Apollo Hospitals shares fell by 3.43% to trade at ₹7,167.35 on the NSE as of 12:37 pm. The decline follows an announcement from the company revising its guidance outlook despite reporting strong overall results.
Key Points:
- Hospital Margin Expansion Target Lowered: Apollo Hospitals reduced its margin expansion target for the hospital segment from an expected increase of 100-150 basis points (bps) to 50-60 bps for FY25, indicating a more cautious outlook on profitability improvement.
- Apollo 24/7 Growth Guidance Withdrawn: The company has withdrawn its 50% growth guidance for gross merchandise value (GMV) on its Apollo 24/7 digital platform, potentially signaling challenges in scaling this segment.
The tempered guidance has impacted investor sentiment, leading to a drop in the stock price. While Apollo’s overall performance remains strong, the revised expectations suggest potential headwinds in achieving previously set growth and profitability targets.
TOPICS:
Apollo Hospitals