Fortis Q1 FY25 Financial Results: 39% EBITDA Growth and Expanding Hospital Revenues

On August 06, 2024, Fortis Healthcare Ltd, a top healthcare provider in India, released its unaudited financial results for the quarter ending June 30, 2024.

As of June 30, 2024, Fortis Healthcare Ltd’s net debt was ₹308 crore, with a Net Debt to EBITDA ratio of 0.22x, down from 0.35x a year earlier. The Net Debt to Equity ratio was 0.04x, compared to 0.05x on June 30, 2023.

Hospital Business Highlights

For the quarter, Fortis Healthcare Ltd saw revenue growth in its hospital segment driven by a 9.7% increase in Average Revenue Per Occupied Bed (ARPOB), reaching ₹2.41 crore and higher occupancy than the previous period.

The top 6 medical specialities, Oncology, Gastroenterology, Neurosciences, Renal Sciences, Orthopedics, and Cardiac Sciences, contributed 63% to hospital revenues, with their combined revenue growing 15.7% year-on-year. Key surgical procedures, such as those in Neurosciences, increased by 23% year-on-year, and robotic surgeries grew by 59% over the same period.

Revenues from medical travel rose by 11% to ₹127 crore from ₹115 crore in Q1 FY24, making up nearly 8% of total hospital revenues. Digital channel revenues, including from the website, mobile app, and campaigns, surged 52.3% year-on-year and 17.3% quarter-on-quarter, contributing 29.9% to overall hospital revenues, up from 22.5% in Q1 FY24.

Commenting on the quarter and year results, Dr Ashutosh Raghuvanshi, MD and CEO, of Fortis Healthcare stated, “We have witnessed a good start to the fiscal as reflected in our Q1 earnings. The hospital business continues to show an upward momentum, with Operating EBITDA margins expanding 330 bps at 18.5% versus Q1 FY24, a growth of 39%. This was primarily led by an increase in occupancy from 64% in Q1 FY24 to 67% in Q1 FY25 and a higher ARPOB.”

About Fortis Healthcare Limited

Fortis Healthcare Limited is a top provider of integrated healthcare services in India. The company focuses on hospitals, diagnostics, and daycare speciality facilities. It currently runs 28 healthcare facilities, including joint ventures and management facilities, with about 4,600 operational beds and around 419 diagnostics labs.

On August 07, 2024, Fortis Healthcare Limited’s share price opened at ₹516.00, touching the day’s low at ₹488.00 at 10:23 AM on the NSE.

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