BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Fortis Healthcare Ltd. reported weak Q1 FY21 performance as it was impacted by lockdown across the country.
We expect the performance to gradually improve hereon as recovery was visible in June-July 2020 in terms of occupancy and pathology tests. We believe normalisation is likely to happen in H2 FY21.
Revenue declined 46.8% YoY to Rs 6.1 billion with hospitals declining 46.5% and SRL (diagnostics) dropping 47.8%. This led to negative Ebitda margin of 17.0% (our estimate 12.0%) despite meaningful cost control on selling general and administrative front.
We expect gradual operational improvement in terms of occupancy and average revenue per occupied bed day at hospitals with Ebitda margin expansion in hospitals and diagnostics led by cost rationalisation and operating leverage.
Management has also taken various steps to reduce costs further by pruning personnel cost.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
