Apollo Hospitals Enterprise (AHEL) declined 2.73% to Rs 3,155.90 after the company's consolidated net profit dropped 18.94% to Rs 169.89 crore on 1.86% decline in revenue from operations to Rs 2,867.95 crore in Q4 March 2021 over Q4 March 2020.
Profit before tax skid 16.24% to Rs 237.56 crore in Q4 FY21 as against Rs 283.64 crore in Q4 FY20. The Q4 earnings were announced after trading hours yesterday, 23 June 2021.
During the financial year, Apollo Hospitals Enterprise's consolidated net profit slumped 68.32% to Rs 136.77 crore on 6.10% fall in revenue from operations to Rs 10,560.01 crore in FY 2021 over FY 2020.
The board has recommended a dividend of Rs 3 per share for the FY ended 31 March 2021.
Meanwhile, Apollo Hospitals Enterprise (AHEL) announced a re-organization through the slump sale of identified business undertaking including: a) AHEL's back-end offline pharmacy business (excluding hospital-based pharmacies); b) AHEL's digital healthcare platform Apollo 24/7; c) AHEL's investment in retail pharmacy business (Apollo Medicals), and; d) the "Apollo 24/7" brand, the "Apollo Pharmacy" brand and private label brands into AHEL's 100% subsidiary Apollo HealthCo (AHL).
Apollo HealthCo represents Apollo Group's transformational journey towards creating India's largest omni-channel healthcare platform. This platform will combine the strengths of Apollo Group's offline healthcare leadership with Apollo Group's new-age digital offerings to address all healthcare consumer needs.
The offline pharmacy business will continue to grow to 5,000 stores and maintain a healthy revenue growth rate of 18-20% in the next 3 years. The margin trajectory of this business remains intact. In addition, the digital healthcare platform Apollo 24/7, has demonstrated the capability of delivering medicines in two hours in over 10,000 pin codes combined with the highest availability of medicines. Apollo 24/7, which is already the highest-earning tele-consult platform in India, continues to scale rapidly with an "asset light approach" and with the aspiration to achieve 100 million registered users in 5 years.
Shobana Kamineni, the executive vice chairperson of AHEL, said: "The advent of the digital era has revolutionised healthcare as know it, and will define its future. The Apollo Hospitals Group, as the first adopter of modern healthcare, is perfectly positioned to be at the forefront of this transformation. Through our app, Apollo 24/7, we deliver medicines, consults and diagnostic services to people at their homes. This Omni-channel approach has allowed us to serve over 27 crore people over the last 500 days. We believe 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."
"This proposed re-organization will set the platform for tapping new pools of investor capital that will enable rapid scale up of the digital healthcare platform. At the time of capital raise, AHL valuation will reflect current and future growth potential. Post external capital raise at AHL, AHEL is expected to retain dominant majority shareholding in AHL and a slump sale consideration of Rs 1,210 crore will be received by AHEL. This is the next step in the already announced multi-year unlocking of value for AHEL shareholders, and paves the way to fuel growth of India's largest onini-channel healthcare platform."
Apollo Hospitals Enterprise is a private sector healthcare provider. It owns and operates hospitals across the country.
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