Fortis Healthcare's Q4 profit falls 7.4 pc, expenses up

IANS May 21, 2025 248 views

Fortis Healthcare experienced a 7.4% year-on-year profit decline in Q4 FY25, primarily due to increased expenses and investment impairments. Despite the profit drop, the company demonstrated robust revenue growth of 12.4%, driven by strong performance in hospital and diagnostics businesses. Key specialties like oncology and neurosciences showed impressive revenue growth, and international patient revenue increased by 17%. The company remains committed to expansion, with plans to acquire new hospitals and increase bed capacity across multiple locations.

"Our focus remains on strategic expansion and operational efficiency" - Fortis Healthcare Management
Mumbai, May 21: Fortis Healthcare, a leading Delhi-Based hospital chain, has reported a 7.4 per cent year-on-year (YoY) drop in its net profit to Rs 188.02 crore for the fourth quarter of financial year 2024–25 (Q4 FY25) -- down from Rs 203.14 crore in the same period last fiscal (Q4 FY24).

Key Points

1

Q4 net profit falls to Rs 188.02 crore due to higher expenses

2

Hospital revenue grows 14.2% with improved bed occupancy

3

Diagnostics segment shows modest 3.5% revenue increase

4

Company plans strategic acquisitions and bed capacity expansion

The decline in profit was mainly due to a sharp rise in total expenses and impairments in investments.

Fortis said its total expenses rose 13.6 per cent to Rs 1,741.52 crore in Q4 FY25, compared to Rs 1,531.76 crore in the year-ago period.

The company also incurred an exceptional loss of Rs 53.57 crore during the quarter. This was due to impairments on its investment in an associate firm and on some of its assets, including property and equipment.

Despite the drop in profit, the company reported strong growth in its revenue.

Consolidated revenue from operations rose 12.4 per cent to Rs 2,007 crore in Q4 FY25, up from Rs 1,786 crore in the same quarter last fiscal.

The growth was driven by strong performances in both its hospital and diagnostics businesses.

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

Hospital occupancy also improved to 69 per cent, up from 66 per cent in Q4 FY24.

Key specialties like oncology and neurosciences posted strong revenue growth of 25 per cent and 19 per cent, respectively.

International patient revenue also rose 17 per cent YoY to Rs 145 crore, now contributing 8.1 per cent to overall hospital revenue.

However, the diagnostics business saw slower growth, with revenue rising just 3.5 per cent YoY to Rs 306 crore.

This comes after Fortis increased its stake in Agilus Diagnostics to 89.2 per cent by acquiring shares from private equity investors.

Fortis also reported a healthy 14.3 per cent rise in EBITDA (earnings before interest, tax, depreciation and amortisation), which stood at Rs 435 crore.

The EBITDA margin improved slightly to 21.7 per cent, compared to 21.3 per cent a year ago.

Looking ahead, Fortis plans to continue growing through acquisitions, especially in key geographic areas.

The company recently signed a deal to acquire Shrimann Superspecialty Hospital in Jalandhar, which will increase its bed capacity in Punjab from around 800 to over 1,000 beds.

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

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

Reader Comments

R
Rahul K.
The profit drop is concerning but at least revenues are growing steadily. Fortis needs to control expenses better - healthcare should be affordable for common people like us. Their expansion plans look promising though! 🤞
P
Priya M.
As someone whose family has used Fortis services, I'm happy to see occupancy and specialty revenues growing. But why are diagnostics lagging behind? In smaller cities, we rely heavily on their diagnostic centers. Hope they focus on improving this segment.
A
Arjun S.
The 8.4% rise in ARPOB is worrying - are hospital bills becoming more expensive? While expansion is good, Fortis must ensure quality doesn't suffer. We've seen too many corporate hospitals prioritize profits over patient care.
N
Neha T.
Good to see international patient revenue growing! This medical tourism helps our economy. But ₹1 dividend per share seems very low - investors deserve better returns after such expansions. The management should explain their dividend policy clearly.
S
Sanjay V.
The numbers show mixed results - revenue up but profits down. The Jalandhar acquisition makes sense as Punjab needs quality healthcare. But they must be careful with all these expansions - debt can become a problem if not managed properly.

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Fortis Healthcare Healthcare Earnings Q4 Financial Results Hospital Sector Medical Diagnostics