Consolidated net profit for the third quarter rose 28.6% to 1.79 billion rupees ($21.6 million), the company said on Thursday.

While Aster's India business accounts for roughly a quarter of its revenue and Gulf Cooperation Council countries the rest, the company has focussed on expanding within India.

In November, the company agreed to sell a majority stake in its Gulf business for $1 billion to an investor group.

Aster's India revenue rose 23% in the third quarter ending Dec. 31, while Gulf revenue increased 14%.

An increase in the number of surgical procedures in the latter half of 2023 has benefited Aster, as well as rivals Apollo Hospitals and Max Healthcare, despite October to December being a seasonally weak period for hospitals with fewer people scheduling health-related appointments.

Revenue from Aster's hospital segment, which accounts for more than half of the company's revenue, climbed almost 18% in the quarter.

Its clinics and retail pharmacies units also recorded revenue increases of 18% and 12%, respectively. The company's third-quarter total revenue rose 16% to 37.11 billion rupees.

Aster had reported a loss in the second quarter, which was preceded by four straight quarters when the company reported a lower profit.

Losses in new hospitals, including Aster Royal Hospital Muscat and Aster Narayanadri Tirupati, had hurt the company during the second quarter ended September.

Max Healthcare reported a rise in third-quarter profit as it earned higher revenue per bed, while Apollo Hospitals also beat profit estimates.

($1 = 82.9700 Indian rupees)

(Reporting by Varun Vyas in Bengaluru; Editing by Shounak Dasgupta)