Homeearnings News

Fortis Healthcare expects dip in Q4 occupancy; will maintain momentum in diagnostics biz

earnings | IST

Fortis Healthcare expects dip in Q4 occupancy; will maintain momentum in diagnostics biz

Mini

In an interview with CNBC-TV18, Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare, spoke about the Q3 performance and outlook. He believes occupancy levels will dip see a slight dip in Q4. However, going ahead, he expects that momentum in diagnostics business will be maintained.

Fortis Healthcare came out with its Q3 earnings. Its consolidated profit after tax (PAT) rose by over twofold to Rs 142 crore in the third quarter ended December 31, 2021. The company had reported a PAT of Rs 54 crore in the corresponding period last fiscal. Its revenue during October-December 2021 rose to Rs 1,466.7 crore as compared with Rs 1,177 crore in the year-ago period.
Shedding light on the Q3 performance and outlook, Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare, spoke to CNBC-TV18.
Raghuvanshi mentioned that occupancy stood at 65.4 percent in Q3. By comparison, in Q4, he expects occupancy levels to be slightly low. However, he believes that momentum will be maintained in the diagnostics business. He explained that diagnostics revenue grew over 40 percent on a year-on-year (YoY) basis.
He said, “On the hospital side, in Q4, we should see a slight dip in the numbers because of occupancy in the month of January. I expect it to recover gradually. February has already started recovering and by March, we should see a complete recovery.”
On capex plans, he said that Fortis will be spending Rs 200 crore for the next 4-5 years. “We have been spending approximately Rs 200 crore which is both the growth capex as well as the replacement capex. A lot of machines and equipment have been upgraded and newer technologies have been introduced in the existing hospitals also. We expect the outgo for capex to remain at Rs 200 crore for the next 4-5 years,” Raghuvanshi said.
On expansion plans, he said that they have the ability to look at brownfield and greenfield opportunities now. “We would also have an opportunity to consider some greenfield expansion or some potential acquisitions. Of course, we will do it in a very calibrated manner,” said Raghuvanshi.
Watch the video for the full interview.
(With PTI inputs)
next story

Market Movers

Currency

CompanyPriceChng%Chng