Fortis Healthcare Q2 profit up 5%, revenue rises 12% on strong hospital biz

Healthcare major Fortis Healthcare on Friday reported a 5 per cent year-on-year (Y-o-Y) rise in consolidated net profit for the September quarter of financial year 2024-25 (Q2 FY25) at Rs 193 crore, up from Rs 184 crore reported in the same period last year.

 

The company’s revenue from operations rose to Rs 1,988 crore in Q2 FY25, a 12.3 per cent Y-o-Y increase from Rs 1,770 crore reported in Q2 FY24.

 

Fortis Healthcare’s consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 31.9 per cent Y-o-Y to Rs 435 crore in the September quarter, with Ebitda margin at 21.9 per cent, compared to 18.6 per cent for the same period last year.

 

 

The growth was driven by the hospital and diagnostic businesses.

 

Fortis’s hospital business reported a 13.9 per cent on-year growth in revenue for the September quarter, supported by an increase in the average revenue per occupied bed (ARPOB) per annum and higher occupancy levels for Q2 FY25.

 

The company posted a 7.6 per cent Y-o-Y increase in ARPOB per annum to Rs 2.37 crore, while occupancy levels rose to 72 per cent in Q2 FY25, up from 69 per cent in Q2 FY24.

 

Specialties such as pulmonology, oncology, and cardiology saw Y-o-Y revenue growth of 21 per cent, 19 per cent, and 17 per cent, respectively.

 

International patient revenues grew by 6 per cent on-year to Rs 134 crore in the September quarter, contributing nearly 7.7 per cent to overall hospital business revenues, compared to 8.3 per cent in the same quarter last fiscal.

 

The company’s diagnostic business (Agilus) reported a 5.1 per cent Y-o-Y growth in revenue to Rs 334 crore, with Agilus’ preventive portfolio contributing 12 per cent to its overall operating revenues.

 

Commenting on the results, Dr Ashutosh Raghuvanshi, managing director and chief executive officer of Fortis Healthcare, stated that the hospital business contributed approximately 82 per cent to the company’s consolidated Ebitda.

 

Fortis announced that it is making good progress on its plan to add nearly 700 beds this fiscal year across key facilities, including Faridabad, Anandpur, Shalimar Bagh, and Noida.

 

“Leveraging our robust balance sheet, we will actively pursue further inorganic growth opportunities in our focus geographic clusters,” Raghuvanshi added.

 

On Friday, Fortis Healthcare’s shares declined by 0.42 per cent, closing at Rs 620.90 apiece on the Bombay Stock Exchange (BSE).