Fortis Healthcare Ltd. · NSE:FORTIS
Fortis Healthcare — Q4 FY24 Earnings Presentation
51 slides from Fortis Healthcare's earnings presentation, May 24, 2024
Slide 1: Cover letter to NSE and BSE under Regulation 30
Fortis Healthcare Limited Tower-A, Unitech Business Park, Block-F, South City 1, Sector – 41, Gurgaon, Haryana – 122 001 (India) Tel : 0124 492 1033 Fax : 0124 492 1041 Emergency : 105010 Email : [email protected] Website : www.fortishealthcare.com FHL/SEC/2024-25 May 23, 2024 Nationa
Slide 2: Press Release: Q4 FY24 and FY24 Audited Financial Results
Press Release May 23, 2024 Fortis Healthcare announces Q4 FY24 and FY24 Audited Financial Results Board recommends dividend of INR 1 per share (10% of Face Value) Hospital Business registers a healthy performance in Revenues and Margins Strengthens presence in NCR with the acquisition of a potential
Slide 3: Press Release: Hospital and Diagnostic Business Results
Press Release May 23, 2024 * PAT includes an exceptional gain of INR 16.0 Crs in FY24 pertaining to the reversal of impairment in an associate company and profit related to the divestment of Chennai facilities and INR 73.6 Crs in FY23 which pertains primarily to the reversal of impairment in an asso
Slide 4: Press Release: Key Specialties and Digital Channels
Press Release May 23, 2024 • The performance of the hospital business was also positively impacted by the combined revenue of the Company’s top 6 key medical specialties viz. Oncology, Gastroenterology, Neurosciences, Renal Sciences, Orthopedics and Cardiac Sciences growing 13.8% in Q4FY24 and 13% i
Slide 5: Press Release: Agilus Diagnostics Performance
Press Release May 23, 2024 • Operating EBITDA margins for FY24 stood at 15.3% versus 17.7%. Excluding the above one offs operating EBITDA margins were at 19.5% versus 17.7% in FY23. • Continuing with its network expansion strategy, Agilus added ~200 new customer touch points (CTP’s) in Q4 FY24. For
Slide 6: Press Release: Management Commentary
Press Release May 23, 2024 business contributed more than 80% to our consolidated topline while at the EBITDA level the hospital business contribution rose from 79% in FY23 to 83% in FY24. For the quarter our hospital business revenues increased 10.3% while margins improved to 22.4% versus 16.4% in
Slide 7: Fortis Healthcare Limited – Q4 FY24 and FY24
FORTIS HEALTHCARE LIMITED EARNINGS PRESENTATION – Q4 FY24 and FY24 May 23, 2024 1
Slide 8: Disclaimer
DISCLAIMER This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to “Fortis Healthcare Limited” shall mean, collectively, the Company and its subsidiaries. This presentation has been pr
Slide 9: About Fortis Healthcare
About Fortis Healthcare National Capital Region ➢ FMRI, Gurugram 28 Healthcare Facilities* ➢ FEHI, New Delhi ➢ Shalimar Bagh 1,722 ➢ Noida ➢ Vasant Kunj (O&M) 4,500+ Operational Beds^ ➢ Faridabad Punjab ➢ Manesar, Gurugram ➢ La Femme GK ➢ Mohali 774 ➢ Def Col 6,200+ Doctors ➢ Ludhiana ➢ Ludhiana 2 ➢
Slide 10: Awards & Accolades
