Fortis shares close lower as Street fears earnings will be hit by Covid-related sales slump

By IST (Released)


Fortis Healthcare is expected to see earnings fall 60% year-over-year (YoY) due to lower COVID-19 related sales as the Omicron wave takes hold and the base is high.

Shares of Fortis Healthcare closed down more than one percent ahead of the announcement of its first-quarter results, which are expected to see a 60 percent decline in year-on-year (YoY) earnings in due to lower sales related to COVID-19 as the Omicron wave sets in and base high.

The title ended down 1.29% at Rs 264 per share on BSE. The stock gained 10.28% last month while it has fallen 11% this year so far. Over the past year, the stock has gained 8.74%, outperforming the Sensex by 1.59%.

*as of July 27, 2022.

According to Axis Capital estimates, revenue is expected to increase by 2% to Rs 1,436.7 crore, while earnings before interest, tax, depreciation and amortization or EBITDA – a measure of the overall financial performance of a company. business – is expected to fall 7.3%.

The drop is believed to be mainly due to exceptional COVID-related activities amid a surge in cases last year.

Margin is expected to decline by 1.7% while profit is expected to be Rs 103.3 crore from Rs 263.5 crore in the first quarter of FY22.

Sequentially, revenue is expected to increase 4.3% and EBITDA is expected to increase 15%. Margin could be 1.8% higher while earnings are expected to increase 18.6% as occupancy levels recover from the impact of COVID-19.

The occupancy rate should be around 66% in the first quarter against 59% in the last quarter.

The diagnostics business, however, is expected to shrink due to lower COVID-19 related sales compared to a year ago, which will impact margins. Diagnostic margins are expected at 22.5% vs. 26% QoQ.

Overall, growth is expected in hospital activity as the impact of COVID-19 subsides and international medical tourism normalizes.

Key items to watch will include management comments on capital expenditures, average revenue per bed, competitive outlook in diagnostics and updates on open offerings.

cnbctv18-forexlive-benzinga -Sp

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button