Fortis Healthcare in focus after reporting 83% YoY increase in net profits

Leading Mid-cap healthcare company with hospital and diagnostics chain is in focus after reporting its Q3 results with robust Net profit growth and growth in both the hospital & diagnostics segments.

Stock Price Movement

With a market capitalization of Rs. 47,298 Crore, the stock of Fortis Healthcare opened at Rs. 662 up 1.89 percent from yesterday’s close, and the opening is also the intraday high of the Stock. Additionally, the 1 month’s return for the stock is -9 percent, and the past five year’s return is an impressive 302 percent. 

Q3FY25 Results

The company reported a 14.79 percent YoY increase in revenue from Rs. 1679.68 Crore in Q3FY24 to Rs. 1928.26  Crore in Q2FY25. On a QoQ basis, the company reported a decrease of 3.02 percent in revenue from Rs. 1988.39 Crore in the previous quarter.

Their Net profit saw an increase of 82.74 percent YoY from Rs. 134.23 Crore to Rs. 254.30  Crore for the same period. On a QoQ, basis their net profits also saw an increase of 37.70 percent from Rs. 193.08 Crore for the same period.

The Operating Profit Margin for Q3FY25 stood at 19.62 percent compared to 17.20 percent for Q3FY24, and the Net Profit Margin stood at 11.99 percent from 7.54 percent for the same period.

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Segment Analysis

The largest share of the revenue for the company comes from the Healthcare segment which accounts for 82.58 percent of total revenue then comes the Diagnostics segment, which accounts for the other 17.42 percent of the total revenue.

Operational Highlights

For the Hospital Business occupancy rate stood at 67 percent for Q3 FY25 compared to 64 percent for Q3 FY24, the Average revenue per bed was Rs Rs. 2.45 Crore/annum compared to Rs. 2.23 Crore, and the average length of stay was 4.20 Days compared to 4.32 Days for the same period. 

Continuing with the portfolio rationalization strategy, the company divested business operations of the Richmond Road facility, Bangalore. This is the third divestment by the company after the divestment of the Malar facility (Feb’24) and the Vadapalani facility (Jul’23) in Chennai. 

For the Diagnostics Business in Q3 FY25 Operating EBITDA margin stood at  14.4 percent compared to 10 percent for Q3 FY24, total tests conducted was 10.29 Million compared to 9.85 Million for the same period. The company consolidated its stake in Agilus Diagnostics Limited from 57.68 percent to 89.20 percent leveraging the funds from Rs 1,550 Crore raised through NCDs.

About the Company

Fortis Healthcare Limited – an IHH Healthcare Berhad Company – is a leading integrated healthcare services provider in India. It is one of the largest healthcare organizations in the country with 27 healthcare facilities, 4,700+ operational beds (including O&M facilities), and over 405 diagnostics centers (including JVs). Fortis is present in India, the United Arab Emirates (UAE), Nepal & Sri Lanka.

Written By Abhishek Das

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