Fortis Healthcare - Strong Q2 Driven By Highest Ever Average Revenue: ICICI Securities

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ICICI Securities Report

Fortis Healthcare Ltd. reported Q2 FY22 performance better than our estimates mainly on profitability front supported by highest ever average revenue per occupied bed.

Both segments hospitals and diagnostics have reported healthy recovery. We expect the trend to continue with improving occupancy and normalisation of the environment.

Revenue grew 47.0% YoY to Rs 14.6 billion (our estimate: Rs 13.0 billion) with hospitals and SRL (diagnostics) both growing ~47% YoY.

Ebitda margin remained flat sequentially at 19.4% with costs slowly normalising. Management continues to implement measures to keep costs in check.

We remain positive on Fortis' growth recovery, cost optimisation efforts and potential operating leverage outlook.

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