Fortis Healthcare Announces First Quarter Results; Revenue up 18.5% to Rs. 1,488 crores
Fortis Healthcare Ltd. on Friday announced its unaudited consolidated financial results for the quarter ended June 30, 2022. According to the company’s statement, revenue from hospital operations in Q1FY23 was Rs. 1,192.4 crore compared to Rs. 1,006.5 crore in Q1FY22 and INR 1,040.9 crore at T4FY22. Meanwhile, hospital revenue rose 18.5% and 14.6% from the corresponding and prior quarters, respectively, driven by a strong pick-up in elective procedures, the company said.
However, the diagnostics business was impacted due to lower volumes related to COVID-19 compared to the prior quarter. Prior to the results, analysts had predicted that diagnostics business would decline year-over-year and quarter-over-quarter due to a drop in COVID-19.
READ ALSO | Fortis Healthcare expects to add around 1,500 new beds in 3 years
According to the company, gross revenue from diagnostics business in Q1 FY23 amounted to INR 332.6 crore compared to INR 441.4 crore in Q1 FY22 and INR 372.3 crore in Q4 FY22. Net revenue (net of inter-company elimination) was INR 295.5 crore for the first quarter of FY23 compared to INR 403.8 crore for the first quarter of FY22.
Meanwhile, the first quarter of FY22 and the fourth quarter of FY22 both saw an impact on hospital revenues due to the increase in covid cases and a consequent decline in procedures. electives. Additionally, the contribution of COVID-19 revenue to overall hospital revenue was 28% in the first quarter of FY22 and 6% in the fourth quarter of FY22, compared to a negligible percentage of 0.6% in the first quarter of fiscal year 23.
“The first quarter of FY23 had an encouraging start to the year. With the covid reduction, our hospital business showed a strong uptrend compared to the diagnostics business which saw lower volumes due to a higher covid base in the first and fourth quarters of FY22. We continue to further strengthen the business in terms of adding beds, expanding medical programs and integrating talent Our next phase of growth would be led by our brownfield expansion strategy which would see approximately 1,500 beds come on stream over the next few years: largely at existing major Fortis facilities such as FMRI, Mohali, Shalimar Bagh, BG Road and Noida.This, coupled with our focus on digital initiatives in both medical and non-medical aspects, should enable us to further strengthen our business outlook. the longer term,” said Ravi Rajagopal, Chairman of the Board of Fortis Healthcare, on Friday.
During the quarter, the Company onboarded leading clinicians in the medical specialties of urology, transplants, rheumatology and nephrology. In addition, the quarter was marked by a slight increase in international patient revenue which stood at 89 Crs INR, representing a growth of 126% compared to Q1 FY22 and 30% compared to Q4 FY22.
READ ALSO | Fortis Hospital holds bike rally to raise cancer awareness in Delhi