On Wednesday, healthcare chain Apollo Hospitals Enterprises Ltd announced that it posted a net profit of Rs 169.89 million for the fourth quarter ended March 31, 2021.

On Wednesday, healthcare chain Apollo Hospitals Enterprises Ltd announced that it posted a net profit of Rs 169.89 million for the fourth quarter ended March 31, 2021.

With a consolidated net profit of Rs 2.096 billion in the same quarter of the previous year, the company announced through a restructuring that it would establish Apollo health, which “The declared objective is to “Build the largest healthcare platform in India.”

For the quarter, the consolidated operating profit in the fourth quarter was Rs 286.795 billion. Apollo Hospitals Companies Ltd (AHL) said in a statement that it spent $2,922.43 million during the same period last year.

The company said its total net profit for the fiscal year ended March 31, 2021, was Rs 136.77 million. 43.18 million in the fiscal year 2020.

Consolidated operating profit for FY21 was Rs 10,560.01 million. 11,246.8 crore is documented in the fiscal year 2020.

The company has announced that effective September 1, 2020, it will sell its flagship retail pharmacy business to Apollo Pharmaceuticals Ltd (APL), a subsidiary of Apollo Medicals Pvt Ltd (AMPL), for Rs 5278 million in cash.

The company later invested Rs 365 crore and revealed that its stake in AMPL had increased to 25.50%, losing control from 1 September 2020.

As a result, data for the quarter and year ending March 31, 2021, cannot be compared to data for the same period last year, the statement said.

AHL added that its board of directors approved on Wednesday a proposal to repurpose its pharmaceutical distribution business, including transferring its stake in the failed Apollo 24/7 online technology platform and AMPL to its subsidiaries. . Recently, it is a subsidiary of Apollo HealthCo Ltd. It offered a reward of 121 billion won.

The company added that it must obtain the necessary approvals from shareholders, secured creditors, and regulators.

Activities recognized by AHEL after the reorganization include offline pharmacies (excluding hospital pharmacies). 24-hour digital healthcare platform Apollo; Investments in the Retail Pharmacy Sector – AMPL; Apteka brand and private trademarks are transferred to Apollo HealthCo Ltd (AHL).

The document also states that Apollo HealthCo Ltd was established to provide technologically advanced health care services. He added that it helps people manage their health and wellness data online and trade and trade all kinds of pharmaceuticals, health products, and consumer goods.

AHL “represents the transformational journey of the Apollo Group to build India’s largest comprehensive healthcare platform,” AHL said in a statement.

“To address the demands of all healthcare consumers, the platform “would mix Apollo Group’s leading offline healthcare with Apollo Group’s new era digital products,” he continued.

Shobana Kamini, Senior Vice President of AHL, said: As a leading provider of advanced healthcare, Apollo Hospitals Group is well positioned to be at the forefront of this transformation.

“Through the Apollo 24/7 app, we offer them access to medications, counseling, and home diagnostics,” he continued… This omnichannel approach has enabled us to serve more than 270 million people in the last 500 days.

AHL said it expects its offline pharmacy business to reach 5,000 stores over the next three years and maintain sales growth of 18-20%. The company’s margins remain unchanged.

With a “low-asset approach,” Apollo 24/7, formerly India’s most lucrative remote consulting platform, is expanding quickly and aspires to have 100 million registered customers within five years.

He declared, “I think AHL will have a big chance to serve healthcare consumers and offer a smooth and integrated multi-channel experience as AHL (and Apollo 24/7) grow.

Apollo Hospitals rating – Add: Hospital business saw a stellar performance

Despite lower-than-expected dispensary sales, APHS Hospitals continued to recover successfully in the third quarter of FY22. Hospital margin (by Ind-AS) improved to 24.6% in 22Q3 from less than 20% before COVID. APHS has announced an expansion to 2,000 beds in Bangalore, Mumbai, and Delhi NCR over the next three years. AHL is valid. APHS is currently hosting a Healthco fundraising event in the next 2-3 months. Overall performance is impressive. Plus FV of Rs.5,275.

ALL Hospital shines with increased internal traffic. In the third quarter of FY22, APHS reported revenue of Rs 36.4 billion, an increase of 32%, and Ebitda of Rs 5.9 billion, an increase of 50%. Hospital margins increased 130 basis points to 24.6% sequentially with a strong rebound in non-coronavirus sales despite the offseason. As the influx of local patients increased, the proportion of large clusters such as Tamil Nadu increased. According to APHS, this share may increase to 75% in the next two years (65% in Q3 2022, down in January 2022). APHS expects hospital margin expansion to continue through better case mix, reimbursement or blending, and cost efficiencies. We believe that the significant improvement in ARPOB (Rs. 48,000 crore in Q3 FY2022) is largely due to improved global composition. With continued strong performance in primary and secondary care resurgence and diagnostics, AHLL posted Ebitda of Rs 495 crore (up 78% YoY) in 3QFY22 despite a decline in vaccine sales.

24/7 continuous improvement, focus on strengthening the technology platform. Offline pharmacy margins declined by 70 basis points. qoq at an annual growth rate of 7.4% and a one-time premium of Rs.10 crore. 24-hour operating expenses rose 16% QoQ to Rs 550 crore. APHS continues to make 45,000 home deliveries (online and offline) every day. Currently, the average 24/7 discount rate is 12-13% and the company has no plans to increase it. According to management, the (in-house development) technology remains a critical drawback for 24/7 products and continues to work to improve the product. As highlighted recently, the Amazon partnership is seen as a double-edged sword, raising concerns about the potential cannibalization of the 24/7 platform.

The best hospital network to invest in a growing healthcare ecosystem. We believe that better operational execution, building coverage of multiple healthcare touchpoints, and developing digital offerings will give APHS a significant advantage over comparable hospitals and enable APHS to lead the healthcare ecosystem. . FY23-24 Ebitda declined by 3-4%. This is mainly due to the low profitability of offline pharmacies and huge losses in 24/7 operations. If you go ahead and keep adding, your FV is Rs 5,275 (up from Rs 5,200).