AWARDS & ACCOLADES Fortis • Fortis Shalimar Bagh, Fortis Mohali, Fortis Mulund and Fortis Anandpur bagged multiple awards under various categories at the annual conference organized by Consortium of Accredited Healthcare Organisations (CAHOCON 2023) • Fortis Healthcare won six awards (Nursing and In
Slide 11: Agenda
AGENDA 1. Clinical Excellence at Fortis 2. Performance Highlights • Earnings and Financial Summary – Q4 FY24 and FY24 3. Performance Review - Hospital Business • Beds Expansion Update • ESG Highlights 4. Performance Review - Diagnostics Business 5. Appendix 5
Slide 12: Clinical Excellence at Fortis
CLINICAL EXCELLENCE AT FORTIS KEY HIGHLIGHTS 6
Slide 13: Clinical Excellence: FY24 Key Procedures
CLINICAL EXCELLENCE FY24 Performance – Key Procedures ~60,600 ~28,000 ~3,600 Cardiac Procedures1 Joint Replacements and Robotic Surgeries3 Other Ortho Procedures 1,100+ 7,800+ 11,100+ Transplants2 Neuro and Spine Radiation Therapy Surgeries Patients Note: 1Cardiac Procedures include Cardiac Surgery,
Slide 14: Clinical Excellence: Q4 FY24 Highlights
CLINICAL EXCELLENCE Q4 FY24 • A 31-year-old woman underwent successful eye cancer treatment with Plaque Brachytherapy at Fortis Memorial Research Institute, Gurugram, using an affordable Ruthenium 106 Plaque made by BARC, Mumbai, which is available at a fraction of the cost compared to the imported
Slide 15: Augmenting Medical Programs / Technology
AUGMENTING MEDICAL PROGRAMS / TECHNOLOGY ➢ Fortis Hospital, Mohali launched the most ➢ Fortis Hospital Noida launched technically advanced Elekta Versa HD with Truebeam STx, LINAC Radiotherapy SGRT (2nd LINAC at Mohali facility) to attain machine (2nd LINAC at Noida facility) greater precision in ca
Slide 16: Q4FY24 and FY24 Performance Highlights
Q4FY24 and FY24 PERFORMANCE HIGHLIGHTS 10
Slide 17: Business Performance
BUSINESS PERFORMANCE Consolidated (INR Cr) 1,268 (18.4%) % Revenue 1,069 (18.7%) 1,101 (17.5%) 6,893 Growth YoY 6,298 5,718 842 740 673 10.1 9.5 FY22 FY23 FY24 Revenue Op. EBITDA PBT* (XX%) Op. EBITDA margin Hospital Business (INR Cr) 5,686 5,107 % Revenue 4,264 1,058 (18.6%) Growth YoY 862 (16.9%)
Slide 18: Q4FY24 Snapshot
Q4FY24 SNAPSHOT Consolidated Revenue Consolidated Op EBITDA Consolidated PBT1 1,786 Crores 380 Crores 268 Crores (21.3% Margin) 8.7% 40.5% 55.2% Consolidated PAT1 Net Debt / (Cash)3 Net Debt to EBITDA2,3 200 Crores 264 Crores 0.17x vs 0.30x 56.5% Board recommends dividend of INR 1 per share (10% of
Slide 19: FY24 Snapshot
FY24 SNAPSHOT Consolidated Revenue Consolidated Op EBITDA Consolidated PBT1 6,893 Crores 1,268 Crores 842 Crores (18.4% Margin) 9.5% 15.1% 13.8% Consolidated PAT1 Hospital Business Revenue Diagnostic Business Revenue2 629 Crores 5,686 Crores 1,372 Crores 12.5% 11.3% 1.8% 1. Excluding exceptional ite
Slide 20: Q4FY24 Snapshot
Q4FY24 SNAPSHOT ➢ Hospital business revenues grew 10.3% to INR 1,490 Cr versus INR 1,350 Cr in Q4FY23. ➢ Hospital Business Operating EBITDA up 50.6% YoY to INR 333 Cr*, EBITDA margin at 22.4%* versus 16.4%* in Q4FY23. ➢ Q4FY24 hospital business ARPOB at INR 2.32 Cr vs INR 2.10 Cr in Q4FY23, up 10.3%
