Fortis Healthcare announced Q2FY24 & H1FY24 results:
- Consolidated revenues at Rs 1,770 crore, up 10.1%
- Operating EBITDA at Rs 330 crore, 18.6% margin
- Hospital Business Q2FY24 revenues up 12% to Rs 1,453 crore
- Operating EBITDA at Rs 268 crore, 18.4% margin
- Hospital business ARPOB increases 11.8% to Rs 2.21 crore
- Agilus Diagnostics files DRHP for a proposed IPO
- Consolidated revenues were at Rs 3,427.4 crore, up 10.7% versus H1FY23. The operating margins for H1FY24 were 17.6%, marginally lower than the 17.9% in the corresponding previous period.
- Hospital business revenues grew 12.7% to Rs 2,806.7 crore as compared to Rs 2,489.3 crore in H1FY23. Operating margins stood at 16.9% for the period versus 17.3% in the corresponding previous period.
- Diagnostic business gross revenues were at Rs 702.9 crore versus Rs 683.8 crore in H1FY23
Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated, “Our Q2FY24 performance has seen the hospital business profitability increasing both versus the corresponding and trailing quarter. We remain on track to add approx. 250 beds to our network in the current fiscal across facilities such as Mulund, Anandpur, and Ludhiana with a total planned addition of close to 1,400 beds in the next few years. Further augmenting our bed expansion plans in the Delhi – NCR and the Punjab clusters, we are also evaluating new expansion opportunities including optimizing the current available space to add additional beds in Mohali and Shalimar Bagh. Following from the divestment of our Arcot Road, Chennai facility in July 2023, our focus on evaluating further portfolio rationalization opportunity continues. Efforts to implement the EMR technology are ongoing and offer a platform to integrate this with our HIS, myFortis app, and other applications. This could enable us to digitize the patient journey and provide a ‘Personalized Experience’ to our patients. I’m pleased to highlight that in September 2023 we filed the Draft Red Herring Prospectus (DRHP) for a proposed IPO of Agilus Diagnostics, our diagnostics business vertical.”
Commenting on the results for the quarter, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “Our consolidated revenues in Q2FY24 have grown 10.1% to Rs 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 are also better than Q2 of the previous year. Operating margins in the hospital business were at 18.4%, better than 18.2% on a YoY basis. This is attributable in part to a stronger case mix and growth in medical tourism revenues. Our focus on improving our specialty mix has led to a 13.4% growth cumulatively in our top 6 specialties with surgical contribution improving to 61.2% versus 60.5% in Q2 of the previous year. This is also reflected in the 11.8% growth witnessed in ARPOB which stood at Rs 2.21 crore. We have commissioned new medical equipment such as LINAC and Ortho Robots at select facilities such as Noida, Shalimar Bagh, and FMRI and have further bolstered our clinical talent; onboarding clinicians in several specialties including amongst others Oncology, Neurology, and Renal Sciences. These along with our brownfield bed expansion plans and a continuing focus on inorganic opportunities are expected to drive further growth in the business.”