Fortis Healthcare Q2 Results: Profit Up 5%, Misses Estimates

Fortis Healthcare Ltd.'s consolidated net profit rose 5% in the second quarter of the financial year, missing analysts' estimates.

The company posted a profit of Rs 193 crore in the September quarter in comparison to Rs 184 crore in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had estimated a profit of Rs 205 crore.

• Revenue up 12% to Rs 1,988 crore (Bloomberg estimate: Rs 1,973 crore).

• Ebitda up 32% to Rs 435 crore (Estimate: Rs 399 crore).

• Margin expands 320 basis points to 21.9% versus 18.7% (Estimate: 20.20%).

• Net profit up 5% to Rs 193 crore (Estimate: Rs 205 crore).

Revenue growth in the hospital business for the quarter was led by an increase in the average revenue per occupied bed of 7.6% and higher occupancy compared to the corresponding previous period.

The performance of the hospital business was also positively impacted by the combined revenue of the company's top six key medical specialties — oncology, gastroenterology, neurosciences, renal sciences, orthopedics and cardiac sciences — growing 14% in the second quarter.

Excluding one-offs, the operating Ebitda margin stood at 24% versus 22.7% in the year-ago period.

The net profit has an exceptional loss of Rs 59.8 crore, primarily due to the impairment movement in an associate company.

Fortis continued its "positive momentum" with the hospital business contributing approximately 82% to the consolidated earnings before interest, taxes, depreciation and amortisation, Chief Executive Officer Ashutosh Raghuvanshi said.

"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," Raghuvanshi said.

Shares of Fortis closed 0.38% lower at Rs 620.75 apiece on the NSE, compared to a 0.21% decline in the benchmark Nifty 50.