On a consolidated basis, the healthcare delivery company's net profit surged 290.43% to Rs 116.74 crore on 24.61% rise in net sales to Rs 1466.65 crore in Q3 December 2021 over Q3 December 2020.
Profit before tax surged 87.06% to Rs 192.92 crore in Q3 December 2021 over Q3 December 2020. EBITDA jumped 46.4% year-on-year to Rs 293.6 crore. EBITDA margin was flat at 20% in Q3 December 2021.HOSPITAL BUSINESS HIGHLIGHTS
Q3FY22 hospital business revenues grew 23.3% YoY to Rs 1,118.2 crore versus Rs 906.9 crore in Q3FY21. Revenues in Q2FY22 were at Rs 1,098.5 crore.
Non-covid revenues contributed 98% to the overall hospital revenues in the quarter, similar to trailing quarter and compared to 81% in Q3 FY21.
The hospital business EBITDA grew 46% to Rs 190.2 crore versus Rs 130.7 crore in Q3FY21. EBITDA in Q2FY22 stood at 189.1 crore. This was due to higher surgical volumes witnessed in select key medical specialties. EBITDA margins stood at 17.0% in Q3FY22 versus 14.4% in Q3 FY21 and 17.2% in Q2 FY22.
Overall hospital occupancy for the quarter was at 65.4% versus 63.8% in Q3FY21. This was marginally better compared to the occupancy in Q2FY22 which stood at 64.2%.
Higher complex procedure volumes across key medical specialties led to a robust ARPOB (average revenue per occupied bed) of Rs 1.86 crore witnessed in the quarter. ARPOB grew 18% versus Q3FY21 and was similar to the ARPOB of Rs 1.87 crore in Q2 FY22. Oncology, Neuro-Sciences and the Cardiology specialties contributed 40.5% to overall revenues versus 37.3% in Q2 FY22.
DIAGNOSTIC BUSINESS HIGHLIGHTS
Q3 FY22 diagnostics business gross revenues grew 26.9% YoY to Rs 388.5 crore versus Rs 306.2 crore in Q3FY21. Revenues in Q2FY22 were at Rs 402.7 crore. Non-covid revenues grew 33.8% versus Q3FY21. Covid contribution to overall diagnostics revenues was at 19.1% versus 24.1% in Q3FY21 and 17.7% in Q2FY22.
The diagnostics business EBITDA was at Rs 103.4 crore versus Rs 73 crore in Q3 FY21. This was similar to the EBITDA in Q2FY22. Margins improved to 26.6% in Q3 FY22 versus 23.9% in Q3 FY21 and 25.7% in Q2 FY22.
Ravi Rajagopal, chairman, board of directors, Fortis Healthcare stated, Our efforts to drive operations both in terms of revenue accretion and cost optimization initiatives have yielded positive results as witnessed in the Q3 performance and over the last few quarters. Strategic plans for further strengthening clinical specialties, medical programs and infrastructure are actively being pursued. Investments in brownfield bed expansion should see the Company add close to 250-300 beds each year for the next few years, taking our operational bed capacity to over 5000 beds. Consistent endeavours towards improving patient experience, led by technology and digital enablers such as enhanced websites and apps have seen good traction and are being further evaluated for a larger healthcare platform. The Company's healthy Balance Sheet and cash flows also allow it to partake in growth and consolidation prospects in the industry. All these should augur well for future business growth and profitability."
Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, "Q3 continues to build on the business momentum we witnessed in Q2. Despite it being a festive season in some of our larger geographies, both the hospital and the diagnostics businesses have performed well. Hospital occupancy was at 65.4% in the quarter versus approx. 64% in both the trailing and corresponding quarters. Higher complex procedure surgical volumes resulted in the ARPOB increasing 18% versus Q3 FY21. Further augmenting our medical infrastructure along with strengthening our clinical talent base continue to be high priority areas. Led by a higher B2C revenue component, the diagnostics business recorded robust margins; higher than both the trailing and corresponding quarters. The third wave of covid has had an impact primarily in the month of January though we are now seeing a gradual recovery in business which we expect should accelerate going forward. This would hopefully enable us to end FY22 on a sound note."
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 27 healthcare facilities (including JVs and O&M facilities). The company's network comprises approximately 4,100 operational beds and 422 diagnostics centres.
Shares of Fortis Healthcare fell 0.82% to Rs 259.10 on Friday, 11 February 2022.
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