Fortis reports 9.5% revenue growth in FY24

New Delhi: Fortis Healthcare’s consolidated revenues for FY24 grew by 9.5% to Rs 6,893 crores.

The operating EBITDA increased by 15.1% to Rs 1,268 crores, achieving an 18.4% margin.

Consolidated revenues for Q4 FY24 increased by 8.7% to Rs 1,786 crores, compared to Rs 1,643 crores in Q4 FY23. The consolidated operating EBITDA rose significantly by 40.5% to Rs 380 crores, with a margin of 21.3%. 

The hospital business reported a revenue increase of 10.3% in Q4 FY24, reaching Rs 1,490 crores, and a 50.6% rise in operating EBITDA to Rs 333 crores. For the entire fiscal year, hospital business revenues grew by 11.3% to Rs 5,686 crores, with operating EBITDA up by 22.7% to Rs 1,058 crores.

In light of these strong results, the Board of Directors has recommended a dividend of Rs 1 per share (10% of face value).

Fortis Healthcare has made significant strides in expanding its presence and enhancing its service offerings. The company has acquired a potential 450-bed hospital in Manesar, Gurugram, further strengthening its presence in the National Capital Region (NCR). Additionally, the company added 246 beds across its network in FY24, with plans to operationalize approximately 300 beds in the current year.

Key facilities such as those in Mohali, Noida, Shalimar Bagh, Anandpur, and Amritsar have shown notable revenue growth. Fortis Hospitals performed over 110,000 key surgeries and procedures in FY24, an increase of approximately 8% over FY23, with significant growth in robotic surgeries and radiation therapy volumes.

The diagnostics business, rebranded as Agilus Diagnostics Limited, reported gross revenues of Rs 1,372 crores for FY24, a slight increase from Rs 1,347 crores in FY23. While COVID-19 related volumes declined, non-COVID revenues grew by 6% for the year. The business added approximately 680 new customer touch points, expanding its network to around 3,976 touch points by the end of March 2024.

Ravi Rajagopal, Chairman of the Board of Directors, stated, “We have witnessed yet another year of healthy growth and profitability, reflected in the Board recommending a dividend of Rs 1 per share (10% of face value) to shareholders. This signifies the Company’s strengthening fundamentals and continuing growth prospects.”

He added, “Plans to ramp up current bed capacity are on track and could potentially see the Company reach a total of 5,948 beds over the next few years. We have added 246 beds in FY24 across our network and in line with our portfolio optimization strategy, have also successfully divested two of our underperforming assets in Chennai. Providing best in class clinical outcomes and a superior patient experience remain critical to our success and these are being further supplemented by digital technologies such as Electronic Medical Records (EMR) system which is gradually being rolled out across our network.”

“While challenges remain in the diagnostics business primarily as a result of the brand name change; the industry is witnessing signs of stabilization and gradual improvement. We believe that Agilus is well placed given its scale and size to improve its business performance going forward,” he stated.