Q2FY11 results demonstrate sustained momentum
Apollo brand continues to dominate the healthcare sector in the country
Q2FY11 Revenues of Rs 5864 million, Y-o-Y growth of 29% EBITDA higher by 36% at Rs. 996 million
H1FY11 Revenues of Rs 11097 million, Y-o-Y growth of 29% EBITDA higher by 34% at Rs. 1879 million
Standalone pharmacy business became EBITDA positive in Q2FY11 with the total pharmacies count being 1,110 According to the The Week-Hansa Research Survey 2010, Apollo Hospitals - Chennai is ranked the 2nd best hospital in the country after AIIMS, New Delhi. In several cities like Chennai, Hyderabad & Ahmedabad, Apollo has been rated as the best multi-specialty hospital Apollo Hospitals has been ranked as below for the following specialties : - Oncology – 2nd best private hospital after Tata Memorial Hospital - Cardiology – The best private sector hospital - Diabetology – The best private sector hospital Work is shortly commencing on four major hospital projects namely, Mumbai, Chennai, Nashik and Nellore Apollo introduces mobile healthcare service for the first time to serve the people across the nation.
Chennai, November 9, 2010: The Apollo Hospitals Group, Asia’s most profitable and trusted healthcare services provider, reported its consolidated results for the second quarter and half year ended September 2010 according to Indian GAAP.
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Financial Highlights
Un-audited Standalone Q2FY11 Performance (in comparison to Q2 FY10) o Revenues grew 29% to Rs. 5864 million compared to Rs. 4561 million in Q2FY10. o EBITDA grew 36% to Rs. 996 million as against Rs. 731 million in Q2FY10. o PAT was Rs. 496 million in Q2FY11 vs. Rs. 341 million in Q2FY10, yoy growth of 45%. o Diluted EPS of Rs. 3.84 per share in Q2FY11 based on a total of 123.56 million equity shares of face value of Rs.5/- each. Un-audited Standalone Q2FY11 Performance (in comparison to Q1 FY11) o Revenues of Rs. 5864 million growing 12% over revenues of Rs. 5233 million in Q1FY11. o EBIDTA of Rs. 996 million which is 13% higher than the EBITDA of Rs. 883 million recorded in Q1FY11. o PAT in Q2FY11 of Rs. 496 million which is 26% higher than the PAT of Rs 393 million recorded in Q1FY11. o Diluted EPS of Rs. 3.18 per share in Q1FY11 based on a total of 123.56 million equity shares of face value of Rs.5/- each.
Un-audited Standalone H1FY11 Performance o Revenues grew 29% to Rs. 11097 million compared to Rs. 8620 million in H1FY10. o EBITDA grew 34% to Rs. 1879 million as against Rs. 1407 million in H1FY10. The EBITDA margin improved by 62 basis points to 16.93%. o PAT was Rs. 888 million in H1FY11 vs. Rs. 789 million in H1FY10. o Diluted EPS of Rs. 6.96 per share in H1FY11
Un-audited Consolidated Q2FY11 Performance o Revenues grew 30% to Rs. 6,720 million compared to Rs. 5169 million in Q2FY10. o EBITDA grew 43% to Rs. 1,127 million as against Rs. 790 million in Q2FY10. The EBITDA margin improved by 148 basis points to 16.77%. o PAT was Rs. 501 million in Q2FY11 vs. Rs. 301 million in Q2FY10. o Diluted EPS of Rs. 3.89 per share in Q2FY11
Un-audited Consolidated H1FY11 Performance o Revenues grew 30% to Rs. 12710 million compared to Rs. 9773 million in H1FY10. o EBITDA grew 37% to Rs. 2110 million as against Rs. 1538 million in H1FY10. The EBITDA margin improved by 86 basis points to 16.60%. o PAT was Rs. 888 million in H1FY11 vs. Rs. 712 million in H1FY10. o Diluted EPS of Rs. 6.95 per share in H1FY11
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Chairman’s Message
Commenting on the group’s performance Dr. Prathap C Reddy, Chairman said, “The Apollo Group continues to remain at the forefront of transformative innovations in healthcare in India. Be it our investments in promoting telemedicine, the introduction of personalized healthcare or our partnership with Aircel – we have a single minded focus on delivering high quality healthcare across the length and breadth of the country.
