Fortis Healthcare (FORTIS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue rose 12.2% year-over-year to ₹1,859 crore, with profit after tax up 141.9% to ₹174 crore, driven by strong hospital business growth and improved occupancy.

• Hospital business revenue grew 14.4% to ₹1,549 crore, while diagnostics revenue remained stable at ₹343 crore.

• Occupancy improved to 67%, with ARPOB up 9.7% year-over-year to ₹2.41 crore per annum.

• Notable clinical achievements included rare surgeries, advanced equipment introductions, and a 59% increase in robotic surgeries.

• Un-audited standalone and consolidated results for Q1 FY25 were approved, with continued growth in revenue and profitability year-over-year and sequentially.

Financial highlights

• Consolidated operating EBITDA increased 25.5% to ₹343 crore (18.4% margin), with hospital business EBITDA margin at 18.5% and diagnostics at 16.1%.

• Net debt to EBITDA reduced to 0.22x as of June 30, 2024; net debt at ₹308 crore.

• Eight facilities achieved EBITDA margins above 20%, contributing 69% of hospital revenue.

• Diagnostics business EBITDA before one-off expenses was ₹64 crore (18.7% margin).

• Standalone revenue from operations for Q1 FY25 was ₹33,340 lacs, up from ₹28,907 lacs in Q1 FY24.

Outlook and guidance

• Management reaffirmed full-year hospital EBITDA margin guidance of 20%+ and expects to remain on track.

• Bed expansion projects underway at Manesar, Faridabad, Noida, FMRI, and other facilities, with phased additions through FY26.

• Diagnostic business expects to consolidate growth this year and return to industry growth rates next year.

• Management expects minimal financial impact from ongoing investigations.