Slide 21: FY24 Snapshot
FY24 SNAPSHOT ➢ Hospital business revenue at INR 5,686 Cr versus INR 5,107 Cr in FY23, a growth of 11.3% ➢ Hospital business Operating EBITDA at INR 1,058 Cr versus INR 862 Cr in FY23, a growth of 22.7%; Margin at 18.6% vs 16.9% in FY23 ➢ FY24 hospital business ARPOB at INR 2.22 Cr vs INR 2.01 Cr in
Slide 22: Consolidated Earnings Summary – Q4FY24
CONSOLIDATED EARNINGS SUMMARY – Q4FY24 All figures in INR Crs. Revenue Operating EBITDA & Margin 1,786 380 1,680 271 284 1,643 21.3% 16.5% 16.9% Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Up 8.7% Up 40.5% PBT before Exceptional Items PAT* 268 173 175 200 128 127 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4F
Slide 23: Consolidated Earnings Summary – FY24
CONSOLIDATED EARNINGS SUMMARY – FY24 All figures in INR Crs. Revenue Operating EBITDA & Margin 6,893 1,268 6,298 18.4% 1,101 17.5% FY23 FY24 FY23 FY24 Up 9.5% Up 15.1% PBT before Exceptional Items PAT* 842 629 740 559 FY23 FY24 FY23 FY24 Up 13.8% Up 12.5% *FY24 exceptional gain of Rs 16.0 Cr related
Slide 24: Consolidated Earnings Summary
CONSOLIDATED EARNINGS SUMMARY All figures in INR Crs. Consolidated Revenue 1,770 1,786 1,657 1,680 1,643 1,560 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Op EBITDA Margin Op EBITDA PBT (before Exceptional items) 21.3% 18.6% 380 17.7% 16.5% 330 16.9% 16.5% 276 271 273 284 268 229 175 173 169 175 Q3FY2
Slide 25: Hospital Business Highlights – Q4FY24
Q4FY24 HOSPITAL BUSINESS HIGHLIGHTS Key Performance Indicators • Occupancy was at 67%, similar to Q4FY23 Overall Occupancy • Revenue from focus specialties comprising Oncology, 67% 67% 64% Gastroenterology, Neurosciences, Renal Sciences, Orthopaedics and Cardiac Sciences grew 13.8% YoY and contribut
Slide 26: Hospital Business Highlights – FY24
FY24 HOSPITAL BUSINESS HIGHLIGHTS Key Performance Indicators Overall Occupancy • Occupied beds increased to 2,685 compared to 2,665 in FY23 – however, occupancy declined by 2% due to an 67% 65% increase of 246* operational beds YoY • Revenue from focus specialties comprising Oncology, Gastroenterolo
Slide 27: Diagnostic Business Highlights – Q4FY24 & FY24
Q4FY24 & FY24 DIAGNOSTIC BUSINESS HIGHLIGHTS Q4FY24 • Revenues were at INR 338 Cr in Q4FY24 as compared to INR 332 Cr in Agilus Revenue Breakup Q4FY23. Revenues for Q3FY24 were at INR 331 Cr. COVID Non COVID • Operating EBITDA stood at INR 47 Cr versus INR 49 Cr in Q4FY23 (14.0% versus 14.9% EBITDA
Slide 28: Operating Performance: Hospital Business
OPERATING PERFORMANCE HOSPITAL BUSINESS Hospital Business Particulars (INR Cr) Q4FY23* Q3FY24 Q4FY24* FY23 FY24 Operating Revenue 1,350 1,389 1,490 5,107 5,686 Revenue Growth vs LY 9.6% 10.3% 11.3% Reported EBITDA^ 230 254 339 922 1,090 EBITDA growth vs LY 16.9% 47.5% 18.3% Margin 17.0% 18.2% 22.8%
Slide 29: Operating Performance: Diagnostic Business
