Is Fortis Healthcare's Q4 Profit Declining?

Mumbai, May 21 (NationPress) - Fortis Healthcare, a prominent hospital chain based in Delhi, has disclosed a 7.4% year-on-year (YoY) reduction in its net profit, amounting to Rs 188.02 crore for the fourth quarter of the financial year 2024–25 (Q4 FY25), a drop from Rs 203.14 crore during the same quarter last fiscal year (Q4 FY24).

The profit decline is primarily attributed to a significant increase in total expenses and losses related to investments.

Fortis noted a 13.6% rise in total expenses, reaching Rs 1,741.52 crore in Q4 FY25, compared to Rs 1,531.76 crore in the previous year.

Additionally, the company faced an exceptional loss of Rs 53.57 crore this quarter, resulting from impairments on its investments in an associate firm and various assets, including properties and equipment.

Despite the profit decline, Fortis showcased robust growth in its revenue.

Consolidated revenue from operations surged 12.4% to Rs 2,007 crore in Q4 FY25, up from Rs 1,786 crore in the same quarter last year.

This growth was fueled by strong performances from both its hospital and diagnostics divisions.

In the hospital segment, revenue increased by 14.2% YoY, bolstered by an 8.4% rise in ARPOB (average revenue per occupied bed), which reached Rs 2.51 crore.

Hospital occupancy improved to 69%, compared to 66% in Q4 FY24.

Key specialties, including oncology and neurosciences, experienced remarkable revenue growth of 25% and 19% respectively.

Revenue from international patients also climbed 17% YoY to Rs 145 crore, now accounting for 8.1% of total hospital revenue.

Conversely, the diagnostics segment recorded slower growth, with revenue increasing a mere 3.5% YoY to Rs 306 crore.

This follows Fortis's decision to enhance its stake in Agilus Diagnostics to 89.2% by purchasing shares from private equity investors.

Fortis also reported a notable 14.3% increase in EBITDA (earnings before interest, tax, depreciation and amortisation), totaling Rs 435 crore.

The EBITDA margin saw a slight improvement to 21.7%, compared to 21.3% from the previous year.

Looking forward, Fortis aims to continue its growth trajectory through acquisitions, particularly in strategic geographic locations.

The company recently finalized a deal to acquire Shrimann Superspecialty Hospital in Jalandhar, increasing its bed capacity in Punjab from approximately 800 to over 1,000 beds.

Additionally, it plans to add nearly 993 beds through expansion projects in Manesar, Gurugram, Noida, Bengaluru (BG Road), and Faridabad.

The company’s board has also proposed a final dividend of Re 1 per equity share for FY25.