Apollo Hospitals Enterprise Ltd., (AHEL) has posted 41% contraction in its standalone net profit at ₹48 crore for the fourth quarter ended March 31, 2017 against ₹81 crore in the corresponding period.
Apollo Hospitals had posted a 15% increase in its revenue for the quarter at ₹1,661 crore against ₹1,448 crore. The board declared 120% dividend on the face value of ₹5 per share for 2016-17.
The effects of demonetisation, price cap on stents and peak depreciation and interest rates, affected company’s fourth quarter performance.
The impact of the demonetisation and price cap on stent resulted in a revenue drop of ₹15-20 crore. The Government regulation on stent pricing from February 14 also resulted in a revenue compression of ₹8-10 crore. The standalone EBITDA for the fourth quarter due to the above was impacted by ₹15-20 crore, said Krishnan Akhileswaran, chief financial officer, AHEL.
“The demonetization effect extended into this quarter as well, as outstation patients and patients from neighbouring countries found it difficult to access currency for their treatment requirements. The patient flows into Chennai main post the VIP admission took some time to recover fully which also impacted the quarter,” he said.
Regarding the performance of new hospitals, he said it posted an EBITDA (earnings before interest tax depreciation and amortization) loss of ₹4.3 crore compared with a loss of ₹1 crore in the previous year. This was largely due to EBITDA losses of ₹29 crore at the Navi Mumbai facility, Nellore and Malleswaram (Bengaluru). Excluding this, other new hospitals have delivered steady improvements in EBITDA. Among the new hospitals, Vanagram (Chennai) and W&C-SMR have delivered strong volumes growth – rising 11% and 21% respectively.
“The depreciation and interest charges are at peak during this quarter. Depreciation and interest charges will come down and the new hospitals will start contributing from second quarter onwards for the next four quarters,” he said.
