Firm’s Q4 profit dived 41% to Rs 48 cr; sets target of 65% occupancy by FY18-end from 47% currently
Latest news : Apollo Hospitals Enterprise (AHEL) is focusing on increasing its occupancy to improve growth, which declined in the financial year (FY) 2016-17. The hospital has set the target of achieving 65 per cent occupancy by the end of the current FY from the 47 per cent occupancy at present, said senior management of the company.
AHEL had posted a 40.7 per cent fall in profit at Rs 48.16 crore in the fourth quarter of the FY17 as compared to Rs 81.31 crore for the same period of the previous FY on a standalone basis.
“The business plan this year is to see how we can improve our occupancy and fill in at least 400 more beds. We have a lot of vacant beds because of the new hospitals. First plan is to see how we can fill up the new beds and increase the occupancy from the current 47 per cent to around 65 per cent this year,” said a senior official. Through aggressive expansion programmes, the company has crossed the capacity of over 10,000 beds in the last FY.
The company is targeting the growth of over 12 per cent during the current FY as against the nine per cent growth in the last FY. Q1 and Q2 of the FY are usually good for the company and it is expecting this to be true for this FY too.
During the year, for further traction in four specialities viz. Cardiac, Oncology, Neurosciences and Orthopaedics, it will also be focusing on Centres of Excellence (CoEs) in urban centres such as Chennai, Hyderabad. It is also looking at ways to increase the surgical volumes in specialities of urban centres.
The company expects to continue the similar pace of growth and margins in the pharmacy segment this year, which would add to the growth. To improve margins, it is also looking at increasing prices across various services this year.