Fortis Healthcare Ltd. · NSE:FORTIS
Fortis Healthcare — Q4 FY23 Earnings Presentation
46 slides from Fortis Healthcare's earnings presentation, May 24, 2023
Slide 1: Exchange filing cover letter
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/2023-24 May 23, 2023 The Nat
Slide 2: Press Release: Q4 FY23 and FY23 Audited Financial Results
Press Release May 23, 2023 Fortis Healthcare announces Q4 FY23 and FY23 Audited Financial Results Board recommends maiden dividend of INR 1 per share (10% of Face Value) Hospital Business Q4FY23 revenue up 29.7% to INR 1,350 Crs, Margins expand to 17.0% from 13.8% in Q4FY22 Hospital Business FY23 re
Slide 3: Press Release: Key Financial and Hospital Highlights
Press Release May 23, 2023 % % Particulars (INR Crs) Q4FY22 Q4FY23 FY22 FY23 Change Change Profit Before Tax 126 173 36.9% 673 740 10.0% (Before exceptional item) Profit After Tax* 87 138 58.9% 790 633 (19.9%) Profit After Tax after Minority 68 133 95.0% 555 589 6.1% Interest * Earnings Per Share (I
Slide 4: Press Release: Hospital Business Highlights
Press Release May 23, 2023 o A higher surgical business contribution at 59% for FY23 versus 53% in FY22 led by an increasing revenue contribution from key medical specialties of Oncology, Orthopedics, Renal Sciences and Gastroenterology. Q4’FY23 • The combined revenue of the top 6 key medical specia
Slide 5: Press Release: Diagnostics Business Highlights
Press Release May 23, 2023 • The Company added to its pool of clinical talent across various medical specialties with the onboarding of clinicians in neurosciences, oncology, gastroenterology and orthopedics during the year. • Revenues from digital channels viz website, mobile application and digita
Slide 6: Press Release: SRL Network and Chairman Comments
Press Release May 23, 2023 • SRL added ~1,100+ customer touch points (CTP’s) during the year. As on date SRL has a network of 3,700+ CTP’s. • SRL conducted ~39.1 million tests (covid and non-covid) during FY23 as against ~44.2 million tests in FY22. Ravi Rajagopal, Chairman, Board of Directors, Fort
Slide 7: Press Release: About Fortis Healthcare Limited
Press Release May 23, 2023 ecosystem drawing the benefits of, amongst other things, an Electronic Medical Records system, an ERP based Business Solutions support program and a Picture Archive Communications system (PACS). The diagnostics business has witnessed a muted performance with the decline in
Slide 8: Fortis Healthcare Limited – Q4 FY23 & FY23
FORTIS HEALTHCARE LIMITED EARNINGS PRESENTATION – Q4 FY23 & FY23 May 23, 2023
Slide 9: 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 10: Agenda
AGENDA 1. Performance Highlights • Earnings and Financial Summary – Q4 FY23 & FY23 2. Performance Review - Hospital Business 3. Performance Review - Diagnostics Business 4. Appendix
Slide 11: Performance Highlights
Q4FY23 & FY23 PERFORMANCE HIGHLIGHTS
Slide 12: Q4FY23 Snapshot
Q4FY23 SNAPSHOT Consolidated Revenue Consolidated EBITDA Consolidated PBT* 1,643 Crores 285 Crores 173 Crores 19.2% 25.3% 36.9% Consolidated PAT* Net Debt / (Cash) Net Debt to EBITDA 128 Crores 330 Crores 0.29x vs 0.60x 47.1% 40% Board recommends maiden dividend of INR 1 per share ( 10% of face valu
Slide 13: FY23 Snapshot
FY23 SNAPSHOT Consolidated Revenue Consolidated EBITDA Consolidated PBT* 6,298 Crores 1,163 Crores 740 Crores 10.1% 6.1% 10.0% Consolidated PAT* Hospital Business Revenue Diagnostic Business Revenue 559 Crores 5,107 Crores 1,347 Crores 17.8% 19.8% 16.0% *Excluding exceptional items
