On March 22, 2024, Fortis Healthcare Ltd, a prominent player in the healthcare sector, disclosed a significant development regarding its subsidiary, Fortis Hospitals Ltd, receiving an income tax assessment order demanding a total of ₹89.53 crore, inclusive of interest amounting to ₹9.54 crore.
The company’s official statement, as per a stock exchange filing, reads, “This is to inform you that Fortis Hospitals Limited, a material subsidiary of the company has today received an Income tax assessment order dated March 21, 2024, wherein a demand of ₹89.53 crores (including interest of ₹9.54 crore) has been raised. The Company is evaluating the said order and will take appropriate actions in due course.”
Despite this development, Fortis Healthcare reported a commendable 3.9% year-on-year (YoY) increase in net profit, reaching ₹135 crore for the third quarter that concluded on December 31, 2023. In comparison, the corresponding period last year saw a net profit of ₹129.6 crore for Fortis Healthcare.
The positive performance was partly attributed to the 9.6% surge in hospital business revenue during the third quarter, driven by a notable 10.6% increase in ARPOB ( average revenue per operating bed ) to ₹2.23 crore. This growth trajectory underscores Fortis Healthcare’s strategic initiatives aimed at enhancing operational efficiency and revenue generation.
Further dissecting the financials, the company’s revenue from operations witnessed a healthy uptick of 7.7%, totaling ₹1,679.7 crore, compared to ₹1,559.9 crore in the corresponding period of the preceding fiscal year.
At the operating level, EBITDA (earnings before interest, taxes, depreciation, and amortization) displayed resilience, growing by 2.4% to ₹283 crore in the third quarter of the fiscal year 2023-24, as opposed to ₹276.5 crore in the same period of the previous fiscal. However, there was a slight contraction in the EBITDA margin, which stood at 16.9% in the reporting quarter, down from 17.7% in the corresponding period of the previous fiscal.
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