Revenue growth in the hospital business for the quarter was driven by a 7.6% increase in average revenue per occupied bed (ARPOB) and higher occupancy compared to the same period last year.
Revenue from hospital business increased 13.91% YoY to Rs 1,654.7 crore in Q2 FY25 as compared with Rs 1,452.6 crore in Q2 FY24. Diagnostics business rose 3.39% YoY to Rs 372.5 crore in Q2 FY25.
The performance of the hospital business was also positively impacted by the combined revenue of the company’s top 6 key medical specialties viz. Oncology, Gastroenterology, Neurosciences, Renal Sciences, Orthopedics and Cardiac Sciences growing 13.6% in Q2FY25 versus corresponding previous period.
Profit before exceptional items and tax for Q2 FY25 stood at Rs 320.82 crore, up 40.08% from Rs 229.02 crore in Q2 FY24. Exceptional loss for the quarter was Rs 59.77 crore.
Operating EBITDA stood at Rs 435 crore in Q2 FY25, registering a growth of 31.82% as compared with Rs 330 crore posted in corresponding quarter last year. EBITDA margin was 21.9% in Q2 FY25 as against 18.6% in Q2 FY24.
The company's hospital business occupancy stood at 72% in Q2FY25, marginally lower than 69% in Q2 FY24. Average revenue per occupied bed (ARPOB) grew 7.24% to Rs 2.37 crore for Q2 FY25 from Rs 2.21 crore in Q2 FY24 and Average length of stay (ALOS) remained flat at 4.20 days in the quarter ended September 2024.
Net debt to EBITDA was at 0.16 versus 0.44 (basis annualized EBITDA of Q2FY25 and Q2FY24, respectively). Net debt was at Rs 281 crore as on 30 September 2024 versus Rs 264 crore as on 31 March 2024.
The company's key facilities such as Shalimar Bagh, Mohali, Mulund, Amritsar, Faridabad, Anandpur witnessed revenue growth of 25%, 21%, 20%, 17%, 15 and 15% respectively. Digital channel revenues, including website, mobile app, and digital campaigns, grew 30.1% YoY and 4.5% QoQ in Q2 FY25. Digital revenues accounted for 29.3% of total hospital revenues, up from 25.6% in Q2 FY24.
Key surgical procedure volumes performed across some of the company’s focus specialties such as Neuro Sciences and Robotic Surgeries increased by 21% and 57% YoY.
Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “We have continued our positive momentum in Q2 with the hospital business contributing approximately 82% to our consolidated EBITDA. We are making good progress on our plans to add nearly 700 beds this fiscal year across key facilities, including Faridabad, Anandpur, Shalimar Bagh, and Noida.
Commensurate with our expansion plans, our 350-bed Manesar facility which we acquired in FY24 was commissioned recently. Leveraging our robust balance sheet, we would actively pursue further inorganic growth opportunities in our focus geographic clusters.
Among our key specialties, Oncology and Neuro Sciences grew by a strong 19% and 17%, respectively, compared to the same period last year. As part of our ongoing efforts to enhance our medical infrastructure, FMRI introduced the first MR LINAC in North and Central India in September.
On the diagnostics business we are moving ahead to consolidate our stake in Agilus by acquiring the 31.52% stake from the PE investors. The diagnostics business performance is witnessing a steady recovery with relatively improving topline growth and better EBITDA margins. However, the business is still impacted by rebranding expenses which we expect will taper off towards the end of the fiscal.”
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 28 healthcare facilities (including JVs and O&M facilities). The company's network comprises approximately 4,700 operational beds.