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Fortis Healthcare Q1 PAT down 54% YoY

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Capital Market
Last Updated : Aug 08 2022 | 6:16 PM IST

Fortis Healthcare reported 53.6 % fall in consolidated net profit to Rs 122.2 crore on 5.5% rise in revenue from operations to Rs 1,487.9 crore in Q1 FY23 over Q1 FY22.

While the revenue from the Hospitals business rose by 18.5% to Rs 1,192.4 crore, net Diagnostics revenue declined by 26.8% to Rs 295.5 crore in the first quarter.

In Hospitals business, occupancy increased to 65% in Q1 FY23 from 59% in Q4 FY22. Average revenue per occupied bed (ARPOB) was Rs 1.96 crore (up 4.3% QoQ) and Average length of stay (ALOS) was 3.58 day (up 1.4% QoQ) in the quarter ended June 2022.

Profit before tax in Q1 FY23 stood at Rs 166.3 crore, down by 3.1% from Rs 171.7 crore in Q1 FY22. Total expenses rose by 9% YoY to Rs 1,236.8 crore during the quarter.

EBITDA fell 4% to Rs 271.8 crore in Q1 FY23 from Rs 283.1 crore in Q1 FY22. EBITDA margin was 18.3% in Q1 FY23 as against 20.1% in Q1 FY22.

Net debt to EBITDA was at 0.54x vs 0.60x (basis annualized EBITDA of Q1FY23 and Q4FY22, respectively). Net debt was at Rs 585 crore versus Rs 549 crore in Q4 FY22.

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Ravi Rajagopal, chairman, board of directors, Fortis Healthcare, stated, Q1 FY23 has witnessed an encouraging start to the fiscal. With covid abating, our hospital business has shown a strong uptrend relative to the diagnostics business which has seen a decline in volumes due to a higher covid led base in both Q1 and Q4 of FY22.

We continue to further strengthen the business in terms of adding beds, expanding medical programs, and onboarding clinical talent. Our next phase of growth would be led by our brownfield expansion strategy which would see approx. 1500 beds coming onstream in the next few years: largely in key existing Fortis facilities such as the likes of FMRI, Mohali, Shalimar Bagh, BG Road and Noida. This coupled with our focus on digital initiatives in both the medical and non-medical related aspects should enable us to further fortify our longer-term business prospects.

Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, stated, The quarter gone by has witnessed a robust hospital business performance led by a better occupancy mix and a higher ARPOB which increased 21% versus Q1 FY22.

We have added beds in select facilities such as Fortis Mulund and FMRI Gurugram and are well on track with our brownfield expansion plans. We have also expanded our oncology offerings with a new cancer care facility in New Delhi.

Revenues from key specialties such as Oncology, Gastroenterology, Renal Sciences and Orthopedics have seen strong growth both versus the corresponding and the trailing quarters. The international patient revenues have also seen healthy traction in the quarter. With the pandemic receding significantly and covid volumes dropping, our diagnostics business has witnessed a decline. In addition, the diagnostics segment continues to witness competitive pressures and we are making all efforts to protect and further grow our market share in the business."

Fortis Healthcare is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates 26 healthcare facilities (including JVs and O&M facilities). The company's network comprises approximately 4,300 operational beds and approx. 400 diagnostics centres.

The scrip advanced 3.12% to currently trade at Rs 273 on the BSE.

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First Published: Aug 08 2022 | 2:08 PM IST

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