Fortis (NYSE:FTS) Healthcare Ltd has reported a mixed financial performance for the July-September quarter. The company saw its net profit decline by 15.7% year-over-year to Rs 183.9 crore, down from Rs 218.2 crore in the same period last year. Despite the drop in net profit, Fortis experienced a revenue increase of 10% year-over-year, with earnings reaching Rs 1,770 crore compared to Rs 1,607 crore previously.
The hospital operator's EBITDA for the quarter stood at Rs 329.9 crore against last year’s Rs 303.2 crore, marking a growth despite a slight dip in EBITDA margin from 18.9% to 18.6%. Occupancy rates showed a marginal decrease to 68.7% from the previous year's 69.6%. However, the Average Revenue Per Occupied Bed (ARPOB) saw an uptick of 11.8%, rising to Rs 2.21 crore from Rs 1.97 crore.
A notable increase was seen in the revenue generated from international patients, which grew by 15.6% over the same quarter in the previous fiscal year and by 10.6% over the first quarter of this fiscal year, amounting to Rs 126.7 crore and comprising 8.3% of total hospital revenues.
Digital channel revenues also showed significant growth, with a 27.6% increase compared to the same quarter last year and a 22.4% rise from the preceding quarter this fiscal year. This segment now accounts for a quarter of the total hospital business revenues.
Surgical services contributed more robustly to overall earnings, improving to cover 61.2% of hospital revenue with an emphasis on enhancing the specialty mix by 13.4%. In light of these developments, Dr Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare, outlined strategic plans focusing on brownfield bed expansion and exploring inorganic opportunities to drive further growth for the business.
InvestingPro Insights
InvestingPro's real-time data and tips offer valuable insights into Fortis Healthcare's financial performance. According to InvestingPro, Fortis Healthcare's revenue growth has been accelerating, aligning with the 10% year-over-year increase reported for the July-September quarter. This growth trend, coupled with strong earnings, should allow management to continue dividend payments, providing added value for shareholders.
InvestingPro also highlights that Fortis Healthcare is a prominent player in the Healthcare Providers & Services industry, a factor that could strengthen its market position amidst increasing competition. Moreover, the company's stock generally trades with low price volatility, suggesting a stable investment.
Lastly, InvestingPro data reveals that Fortis Healthcare has been profitable over the last twelve months. This profitability, along with the prediction that the company will remain profitable this year, could provide investors with increased confidence in the company's financial stability.
For additional insights, InvestingPro offers a total of nine tips on Fortis Healthcare. These tips, along with many others, are part of the InvestingPro product offering.
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