Fortis Healthcare Posts Strong Q2 Results, Targets 20% EBITDA Margin By FY24-25

Fortis Healthcare (FORH) has reported Q2FY24 results, showcasing consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) growth of Rs. 846 million, marking a 13 per cent year-on-year increase (14 per cent quarter-on-quarter), the company said in a press statement on Monday. The company has reiterated its margin guidance, targeting a 20 per cent EBITDA margin by Q4FY24 or Q1FY25, coupled with an occupancy goal of 70 per cent, the company added.

The hospital business reported a 7 per cent quarter-on-quarter revenue increase to Rs 14.5 billion, while the diagnostic business saw a 2 per cent year-on-year net revenue growth to Rs 3.2 billion, the statement from the company added.

Hospital occupancy improved to 68.7 per cent, led by seasonal effects, and the Average Revenue Per Occupied Bed (ARPOB) increased by 12 per cent year-on-year to Rs. 60.5K, the company's statement said.

FORH's consolidated EBITDA increased by 9 per cent year-on-year and 21 per cent quarter-on-quarter to Rs 3.3 billion, with the hospital business EBITDA at Rs 2.7 billion, showing a 13 per cent year-on-year increase. International patients contributed 8.3 per cent to total hospital revenues, and the surgical mix was reported at 59 per cent. The diagnostic business EBITDA came in at Rs 625 million, with an Operating Profit Margin (OPM) of 19.7 per cent, the statement highlighted.