Fortis Healthcare Reports Strong Q2 FY24 Financials, Agilus Diagnostics Files IPO

Fortis Healthcare, has reported unaudited consolidated financial results for the quarter and half-year ending September 30, 2023, the company said in a press statement on Friday.

In Q2 FY24, consolidated revenues reached Rs 1,770 crores, marking a substantial 10.1 per cent year-on-year increase. The operating EBITDA stood at Rs 330 crores, reflecting an 18.6 margin. Notably, the Hospital Business recorded a 12 per cent surge in revenues to Rs 1,453 crores, accompanied by an 18.4 per cent operating EBITDA margin.

Adding to the financial fervour, Agilus Diagnostics has filed a Draft Red Herring Prospectus (DRHP) for a proposed Initial Public Offering (IPO), signalling the company's intention to tap into the capital markets.

Operationally, the hospital business demonstrated growth, with Q2 FY24 revenues expanding by 12 per cent to Rs 1,452.6 crores. This impressive performance was attributed to a healthy improvement in Average Revenue Per Occupied Bed (ARPOB), increased bed occupancy, and an enhanced case mix. Occupancy for the quarter stood at 68.7 per cent, marginally lower than the 69.6 per cent recorded in Q2 FY23. ARPOB witnessed a substantial 11.8 per cent increase, reaching Rs 2.21 crores in Q2 FY24.

In the Diagnostics Business, gross revenues for Q2 FY24 totalled Rs 360.3 crores, compared to Rs 351.2 crores in the same period last year, underscoring continued growth and demand in this segment.

Financially, Fortis Healthcare showcased an improvement in net debt to EBITDA, standing at 0.29 compared to 0.44 annually for Q2 FY24 and Q2 FY23, respectively. As of September 30, 2023, net debt was reported at Rs 393 crores, reflecting prudent financial management.

Looking at the half-yearly performance, consolidated revenues for H1 FY24 reached Rs 3,427.4 crores, displaying a robust 10.7 per cent year-on-year growth. Hospital business revenues for the same period surged by 12.7 per cent to Rs 2,806.7 crores, with operating margins at 16.9 per cent, the statement from the company read.

Highlighting specific achievements within the Hospital Business, the contribution of key medical specialities Oncology, Orthopaedics, Renal Sciences, Cardiac Sciences, Neurosciences, and Gastroenterology increased to 61.2 per cent of overall hospital revenues in Q2 FY24, compared to 60.5 per cent in Q2 FY23. Revenues from these specialities grew by an impressive 13.4 per cent, with Gastro Sciences, Oncology, and Renal Sciences leading the way with growth rates of 23.7 per cent, 22.3 per cent, and 19.4 per cent, respectively.

International patient revenues reached Rs 126.7 crores, contributing 8.3 per cent to hospital revenues in Q2 FY24. Revenues from digital channels witnessed a significant uptick, growing by 27.6 per cent in Q2 FY24, contributing 25.6 per cent to the overall hospital business revenues, the company added.