Fortis Healthcare, a prominent hospital chain based in Delhi, has reported a 7.4% year-on-year decline in net profit for the fourth quarter of the financial year 2024–25 (Q4 FY25), with earnings falling to Rs 188.02 crore from Rs 203.14 crore in the same quarter last year (Q4 FY24).
This dip in profit primarily resulted from a notable increase in total expenses alongside impairments related to investments.
Fortis announced that its overall expenses jumped by 13.6% to Rs 1,741.52 crore in Q4 FY25 from Rs 1,531.76 crore in the same period of the last fiscal.
The firm also incurred an exceptional loss of Rs 53.57 crore during the quarter. It was the result of impairments in its investment in an associate company, as well as on some assets such as property and equipment.
Even as the profit dipped, Fortis showed strong revenue expansion.
Consolidated operating revenue grew 12.4% year over year to Rs 2,007 crore in Q4 FY25 from Rs 1,786 crore in the year-ago period.
The expansion was driven by solid performances in both hospital and diagnostics businesses.
In the hospital division, revenue grew 14.2% year-on-year, supported by an 8.4% hike in average revenue per occupied bed (ARPOB), which touched Rs 2.51 crore.
Hospital occupancy also picked up to 69% compared to 66% in Q4 FY24.
Major specialties like oncology and neurosciences registered strong revenue growth of 25% and 19%, respectively.
Fee income from foreign patients also jumped 17% year-on-year to Rs 145 crore, now contributing 8.1% of hospital revenue.
In contrast, the diagnostics business reported a relatively staid growth, with revenues growing only 3.5% year-on-year to Rs 306 crore.
This follows after Fortis raised its holding in Agilus Diagnostics to 89.2% by picking up shares from private equity investors.
Fortis also saw a strong 14.3% increase in EBITDA (earnings before interest, tax, depreciation, and amortisation), which was Rs 435 crore.
The margin on EBITDA improved marginally to 21.7%, from 21.3% in the previous year.
In the future, Fortis intends to continue its growth path through acquisition, especially in strategic geographic areas.
The firm recently signed an agreement to buy Shrimann Superspecialty Hospital in Jalandhar, which will increase its bed capacity in Punjab from approximately 800 to more than 1,000.
Moreover, Fortis plans to increase almost 993 beds by way of expansion projects in Manesar, Gurugram, Noida, Bengaluru (BG Road), and Faridabad.
The board of the company has also approved a final dividend of Re 1 per equity share for FY25.
Read also| Saregama India Reports Over 50% Drop in Q4 Revenue, Net Profit Declines
Read also| Tata Motors Sees 51% Drop in Q4 Net Profit, Plummeting to Rs 8,470 Crore
