Chennai-based Apollo Hospitals has reported a 5 per cent increase in net profit at Rs 87 crore for the quarter ended September 30, 2013, against the corresponding quarter last fiscal.

Standalone revenue grew 17 per cent to Rs 975 crore (Rs 836 crore).

While revenue from the hospital division grew 14 per cent to Rs 636 crore (Rs 559 crore), revenue from pharmacies division was up 22 per cent at Rs 338 crore.

CFO Krishnan Akhileshwaran said the rupee depreciation had increased its consumables costs by 15 per cent during the September quarter.

About 40 per cent of its consumables, such as sutures, are imported. Two hospitals commenced work during the quarter, which contributed to administrative costs of Rs 5 crore.

“These factors lowered the profits but the company is on an expansion mode, and every hospital has a turnaround time of 12-18 months before it can become EBITDA positive,” he said.

The hospital chain has a net debt of Rs 520 crore, with a debt-to-equity ratio of 0.3.

Its three-year, Rs 2,000-crore expansion plan will require an investment of Rs 1,500 crore as of now, which will be funded through a mix of debt and internal accruals.

Apollo will add 1,000 beds during the current fiscal.

Akhileshwaran said the company is debt-wise “comfortable” and can go up to a debt-equity ratio of 0.7 in three years. The company scrip closed 2.48 per cent down on the BSE at Rs 873.85.

> bharani.v@thehindu.co.in