Fortis Healthcare Q2 net profit slides 16% to ₹184 crore, revenue up 10%

EBITDA margin stood at 18.6% in the reporting quarter as compared to 18.9% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortization.

In Q2 FY24, the hospital business revenues demonstrated a significant 12% increase, reaching ₹1,452.6 crore compared to ₹1,297 crore in Q2 FY23. This growth is commendable, especially with a 7.3% increase compared to the previous quarter.

The positive revenue trend is attributed to several factors, including a healthy improvement in Average Revenue Per Occupied Bed (ARPOB), an increase in the number of occupied beds, and an improved case mix.

Occupancy, a crucial metric in the healthcare industry, stood at 68.7% in Q2 FY24, only marginally lower than the 69.6% recorded in Q2 FY23. ARPOB witnessed a robust growth of 11.8%, reaching ₹2.21 crore in Q2 FY24 from ₹1.97 crore in the corresponding quarter of the previous fiscal year.

The diagnostics business gross revenues reached ₹360.3 crore, a slight increase from ₹351.2 crore in Q2 FY23.

Fortis Healthcare's net debt to EBITDA ratio, stands at 0.29, compared to 0.44 in the previous year. The net debt as of September 30, 2023, was ₹393 crore, reflecting a modest increase from ₹340 crore as of March 31, 2023.

Dr Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare stated, "Our consolidated revenues in Q2 FY24 have grown 10.1% to ₹1,770 crore with operating EBITDA margins at 18.6%.

Our hospital business has seen a significant improvement versus the trailing quarter with margins expanding 320 bps and is also better than Q2 of the previous year."

The results came after the close of the market hours. Shares of Fortis Healthcare Ltd ended at ₹359.15, up by ₹17.10, or 5.00 percent on the BSE.