Healthcare Facilities company Fortis Healthcare announced Q2FY25 results Financial Highlights: Q2FY25 consolidated revenues were at Rs 1,988.4 crore, up 12.3% versus Q2FY24. The operating margins for the quarter were 21.9%, versus 18.6% in the corresponding previous period. Q2FY25 hospital business revenues grew 13.9% to Rs 1,654.7 crore as compared to Rs 1,452.6 crore in Q2FY24. Operating margins stood at 21.4% for the period versus 18.4% in the corresponding previous period. Q2FY25 diagnostic business gross revenues were at Rs 3725 crore versus Rs 360.3 crore in Q2FY24. Other Highlights: Operating EBITDA margins (basis gross revenues) stood at 21.5% versus 17.2% in Q2FY24. Excluding one offs the operating EBITDA margins stood at 24.0% versus 22.7% in Q2FY24. Operating EBITDA margins (basis gross revenues) for H1FY25 were 18.9% compared to 18.3% in H1FY24. Continuing with its network expansion strategy, primarily the addition of new customer touch points (CTPs); Total CTPs as on 30th September 2024 stood at 4085. In Q2FY25, Agilus conducted ~11.11 million tests versus ~10.59 Mn tests in Q2FY24. The preventive portfolio revenues in Agilus’ overall revenues grew 20% in Q2FY25 and contributed 12% to the operating revenues versus 10% in Q2FY24. Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, said: “We have continued our positive momentum in Q2 with the hospital business contributing approximately 82% to our consolidated EBITDA. We are making good progress on our plans to add nearly 700 beds this fiscal year across key facilities, including Faridabad, Anandpur, Shalimar Bagh, and Noida. Commensurate with our expansion plans, our 350-bed Manesar facility which we acquired in FY24 was commissioned recently. Leveraging our robust balance sheet, we would actively pursue further inorganic growth opportunities in our focus geographic clusters.” “Among our key specialties, Oncology and Neuro Sciences grew by a strong 19% and 17%, respectively, compared to the same period last year. As part of our ongoing efforts to enhance our medical infrastructure, FMRI introduced the first MR LINAC in North and Central India in September. On the diagnostics business we are moving ahead to consolidate our stake in Agilus by acquiring the 31.52% stake from the PE investors. The diagnostics business performance is witnessing a steady recovery with relatively improving topline growth and better EBITDA margins. However, the business is still impacted by rebranding expenses which we expect will taper off towards the end of the fiscal” Result PDF
Conference Call with Fortis Healthcare Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Healthcare Facilities company Fortis Healthcare announced Q1FY25 results: Consolidated Revenues increased 12.2% to Rs 1,859 crore Consolidated Operating EBITDA up 25.5% to Rs 343 crore, Margin 18.4% Hospital Business Revenues increased 14.4% to Rs 1,549 crore; Operating EBITDA up 39.0% to Rs 287 crore, 18.5% Margin The Company’s net debt as of 30th June 2024 stood at Rs 308 crore with a Net Debt to EBITDA of 0.22x as compared to the 0.35x as on 30th June 2023 (basis Q1 annualized EBITDA). Net debt to equity was at 0.04x versus 0.05x as on 30th June 2023. Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated, “The mainstay of our performance continues to be the hospital business which presently contributes approx. 84% to our consolidated EBITDA. We are progressing well on our plans to add capacity of close to 700 beds in this fiscal year 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. 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. The new brand is being well accepted and gaining prominence; placing the business in a better position to further scale up its performance.” Commenting on the results for the quarter and the year, Ashutosh Raghuvanshi, MD and CEO, 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 Q1FY24, a growth of 39%. This was primarily led by an increase in occupancy from 64% in Q1FY24 to 67% in Q1FY25 and a higher ARPOB. Most of our key facilities have performed well noticeably Mulund, Anandpur, BG Road and Shalimar Bagh. Amongst our focus specialties Neuro Sciences and Oncology have grown a robust 23% and 22% respectively versus the corresponding previous period. We have strengthened our clinical talent in the medical specialties of Cardiac Sciences, Neurology and Orthopaedics in the quarter and have also commissioned South Asia’s first Gamma Knife Espirit radiosurgery equipment for neurosurgical treatment at FMRI. On the diagnostics business while revenues remain muted, Operating EBITDA margins are better than the trailing quarter showing signs of a gradual recovery which we expect to continue through FY25.” Result PDF