Fortis Healthcare Ltd. Results

Q2FY25 Quarterly Result Announced for Fortis Healthcare Ltd.

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”

Q1FY25 Quarterly Result Announced for Fortis Healthcare Ltd.

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.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Fortis Healthcare Ltd.

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”

Q3FY24 Quarterly & 9MFY24 Result Announced for Fortis Healthcare Ltd.

Fortis Healthcare announced Q3FY24 & 9MFY24 results: Q3FY24 Highlights: Hospital business revenues increased 9.6% versus the corresponding previous quarter, led by a 10.6% increase in ARPOB to Rs 2.23 crore. Q3FY24 hospital business revenues were at Rs 1,389.5 crore versus Rs 1,267.4 crore in Q3FY23 and Rs 1,452.6 crore in Q2FY24. Occupancy stood at 64.0% in Q3FY24 versus 66.1% in Q3FY23, owing to an increase in the operational beds by ~100, while the occupied beds remained flat YoY. Occupancy levels on a like-to-like basis were at similar levels. ARPOB grew 10.6% to Rs 2.23 crore for Q3FY24 from Rs 2.02 crore in Q3FY23. Q3FY24 diagnostics business gross revenues were at Rs 330.7 crore versus Rs 331.5 crore in Q3FY23. Net debt to EBITDA was at 0.45 vs 0.41 (basis annualized EBITDA of Q3FY24 and Q3FY23, respectively). Net debt was at Rs 518 crore as of December 31, 2023, versus Rs 471 crore as of December 31, 2022. 9MFY24 Highlights: 9MFY24 consolidated revenues were at Rs 5,107.0 crore, up 9.7% versus 9MFY23. The operating margins for 9MFY24 were 17.4%, lower than the 17.8% in the corresponding previous period. 9MFY24 hospital business revenues grew 11.7% to Rs 4,196.2 crore as compared to Rs 3,756.8 crore in 9MFY23. Operating margins stood at 17.3% for the period versus 17.1% in the corresponding previous period. 9MFY24 diagnostic business gross revenues were at Rs 1,033.6 crore versus Rs 1,015.3 crore in 9MFY23. Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated, “The quarter’s performance has been led by the hospital business which continues to show a YoY improvement in margins. Plans for incrementally adding to our existing bed capacity by almost 50% are progressing and when operationalized will eventually see some of our key facilities such as Shalimar Bagh, FMRI, Mohali, and BG Road becoming more than 450 beds each. We are also further augmenting our clinical talent and medical infrastructure. In addition, we continue to supplement our expansion plans inorganically with the acquisition of assets such as the 350-bed hospital in Manesar, NCR, and adjunct land parcels to our existing facilities such as the recent one in Kolkata. We have also successfully rationalized our portfolio having divested two of our lossmaking facilities in Chennai; the Arcot Road Vadapalani facility in July 2023 and the Fortis Malar facility in February 2024; thereby improving the profitability of the company”. Commenting on the results for the quarter, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “The healthy performance in the hospital business which contributes approx. 88% to overall consolidated EBITDA has largely offset the muted performance of the diagnostics business. Our ARPOB continues to show robust growth touching Rs 2.23 crore, an increase of 10.6%. We have commissioned a state-of-the-art medical equipment; the likes of AI-enabled cath labs, surgical robots, and advanced neuro-sciences labs in facilities such as Noida, Anandpur, and Faridabad. Our expansion strategy continues to focus on deepening our cluster presence with the launch of a new 70-bed facility in Ludhiana. This is the second facility in Ludhiana and the fourth in Punjab taking our total bed count in the state to approx. 800. Focus on retaining and attracting high-quality clinical talent remains a priority with the quarter witnessing clinicians from key specialties such as cardiology, oncology, and neurology joining the Fortis network. Our efforts on digital transformation are progressing well with the EMR (Electronic Medical Records) program implementation underway and revenues from digital channels witnessing a robust growth of over 30%”.