Healthcare major Apollo Hospitals expects to achieve ₹1,000 crore in topline from its diagnostics business over the next three years, according to a top official of the company.
Over a conference call with analysts, Apollo Hospitals’ Managing Director Sunita Reddy said that primary care and diagnostics are “our specific focus”. She added that Apollo Hospitals’ diagnostic labs have the requisite depth of clinical understanding to deliver high-end diagnostic tests and will, therefore, be a reference unit for hospitals from around the country.
Apollo Hospitals Group has three major business segments – healthcare services (hospitals) represented by Apollo Hospitals Enterprise Ltd (AHEL); primary care clinics, diagnostic labs and daycare represented by its subsidiary Apollo Health & Lifestyle Ltd (AHLL); and digital healthcare (Apollo 24/7) and pharmacy distribution under its subsidiary Apollo HealthCo Ltd (AHL).
In Q2-FY23, Apollo Hospitals’ consolidated revenue from operations grew by 14 per cent year-on-year to ₹4,251 crore. Of which, healthcare services accounted for 53 per cent, followed by digital health & pharmacy distribution (39 per cent) and diagnostics & retail health business (7 per cent).
Highest-ever revenue in Q2
AHLL, which covers the diagnostics business, posted a revenue of ₹318 crore during Q2-FY23, a 12 per cent year-on-year growth after normalising Covid-related revenues. Apollo Diagnostics recorded its highest ever revenues during the quarter and also crossed the landmark of ₹100 crore in revenue. It posted a revenue of ₹104 crore during the latest quarter.
Mumbai, Delhi
C Chandra Sekhar, CEO of AHLL, said the current revenues (of diagnostics business) are largely between southern and eastern markets. “We have made entries into Mumbai and Delhi over the last 12 to 18 months only. Their contribution to overall current revenues is miniscule.”
In H1-FY23, Apollo Diagnostics added over 260 collection centers and nine third-party labs, taking the overall network to 1,500 centres across 200 cities, and serving over 13,000 customers every day.