Slide 14: Q4FY23 Snapshot
Q4FY23 SNAPSHOT ➢ Hospital business revenues grow 29.7% to INR 1,350 Cr versus INR 1,041 Cr in Q4FY22. ➢ Hospital Business EBITDA up 60.3% YoY to INR 230 Cr, EBITDA margin at 17.0% versus 13.8% in Q4FY22. ➢ Q4FY23 hospital business ARPOB at INR 2.10 Cr vs INR 1.88 Cr in Q4FY22, up 11.5% ; Surgical :
Slide 15: FY23 Snapshot
FY23 SNAPSHOT ➢ Hospital business revenue at INR 5,107 Cr versus INR 4,264 Cr in FY22, a growth of 19.8% ➢ Reported EBITDA at INR 922 Cr versus INR 672 Cr in FY22, a growth of 37.1%; Margins at 18.1% vs 15.8% in FY22 ➢ FY23 hospital business ARPOB at INR 2.01 Cr vs INR 1.80 Cr in FY22, up 11.5% ; Su
Slide 16: Consolidated Earnings Summary – Q4FY23
CONSOLIDATED EARNINGS SUMMARY – Q4FY23 All figures in INR Crs. Revenue EBITDA & EBITDA Margin 1642.7 288.1 284.7 1559.9 227.2 1378.1 16.5% 18.5% 17.3% Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Up 19.2% Up 25.3% PBT before Exceptional Items PAT* 174.6 172.9 130.7 127.8 126.2 86.8 Q4FY22 Q3FY23 Q4FY23
Slide 17: Consolidated Earnings Summary – FY23
CONSOLIDATED EARNINGS SUMMARY – FY23 All figures in INR Crs. Revenue EBITDA & EBITDA Margin 6297.6 1163.1 5717.6 1096.3 18.5% 19.2% FY22 FY23 FY22 FY23 Up 10.1% Up 6.1% PBT before Exceptional Items PAT* 740.1 559.4 672.8 474.9 FY22 FY23 FY22 FY23 Up 10.0% Up 17.8% *FY22 PAT excludes exceptional gain
Slide 18: Consolidated Earnings Summary
CONSOLIDATED EARNINGS SUMMARY All figures in INR Crs. Consolidated Revenue 1,643 1,607 1,560 1,467 1,488 1,378 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 EBITDA Margin EBITDA PBT (before Exceptional items) 319 294 288 285 272 19.8% 20.0% 227 18.3% 18.5% 17.3% 16.5% 216 185 176 175 173 126 Q3FY22 Q4FY
Slide 19: Hospital Business Highlights – Q4FY23
Q4FY23 HOSPITAL BUSINESS HIGHLIGHTS Key Performance Indicators • Revenue from focus specialties comprising Oncology, Overall Occupancy Gastroenterology, Neurosciences, Renal Sciences, Orthopaedics 67% 66% and Cardiac Sciences grew 27.4% and contributed 60% to 59% overall hospital business revenues (
Slide 20: Hospital Business Highlights – FY23
FY23 HOSPITAL BUSINESS HIGHLIGHTS Key Performance Indicators • International patient’s revenue stood at INR 425 Cr versus INR Overall Occupancy 215 Cr, a growth of 98%. 67% • Revenue contribution stood at 8.3% in FY23 versus 5.0% 63% in FY22. • Combined revenue from Oncology, Orthopedics, Gastroente
Slide 21: Diagnostic Business Highlights Q4FY23 & FY23
Q4FY23 & FY23 DIAGNOSTIC BUSINESS HIGHLIGHTS Q4FY23 SRL Revenue Breakup • SRL revenues at INR 332.1 Cr in Q4FY23 as compared to INR 372.3 Cr in Covid Non Covid Q4FY22. The decline was largely as a result of the drop in Covid test volumes from Q4FY22. Revenues for Q3 FY23 were at INR 331.5 Cr. 78% 97
Slide 22: Operating Performance – Hospital Business
OPERATING PERFORMANCE HOSPITAL BUSINESS Hospital Business Particulars (INR Cr) Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Operating Revenue 1,040.9 1,267.4 1,350.5 4,264.2 5,107.2 Revenue Growth vs LY 13.3% 29.7% 19.8% Reported EBITDA^ 143.5 217.0 230.0 672.3 921.9 EBITDA growth vs LY 14.1% 60.3% 37.1% Margin 1
Slide 23: Operating Performance – Diagnostic Business
