Fortis posts Q1 profit of Rs 430 cr on revenue growth, exceptional gain

Revenue grows 132% in Q1FY22, with that from diagnostics putting up the best show

Delhi-headquartered hospital major Fortis Healthcare posted a profit after tax (PAT) of Rs 430.6 crore in Q1FY22 as against a loss of Rs 187.9 crore in the corresponding quarter last fiscal, riding on a 132 per cent rise in revenues to Rs 1,410 crore and an exceptional gain.

The PAT includes an exceptional gain of Rs 306 crore on remeasurement of the previously held equity interest of SRL in the SRL-DDRC JV at its fair value post acquisition of the balance 50 per cent stake in the said JV in April 2021.

The hospital business revenue soared from Rs 488.4 crore in Q1FY21; a lockdown hit quarter, to Rs 1,006.5 crore in Q1FY22. Margins too improved--from a loss of Rs 85 crore last fiscal, the Ebitda in the hospital business improved to Rs 149.6 crore with resulting Ebitda margin of 14.9 per cent.

The diagnostic arm registered the highest growth in revenues, the company claimed -– Q1FY22 revenues grew 214 per cent YoY to Rs 441.4 crore. Even sequentially, the revenues in the diagnostics business are up 44 per cent.

Q1FY22 witnessed the second wave of the Covid pandemic which began in mid-March and accelerated rapidly across the country. Fortis earmarked 50 per cent of its operational bed capacity for Covid-19 during the second wave.

“For the quarter, the hospital business witnessed a significant rise in Covid occupancy between the period April to mid- May with a decline in the non-Covid occupancy. However, unlike the first wave of the pandemic last year where non-Covid occupancy recovery was slow, mid–May onward non covid occupancy witnessed a relatively faster rebound allowing the business to show a steady performance in the quarter,” Fortis said.

Non-Covid occupancy improved from 30 per cent in May to 47 per cent in June 2021. The higher occupancy trend is expected to continue in subsequent quarters, the company felt. Overall occupancy for the quarter stood at 65 per cent as compared to 37 per cent in Q1FY21 and 64 per cent in Q4FY21. Covid contribution to overall hospital revenues stood at 27 per cent in the quarter.