Bengaluru: Fortis Healthcare Ltd. (“Fortis” or the “Company”), India’s leading healthcare delivery company, today announced its unaudited consolidated financial results for the quarter ended June 30, 2022.
• Q1FY23hospital business revenues were at INR 1,192.4Crsversus INR 1006.5Crs in Q1FY22 and INR 1,040.9Crs in Q4FY22.
• Hospital revenues increased 18.5% and 14.6% versus the corresponding and trailing quarters,respectively, led by a strong recovery in elective procedures. This resulted in a betteroccupancy mix and a higher ARPOB in the quarter.
• Both,Q1 FY22 and Q4 FY22 witnessed an impact on hospital revenues due to higher covid cases and a resultant decline in elective procedures. Covid revenues contribution to overall hospital revenues stood at 28% in Q1 FY22 and 6% in Q4 FY22 versus a negligible 0.6% in Q1 FY23
• Q1 FY23diagnostics business gross revenues stood at INR 332.6 Crs versus INR 441.4 Crs in Q1 FY22 and INR 372.3 Crs in Q4 FY22. Net revenues (net of inter-company elimination) were INR 295.5 Crs for Q1 FY23 versus INR 403.8 Crs for Q1FY22.
• Net debt to EBITDA was at 0.54x vs 0.60x (basis annualized EBITDA of Q1FY23 andQ4FY22, respectively). Net debt was at INR 585Crs versus INR 549Crs in Q4 FY22.
HOSPITAL BUSINESS HIGHLIGHTS
• In line with its brownfield expansion strategy, the Company commissioned approx.55 additional beds in Fortis Mulund, Mumbai and FMRI, Gurugram.
• Extending it’s comprehensive cancer care program the Company commissioned the Fortis Cancer Institute at Defence Colony, New Delhi. This is a state of the art 12 bedded oncology center providing chemotherapy facilities and further supplements the Company’s oncology service offerings in a number of its existing facilities.
• The Company’s key medical specialties viz. oncology, orthopaedics, renal sciencesand gastroenterology witnesseda strong growth in revenues both versus the corresponding and trailing quarters.
• During the quarter,the Company onboarded eminent clinicians in the medical specialties of urology, transplants, rheumatology and nephrology.
• The quarter witnessed an uptick in international patient revenues which stood at INR 89Crs, a growth of 126% over Q1 FY22 and 30% over Q4 FY22.
• Revenues from digital channels such as websites, My Fortis app and online campaigns increased 74% over Q1 FY22 and 9% over Q4 FY22. Digital revenues contribution to overall hospital revenues stood at 23.2% (Q1 FY22: 15.8% and Q4 FY22: 24.4%).
DIAGNOSTICS BUSINESS HIGHLIGHTS
• During Q1FY23, SRL conducted approx. 9.96 Mn tests, a decline of 6% versus Q1’FY22 and a decline of 7.5% versus Q4’FY22. This was primarily on account of the drop in Covid and covid related test volumes compared to the corresponding and trailing quarters.
• Non covid revenues (excluding Covid and Covid allied tests) grew 29% versus Q1FY22 and 8% versus Q4FY22. However, the overall diagnostics revenues declined primarily due to the significantly lower covid volumes as compared to Q1 and Q4 of FY22 that had witnessed severe Covid waves.
• SRL’s revenue contribution from the specialized test portfolio (non-covid) increased to 37% from 34% in Q1 FY22.
• SRL added 243 new collection centers to its networkduring the quarter, taking the total number of collection centers to 2,745.
• The customer touch pointsi.e.CTP / Lab ratio strengthened to 17.1 in Q1 FY23 versus 11.4 in Q1 FY22, signifying the increase in network optimization.
Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated,“Q1 FY23 has witnessed an encouraging start to the fiscal. With covid abating, our hospital business has shown a strong uptrend relative to the diagnostics business which has seen a decline in volumes due to a higher covid led base in both Q1 and Q4 of FY22. We continue to further strengthen the business in terms of adding beds, expanding medical programs, and onboarding clinical talent. Our next phase of growth would be led by our brownfield expansion strategy which would see approx. 1500 beds coming onstream in the next few years:largely in key existing Fortis facilities such as the likes of FMRI, Mohali, Shalimar Bagh, BG Road and Noida. This coupled with our focus on digital initiatives in both the medical and non-medical related aspects should enable us to further fortify our longer-termbusiness prospects”
Commenting on the results for the quarter, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “The quarter gone by has witnessed a robust hospital business performance led by a better occupancy mix and a higher ARPOB which increased 21% versus Q1 FY22.We have added beds in select facilities such as Fortis Mulund and FMRI Gurugram and are well on track with our brownfield expansion plans. We have also expanded our oncology offerings with a new cancer care facility in New Delhi. Revenues from key specialties such as Oncology, Gastroenterology, Renal Sciences and Orthopedics have seen strong growth both versus the corresponding and the trailing quarters. The international patient revenues have also seen healthy traction in the quarter.With the pandemic receding significantly and covid volumes dropping, our diagnostics business has witnessed a decline. In addition, the diagnostics segment continues to witness competitive pressures and we are making all efforts to protect and further grow our market share in the business. We continue to maintain a healthy Balance Sheetallowing us to evaluate inorganic opportunities in-line with our cluster-based strategy. As we go through the year, I remain hopeful of a progressively better performance in the ensuing quarters”