Healthcare major Apollo Hospitals on Thursday, November 9, announced a ₹3,435 crore capex plan to add 2,300 beds to its existing capacity in the next three financial years, which will be funded through internal accruals and debt financing.

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This expansion plan is in line with the plan to expand footprint in identified strategic locations to drive continued business growth and cater to the increasing demand for quality healthcare services across the country, the healthcare provider said in a filing.

"The Board, based on the recommendations of the Investment Committee, has evaluated and approved an expansion plan of the company involving a balance capital outlay of around ₹34,350 million after reckoning for land/ asset acquisition costs already incurred," it said.

Apollo Hospitals expanded its footprint in East India by acquiring a partially built hospital in Kolkata, with a total capacity of 325 beds. The total bed count in the Eastern region is over l 800, with plans for an additional 700 beds over the next three years, bringing the total bed count in the region to 2500.

The company entered into binding agreement for a 2 50 bed new hospital asset in Pune, expandable to 425 beds. With this expansion, Apollo will have over l 000 beds in Maharashtra including Mumbai, Pune and Nashik, it said in a statement.

"We are happy to have announced our new hospitals at Pune and Kolkata, and we are forging ahead with our plans to add 2300 high-quality beds in key geographies over the next three years," said Prathap C Reddy, Chairman at Apollo Hospitals Group.

Apollo Hospitals Q2 earnings

Apollo Hospitals also reported its financial results for the September quarter. It posted a 14.2% year-on-year (YoY) rise in net profit at Rs 233 crore for the July-September quarter.

The hospital chain reported better-than-expected revenue at Rs 4,846.9 crore, reflecting a 14% YoY rise.

EBITDA or earnings before interest, taxes, depreciation, and amortization stood at Rs 627 crore in the quarter under review as against Rs 565 crore in the same period last year. The operating margin for the second quarter was reported to be 12.9%.

Following the earnings announcement, shares of Apollo Hospitals Enterprise Limited rallied 4% to trade at ₹5,312.50 on the NSE.

First Published:Nov 9, 2023 3:10 PM IST