In view of the drop in patient footfall from Bangladesh due to the political turmoil that gripped the country, Apollo Hospitals Enterprise Ltd (AEHL) is looking at different overseas markets to support growth. The firm has its eyes on Indonesia, Iraq, Iran, Sri Lanka, Middle East and Africa, among others.
According to Dr Sangita Reddy, Joint Managing Director, AEHL, tapping into these new markets is “likely to make up” or off-set the impact of lower footfalls from Bangladesh, over a three-month period or so.
“There is Fiji… we’re focusing on Africa including Guyana of course; we’re also seeing a significant increase in other markets. Bangladesh (political turmoil) has affected us, and we hope that the situation will ease out. And those numbers will come back,” she told businessline on the sidelines of the International Health Dialogue.
“We may have a three-month lag, but we will make up (through focus on new markets),” Reddy added.
Hospital chains in India are known to charge a premium for foreign patientsn, which vary in the 15-20 per cent-odd range. Hence, a drop in patient footfall from Bangladesh, one of the largest markets, has impacted earnings.
Other countries
The company top-brass in their earnings call said, revenue from international patients other than Bangladesh rose by 19 per cent year-on-year.
According to Reddy, India has a large population and Apollo will continue to serve whoever needs them.
The company has a ₹6,000-crore-odd expansion plan underway that includes an addition of nearly 3,000-odd beds (capex for each bed being in the ₹2-crore range) over a five-year period. And, nearly 50 per cent of capacity is expected to be operationalised over the next three years. Some of the key cities being tapped include Hyderabad, Chennai, Gurugram, Mumbai, Bengaluru, among others.
Expansion mode
With new facilities coming up, Apollo is expecting occupancy rates to be in the 72-73 per cent range over a 12-24-month period. Currently, occupancies are at 68 per cent.
“… by then, we would have found some level of replacement for the Bangladesh revenues and volumes, in terms of other foreign markets,” the company top brass had said during the call. Most patients from Bangladesh were coming to Chennai and Tamil Nadu, which is why the impact on Chennai is an almost a 3-plus per cent.
For the quarter ending December 31, 2024, AHEL reported a consolidated revenue or ₹5,527 crore, up by 14 per cent y-o-y, and a consolidated EBITDA stood at ₹762 crore, up 24 per cent y-o-y.