion plan in FY26. The hospital chain has approved a brownfield expansion of 160 beds across Jubilee Hills and Secunderabad facilities in Hyderabad, as well as acquired 2.53-acre land in Sarjapur, Bengaluru for a 500-bed greenfield hospital. These are expected to be operational in 3-4 years. It has also acquired an existing 200-bed hospital in Sarjapur, which will be operational in the next two quarters, the company said. This is in addition to the chain's planned expansion in Gurugram, Hyderabad, Kolkata and Pune, which it is commencing in FY26. Also read: IHH Healthcare arm increases damages sought from Daiichi Sankyo to ₹11,800 crore over Fortis stake dispute 'Over the next one year, we will be having quite a bit of expansions coming up," chief financial officer Krishnan Akhileswaran told Mint. The chain will be adding over 4,300 beds over three to four years beginning FY26, with a total capital outlay of over ₹8,000 crore. In the fourth quarter ended March, the company's consolidated revenues rose 13% year-on-year to ₹5,592 crore. Consolidated ebitda increased 20% over a year earlier to ₹770 crore, while profit after tax (PAT) rose 54% to ₹390 crore. For FY25, Apollo's consolidated revenues rose 14% on-year to ₹21,794 crore, while ebitda grew 26% to ₹3,022 crore. PAT increased 61% to ₹1,446 crore. Also read: Zydus bets big on vaccines and medtech Hospitals business grows The company's hospitals business grew 10% year-on-year in Q4 to ₹2,822 crore, while ebitda grew 16% to ₹686.3 crore. The business reported an ebitda margin of 24.3%. 'All of this is clearly representative of the operating leverage that we have from the same facilities that we are operating out of. No new facilities added as yet," Krishnan said. The growth from the company's bed additions starting this year will be significantly seen in FY27, he said. The company saw a dip in volumes due to the loss of patients from Bangladesh. However, the current base is the lowest it can get to, Krishan said. Also read: Access to obesity management not available to most Indian patients: World Heart Federation report The company expects Apollo 24/7 to be profitable by the end of FY26. It is focusing on 20% growth for Apollo Healthco, its digital healthcare and omnichannel pharmacy arm in FY26. 'The focus [for Apollo Healthco] is more on revenue and profitability," Krishnan said.
Economic Times
3 days ago
- Business
- Economic Times
Apollo Hospitals to invest Rs 6,000 crore for 4,300 new beds across India
Synopsis Apollo Hospitals has unveiled plans for a massive expansion, investing a staggering Rs 6,000 crores. This commitment is expected to yield over 4,300 additional beds across the nation in the next 3-4 years, with a swift introduction of 2,000 beds within the next year. ADVERTISEMENT Apollo Hospitals will invest Rs 6,000 crores over the next 3-4 years to add more than 4,300 beds across the country, Krishnan Akhileswaran, Group Chief Financial Officer, told ET in an interaction after the company announced its fourth quarter results post market hours on Friday. Out of this, close to 2,000 beds will be added over the next 12-15 months, he said. These will be coming up in places such as Gurugram, Kolkata, Pune, Hyderabad, Delhi and Sarjapur.'In the next four years we would be adding approximately 4,300 beds. We have a total capital outlay of Rs 8,000 crores for the same, of which Rs 2,000 crore is already incurred over the past couple of years when we bought land and some of these assets and the balance Rs 6,000 crore will be incurred over the next four years,' he said. The expansion will be funded through internal accruals and cash. 'Every year we are generating Rs 1,000 crore of free cash. It should only keep growing, especially given that once we have the new hospitals also next year - most of them being in existing markets where Apollo already has a strong presence - we would be able to see them break even in 12 months,' he added. For the fourth quarter ended March, the company reported 13% year-on-year increase in consolidated revenue to Rs 5,592 crores, while consolidated net profit grew 54% to Rs 390 crores. Its healthcare services revenue was at Rs 2,822 crores, up 10% YoY, and net profit was at Rs 385 crore; up 37%.For FY25, consolidated revenues rose 14% YoY to Rs 21,794 crores, and net profit was at Rs 1,446 crores, up 61%. Healthcare services revenue for FY25 stood at Rs 11,147 crores, up 13% YoY, while healthcare net profit was up 25% at Rs 1,426 crores. ADVERTISEMENT The company announced expansion in the Sarjapur micro-market through the addition of 700 beds in two stages, to establish a significant presence in the south-eastern part of Bengaluru with a wide addressable market. The first stage will include acquisition of an existing 200 bedded hospital and the second stage will be to establish a 500-bed greenfield hospital in close the ongoing brownfield expansions in the city, the total bed strength in Bengaluru will be 1,500 beds, the company said in a press release. ADVERTISEMENT 'About 66% of our beds nationally are in the very small format hospitals and not in the organised integrated healthcare sector. The kind of beds that Apollo operates is for high complexity and high equity care and we see continued demand for those kinds of beds,' said Dr Madhu Sasidhar, President & CEO, Apollo Hospitals, which has 70% of its beds in Metros and 30% in non-metros, had blended average revenue per operating bed (ARPOB) of Rs 63,500 per day for the quarter, one of the highest in the industry, Akhileswaran told ET. ADVERTISEMENT The company also plans brownfield expansion in Hyderabad by 160 beds through expansion at the existing Jubilee Hills and Secunderabad facilities. Along with the upcoming facility in Gachibowli, Apollo Hospitals' bed strength in Hyderabad will be about 1,400 beds. The company announced a final dividend of Rs 10 per share, making for a total dividend of Rs 19 per share, on face value of Rs 5 per share. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
