- Apollo Health & Lifestyle Group had a strong first quarter in FY24, with continued growth in various areas.
- Healthcare Services saw a robust 13% YoY growth, with insurance revenues contributing 44% of total IP revenues.
- The overall occupancy across the group was at 62%.
- Consolidated revenue grew by 16% YoY to INR 4,418 crore.
- The online pharmacy distribution business, Apollo 24/7, recorded an EBITDA of INR 125 crore with a YoY growth of 13%.
- Apollo 24/7's GMV showed 11% QoQ growth, but there was a 20% QoQ decline in revenue due to reduced discounts.
- Management aims to achieve operational breakeven in the online pharmacy business by Q4FY24.
- Overall, the company's strategy is focused on building a sustainable and value-enhancing healthcare platform while ensuring fiscal responsibility and strong return on capital employed (ROCE).
- The company is targeting a higher average revenue per occupied bed (ARPOB) by improving the case mix and increasing tariffs.
- There's an emphasis on providing omni-channel healthcare services with a focus on the consumer experience.
- The company has a plan to add 500-600 new stores during the year to support growth.
- Despite some challenges, the management remains optimistic about the company's growth prospects and ability to reach its targets.
- Apollo Health & Lifestyle Group had a strong Q1 FY24, with 16% YoY revenue growth.
- Healthcare Services saw 13% YoY growth with insurance revenues contributing 44%.
- Apollo 24/7, the online pharmacy, showed GMV growth despite a revenue decline.
- Management aims to achieve operational breakeven in the online pharmacy business by Q4 FY24.
- The payer mix has changed, with insurance contributing 44% of revenues, up from 25-28% pre-COVID.
- The goal is to reach and sustain 70% occupancy without requiring additional capex.
- Improvements in ARPOB are expected to translate to higher margins.
- Apollo 24/7's operating expenses are reducing, and EBITDA as a percentage of GMV is expected to improve.
- The future expansion plans include adding 2,000 beds in regions with high occupancy.
- Indraprastha Medical has shown improvement due to the addition of high-quality doctors.
- The company is optimistic about its future growth prospects.