Fortis Healthcare Q3 Results: Firm posts Rs 142 cr profit led by recovery of non-Covid care

The company reported a net profit of Rs 54 crore in the corresponding quarter of the previous year.

The revenues rose 24.6% YoY to Rs 1467 crore in Q3FY22 compared to 1177 crore in Q3FY21. On a quarter-on-quarter (QoQ) basis, the revenues were flat, while net profit rose 8.4%.

The earnings before interest, tax, depreciation and amortization (EBITDA) stood at 294 crore in Q3FY22. The EBITDA margin stood at 20%.

Fortis said non-covid revenues contributed 98% to the overall hospital revenues in the quarter, similar to trailing quarter and compared to 81% in Q3 FY21.

The hospital business revenues grew 23.3% YoY to Rs 1,118.2 crores in Q3FY22 versus Rs 906.9 crores in Q3FY21.

Fortis said it saw higher surgical volumes in select key medical specialties.

It added that higher complex procedure volumes across key medical specialties led to a robust ARPOB (average revenue per occupied bed) of Rs 1.86 crores witnessed in the quarter.

ARPOB grew 18% versus Q3FY21. Oncology, Neuro-Sciences and the Cardiology specialties contributed 40.5% to overall revenues versus 37.3% in Q2 FY22.

EBITDA Margins stood at 17.0% in Q3FY22. Diagnostics business gross revenues grew 26.9% YoY to Rs 388.5 crore. The EBITDA margins of the diagnostics business stood at 26.6%.

Overall occupancy for the quarter was at 65.4%.

“Q3 continues to build on the business momentum we witnessed in Q2. Despite it being a festive season in some of our larger geographies, both the hospital and the diagnostics businesses have performed well,” said Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare.

“The third wave of covid has had an impact primarily in the month of January though we are now seeing a gradual recovery in business which we expect should accelerate going forward. This would hopefully enable us to end FY22 on a sound note,” Raghuvanshi added.