OPERATING PERFORMANCE DIAGNOSTIC BUSINESS Diagnostic Business Particulars ( INR Cr) Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Operating Revenue* 372.3 331.5 332.1 1,604.9 1,347.5 Revenue Growth vs LY -14.7% -10.8% -16.0% Reported EBITDA 83.8 71.1 54.7 425.3 262.6 EBITDA growth vs LY -31.2% -34.7% -38.3% Margin
Slide 24: Balance Sheet
BALANCE SHEET March 31, 2023 Balance Sheet (INR Cr) March 31, 2022 Dec 31, 2022 March 31, 2023 Shareholder’s Equity 7,008 7,937 8,100 Debt 966 839 703 Lease Liabilities (Ind AS 116)* 289 308 314 Total Capital Employed 8,263 9,084 9,118 Net Fixed Assets (including intangibles & CWIP) 5,486 5,693 5,74
Slide 25: Performance Review – Hospitals Business
PERFORMANCE REVIEW HOSPITALS BUSINESS
Slide 26: Strengthening Medical Infrastructure
STRENGTHENING MEDICAL INFRASTRUCTURE • Fortis Hospital, Nagarbhavi, Bengaluru, launched an advanced state-of the-art Philips Azurion 7 C12 Cath Lab facility during January 2023, to ensure prompt and efficient diagnosis and treatment in the field of interventional cardiology. • Fortis Hospital, BG Ro
Slide 27: Revenue Mix
REVENUE MIX FY22 FY23 Gross Revenue : INR 4,497 CR Gross Revenue : INR 5,361 CR 47% 41% 53% 59% NonSurgical Revenue Surgical Revenue • Contribution from surgical revenue improved significantly to 59% in FY23 versus 53% in FY22
Slide 28: Specialty Mix
SPECIALTY MIX FY22 FY23 Other Operating Other Operating Revenue, 2.9% Revenue, 3.6% OPD, 12.6% OPD, 12.0% Cardiac, 18.5% Cardiac, 18.6% Ortho, 7.1% Other IPD, Other IPD, Ortho, 8.9% 16.5% 18.9% Renal, 6.6% Renal, 7.1% Gynae, 4.0% Gynae, 4.3% Neuro, 8.6% Pulmo, 2.9% Neuro, 8.3% Pulmo, 6.1% Gastro, 4.
Slide 29: Payor Mix
PAYOR MIX FY22 FY23 ESI, 0.2% ESI, 0.1% TPAs, 35.4% TPAs, 37.7% Cash : Cash : Domestic, Domestic, 36.4% 39.2% Pvt Corps, Pvt Corps, 1.0% 0.9% International International Govt & PSUs, Govt & PSUs, , 4.8% , 7.9% ECHS, 4.5% 9.7% 9.7% CGHS, 3.0% CGHS, 3.4% ECHS, 6.1%
Slide 30: Hospital Business Performance – Q4FY23 & FY23
HOSPITAL BUSINESS PERFORMANCE – Q4FY23 & FY23 All the key healthcare facilities continue to witness an upward momentum in revenues Revenue Q4FY22 Q4FY23 250 201 200 145 153 150 111 116 115 114 112 95 105 100 82 85 85 82 72 53 43 48 47 41 50 - FMRI Mohali Noida BG Road Shalimar Bagh FEHI Mulund Anand
Slide 31: Hospital Business Performance – FY23
HOSPITAL BUSINESS PERFORMANCE – FY23 Seven of the top 10 hospitals witnessing occupancy in excess of 70% ARPOB (INR'000 per day) FY22 FY23 120.0 96.0 100.0 79.5 80.0 74.7 67.4 66.6 66.3 61.3 57.2 60.0 48.4 53.8 51.4 55.1 53.2 52.7 40.3 42.4 40.0 29.7 33.4 32.5 33.8 20.0 - FMRI Mohali BG Road Shalima
Slide 32: Hospital Margin Matrix
HOSPITAL MARGIN MATRIX EBITDA No of Facilities Revenue Contribution Operational beds ARPOB (INR Cr) Occupancy >25% 2 20% 614 2.57 68% 20% - 25% 9 31% 1,426 1.61 71% FY23 15% - 20% 3 27% 754 2.52 75% 10% - 15% 3 12% 466 2.20 66% <10% 5 10% 715 1.41 52% EBITDA No of Facilities Revenue Contribution Ope
Slide 33: Clinical Excellence
CLINICAL EXCELLENCE • World’s fastest hip ball replacement surgery was performed at Fortis Escorts, Okhla, New Delhi. The surgery took 15 minutes 35 seconds and was performed on an 86- year-old female patient. • In a first ever in Tamil Nadu, a 68-year-old got a new lease of life post a challenging
Slide 34: Brownfield Expansion – Plans to expand to 5,400 beds
