Apollo Hospitals Reports Mixed Financial Results Amid Rising Debt and Liquidity Concerns

Apollo Hospitals Enterprise has recently reported its financial results for the quarter ending December 2024, showcasing a mix of positive and challenging trends. The company's Profit After Tax (PAT) for the quarter reached Rs 372.30 crore, reflecting a notable growth of 25.9% compared to the average PAT of Rs 295.78 crore over the previous four quarters. This indicates a favorable near-term trend in profitability.
On the liquidity front, Apollo Hospitals has achieved its highest cash and cash equivalents in the last six half-yearly periods, totaling Rs 2,210.30 crore, suggesting an improvement in short-term liquidity. However, the company is also facing some headwinds. The Debt-Equity Ratio has risen to 0.98 times, marking the highest level in the last five half-yearly periods, indicating an increase in borrowing to support operations, which may put pressure on liquidity.

Additionally, the Debtors Turnover Ratio has reached its lowest point at 7.11 times over the same period, suggesting a slowdown in the pace of settling debts. Furthermore, while non-operating income has peaked at Rs 63.80 crore, concerns remain regarding the sustainability of this income source.

In light of these developments, Apollo Hospitals has experienced an adjustment in its evaluation, with its score reflecting these changes.

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