Fortis Healthcare (FORTIS) Q1 24/25 earnings summary

Executive summary

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

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

• Notable clinical achievements included rare surgeries and the introduction of advanced medical equipment.

• Un-audited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved and released, showing continued growth in revenue and profitability year-over-year and sequentially.

• Chairman and Non-Executive Independent Director, Mr. Ravi Rajagopal, announced resignation effective September 30, 2024.

Financial highlights

• Consolidated operating EBITDA increased 25.5% to INR 343 crore, with margin improving to 18.4%.

• Hospital business operating EBITDA margin rose to 18.5%; diagnostics margin declined to 16.1% due to one-offs.

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

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

• Consolidated net profit for Q1 FY25 was ₹17,398 lacs, compared to ₹12,395 lacs in Q1 FY24.

Outlook and guidance

• Management reaffirmed full-year hospital EBITDA margin guidance of 20%+ and expects to maintain margin improvement.

• Bed expansion projects underway at Manesar, Faridabad, Noida, FMRI, and other facilities.

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

• Brownfield expansions and new bed additions are expected to drive further growth.

• Management believes the likelihood of additional financial impact from ongoing investigations is low.