Fortis Healthcare reported 11% rise in consolidated net profit to Rs 129.56 crore on 6.4% increase in revenue from operations to Rs 1559.88 crore in Q3 FY23 over Q3 FY22.
Revenue from the Hospitals business rose by 13.3% YoY to Rs 1,267.4 crore while net Diagnostics revenue declined by 11% YoY to Rs 292.4 crore in the quarter ended 31 December 2022, primarily impacted by lower covid volumes (including covid allied test volumes).In Hospitals business, occupancy increased to 66.1% in Q3 FY23 from 65.4% in Q3 FY22. Average revenue per occupied bed (ARPOB) was Rs 2.02 crore (up 8.4% YoY) and Average length of stay (ALOS) was 3.77 day (up 7.1% YoY) in the quarter ended December 2022.
Profit before tax in Q3 FY23 stood at Rs 174.6 crore, down by 5.4% from Rs 184.5 crore in Q3 FY22. Total expenses rose by 8.17% YoY to Rs 1,399.56 crore during the quarter.
EBITDA fell 1.9% to Rs 288.1 crore in Q3 FY23 from Rs 293.6 crore in Q3 FY22. EBITDA margin was 18.5% in Q3 FY23 as against 20% in Q3 FY22.
Net debt to EBITDA was at 0.41x vs 0.53x (basis annualized EBITDA of Q3FY23 and Q3FY22, respectively). Net debt was at Rs 471 crore as against Rs 621 crore in Q3 FY22.
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Ravi Rajagopal, chairman, board of directors, Fortis Healthcare, stated, Our Q3 results reflect the steady upward momentum in our business performance. I'm pleased to state that our hospital business is growing from strength to strength and today contributes to more than 75% of our overall earnings (EBITDA). It is also pertinent to highlight that the hospital performance has by and large offset the decline we have seen in the diagnostics business primarily as a result of the decline in covid volumes.
Revenues from our key medical specialties are gaining traction complimented by our focus on continuing to onboard quality medical talent. Investments in bed expansion in facilities such as Mulund and BG road and in medical equipment such as Linac and MRI 3T machines are on track. We have embarked on a significant initiative in our Digital Transformation journey by commissioning the development of an Electronic Medical Record (MR) system pan-Fortis. This would enable us to streamline information flow, increase accessibility to healthcare records and provide a superior patient experience which has been our constant focus.
Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, stated, Q3 has witnessed a healthy set of earnings for the company with consolidated revenues at Rs 1,560 crore and margins of 18.5%. Our hospital business has recorded an ARPOB of Rs 2.02 crore, a growth of 8.4%; with occupancy levels slightly better than the corresponding previous quarter at 66%. More importantly, most of our key specialties have done well with Oncology, Gastroenterology, Orthopedics and Renal Sciences contributing significantly to overall hospital revenues and growing 39%, 24%, 21% and 21% respectively.
Our diagnostics business, SRL's performance was impacted by the decline in covid volumes. Non covid revenues however grew 7% for the quarter and 12% for 9MFY23 versus the corresponding previous periods. The business is now showing initial signs of stabilization in the aftermath of the covid surge and the challenging industry environment.
Fortis Healthcare is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates 27 healthcare facilities (including JVs and O&M facilities). The company's network comprises approximately 4,300 operational beds and approx. 400 diagnostics centres.
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