Fortis Healthcare Q2 Results Review - Strong Beat Aided By Hospital Segment: Prabhudas Lilladher
Hospital business showed strong revenue growth of 9% QoQ to Rs 13 billion versus our estimates of Rs 11.3 billion.
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Prabhudas Lilladher Report
Fortis Healthcare Ltd. reported healthy growth in the quarter. Revenues improved 10% YoY (8% QoQ) to Rs 16.1 billion versus our estimates of Rs 15.4 billion.
Hospital business showed strong revenue growth of 9% QoQ to Rs 13 billion versus our estimates of Rs 11.3 billion. Diagnostic business saw net revenue de-growth of 15% YoY (up 5% QoQ) to Rs 3.1 billion in line with our estimates. Non Covid revenues grew by 5% YoY. Hospital occupancy improved to 70% versus 65% QoQ.
Average revenue per occupied bed further improved 5% YoY and 1% QoQ to Rs 53,900 on better case and payor mix. Net debt marginally decreased by Rs 200 million QoQ to Rs 5.65 billion.
We remain positive on Fortis and expect margin improvement across segments given-
improving case mix in hospital segment with cost rationalisation initiatives,
traction in international patient’s footfall and
increase in test volume on network expansion in diagnostics business.
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