India’s Apollo Hospitals misses quarterly profit estimates as occupancy takes a hit

India’s Apollo Hospitals reported a smaller-than-expected second-quarter profit on Thursday, hurt by higher costs and low occupancy rates.

The hospital chain’s consolidated net profit rose 26% to 4.77 billion rupees ($54.3 million) for the July-September quarter, its sixth straight quarter of profit rise. However, this was below analysts’ average estimates of 4.87 billion rupees, as per data compiled by LSEG.

Medical admissions fell, compared to the same year-ago quarter that had a higher incidence of seasonal medical admissions, the company said in a statement of Thursday.

“The overall occupancy for hospitals was at 69% (for the quarter) vs 73% in the same period in the previous year,” it added.

Apollo Hospitals, like its peers, has looked to boost its market share by acquiring smaller hospitals and increasing its bed capacity. Total expenses rose 12% to 56.9 billion rupees.

The company, which plans to add nearly 5,000 beds over the next three to four years, forecast double-digit revenue growth for the current financial year.

Overall revenue for the quarter climbed 12.8% to 63.04 billion rupees, surpassing estimates of 62.84 billion rupees, aided by a 10% growth in the healthcare services business. The segment contributes more than half of the total revenue.