Fortis Healthcare announced Q4FY24 & FY24 results: Q4FY24 Consolidated Revenues increase 8.7% to Rs 1,786 crore Consolidated Operating EBITDA up 40.5% to Rs 380 crore, 21.3% Margin Hospital Business Revenues increase 10.3% to Rs 1,490 crore; Operating EBITDA up 50.6% to Rs 333 crore, 22.4% Margin FY24 Consolidated Revenues increase 9.5% to Rs 6,893 crore Consolidated Operating EBITDA up 15.1% to Rs 1,268 crore, 18.4% Margin Hospital Business Revenues increase 11.3% to Rs 5,686 crore; Operating EBITDA up 22.7% to Rs 1,058 crore, 18.6% Margin Board recommends dividend of Rs 1 per share (10% of Face Value) The Company’s net debt as of 31st March 2024 stood at Rs 264 crore with a Net Debt to EBITDA of 0.17x as compared to the 0.30x as on 31st March 2023. (basis Q4 annualized EBITDA). Net debt to equity was at 0.03x versus 0.04x as on 31st March 2023. At the consolidated level, cash flow from operations for FY24 stood at Rs 1,100 crore Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated, “We have witnessed yet another year of healthy growth and profitability, reflected in the Board recommending a dividend of Rs 1 per share (10% of face value) to shareholders. This signifies the Company’s strengthening fundamentals and continuing growth prospects. I’m pleased to share that the Company has progressed well on its strategic growth levers viz. brownfield bed expansion, portfolio rationalization and investments in medical equipment and clinical programs. Plans to ramp up current bed capacity are on track and could potentially see the Company reach a total of 5,948 beds over the next few years. We have added 246 beds in FY24 across our network and in line with our portfolio optimization strategy, have also successfully divested two of our underperforming assets in Chennai. With a focus on increasing our presence in specialities such as oncology, neurosciences and cardiac sciences, we have expanded our clinical offerings and medical programs backed by high quality clinical talent. Providing best in class clinical outcomes and a superior patient experience remain critical to our success and these are being further supplemented by digital technologies such as Electronic Medical Records (EMR) system which is gradually being rolled out across our network. While challenges remain in the diagnostics business primarily as a result of the brand name change; the industry is witnessing signs of stabilization and gradual improvement. We believe that Agilus is well placed given its scale and size to improve its business performance going forward. The Company’s Balance Sheet remains robust enabling us to actively evaluate inorganic opportunities to further accelerate our growth momentum. I’m optimistic that with the continuing support of all our stakeholders we would progressively strengthen our performance in both the hospitals and diagnostics businesses.” Commenting on the results for the quarter and the year, Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “The year gone by has witnessed a healthy performance led by our hospitals business. Our consolidated topline grew 9.5% to Rs 6,893 crore while our operating profitability. i.e. EBITDA increased 15.1% to Rs 1,268 crore. The hospital business contributed more than 80% to our consolidated topline while at the EBITDA level the hospital business contribution rose from 79% in FY23 to 83% in FY24. For the quarter our hospital business revenues increased 10.3% while margins improved to 22.4% versus 16.4% in Q4FY23.The performance for the quarter was in part due to an improved specialty mix reflected in the YoY ARPOB increase of 10.3% to Rs 2.32 crore. The year witnessed bed additions in key facilities such as in Anandpur (Kolkata), Mohali (Punjab), BG Road (Bengaluru) and Mulund (Mumbai); in addition to the commissioning of a new 70-bed facility in Ludhiana. We expect to add 700 beds in the current year out of which we plan to operationalize approx. 300 beds. This would also include the soon to be commissioned 450 bed potential Manesar, Gurugram facility which would further strengthen our presence in one of our key clusters .i.e. NCR. In order to provide advanced treatment options to our patients; we continue to upgrade our medical infrastructure, having commissioned LINACs, Cath Labs, MRI, Ortho Robots, Digital PET CT and Da Vinci Robotic Systems in a number of our facilities. On our diagnostics business, we believe that Agilus has the potential to scale up significantly from current levels and efforts are on to strengthen its business imperatives in terms of its channel / network presence and product portfolio to drive revenues and optimize costs. I’m hopeful that both our business will further build on their FY24 performance in the current year” Result PDF
Conference Call with Fortis Healthcare Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.