Fortis Healthcare announced Q4FY23 & FY23 results: Q4FY23 vs Q4FY22: Consolidated Revenues at Rs 1,643 crore, up 19.2% EBITDA at Rs 285 crore, 17.3% margin (Q4FY22: 16.5%) PAT at Rs 138 crore versus Rs 87 crore FY23 vs FY22: Consolidated Revenues at Rs 6,298 crore, up 10.1% EBITDA at Rs 1,163 crore, 18.5% margin (FY22: 19.2%) PAT at Rs 633 crore versus Rs 790 crore Adjusted PAT (excluding one off’s) at Rs 559 crore versus Rs 475 crore Net debt reduced by Rs 222 crore to Rs 330 crore in FY23. The Company’s net debt to equity was at 0.04x in FY23 versus 0.08x in the corresponding previous period Finance costs witnessed a decline of 12.1% to Rs 129.1 crore for the year as a result of lower borrowing costs and a reduction in company borrowings Cash flow from operations for FY23 stood at Rs 583 crore Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare, stated, “The year gone by has seen the Company emerge stronger in the aftermath of the covid pandemic. I’m particularly pleased to state that the Board has recommended a dividend of Rs 1.0 per share (10% of face value) for the first time since the Company was listed; the same being subject to shareholders' approval. This reflects the significant improvement in our performance and underscores the transformational journey of the Company in the last few years. We have clocked a consolidated topline growth of 10.1% to reach revenues of Rs 6,298 crore with an EBITDA margin of 18.5% in FY23. Our hospital business continues to perform well across all financial and operating parameters. We remain well positioned for our next phase of growth comprising brownfield bed expansion in order to expand and create larger format facilities. This would enable us to draw higher operating leverage from the business. We are also progressing well on our portfolio optimization strategy allowing us to reallocate capital from our non-core or underperforming assets to assets in our key geographic clusters. This was evidenced in our recent acquisition of a hospital in Manesar, Gurugram in NCR with a potential bed capacity of 350 beds. Our diagnostics business was impacted by the decline in covid volumes and the challenging industry environment which still persists. We remain keen to participate in the consolidation opportunities in the healthcare landscape. While our balance sheet allows us comfortable leveraging capacity, we may also look at raising capital so as to not miss out on larger growth opportunities that may present themselves. I do thank all our stakeholders for their continuing support and confidence in the Board and Management of the Company.” Commenting on the results for the quarter and the year, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “I’m quite pleased with our performance for the quarter with consolidated revenues of Rs 1,643 crore, a growth of 19.2% and EBITDA margins improving to 17.3% from 16.5% in the Q4FY22. Our hospital business has performed quite well in FY23 led by higher occupancy and ARPOB with a significant 600 bps increase in contribution from surgical volumes. Our revenues from key specialties of orthopedics, oncology, renal sciences, and gastroenterology have increased 49%, 53%, 29%, and 36% respectively over FY22. International patient revenues continue to witness a robust uptick. In addition, ongoing cost-saving initiatives including those related to drugs and consumables and procurement and consumption optimization have all enabled the hospital business to reach an EBITDA of Rs 922 crore for FY23, a 37.1% increase, and an 18.1% margin. Our plans to expand and add beds to our key facilities like FMRI, Shalimar Bagh, Mulund, and Mohali to over 500 beds each in the next few years remain on track with a cumulative incremental addition of close to 1,400 beds. Dr. Raghuvanshi further added, “In addition, we continue to invest and expand our medical programs with a specific focus on oncology, neurosciences and cardiac sciences. The business both clinically and operationally is being primed to be aptly supported by an efficient digital ecosystem drawing the benefits of, amongst other things, an Electronic Medical Records system, an ERP based Business Solutions support program and a Picture Archive Communications system (PACS). The diagnostics business has witnessed a muted performance with the decline in covid volumes. Whilst SRL is undertaking a host of initiatives in terms of channel expansion and network optimization, given the challenging industry environment we expect improvement to be gradual. All in all, we believe that both our businesses with their investment and expansion priorities are better positioned to accelerate their growth in the current fiscal.” Result PDF