OPERATING PERFORMANCE DIAGNOSTIC BUSINESS Diagnostic Business Particulars (INR Cr) Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Operating Revenue 332 331 338 1,347 1,372 Revenue Growth vs LY (0.2%) 1.9% 1.8% Reported EBITDA 55 37 52 263 229 EBITDA growth vs LY (47.7%) (5.7%) (12.8%) Margin 16.5% 11.2% 15.2% 19.5%
Slide 30: Balance Sheet
BALANCE SHEET March 31, 2024 Balance Sheet (INR Cr) March 31, 2023 Dec 31, 2023 March 31, 2024 Shareholder’s Equity 8,100 8,598 8,556 Debt 703 812 859 Lease Liabilities (Ind AS 116)* 223 299 297 Total Capital Employed 9,026 9,709 9,711 Net Fixed Assets (including intangibles & CWIP) 5,513 6,184 6,22
Slide 31: Performance Review: Hospitals Business
PERFORMANCE REVIEW HOSPITALS BUSINESS 25
Slide 32: Revenue Mix
REVENUE MIX FY23 FY24 Gross Revenue : INR 5,361 Cr Gross Revenue : INR 5,987 Cr 41% 41% 59% 59% Non Surgical Revenue Surgical Revenue Contribution from Surgical revenue stood at 59% in FY24, similar to previous period 26
Slide 33: Specialty Mix
SPECIALTY MIX FY23 FY24 Other Operating Other Operating Revenue, 3.6% Revenue, 1.7% OPD, 12.0% OPD, 13.8% Cardiac, Cardiac, 18.6% 17.8% Other IPD, Other IPD, Ortho, 8.9% Ortho, 8.7% 16.5% 16.4% Renal, 7.1% Renal, 7.3% Gynae, 4.0% Gynae, 3.6% Pulmo, 2.9% Neuro, 8.3% Pulmo, 2.9% Neuro, 8.5% Gastro, 4.
Slide 34: Payor Mix
PAYOR MIX FY23 FY24 ESI, 0.1% ESI, 0.0% TPAs, 35.3% TPAs, 35.3% Cash : Cash : Domestic, Domestic, 36.9% 36.1% Pvt Corps, Pvt Corps, 0.8% 0.8% International , Govt & International , Govt & 8.0% PSUs, 9.4% PSUs, 8.7% 8.0% CGHS, 3.4% ECHS, 6.1% CGHS, 4.1% ECHS, 7.0% 28
Slide 35: Hospital Business Performance – Q4FY24 and FY24
HOSPITAL BUSINESS PERFORMANCE – Q4FY24 and FY24 All the key healthcare facilities continue to witness an upward momentum in revenues YoY Revenue 201 207 Q4FY23 Q4FY24 178 153 135 133 129 115 114 116 112 117 105 115 72 83 66 48 47 52 FMRI Mohali BG Road Shalimar Bagh Noida FEHI Mulund Anandpur Jaipur
Slide 36: Hospital Business Performance – FY24
HOSPITAL BUSINESS PERFORMANCE – FY24 All the top 10 hospitals witnessed healthy ARPOB growth; Six of the top 10 hospitals witnessed occupancy in excess of 70% 3.81 ARPOB (Rs Cr per annum) 3.49 FY23 FY24 2.86 3.01 2.72 2.80 2.46 2.41 2.16 2.00 2.14 1.96 1.92 2.04 1.541.67 1.55 1.21 1.231.33 FMRI Moha
Slide 37: Hospital Margin Matrix
HOSPITAL MARGIN MATRIX EBITDA No. of Facilities Revenue Contribution Operational Beds ARPOB (INR Cr) Occupancy 20% - 25% 8 62.2% 1,998 2.56 72% FY24* 15% - 20% 5 13.4% 745 1.76 62% 10% - 15% 3 13.8% 640 1.89 70% <10% 5 8.1% 551 1.81 50% EBITDA No. of Facilities Revenue Contribution Operational Beds
Slide 38: Beds Expansion Update
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Slide 39: Beds Expansion Plan
Beds Expansion Plan No. of Operational Beds Planned capacity addition of ~2,200 beds* from FY23 to FY28 New Bed Addition No. of Beds at Malar, Vadapalani facilities Major addition at ANP, MUL, Mohali, BG Road and LUD2 701 246 FY23 FY24 FY25 FY26 FY27 FY28 Note: 1. *~2,200 beds addition is total new
