In this blog, we will share our spotlight on Apollo Hospitals Enterprise Ltd.
Apollo Hospitals Enterprise Ltd. – Highlights
- The shares of Apollo Hospitals Enterprise Ltd. was trading at Rs.3194.65, down by 1.5% in today’s trading session.
- The stock price has increased by 126.53% in last one year, while the benchmark index S&P BSE Sensex has increased by 51.13%.
- The main reason for the stock to be in news was after after the company reported its a quarter ended March 2021 (Q4FY21) results.
- The company’s consolidated net profit in the March ended quarter (Q4FY21), was at Rs 169.89 crore, compared to the consolidated net profit of Rs 209.60 crore in the corresponding quarter last year.
- With the launch of Apollo HealthCo, the company also announced a reorganisation with the goal of “building India’s largest omni-channel healthcare platform.”
- The company’s consolidated revenue from operations in the fourth quarter came in at Rs 2,867.95 crore. In the year-ago period, it was Rs 2,922.43 crore, as per the regulatory filing.
- The company reported a consolidated net profit of Rs 150.36 crore for the fiscal year ending March 31, 2021. In FY20, it was Rs 454.94 crore.
- For FY21, the consolidated revenue from operations was Rs 10,560.01 crore. According to the filing, it was Rs 11,246.80 crore in FY20.
- The company announced the divestment of its front-end retail pharmacy business to Apollo Pharmacies Ltd (APL), a wholly-owned subsidiary of Apollo Medicals Pvt Ltd (AMPL), for an aggregate cash consideration of Rs 527.80 crore, effective September 1, 2020.
- Following that, the company stated that it had invested Rs 36.5 crore and that its ownership interest in AMPL had changed to 25.50 percent, resulting in a loss of control as of September 1, 2020.
- As a result, the figures for the quarter and year ended March 31, 2021 are not comparable to the figures for the same period a year ago, according to the filing.
- AHEL also announced on Wednesday that its board of directors approved the proposal to transfer its pharmacy distribution business, including online technology platform Apollo 24/7, and its shareholding in AMPL to its newly formed wholly-owned subsidiary, Apollo HealthCo Ltd, for a proposed consideration of Rs 1,210 crore.
- It is subject to receipt of requisite approvals from its shareholders, secured creditors and regulatory approvals, the company added.
- Back-end offline pharmacy business (excluding hospital-based pharmacies); digital healthcare platform Apollo 24/7; its investment in retail pharmacy business — AMPL; and the ‘Apollo 24/7’ brand, the ‘Apollo Pharmacy’ brand, and private label brands will all be transferred to Apollo HealthCo Ltd as part of the reorganisation (AHL).
- According to the filing, Apollo HealthCo Ltd is formed to continue on the business of providing technology-driven healthcare services. It also enables consumers to manage their health and health data, as well as deal and transact in all forms of pharma, healthcare items, and FMCG goods via the internet.
- According to the company, AHL represents Apollo Group’s “transformational journey toward creating India’s largest omni-channel healthcare platform.”
- “To address all healthcare consumer needs, this platform will combine the strengths of Apollo Group’s offline healthcare leadership with Apollo Group’s new-age digital offerings,” it added.
- Shobana Kamineni, Executive Vice-Chairperson of AHEL, stated, “The advent of the digital era has transformed healthcare as we know it and will shape its future. As the first adopter of modern healthcare, the Apollo Hospitals Group is perfectly positioned to be at the forefront of this transformation.”
- She went on to say, “We deliver medicines, consultations, and diagnostic services to people’s homes via our app, Apollo 24/7. Over the last 500 days, we have served over 27 crore people using this omni-channel approach.”
- AHEL stated that it has consistently stated that the offline pharmacy business will grow to 5,000 stores and maintain a healthy revenue growth rate of 18-20% over the next three years. This company’s margin trajectory remains unchanged.
- “Apollo 24/7, India’s highest-earning tele-consult platform, continues to scale rapidly with a ‘asset light approach,’ with the goal of reaching 100 million registered users in five years,” the company added.
- The company believes the growth of AHL (and Apollo 24/7) will present a huge potential to serve healthcare consumers into AHEL as a whole, and will give accelerated momentum to all of AHEL’s healthcare verticals by delivering an integrated and seamless omni-channel experience.
- The Board of Directors recommended a dividend of Rs.3/- per share (60 percent of the face value of Rs.5/- per share) on the Company’s paid up equity shares for the fiscal year ended 315th March 2021, subject to approval of the members at the Company’s upcoming Annual General Meeting.
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