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Hospital chain Fortis Healthcare on Wednesday reported a 39.5% year-on-year (YoY) jump in net profit to Rs 87 crore in Q4FY22 led by improvement in occupancy rates and traction of the diagnostics business.

Fortis reported a net profit of Rs 62 crore in the same period the previous year. Revenue rose 10% YoY to Rs 1378 crore in Q4FY22 compared to Rs 1252 crore in Q4FY21.

The earnings before interest, tax, depreciation and ammortisation stood at Rs 227 crore in Q4FY22 increasing by 11.6% compared to the previous year.



The EBITDA margin stood at 16.5% in Q4FY22. For the full year, the EBITDA was at 19.2%.

The hospital business that contributes three-fourths of revenues grew 6% YoY to Rs 1041 crores versus Rs 982 crores in Q4FY21.

Covid business revenues contributed 5.8% to overall hospital revenues compared to 6.9% in Q4FY21. The EBITDA margin for the hospital business was 13.8% in Q4FY22.

Diagnostics business revenues grew 22% YoY to Rs 372 crores in Q4FY21. Covid business revenues contributed 18% to overall diagnostic revenues compared to 17% in Q4FY21. The EBITDA margin of the diagnostic business was 26.5% in Q4FY22. The occupancy rate of Q4FY22 was 59% which dropped from 65% in Q3FY22. The average revenue per operating bed (ARPOB) stood at Rs 1.88 crores in Q4FY22.

“The pandemic while presenting its own set of challenges has also made us more resilient and enabled us to adapt to the changing environment. We have not only ensured business continuity but have moved quickly to augment our efforts both strategically and operationally. This has enabled us to register our highest ever revenues and a consolidated EBITDA of over Rs 1000 crores,” said Dr Ashutosh Raghuvanshi, MD and CEO,

Healthcare.

“Our hospital occupancy levels have increased to 63% from 55% in FY21 and we continue to see further traction in occupancy in the current fiscal. Our diagnostics business has shown a steady improvement and is further expanding its channel network and product mix. Q4 has been impacted due to the third wave of covid but has been less severe allowing the business to recover quickly.

However, we must keep in perspective that high covid test volumes are unlikely in the current fiscal and of the increasing competition in the space,” Raghuvanshi added.

Raghuvanshi stated that the healthcare provider will invest in upgrading and expanding its infrastructure and commissioning state-of-the-art medical equipment in select facilities in its focus clusters.

“Some of our underperforming units are also witnessing encouraging signs of recovery. Further supplementing our organic growth efforts and given our healthy Balance Sheet, we would also evaluate inorganic growth and consolidation opportunities in the industry,” Raghuvanshi added.

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