4 days ago
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
