Apollo Hospitals plans to expand 35% of the capacity over next 3 years

MUMBAI: After establishing a strong hold in Southern India, especially Hyderabad and Chennai, Apollo Hospitals plans to expand its pan India presence by adding around 2900 beds or 35% of the capacity over the next three years.

At present the company has a total of 8276 beds in 50 hospitals and will cross a total of 11000 beds by FY15. This will need a funding of around Rs 1800 crore over the next three years.

Despite a capital intensive business, the company has expanded over the last few years without over-leveraging the balance sheet.

The company's debt to equity was around 0.6 as on March 31st 2012. This gives assurance that the company will be able to fund its expansion plans without over stretching its balance sheet.

This addition in the number of beds will help the company's earnigns to grow at a CAGR of 10% over the next three years.

Beside this, the company's retail pharmacy business also turned around at the net profit level in FY12. This will further boost the company's earnings in the coming years.