Slide 40: Beds Expansion – Plans to expand to ~6,000 beds
Beds Expansion – Plans to expand to ~6,000 beds Punjab • Planned bed capacity addition of ~2,200 Existing Beds: 774 Projected Beds: 1,306 beds* till FY28, to achieve a total of (Mohali) Jaipur ~6,000 operational beds Existing Beds: 275 NCR Projected Beds: 325 • Majority of beds to be added at units
Slide 41: ESG Highlights
ESG HIGHLIGHTS 35
Slide 42: ESG Highlights
ESG HIGHLIGHTS Environment Energy Bio-Medical Waste Stewardship Water Reduced per occupied bed energy Reduced per occupied bed water Created month-wise baseline for bio- consumption in FY 24 by 3.4% medical waste for all units, across all 5 Bio- consumption in FY 24 by 8.4% medical waste categories
Slide 43: Performance Review: Diagnostics Business
PERFORMANCE REVIEW DIAGNOSTICS BUSINESS 37
Slide 44: Diagnostics Business – Q4FY24
DIAGNOSTICS BUSINESS – Q4FY24 • During Q4FY24, Agilus conducted 9.61 million tests, versus 9.77 million in Q4FY23 a de-growth of 2% primarily due to lower COVID volumes. In Q3FY24 Agilus conducted 9.85 million tests • Agilus added 200+ Customer touchpoints to its network in Q4FY24 • B2C:B2B revenue
Slide 45: Diagnostics Business – FY24
DIAGNOSTICS BUSINESS – FY24 • During FY24, Agilus conducted 40.0 million tests, versus 39.1 million tests in FY23 • Agilus added 680+ Customer touchpoints (CTPs) to its network in FY24. Total CTPs as on 31st Mar’24 stood at 3,976. • Agilus’ B2C:B2B revenue mix stood at 53:47 in the year vs 54:46 in
Slide 46: Key Performance Metrics
KEY PERFORMANCE METRICS Test (mn) Avg. Realization per test (INR) No of Patients (mn) Avg. Realization per patient (INR) 10.8 355 4.4 880 10.6 352 870 350 4.3 10.4 869 860 4.2 10.2 345 850 10 4.1 344 340 840 9.8 4 340 830 9.6 339 335 3.9 829 826 820 9.4 334 3.8 819 822 810 330 9.2 9.77 9.95 10.59 9.
Slide 47: Yearly Revenue Mix
YEARLY REVENUE MIX Geographic mix Product Mix Segment Mix Wellness International 3% 10% North B2C, South 33% 53% 29% FY24 Routine B2B, 54% 47% Specialised 36% West East 21% 14% Wellness International 2% North 9% South B2C, 33% 28% 54% B2B, FY23 46% Specialised Routine 38% 53% West East 23% 14% 41
Slide 48: Thank You
THANK YOU 42
Slide 49: Appendix
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Slide 50: Group Consolidated P&L – Q4FY24
GROUP CONSOLIDATED P&L – Q4FY24 Particulars (INR Cr) Q4FY23 Q3FY24 Q4FY24 Revenue from operations 1,642.7 1,679.7 1,785.9 Other income 13.8 6.8 9.8 Total income 1,656.5 1,686.5 1,795.7 Expenses 1,371.8 1,395.7 1,404.9 EBITDA* 284.7 290.8 390.8 Margin 17.3% 17.3% 21.9% Finance costs 31.7 33.0 34.7 De
Slide 51: Group Consolidated P&L – FY24
GROUP CONSOLIDATED P&L – FY24 Particulars (INR Cr) FY23 FY24 Revenue from operations 6,297.6 6,892.9 Other income 61.7 38.3 Total income 6,359.4 6,931.2 Expenses 5,196.3 5,625.3 EBITDA* 1,163.1 1,305.9 Margin 18.5% 18.9% Finance costs 129.1 131.0 Depreciation and amortisation expense 315.7 342.5 PBT