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Fortis Healthcare reports Q1 net profit of Rs 431 cr on one-off gain

Fortis Healthcare reports Q1 net profit of Rs 431 cr on one-off gain

The company had posted a consolidated net loss of Rs 187.88 crore in the same quarter last fiscal, Fortis Healthcare said in a regulatory filing

Fortis Healthcare Q1 results Fortis Healthcare Q1 results

Fortis Healthcare on Friday reported a consolidated net profit of Rs 430.61 crore for the first quarter ended June 30, 2021, aided by an exceptional gain from the remeasurement of stake held in SRL-DDRC joint venture. The company had posted a consolidated net loss of Rs 187.88 crore in the same quarter last fiscal, Fortis Healthcare said in a regulatory filing.

Consolidated revenue from operations stood at Rs 1,410.31 crore in the first quarter of this fiscal as against Rs 605.95 crore in the year-ago period.

The consolidated results include an exceptional gain of Rs 306 crore on remeasurement of the previously held equity interest of diagnostic chain SRL (owned by Fortis Healthcare) in the SRL-DDRC joint venture at its fair value post acquisition of the balance 50 per cert stake in the JV in April 2021, the company said in a statement.

Fortis Healthcare Chairman Ravi Rajagopal said,"The second wave of the pandemic in Q1 FY22 witnessed the company reserving approximately 50 per cent of its operational bed capacity and making all efforts to provide the best possible care for its patients."

The recovery in business in the latter half of Q1 enabled the company to maintain traction in its investment plans in the hospital business, he added. Fortis Healthcare Managing Director and CEO Ashutosh Raghuvanshi said month-on-month non-Covid occupancy improved from 30 per cent in May to approximately 47 per cent in June.

"We expect the momentum to continue allowing the business to return to near normal in the short term," he said. "At the same time, we cannot discount the possibility of a third wave which could impact operations in future." In the first quarter, Fortis Healthcare said the hospital business witnessed a significant rise in Covid occupancy between 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," it said.

The hospital business revenues were at Rs 1,006.5 crore as compared to Rs 488.4 crore in Q1FY21. The average revenue per occupied bed (ARPOB) for the quarter stood at Rs 1.62 crore versus Rs 1.51 crore in the corresponding previous quarter and Rs 1.70 crore in Q4 FY21, the company said.

Non-Covid ARPOB was at Rs 1.97 crore and grew 8.5 per cent versus Q4 FY21. Overall occupancy for the quarter stood at 65 per cent as compared to 37 per cent in Q1 FY21 and 64 per cent in Q4 FY21. Covid contribution to overall hospital revenues stood at 27 per cent in the quarter.

The diagnostics business was also impacted in terms of the non-Covid revenues which were partially offset by a sizeable contribution from Covid revenues "comprising Covid and Covid allied tests", it said.

In the first quarter of the ongoing fiscal, the diagnostics business grew by over three-fold to Rs 441.4 crore as compared to Rs 140.4 crore in Q1 FY21. "Covid revenue contribution to overall diagnostics revenues stood at 26 per cent in the quarter. On a like to like basis, SRL undertook 1.24 million Covid tests in Q1 FY22 as compared to 0.65 million in Q4 FY21," the healthcare chain said.

Rajagopal said Fortis Healthcare continues "to actively support the government in its vaccination program with 24 Fortis facilities currently providing vaccinations."

Stating that the completion of the DDRC acquisition has helped SRL fortify its presence in Kerala, he said,"The company today is well placed to capitalise on the opportunities for growth and consolidation given its expanse, infrastructure and capabilities in clinical excellence and patient care."

Published on: Aug 14, 2021, 7:50 AM IST
Posted by: Mehak Agarwal, Aug 14, 2021, 7:44 AM IST