Fortis Healthcare Q4FY23 PAT Surges By 58.9% To Rs 138 Cr

Fortis Healthcare one of India's leading healthcare providers on Tuesday announced its audited consolidated financial results for the quarter and year ended March 31, 2023. 

The healthcare company has registered consolidated revenues of Rs 1,643 crores, up by 19.2 per cent YoY in Q4FY23 against Rs 1,378 recorded in Q4FY22. For FY23 the consolidated revenue shot up by 10.1 per cent YoY to Rs 6,298 crores from 5,718 crores in FY22

The healthcare provider's Profit After Tax (PAT) rose by 58.9 per cent YoY to Rs 138 crores in Q4FY23 against Rs 87 crores in the same quarter of the previous year. In FY23, the net profits dropped by 19.9 per cent to Rs 633 crore from Rs 790 crore reported in FY22.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the March quarter came in at Rs 285 crore against Rs 227 crore in Q4FY22, registering a rise of 25.3 per cent YoY. For FY23 the healthcare company's EBITDA rose by 6.1 per cent to be recorded at Rs 1,163 crores against Rs 1,096 crores in FY22. 

Fortis Healthcare's EBITDA margins rose to 17.3 per cent in Q4FY23 from 16.5 per cent in the same quarter last year. Whereas in FY23 the EBITDA margins dropped to 18.5 per cent from 19.2 per cent in FY22.

The company in a statement said that its Net debt was reduced by Rs 222 crore to Rs 330 crore in FY23 with its net debt to equity improving to  0.04x in FY23 versus 0.08x in the corresponding previous period. The company further said that its finance costs witnessed a decline of 12.1 per cent to Rs 129.1 crore for the year as a result of lower borrowing costs and a reduction in company borrowings.

Fortis Healthcare hospital business revenue growth both for Q4 and FY23 was led by a healthy improvement in occupancy reaching 67 per cent both for the quarter and full year versus 59 per cent and 63 per cent in the corresponding previous periods. The hospital recorded an Average Revenue Per Occupied bed (ARPOB) growth of 11.5 per cent YoY both for Q4 and FY23 versus corresponding previous periods.

Fortis also recorded a higher surgical business contribution at 59 per cent for FY23 versus 53 per cent in FY22 led by an increased revenue contribution from key medical specialities of Oncology, Orthopedics, Renal Sciences and Gastroenterology.

The company in a statement said that its medical tourism revenues grew 65.6 per cent to Rs 113 crore in Q4FY23 vs Q4 FY22 contributing 8.4 per cent to overall hospital business revenues versus 6.6 per cent in Q4FY22 and 9.0 per cent in Q3FY23.

The company further said that in Q4FY23 its diagnostics business gross revenues declined by 10.8 per cent to Rs 332 crores, primarily due to a decline in Covid volumes. During Q4FY23, Covid business revenues contributed 3 per cent to overall diagnostic revenues as compared to 22 per cent in Q4 FY22.

"Our hospital business has performed quite well in FY23 led by higher occupancy and ARPOB with a significant 600 bps increase in contribution from surgical volumes. Our revenues from key specialities of orthopaedics, oncology, renal sciences and gastroenterology have increased 49 per cent, 53 per cent, 29 per cent and 36 per cent respectively over FY22," Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated.

He further said, "Our plans to expand and add beds to our key facilities like FMRI, Shalimar Bagh, Mulund and Mohali to over 500 beds each in the next few years remain on track with a cumulative incremental addition of close to 1,400 beds." 

The company has recommended a dividend of Rs 1.0 per share (10 per cent of face value) for the first time since the company was listed on the exchanges. Fortis Healthcare's stock closed 1.31 per cent higher on Tuesday at Rs 289.05 per scrip on BSE.