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Illustration: Ajay Mohanty
Healthcare major Fortis Healthcare on Tuesday reported a 40.4 per cent year-on-year (Y-o-Y) rise in consolidated net profit for the June quarter of financial year 2024-25 (Q1FY25) at Rs 173.98 crore, up from Rs 123.95 crore reported in the same period last year.
The company’s revenue from operations rose to Rs 1,859 crore in Q1FY25, a 12.2 per cent Y-o-Y rise from Rs 1,657 crore reported in Q1FY24.
The increase is being driven by growth in the hospital business and diagnostic businesses.
Fortis Healthcare’s consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) increased 25.5 per cent Y-o-Y to Rs 343 crore in the June quarter, with Ebitda margin coming in at 18.4 per cent, compared to 16.5 per cent for the same period last year.
On a sequential basis, the company exhibited a 14.4 per cent drop in net profit and a 4.1 per cent rise in revenue from Rs 203.14 crore and Rs 1,786 crore reported in Q4FY24 respectively.
Fortis’s hospital business reported a 14.4 per cent Y-o-Y growth in revenue in the June quarter on the back of an increase in the average revenue per occupied bed (ARPOB) per day and occupancy levels for Q1FY25.
While the company reported a 9.7 per cent Y-o-Y rise in ARPOB per day to Rs 65,924, the occupancy levels grew to 67 per cent in Q1FY25, compared to 64 per cent in Q1FY24. Specialties such as neurology, oncology and pulmonology witnessed on-year revenue growth of 23 per cent, 22 per cent and 20 per cent respectively.
International patient revenues grew by 11 per cent on-year to Rs 127 crore in the June quarter, contributing nearly 8 per cent to overall hospital business revenues as against 8.6 per cent in the same quarter last fiscal.
The healthcare company’s diagnostic business reported a subdued revenue growth of 2 per cent Y-o-Y to Rs 309 crore. “Performance compared to the corresponding previous period was impacted largely due to the rebranding exercise that was undertaken in May 2023,” the company said in its investor presentation.
Commenting on the results, Ashutosh Raghuvanshi, managing director and chief executive officer (CEO), Fortis Healthcare said the company has witnessed a good start to the fiscal as reflected in its Q1 earnings.
“The hospital business continues to show an upward momentum with operating Ebitda margins expanding 330 basis points at 18.5 per cent versus Q1 FY24, a growth of 39 per cent. This was primarily led by an increase in occupancy and a higher ARPOB in Q1 FY25,” he said.
Speaking on the company’s future plan, Ravi Rajagopal, chairman, board of directors, Fortis Healthcare said that the company is progressing well on its plans to add capacity of close to 700 beds in this fiscal year across our key facilities including Faridabad, Anandpur, Shalimar Bagh and Noida and will also shortly be commissioning the 350-bed Manesar facility which Fortis acquired in FY24.
“In addition, given the company’s strong balance sheet, we continue to evaluate inorganic growth opportunities in our key focus clusters,” he added.
First Published: Aug 06 2024 | 9:49 PM IST