We understand that we need to leverage technology to enable us to attain the twin objectives of quality and affordability across all of our healthcare delivery platforms. We are also embracing initiatives such as the PPP model to help us achieve our vision of touching a billion lives.
We have further augmented our presence in India with the inauguration of an Apollo Hospital in Karaikudi. Our current expansion plan should see us outperform our own pace of expansion over the last 15-18 months as we strive to be present in the many untapped regions in the country. Looking beyond the near term we are also evaluating opportunities in other markets in Asia as well as those in Africa where we believe there are gaps in the supply of and demand for quality healthcare.”
Operational Highlights
The Apollo Hospital, Karaikudi was inaugurated on 15th July, 2010..
The Apollo Gleneagles Heart Institute was launched in September, 2010.
44 standalone pharmacies were added during the quarter and the total number of pharmacies as on September 30, 2010 is 1,110. Apollo pharmacies delivered further operational improvement with the pre-2007 batch of stores reporting an EBITDA margin of 5.26 % during the quarter.
Apollo Philanthropy
The Group continued to receive a strong response to its ‘Billion Hearts Beating’ (BHB) cardiac awareness campaign in association with The Times of India. As a part of the BHB campaign, the Apollo Group undertook screening camps at multiple locations, entered into tie-ups with various corporates and received several individual pledges during the quarter.
Apollo launched its ‘SAVE’ India campaign during the quarter. This is a comprehensive vascular screening programme to increase awareness about the ailments of stroke, aneurysm and vascular disease, evaluation to prevent disability or death due to stroke, aneurysm rupture or leg ulcers or gangrene.
Apollo Hospitals Ahmedabad adopted the Bhatt Village in Gujarat (population approx 10,000) and organized Health Cleanliness Programs and a health awareness drive all of which were extremely well received.
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Attached: Details to the announcement
For further information, please contact:
R Krishnakumar Mayank Vaswani Apollo Hospitals Ltd. Citigate Dewe Rogerson [email protected] [email protected] +91 44 2829 7840 +91 22 6645 1230
About Apollo Hospitals Enterprise Ltd. (AHEL)
It was in 1983, that Dr. Prathap Reddy made a pioneering endeavour by launching India’s first corporate hospital - Apollo Hospital in Chennai. Now, as Asia largest and most trusted healthcare group, its presence includes over 8,000 beds across 50 Hospitals, 1,000 Pharmacies, 100 primary care and diagnostic Clinics, 100 Telemedicine units across 7 countries, medical business process outsourcing services, Health Insurance services, Global Projects Consultancy, 15 colleges of Nursing and Hospital Management and a Research Foundation with a focus on global Clinical Trials, epidemiological studies, stem cell and genetic research. The Government of India released a commemorative postage stamp bearing the name of Apollo Hospitals in recognition of the group’s contribution to healthcare.
Disclaimer
Some of the statements in this document that are not historical facts are forward looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate.
These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.
Further, this document may make references to reports and publications available in the public domain. Apollo Hospitals Enterprise Ltd. makes no representation as to their accuracy or that the company subscribes to those views / findings.
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Details to the announcement
Key Achievements – 4 Pillars
At Apollo, corporate success is anchored by 4 key pillars Clinical Excellence, Technological Excellence, Patient Care Excellence and Value Excellence. Apollo Hospitals’ believes in delivery of best patient care, employing best-in-class procedures and technologies with an eye on sustainable growth performance.
Clinical Excellence: Apollo strives to maintain consistently higher rates of case success rates. Technological Excellence: Apollo relies on world–class, state-of–the–art equipment, devices and procedures to consistently deliver superior clinical outcomes. Patient Care Excellence: Apollo is driven by patient well-being. Value Excellence: Apollo balances performance goals with top-notch healthcare service delivery which is affordable to the masses.
Continued Commitment to Clinical Excellence
The Apollo Hospitals Group continues with its roadmap for NABH accreditation of another 5 hospitals. The Apollo Specialty Hospital, Madurai was the first hospital in the Apollo Group to be awarded this accreditation earlier this year..
