Fortis Healthcare Reports 1.6% Profit Growth, 12.3% Revenue Increase in Q2

12 Nov 2024 , 12:03 PM

Fortis Healthcare Ltd. reported a modest year-on-year (YoY) net profit increase of 1.6% to ₹176.5 Crore for Q2 ending September 30, 2024, up from ₹173.7 Crore in the same quarter last fiscal.

Revenue from operations saw a notable growth of 12.3%, reaching ₹1,988.4 Crore, compared to ₹1,770 Crore YoY. Operating EBITDA surged 31.7% to ₹435 Crore this quarter from ₹330.2 Crore in Q2 FY24, with EBITDA margin improving to 21.9%, up from 18.7%.

The hospital business revenue grew by 13.9% YoY to ₹1,654.7 Crore, aided by a 7.6% increase in average revenue per occupied bed (ARPOB) and higher occupancy rates.

Key medical specialties like oncology, gastroenterology, neurosciences, renal sciences, orthopedics, and cardiac sciences collectively saw 13.6% YoY growth, while neurosciences and robotic surgeries increased in volume by 21% and 57%, respectively.

Revenue from digital channels grew by 30.1% YoY, now accounting for 29.3% of total hospital revenue, up from 25.6% in Q2 FY24. Major facilities in Shalimar Bagh, Mohali, and Mulund recorded revenue increases of 25%, 21%, and 20%, respectively.

The diagnostics business reported revenue of ₹372.5 Crore, with operating EBITDA margin improving to 21.5% YoY, reaching 24% after adjusting for one-offs.

Fortis expanded its diagnostic network to 4,085 customer touch points (CTPs), with 11.11 million tests conducted in Q2, up from 10.59 million YoY. Preventive diagnostics grew by 20%, contributing 12% to operating revenues compared to 10% in Q2 FY24. Net debt reduced to ₹281 Crore as of September 30, 2024, with net debt to EBITDA ratio at 0.16x, reflecting improved financial health and balance sheet strength.