Apollo Hospitals targets ₹500 crore in diagnostics revenue in FY24

Apollo Hospitals is eyeing diagnostics revenue of ₹500 crore for the current financial year (FY24). The company's Managing Director, Suneeta Reddy, believes there is huge potential for growth in the diagnostics business, and Apollo is all set to capitalise on its network to become the number three player in the diagnostics space soon.

Reddy noted that the diagnostics revenue grew at 19% to ₹111 crore for the third quarter of FY24. The segment's earnings before interest, tax, depreciation, and amortisation (EBITDA) margin is already at around 10% and with the company's recent investments in speciality diagnostics, there is scope for further improvement.

Apollo Health and Lifestyle (AHLL), which includes the clinics and diagnostics business of the company, has a revenue of ₹1,011 crore for the first nine months of the financial year (FY24).

Apollo Hospitals Enterprise's revenue for the third quarter of FY24 was up 14% year-on-year (YoY) at ₹4,850.6 crore from ₹4,263.6 crore. Profit rose 60% YoY to ₹254 crore from ₹162 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin improved to 12.7% from 12% in the same quarter last year.

Reddy also hinted at potential investments in Apollo Health Co, indicating that the company is open to exploring opportunities and will present a comprehensive plan to the board and investors at the appropriate juncture.

Apollo HealthCo, the company's digital healthcare and omni-channel pharmacy platform, reported a revenue of ₹2,049.3 crore in Q3FY24 compared to ₹1,757.8 crore last year. The segment's EBIT loss narrowed to ₹10 crore from ₹74.2 crore in the previous year.

The market capitalisation of Apollo Hospitals is ₹88,850 crore and it competes with industry peers Max Healthcare Institute, and Fortis Healthcare.

Shares of Apollo Hospitals have gained more than 43% in the past year.