The ACE@25 program which has been implemented in 32 centres of Apollo Hospitals Group has upped clinical quality of the group by several notches and also augmented its clinical excellence programme. This programme was initially envisaged for 25 hospitals and evaluated 25 parameters but the improvement in clinical excellence across the group resulted in wider implementation.
Path-breaking achievements in Patient Care Excellence
Apollo Hospitals Hyderabad completed 400 cochlear implants which is the single largest number done by any hospital in the country.
The Apollo Hospitals group has performed 619 solid organ transplants across the nation in the first nine months of calendar year 2010.
During the quarter, the first ‘Living Donor Liver Transplant’ in the state of Gujarat was conducted at the newly established facility at Apollo Hospitals, Ahmedabad.
A team of surgeons at Apollo Hospitals, New Delhi successfully carried out an Auditory Brain Implant (ABI) on a four year old girl from Iraq. Three such surgeries have been performed in India but this is the first by a team of Indian surgeons.
Surgeons at Apollo Hospitals, Bengaluru successfully conducted a knee replacement surgery on both knees of a 94 year old lady.
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The Interventional Radiology team successfully performed a percutaneous biliary metal stent placement for the first time.
The Apollo Cardiology Department performed the first successful re-do PTMC.
The Liver Transplantation Unit and the Apollo Sugar Clinic were launched in Apollo Hospitals, Chennai during the quarter
The Apollo Emergency Cardiac Centre was launched at Aswini Hospitals, Tirumala on 16th September, 2010.
A minimal access surgery centre was inaugurated at the Apollo Gleneagles Hospitals (AGH), Kolkata. It includes a pool of experts in minimal invasive surgery from several subspecialties - cardiac, urological, gynecological, neurological, orthopedic, paediatric, general and gastro- intestinal resulting in surgeries with less pain, fewer cuts and shorter hospitalization.
The Department of Cardiothoracic and Vascular Surgery at Satguru Partap Singh Apollo Hospitals commenced conducting of minimally invasive cardiac surgery or MICS. It is the first hospital in Punjab and Chandigarh to offer this breakthrough surgical procedure.
Mr. Ronald Lemmer became the first US citizen to undergo a heart transplant in India and was operated by a team of highly skilled and experienced surgeons at Apollo Hospitals, Chennai and is also the oldest person to undergo a heart transplant in India at the age of 65 years. The American citizen had a previous bypass surgery, an angioplasty with coronary stents and a pacemaker and was told in the USA that he had a mortality of 80% in one year. He opted for a heart transplant and is now doing well.
Superior outcomes through Technological excellence
The first phase of the Med Mantra Hospital Information Services deployment likely to go online in November, 2010. Med Mantra is a next generation HIS envisioned by Apollo Hospitals and Tata Consultancy Services (TCS) to meet the needs of a network of hospitals that seek to be paperless by embracing innovative and transformative technologies. Extending its use across the organization is expected to bring about tremendous savings in time and resources through enhanced functionality and efficiency.
The Apollo Hospitals Group, in partnership with Aircel, has launched the first Tele Healthcare delivery program in India. Called ‘Aircel Apollo Mobile HealthCare’, the programme aims to leverage Apollo’s strengths in healthcare and Aircel’s strengths in telecommunications to revolutionize the delivery of healthcare in India. The programme currently consists of two products and will be initially rolled out in Chennai following which it shall be expand its presence across the country
The installation of the Novalis Brain Lab in the Oncology Department of Apollo Hospitals Chennai is underway. It is expected to be available in the ensuing quarter.
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Apollo is working on ways to introduce personalised medicine in the country. Personalised medicine is believed to be a strong emerging trend in healthcare which involves using technology to monitor patients on an ongoing basis. It envisions placing non-intrusive smart technological devices on patients which will continuously monitor key parameters and record findings for access by doctors and consultants. It will reduce physical travel, pressure on hospital infrastructure and has the potential to significantly improve mortality rates through early detection of symptoms.
The Apollo Hospitals Educational and Research Foundation (AHERF) has built on its stem cell research collaboration with US-based StemCyte, by investing $15 million in the venture. This is the first of Apollo’s four new research initiatives, and will be carried out by a 12- member team at its Hyderabad facility.
