Fortis Healthcare Ltd. on Friday announced its unaudited consolidated financial results for the quarter that ended June 30, 2022. According to the company’s statement, Q1FY23 hospital business revenues were at Rs. 1,192.4 crores versus Rs. 1006.5 crores in Q1FY22 and INR 1,040.9 crores in Q4FY22. Meanwhile, hospital revenues increased 18.5 percent and 14.6 percent versus the corresponding and trailing quarters, respectively, led by a strong recovery in elective procedures, the company stated.
However, the diagnostics business was affected due to a decline in COVID-19 volumes as compared to the previous quarter. Prior to the results, analysts had predicted that the diagnostic business is likely to see a decline on a year-on-year and quarter-on-quarter basis due to a decline in COVID-19.
According to the company, Q1 FY23 diagnostics business gross revenues stood at INR 332.6 crores versus INR 441.4 crores in Q1 FY22 and INR 372.3 crores in Q4 FY22. Net revenues (net of inter-company elimination) were INR 295.5 crores for Q1 FY23 versus INR 403.8 crores for Q1FY22.
Meanwhile, both, Q1 FY22 and Q4 FY22 witnessed an impact on hospital revenues due to higher covid cases and a resultant decline in elective procedures. Furthermore, COVID-19 revenues contribution to overall hospital revenues stood at 28 percent in Q1 FY22 and 6 percent in Q4 FY22 versus a negligible 0.6 percent in Q1 FY23.
“Q1 FY23 has witnessed an encouraging start to the fiscal. With covid abating, our hospital business has shown a strong uptrend relative to the diagnostics business which has seen a decline in volumes due to a higher covid led base in both Q1 and Q4 of FY22. We continue to further strengthen the business in terms of adding beds, expanding medical programs, and onboarding clinical talent. Our next phase of growth would be led by our brownfield expansion strategy which would see approx. 1500 beds coming onstream in the next few years: largely in key existing Fortis facilities such as the likes of FMRI, Mohali, Shalimar Bagh, BG Road and Noida. This coupled with our focus on digital initiatives in both the medical and non-medical related aspects should enable us to further fortify our longer-term business prospects,” Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare said in a statement on Friday.
During the quarter, the Company onboarded eminent clinicians in the medical specialties of urology, transplants, rheumatology and nephrology. Moreover, the quarter witnessed an uptick in international patient revenues which stood at INR 89 Crs, a growth of 126% over Q1 FY22 and 30% over Q4 FY22.