Fortis board gives nod for diagnostic arm IPO, net profit drops 9% in Q1FY24

economictimes.indiatimes.com:

Fortis Healthcare board on Friday approved its diagnostic arm Agilus to initiate an initial public offer process, by way of an offer of sale by the latter's existing and eligible shareholders in the IPO. Agilus was earlier called SRL Diagnostics, which was rebranded in May this year. «The actual timing and implementation of the IPO will be subject to the determination of the Company’s and Agilus’s respective boards, after considering the prevailing market conditions and other relevant factors,» Forits said in a statement to stock exchanges.

Fortis Healthcare on Friday reported a 9% year-on-year (YoY) drop in net profit to Rs 122.5 crore in Q1FY24. The healthcare provider reported net profit of Rs 134 crore in the corresponding quarter of the previous year. Revenues for Q1FY24 stood at Rs 1,657 crore compared Rs 1,488 crores in Q1FY23, a growth of 11.4% The earnings before interest, tax, depreciation and ammortisation The earnings before interest, tax, depreciation and ammortisation (EBITDA) rose 8.7% YoY to Rs 273 crore.

The EBITDA margins dropped 40 basis points to 16.5%. The company said the margins were impacted in part due to a lower occupancy and a less than favorable payor mix. Hospital revenues, which constitute over 80% of overall revenues, increased 13.6% year-on-year (YoY) to Rs 1,354 crore.

Revenue from diagnostics grew 2.6% YoY to Rs 303. The occupancy reached 64% versus 65% in the corresponding previous periods. The average revenue per occupied bed (ARPOB) grew 12.1% YoY to Rs 60,076 in Q1FY24.