Value Excellence focus enabling healthcare for all
A comprehensive vascular screening programme – ‘SAVE’ India was launched by Indraprastha Apollo Hospitals, New Delhi. As a buildup to the launch, the hospital started with a low cost screening programme commemorating the 'National Vascular Week'. Apollo Hospitals is striving to increase awareness about these ailments by offering screenings to patients at a discounted price.
Apollo Hospitals launched a special cancer detection programme for Rotarians during the quarter. The offer included discounted cancer detection treatment to the Rotarians and as a special gesture, Apollo Hospitals donated 25% of the proceeds back to the Rotary Cancer and Research Foundation towards treatment of below poverty line patients.
The first dialysis centre, part of the Central Government Health Scheme (CGHS) Wellness centre and Apollo Hospitals Group was launched during the quarter.
Segment-wise Performance Update
Hospitals
Revenues of the hospital division (consisting of hospital services, hospital-based pharmacies, consulting) increased by 24.6% to Rs. 4204 million in Q2FY11 compared to Rs. 3372 million in Q2FY10. Further the EBIT margins improved by 34 bps to 19.32% in Q2FY11 from 18.97% in Q2FY10.
The Hospitals business continues to deliver progressive growth:
Apollo Gleneagles Hospital, Kolkata reported a PAT of Rs. 65.8 million in Q2FY11 against a PAT of Rs. 26.9 million in the same quarter last year.
Apollo Hospital, Bangalore reduced its loss to Rs. 4.3 million in Q2FY11 from Rs. 29.1 million in the corresponding quarter last year.
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Indraprastha Apollo Medical Corporation Ltd., Delhi reported a PAT of Rs. 75.6 million in Q2FY11 against a PAT of Rs.86.3 million in Q2FY10.
Standalone Pharmacies
Apollo Pharmacies continued to consolidate its pan-India presence as it added 44 stores in Q2FY11, taking its network to 1,110 operational stores by September 30, 2010. The like-for-like growth in revenues / store for the batch of stores opened prior to March 2007 was 19% in Q2FY11 compared to Q2FY10.
The business continues to exhibit an improvement in financial performance as the batch of mature stores (pre March 2007) reported an EBITDA margin of 5.26% in Q2FY11. This is an improvement of 232 basis points compared to the EBITDA margin of 2.94% in Q1FY10.
Revenue Growth for total standalone pharmacies expanded by 40% from Rs. 1189 million in Q2FY10 to Rs. 1663 million in Q2FY11. During Q2FY11, standalone pharmacies achieved positive EBIT of Rs.5.7 million as against negative of Rs. 37 million in the corresponding quarter last year. Strategies for growth in revenues and profitability include a larger proportion of self-branded and generic products and increasing distribution of pharmaceutical supplies to bulk consumers like hospitals, nursing homes, etc.
Medical Education
Apollo Hospitals, Chennai signed an MOU with the Tamil Nadu Medical University on 5th August, 2010. Through this affiliation, the Apollo Institute of Hospital Management & Allied Sciences (AIHMAS), a unit of Apollo Hospitals, has launched seven new courses in allied medical sciences,
The Madurai Apollo Nursing College was inaugurated on 23rd August 2010.
The Institute of Paramedical Studies was inaugurated at the Jehangir Hospital, Pune in September.
The Apollo Hospitals Group has entered into an MOU with the British Medical Journal (BMJ) Group to provide the latest information and developments in the medical field to doctors and patients within the Apollo network.
Human Resources & Leadership Development
The Apollo Hospitals Group has entered into a partnership with XLRI Jamshedpur in August 2010 to conduct management programs for Apollo’s practicing managers. This will enable Apollo to strengthen its internal leadership further as well as create the next level of management personnel required as Apollo successful embarks on further expansion plans
Vikram Thaploo, with a retail experience of over a decade, has joined Apollo Hospitals Group as CEO of Apollo Tele Health Services. He will help to take forward the Tele Health Services initiative and will leverage his knowledge of retail customer preferences and experience in last mile distribution to enable Apollo to create a sustainable business model which successfully
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Accreditations & Awards
Apollo Hospitals, Hyderabad won the Excellence Award for “My Sugar” an innovative on-going patient, education and empowerment effort for diabetes at Asian Hospital Management Award 2010 at Seoul.
Apollo Madurai received the Environment Excellence Award on 21st Aug 2010 by the Centre for Environmental Services.
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