Fortis Healthcare Q1 net profit declines to Rs 124 crore, revenue up 11%

At the operating level, EBITDA increased 8.9 percent to Rs 588.9 crore in the first quarter of this fiscal over Rs 540.6 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 35.5 percent in the reporting quarter as compared to 36.3 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company's operating margins stood at 15.2 percent for the quarter against 16.2 percent in the first quarter of FY23 impacted in part due to a lower occupancy and a less-than-favorable payor mix.

The occupancy of the hospital business was down to 64 percent in Q1 of FY24 from 65 percent in Q1 of FY23. ARPOB witnessed a growth of 12.1 percent reaching Rs 2.19 crore (Rs 60,076 per day) for Q1 of FY24 from Rs 1.96 crore (Rs 53,589 per day) in Q1 of FY23.

In the first quarter of FY24, the diagnostics business achieved gross revenues of Rs 342.7 crore against Rs 332.6 crore in Q1 of FY23. Operating margins stood at 19.4 percent against 17.4 percent in Q1 of FY23 led by a non-covid revenue growth of 9 percent.

Net debt to EBITDA was at 0.35x against 0.54x (basis annualized EBITDA of Q1 of FY24 and Q1 of FY23, respectively). Net debt was at Rs 393 crore as of June 30, 2023, against Rs 340 crore as of March 31, 2023.

In Q1 of FY24, medical tourism revenues grew 29.1 percent, reaching Rs 115 crore compared to Q1 of FY23. The segment's contribution to the overall hospital business revenues increased to 8.5 percent from 7.5 percent in Q1 of FY23 and 8.4 percent in Q4 of FY23.

The company’s key facilities such as FMRI, Mohali, Noida, Shalimar Bagh, and Anandapur witnessed revenue growth of 21 percent, 23 percent, 21 percent, 15 percent, and 11 percent, respectively, versus the corresponding previous quarter.

The results came after the close of the market hours. Shares of Fortis Healthcare Ltd ended at Rs 338.45, up by Rs 5.35, or 1.61 percent on the BSE.