Apollo Hospitals Enterprise Reports Strong Financial Performance in Q2 FY25

Apollo Hospitals Enterprise, a leading player in the hospital and healthcare services industry, has recently declared its financial results for the quarter ending September 2024. The company has shown a very positive performance in this quarter, with a score of 21 out of 25, an improvement from the previous quarter’s score of 20.

One of the key highlights of the financial results is the increase in net sales, which have reached a record high of Rs 5,589.30 crore. This is a significant growth compared to the previous five quarters, indicating a very positive trend in the company’s sales. Additionally, the company’s ability to manage interest payments has also improved, with the operating profit to interest ratio reaching a high of 6.94 times.

The company’s profitability has also seen a significant increase, with the profit before tax (PBT) growing by 45.9% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also shown a positive trend, with a growth of 46.3% compared to the average PAT of the previous four quarters.

Apollo Hospitals has also generated a high operating cash flow of Rs 1,920.20 crore in the last three years, indicating strong cash revenues from its business operations. The operating profit (PBDIT) has also reached a high of Rs 815.50 crore in the last five quarters, showing a positive trend.

The company’s efficiency has also improved, with the operating profit margin reaching a high of 14.59%. This indicates that the company is managing its expenses effectively. The earnings per share (EPS) have also increased, reaching a high of Rs 26.34 in the last five quarters, creating higher earnings for shareholders.

However, there are some areas that need improvement, as seen in the company’s financial results. The debt-equity ratio has reached a high of 0.98 times, indicating that the company is borrowing more to fund its operations. This may lead to a stressed liquidity situation. Additionally, the company’s pace of settling its debtors has slowed, with the debtors turnover ratio reaching a low of 7.11 times in the last five half yearly periods. The company’s non-operating income has also increased, but it may not be sustainable in the long run.

Overall, Apollo Hospitals Enterprise has shown a very positive financial performance in the quarter ending September 2024. With increasing sales, profitability, and cash flow, the company is on a strong growth trajectory. Investors can take note of the stock call of ‘Buy’ given by MarketsMOJO and consider adding Apollo Hospitals to their portfolio.