Hospital chain Fortis Healthcare is set to report its first quarter (April-June 2022) earnings on Friday (August 5).

Axis Capital expects Q1 revenues to grow by 2 percent at Rs 1436.7 crore against Rs 1410.3 crore in the same quarter last year. EBITDA is expected to decline by 7.3 percent at Rs 255 crore, while margins are likely to decline to 17.8 percent. Net profit is expected to be at Rs 103.3 crore versus Rs 263.5 crore in Q1FY22.

The Street expects growth in hospital business to be led by improved occupancies as the impact of COVID-19 and Omicron settles down.

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The company's Q4FY22 earnings were impacted due to the Omicron wave in January with non-COVID occupancies declining to 53 percent versus 64 percent in Q3FY22. Q1FY23 occupancy is likely to be at 66 percent against 59 percent in Q4FY22.

Normalisation of international medical tourism is also likely to aid the growth. However, the diagnostic business is likely to see a decline on a year-on-year and quarter-on-quarter basis due to a decline in COVID-19. Margins for the diagnostic business are likely to be at 22.5 percent versus 22 percent in Q1FY22.

Management commentary on capex, outlook on competition in the diagnostics space, and updates on open offer will be key to watch.