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Fortis Healthcare Announces Q1 Results, Co's Revenue Climbs 18.5 percent

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Fortis Healthcare Announces Q1 Results, Co's Revenue Climbs 18.5 percent
06 Aug 2022
min read

News Synopsis

Fortis Healthcare Ltd. on Friday , announced its unaudited figures for its financial quarter ended on June 30, 2022. According to the statement issued by the company Q1FY23's hospital business revenues were 1,192.4 crores versus Rs. 1006.5 crores during Q1FY22 as well as the INR 1,040.9 millions in Q4 FY22. In addition, hospital revenue grew by 18.5 per cent and 14.6 percent in comparison to the prior and preceding quarters due to a significant growth in elective procedures the company announced.

However, the diagnostics segment was impacted by an increase in COVID-19 sales when compared to the previous quarter. Prior to the announcement analysts had predicted the diagnostics business was likely to suffer a decline in the quarter and year-on year basis because of a decrease in COVID-19.

In the words of the business the diagnostics business' Q1 FY23 gross revenues were INR 332.6 crores as against the INR 441.4 million in the Q1 FY22 and 372.3 millions in Q4 FY22. The net revenues (net of elimination of inter-company) was INR 295.5 crores in Q1 FY23, compared to INR 403.8 crores for Q1 FY22.

However, both Q1 FY22 as well as Q4 FY22 had an impact on hospital revenue due to the increase in covid cases and consequently a decrease on elective surgeries. Additionally, the COVID-19 contribute to total hospital revenue reached 28,4 percent during Q1 FY22, and 6 per cent in Q4 FY22, compared to an insignificant 0.6 percentage in the Q1 FY23.

"Q1 FY23 has seen an optimistic beginning to the year. As covid levels have decreased the hospital business has seen an impressive increase in volume compared to the diagnostics business , which has seen a decrease in terms of volume due to a larger covid-driven base in both the first quarter and in the fourth quarter of FY22. We continue to build the business through the addition of beds, the expansion of health programs and bringing on board clinical personnel.

The next phase of expansion will be driven by the brownfield development plan that will see around 1500 beds being added over the next couple of years. They will be primarily in existing Fortis facilities, such as the facilities like FMRI, Mohali, Shalimar Bagh, BG Road and Noida. The focus we have put on digital initiatives both in those with medical as well as non-medical aspects will allow Fortis Healthcare to improve our business's long-term prospects," Ravi Rajagopal, Chairman of the Fortis Healthcare Board of Directors of Fortis Healthcare stated.

In the period it was reported that the Company brought on top clinicians from the medical fields in urology and transplants the nephrology and rheumatology. In addition, the quarter saw an increase in revenues from international patients which was INR 89 crores which is an increase of 126 percent over Q1 FY22 and 30 percent over the Q4 FY22.

 

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