India's Apollo Hospitals Enterprise (APLH.NS) posted a bigger-than-expected 34% rise in quarterly profit on Wednesday, as strong demand for complex treatments supported growth in its core healthcare services business.
The Chennai-based hospital operator's consolidated net profit rose to 5.81 billion Indian rupees ($60.95 million) in the quarter ended June 30, from 4.33 billion rupees a year earlier.
Analysts, on average, expected a net profit of 5.62 billion rupees, according to data compiled by LSEG.
Apollo Hospitals, like its rivals, has been aggressively expanding by investing in smaller hospitals and increasing its bed count, especially in smaller towns.
The chain, which currently has around 10,000 beds across the country, plans to add over 5,800 beds over the next five years as it looks to scale up its presence in major metropolitan areas and key urban clusters, founder and Chairman Prathap Reddy said in a statement on Wednesday.
Rising demand for treatment of complex diseases such as cancer and orthopedic conditions amid increasing health awareness has been driving growth for India's private hospitals, which dominate the specialty care market.
Apollo, which competes with recently listed Manipal Health Enterprises and Fortis Healthcare (FOHE.NS), said growth during the quarter was driven by stronger performance in specialty-care segments including cardiology, oncology, neurology, gastroenterology and orthopedics.
Overall quarterly revenue from operations rose 20.6% from a year earlier to 70.43 billion rupees, helped by a 22% jump in its biggest healthcare services segment and growth in its offline pharmacy business.
Hospital occupancy stood at 70% during the quarter, compared with 65% a year earlier, driven by a richer case mix and higher share of complex procedures, Apollo said.
($1 = 95.3300 Indian rupees)
