homeearnings NewsFortis eyes 8 10% rise in revenue per bed, driven by advanced medical treatments, more international patients
Fortis eyes 8-10% rise in revenue per bed, driven by advanced medical treatments, more international patients
Fortis Healthcare CEO, Ashutosh Raghuvanshi, shared insights with CNBC-TV18 on the company's future plans, and how the rising contribution from advanced treatments and international patients will help drive the future revenue growth.
Fortis Healthcare, a prominent name in India's private hospital network, is poised for a notable increase in its average revenue per occupied bed (RPOB), as per the insights shared by its CEO, Ashutosh Raghuvanshi.
"We expect at least an 8-10% increase in revenue per occupied bed," Raghuvanshi said in a chat with CNBC-TV18, citing the increasing complexity of medical cases and a shift in patient demographics as key drivers.
Discussing Fortis Healthcare's international operations, Raghuvanshi acknowledged that while there has been significant growth, it hasn't quite met the company's expectations. He emphasised their commitment to enhancing global outreach, aiming for more substantial growth in the future.
He expressed confidence in the growth of international patient care, highlighting Fortis Healthcare's focus on increasing its global presence. Although the international business has not fully met expectations, Raghuvanshi detailed plans to boost growth, focusing on direct sales strategies in various global markets.
On Friday, November 10, the company reported a 15.7% year-on-year (YoY) decline in net profit to ₹183.9 crore for the second quarter that ended September 30, 2023.
In a strategic business move, Agilus Diagnostics, a subsidiary of Fortis Healthcare, has filed for an initial public offering (IPO). The IPO will involve a significant offer for sale (OFS) by major shareholders, including International Finance Corporation, NYLIM Jacob Ballas India Fund III LLC, and Resurgence PE Investments, totaling up to 14,233,964 equity shares.
International Finance Corporation will sell up to 29.85 lakh shares under the OFS, while NYLIM Jacob and Resurgence will offer up to 74.62 lakh and 37.86 lakh equity shares, respectively.
Agilus, marketed by Fortis, claims to be India's largest diagnostics service provider in terms of laboratory count and second largest in terms of revenue from operations as of March 31, 2023 for the fiscal year in question.
Raghuvanshi also highlighted the positive trends in the general diagnostic.
As part of the company's strategic realignment, Fortis Healthcare has successfully divested one of its facilities in Chennai.
With a market cap of ₹27,077 crore, Fortis Healthcare continues to be a key competitor in the Indian healthcare industry, rivalling entities like Apollo Hospitals and Aster DM Healthcare.
For more, watch the video
(Edited by : Shweta Mungre)
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