Apollo Hospitals Enterprise Ltd stock rallied over 9% its 52-week high of Rs 1,445 on Wednesday, i.e. 14 August, a day after the company reported strong set of earnings for the first quarter ended June (Q1).
At 12:21 pm, shares of Apollo Hospitals were trading at Rs 1,388.75, up 5%, on BSE while the benchmark Sensex rose 352 points, or 0.95% to 37,311.
Apollo Hospitals’ net profit rose over two-fold to Rs 49.15 crore in the June quarter as against Rs 23.34 crore in the corresponding quarter a year ago, mainly on account of healthy growth in healthcare services and pharmacy verticals.
Consolidated revenue from operations stood at Rs 2,571.89 crore during the June quarter as against Rs 2,210.47 crore in the same period a year ago.
At the operating level, the company reported 25% rise in its earnings before interest, tax, depreciation and amortization (Ebitda) at Rs 231.50 crore during the June quarter. Ebitda margins improved to 12.3% in the quarter as against 11.86% a year ago.
“We have made a strong start to the financial year building on the momentum gained last year to deliver steady growth in revenue and margins across all our verticals,” Apollo Hospitals chairman Prathap C. Reddy said.
“We are hopeful that our efforts towards having a strong pan-India presence and towards adopting new skills and cutting-edge technology should help us in maintaining the momentum going forward as well,” he added.
After the results, brokerage house Macquarie maintained its ‘outperform’ rating on the Apollo Hospitals stock with a target price of Rs 1,636.
The note by Macquarie said that operating performance continues to improve, and the steps taken by the promoter group to resolve the leverage situation is a positive sign.
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Source: News18