Q4 2024 Fortis Healthcare Ltd Earnings Call Transcript
Key Points
- Fortis Healthcare Ltd (BOM:532843) reported a consolidated revenue growth of 9.5% for FY24, driven by an 11.3% increase in hospital business revenues.
- The company's consolidated operating EBITDA increased by 15.1% to INR1,268 crores, with hospital business EBITDA margins improving from 16.9% to 18.6%.
- Fortis Healthcare Ltd (BOM:532843) reduced its debt by INR76 crores, resulting in a healthy net debt-to-EBITDA ratio of 0.17x.
- The company added 246 beds during FY24 and plans to add more beds in key facilities, indicating ongoing expansion and capacity growth.
- Revenue from medical travel grew by 12% in FY24, contributing 8% to the total hospital business revenue, highlighting the company's strong international presence.
- The diagnostic business showed only marginal growth, with revenues increasing by 2% in FY24, and operating EBITDA margins declining from 17.7% to 15.3%.
- Occupancy rates in the hospital business decreased from 67% in FY23 to 65% in FY24, indicating a slight drop in utilization.
- The company incurred one-time expenses of INR58 crores related to rebranding and provisioning for the diagnostic business, impacting overall profitability.
- Certain hospitals, such as those in Mumbai and Bangalore, did not achieve desired occupancy levels, affecting overall performance.
- The company faces ongoing legal costs related to legacy issues, amounting to INR30 crores to INR50 crores annually, which could impact future profitability.
Ladies and gentlemen, good day, and welcome to the Q4 FY24 and full year FY24 financial results of Fortis Healthcare Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Anurag Kalra, Senior Vice President, Investor Relations at Fortis Healthcare Limited. Thank you, and over to you, Mr. Kalra.
Thank you, Mitchell. A very good morning and good afternoon, ladies and gentlemen. Welcome to Fortis Healthcare's quarter FY24 and FY24 Earnings Call. The call is being chaired by Dr. Ashutosh Raghuvanshi, our Managing Director and CEO. With him, we have Mr. Vivek Goyal, our Chief Financial Officer. From Agilus Diagnostics side, we have Mr. Anand K., the Chief Executive Officer; and Mr. Mangesh Shirodkar, who is the CFO of Agilus Diagnostics.
We will begin the session with some comments by Dr. Raghuvanshi on the performance for the quarter and the year, followed by which we will request Mr. Anand to give his comments on the Agilus
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