Business

Impact of price control on stents, knee caps pegged at Rs 11 crore, says Apollo Hospitals

Updated : May 31, 2018 07:06 PM IST

Suneeta Reddy said revenue from new hospitals grew by about 24% and from the mature hospitals grew about 7%

Suneeta Reddy said company's standalone revenue grew by 15% to Rs 1,863 crore, out of which the healthcare services grew by 8%.

Impact of price control on stents, knee caps pegged at Rs 11 crore, says Apollo Hospitals

Impact of price controls on knee-caps and on stents for fourth quarter is pegged at Rs 11 crore, said Suneeta Reddy, Managing Director, Apollo Hospitals.

Speaking exclusively to CNBC-TV18's Latha Venkatesh and Sonia Shenoy, she said revenue from new hospitals grew by about 24% and from the mature hospitals grew about 7%.

Watch: Expect Navi Mumbai hospital to break even this quarter, says Apollo Hospitals

She said company's standalone revenue grew by 15% to Rs 1,863 crore, out of which the healthcare services grew by 8%.

Edited Excerpts:

First, if you could take us through the overall performance this quarter. As you see it, what are the highlights?

Overall, our standalone revenue grew by 15% to Rs 1,863 crore out of which the healthcare services grew by 8% and standalone pharmacies grew by 20%, actually 25%, but it is adjusted for Goods and Service Tax (GST). Our earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 26% to Rs 214 crore, whereas our total healthcare services, EBITDA showed a 24% growth to Rs 174 crore. Our SAP EBITDA grew by 32% to Rs 40 crore.

What was the impact of price controls on knee-caps and on stents in this quarter?

This quarter was about Rs 11 crore.

Could you break up the performance of both, the matured hospitals and the new hospitals for us and what is expected as you head into the new year?

New hospitals grew by about 24% and the mature hospitals grew about 7% and this is on a larger base. So, you must think of 7% on a larger base.

What were the occupancies if you can tell us, the average revenue per beds, the average length of the stay in the hospitals compared to what we saw last quarter; I am just trying to gauge if the trends have improved compared to last few quarters?

The operational beds are 7,176, occupancy is at 65% and should average length of stay is at 4.4.

How much did the recently commissioned Navi Mumbai hospital contributed this quarter and what is the bottomline contribution now from that project?

In Navi Mumbai, we have opened 150 beds. Currently, 128-130 beds are occupied. Last year, it was 98 beds. For the last year, it was Rs 23 crore negative EBITDA, but we are now moving to a positive EBITDA. For the whole year, there was a loss of Rs 35 crore.

When do you expect the Navi Mumbai property to break even since as you said it is still sitting on a loss?

This quarter.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more

Impact of price control on stents, knee caps pegged at Rs 11 crore, says Apollo Hospitals

You May Also Like

Adani Transmission to sell 25.1% stake in Adani Electricity Mumbai for Rs 3,200 crore to Qatar Investment Authority

YES Bank says favourably considering Citax Holdings' $500 million offer; Erwin Singh Braich's $1.2 billion bid discussed

Private equity players eye stake in Bharti Airtel; SingTel may invest up to $1 billion

Trending on CNBC-TV18

recommended for you