Brownfield Expansion – Plans to expand to 5,400 beds • Planned bed capacity addition of ~1,400 Punjab beds over the next 5 years – to reach Jaipur Existing Beds: ~683 Projected Beds: ~1,000 Existing Beds: ~275 ~5,400 operational beds. Projected Beds ~325 NCR • Majority of beds to be added at units E
Slide 35: Acquisition of Medeor Hospital, Manesar
Acquisition of Medeor Hospital, Manesar ➢ In April 2023, FHL signed definitive agreements with the VPS Group for the acquisition of the Medeor Hospital in Manesar, Gurugram, Haryana for an overall purchase consideration of INR 225 Crs. ➢ The transaction involves the purchase the assets of Medeor Hos
Slide 36: Acquisition of Medeor Hospital, Manesar
Acquisition of Medeor Hospital, Manesar ➢ FHL will operationalize the hospital in a phased manner within a span of 9 months post incurring additional investments. ➢ The acquisition would enhance Fortis’s position in the Gurugram market, specifically the attractive catchment areas of New Gurugram and
Slide 37: Digital Transformation Initiatives
Digital Transformation Initiatives Electronic Medical Records (EMR) FHL aims to further bolster its digital backbone with the roll out of a comprehensive EMR solution enabling patient health information in digital format and further enhancing overall patient experience MyFortis Upgradation of MyFort
Slide 38: Performance Review – Diagnostics Business
PERFORMANCE REVIEW DIAGNOSTICS BUSINESS
Slide 39: Diagnostics Business
DIAGNOSTICS BUSINESS • During Q4 FY23, SRL conducted 9.77 Mn tests versus 10.7 Mn in Q4 FY22, a de-growth of 9% primarily due to lower Covid volumes. For FY23, SRL conducted 39.1 Mn tests, versus 44.2Mn in FY22 a de-growth of 12% • SRL added 285+ Customer touchpoints to its network in Q4 FY23. In FY
Slide 40: Quarterly Key Performance Metrics
QUARTERLY KEY PERFORMANCE METRICS Test (mn) Avg. Realization per test (INR) No of Patients (mn) Avg. Realization per patient (INR) 12.00 360 6.00 860 840 355 10.00 5.00 835 835 820 354 350 800 8.00 349 4.00 805 345 780 344 345 774 760 6.00 340 3.00 342 740 335 720 4.00 2.00 334 716 718 700 330 2.00
Slide 41: Quarterly Revenue Mix
QUARTERLY REVENUE MIX Geographic mix Product Mix Segment Mix Specialised Covid, 3% International , 3% South, North, B2C, Q4FY23 29% 32% 53% B2B, Specialised 47% Non-Covid, 35% Routine, 62% West, East, 23% 14% International, 5% Q4FY22 North, Specialised 30% Covid, 22% B2C, B2B, South, 54% 46% 29% Rou
Slide 42: Yearly Revenue Mix
YEARLY REVENUE MIX Geographic mix Product Mix Segment Mix Specialised Covid, 4% International , 2% South, North, B2C, 28% 33% 54% FY23 B2B, Specialised 46% Routine, Non-Covid, 35% 61% West, East, 23% 14% International, 3% North, FY22 32% Specialised South, Covid, 28% B2C, B2B, 28% 55% 45% Routine, 4
Slide 43: Appendix
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Slide 44: Group Consolidated P&L – Q4FY23
GROUP CONSOLIDATED P&L – Q4FY23 Particulars ( INR Cr) Q4FY22 Q3FY23 Q4FY23 Revenue from operations 1,378.1 1,559.9 1,642.7 Other income 6.0 11.7 13.8 Total income 1,384.1 1,571.6 1,656.5 Expenses 1,156.9 1,283.4 1,371.8 EBITDA* 227.2 288.1 284.7 Margin 16.5% 18.5% 17.3% Finance costs 30.0 33.4 31.7
Slide 45: Group Consolidated P&L – FY23
GROUP CONSOLIDATED P&L – FY23 Particulars ( INR Cr) FY22 FY23 Revenue from operations 5,717.6 6,297.6 Other income 27.3 61.7 Total income 5,745.0 6,359.4 Expenses 4,648.7 5,196.3 EBITDA* 1,096.3 1,163.1 Margin 19.2% 18.5% Finance costs 146.9 129.1 Depreciation and amortisation expense 300.8 315.7 PB
Slide 46: Thank You
THANK YOU