Fortis Healthcare Q1 Results: Profit Rises 40%, Meets Estimates

Fortis Healthcare Ltd.'s consolidated net profit increased in the first quarter of fiscal 2025, meeting analysts' estimates.

Net profit of the company rose 40% year-on-year to Rs 173.98 crore in the April-June quarter, as compared to Rs 123.95 crore in the year-ago period, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a profit of Rs 180 crore.

• Revenue up 12.2% to Rs 1,858.90 crore versus Rs 1,657.41 crore (Bloomberg estimate: Rs 1,825 crore).

• Ebitda up 26% to Rs 342.52 crore versus Rs 272.46 crore (Bloomberg estimate: Rs 356 crore).

• Margin expanded to 18.4% versus 16.4% (Bloomberg estimate: 19.50%).

• Net profit up 40% to Rs 173.98 crore versus Rs 123.95 crore (Bloomberg estimate: Rs 180 crore).

• Revenue growth in the hospital business for the quarter was led by an increase in average revenue per occupied bed of 9.7% and higher occupancy as compared to the corresponding period last year. ARPOB for Q1 FY25 stood at Rs 2.41 crore.

• Revenue from medical travel for the quarter grew 11% to reach Rs 127 crore against Rs 115 crore in Q1FY24, contributing nearly 8% to overall hospital revenue.

• The performance of the hospital business was also positively impacted by the combined revenue of the company’s top six key medical specialties—Oncology, Gastroenterology, Neurosciences, Renal Sciences, Orthopedics and Cardiac Sciences growing 15.7% in Q1 FY25 versus the corresponding period last year. Their contribution has stayed steady at 63% to the overall hospital business revenue.

• Revenue from digital channels—website, mobile application and digital campaigns—witnessed a 52.3% YoY growth and 17.3% QoQ in Q1 FY25. Digital revenue contributed 29.9% to overall hospital revenue versus 22.5% in Q1 FY24.

• Diagnostics business gross revenue were at Rs 343.5 crore versus Rs 342.7 crore in Q1 FY24 and Rs 338.4 crore in Q4 FY24. Performance compared to the corresponding period last year was impacted largely due to the rebranding exercise that was undertaken in May 2023.

• Operating Ebitda margin (basis gross revenue) stood at 16.1% versus 19.4% in Q1 FY24. Excluding one-offs related primarily to the rebranding expenses and the provisioning related to certain government business, the operating Ebitda margin stood at 18.7% versus 20.8% in Q1 FY24.

“The mainstay of our performance continues to be the hospital business, which presently contributes approximately 84% to our consolidated Ebitda. We are progressing well on our plans to add capacity of close to 700 beds in this fiscal across our key facilities including Faridabad, Anandpur, Shalimar Bagh and Noida, and will also be shortly commissioning the 350-bed Manesar facility, which we acquired in FY24," said Ravi Rajagopal, chairman, Board of Directors, Fortis Healthcare.

"In addition, given the company’s strong balance sheet, we continue to evaluate inorganic growth opportunities in our key focus clusters. The diagnostics business performance is lower than the corresponding previous quarter, largely due to the impact of brand change but has witnessed signs of early improvement versus the trailing quarter," he added.

Shares of the company closed 0.99% lower at Rs 496.90 apiece, as compared with a 0.26% gain in the benchmark Nifty 50.