Hospitals ƒ : Q4FY12 Result Preview: ICICI Securities, PDF Link

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http://www.icicidirect.com/mailimages/ICICIdirect_ConsolidatedResultPreview_Q4FY12E.pdf

Hospitals
ƒ Revenues to grow 96% YoY
We expect hospital sales under the I-Direct coverage to grow 96% YoY
to ~| 2036 crore mainly due to Fortis Healthcare’s consolidation of its
international business and Super Religare labs. Excluding these, the
base business is expected to grow by 23% YoY. Overall, we expect
average revenue per occupied bed to go up by 7.8% YoY.
ƒ EBITDA margins to improve 20 bps YoY
EBITDA margins are likely to improve 20 bps to 14.4%. EBITDA margins
of Apollo Hospital are likely to increase by 70 bps to 16%. Overall
EBITDA is expected to increase  99% to ~| 294 crore on the back
consolidation of the international business by Fortis.
ƒ Net profit to decline ~18% YoY
The net profit of our coverage is expected to decline by 18% to | 62.6
crore on the back of higher interest cost and depreciation at Fortis
Healthcare. We expect Fortis’ profits to decline by 74% YoY due to
increase in interest and depreciation. Apollo Hospitals is expected to
report net profit growth of 16% YoY.

Company specific view
Company Remarks
Apollo Hospitals Revenues are expected to grow ~18% YoY driven by 15% growth in hospitals and
25% growth in pharmacy. EBITDA margins are expected to increase by 80 bps YoY
with improvement in overall profitability. We expect hospital and pharmacy
segments to clock EBIT margins of 18% and 1%, respectively
Fortis
Healthcare
Fortis’ results will not be comparable as it has consolidated international revenues
from Q4FY12. We expect the international business to clock sales of ~| 638 crore
and profit of ~ | 13 crore. Overall, we expect sales and profit of | 1303 crore and
| 8 crore, respectively
Source: Company, ICICIdirect.com Research