Fortis Healthcare’s Profit Beats Estimates, Margins Expand
Fortis Healthcare’s revenue rises 11 percent, but misses estimates by 3 percent.
Fortis Healthcare Ltd. registered a 37.4 percent fall in profit in the July-September quarter, but beat street estimates driven by strength in its hospital and diagnostic segments.
Net profit dropped to Rs 38.2 crore in the quarter, from Rs 61.2 crore in the same quarter last year, according to the company’s filing on the stock exchanges. Analysts tracked by Bloomberg had estimated the profit at Rs 25.3 crore.
Total income rose 10.9 percent to Rs 51.7 crore over the year. Net sales from operation stood at Rs 1,176 crore, falling short of the Bloomberg consensus estimate of Rs 1,211 crore. Other income stood at Rs 38 crore at the end of the quarter.
We have witnessed a considerable uptick in occupancies, utilisation and revenues of our hospitals and diagnostics business. Out costs have been under strict watch and this has resulted in strong margins and the overall improvement in profit delta. The operations are in good nick and I am confident and sanguine about the future.Bhagvadeep Singh, CEO, Fortis Healthcare said in the filing
Earnings before interest, tax, depreciation and amortisation jumped 50 percent to Rs 99 crore, while EBITDA margins also increased to 8.27 percent from an earlier 6.11 percent.
Shares of Fortis Healthcare fell 1.1 percent to Rs 165 as of 2:00 pm on the Bombay Stock Exchange.