On Friday, Apollo Hospitals Enterprise reported a 47.5% drop in first-quarter profit, citing operating costs related to its digital healthcare platform.
Consolidated net profit for the quarter ended June 30 fell to Rs 167 crore. Analysts have an average prediction of Rs 225 crore, according to Refinitiv IBES data, cited in a Reuters report.
During the same period last year, the company's profit of Rs 317 crore was boosted by a deferred tax profit of Rs 155 crore.
Apollo, best known for overseeing more than 73 private hospitals, pharmacies, and diagnostic clinics across India, revealed that its operating revenue has grown by more than 16%, reaching Rs 4,418 crore. While its hospitals, which accounted for 52% of total revenue, grew by nearly 14%, the pharmaceutical and digital health division, which accounts for nearly 41% of Apollo's revenue, reported an opening loss. wide at Rs 830 million, compared with Rs 46 crore the previous year.
Aiming to rein in spending, the Chennai-based hospital chain aims to transform the pharmaceutical division into a profitable business by the end of fiscal 2024, as its chief financial officer told the news agency. Reuters last year.
In addition, the company's diagnostics business also suffered an increasingly large loss, stretching to Rs 15 billion due to no COVID-related revenue compared to Rs 60 billion a year ago.
Detailing the financial landscape, the company explained that total spending, including those related to purchases in its operating sector, increased by 18%, as disclosed on Friday.
Shares of Apollo fell as much as 2.3% after the results before covering some of the losses to end a 0.7% drop.
