Fortis Healthcare Q4 Results 2024: Profit up 46.9% to ₹203.14 crore

Synopsis

Fortis Healthcare recorded a profit of ₹203.14 crore during the fourth quarter of FY24, up 46.9% in comparison to ₹138.30 crore during the corresponding quarter of previous financial year.

Quarter Result Performance

During Q4 FY24, Fortis Healthcare witnessed a 46.9% surge in profit, reaching ₹203.14 crore, compared to ₹138.30 crore in Q4 FY23. Revenue from operations rose by 8.7% year-over-year, reaching ₹1785.88 crore, compared to ₹1642.70 crore in Q4 FY23.

While the company reported total income during the quarter at ₹1795.68 crore, total expenses incurred during the quarter in review stood at ₹1531.76 crore.

As of March 31, 2024, the company's net debt totaled ₹264 crore. This represents a significant improvement in leverage, with a net debt to EBITDA ratio of 0.17x compared to 0.30x on March 31, 2023. Similarly, the net debt to equity ratio decreased to 0.03x from 0.04x in the previous year. Notably, the company's consolidated cash flow from operations for fiscal year 2024 reached ₹1,100 crore.

Revenue growth in the hospital business both for the quarter and the year was led by an increase in ARPOB of 10.3% and 10.8% over respective previous periods. ARPOB for Q4 FY24 was at ₹2.32 crore while for the year ARPOB stood at ₹2.22 crore.

Medical travel revenue surged by 8.9% in the quarter. Digital channels (website, mobile app, and campaigns) contributed to a remarkable 33% year-over-year growth in Q4FY24. Key facilities in Mohali, Noida, Shalimar Bagh, Anandpur, and Amritsar experienced significant revenue increases of 19%, 16%, 16%, 15%, and 21%, respectively, during the year.

The company board also recommended a final dividend of ₹1 per equity share (10% of face value of ₹10 each), for the financial year 2023-24, subject to approval of the members of the company.

Management Commentary

Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare, said, “We have witnessed yet another year of healthy growth and profitability, reflected in the Board recommending a dividend of Re 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.”

Commenting on the results, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, said, “The year gone by has witnessed a healthy performance led by our hospitals business. Our consolidated topline grew 9.5% to ₹6,893 crore while our operating profitability. i.e. EBITDA increased 15.1% to ₹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.