Fortis Healthcare, leading healthcare providers with a network of 48 hospitals, has suffered setback during the first quarter ended June 2010 on account of heavy interest burden, higher provision for depreciation and staff, expenses related on overseas borrowings for investments in Parkway Holdings Ltd. The company incurred a net loss of Rs 14.31 crore as against a net profit of Rs 7.55 crore in the corresponding period of last year. Its income from operations went up by 83 per cent to Rs 334.25 crore from Rs 182.77 crore. Further, its other income also moved up to Rs 33.66 crore from Rs 3.08 crore.
The EBDITA has recorded strong growth of 161 per cent to Rs 81.21 crore from Rs 31.17 crore. The company provided Rs 70.93 crore for interest during the quarter under review as compared to Rs 10.41 crore in the same period of last year. Its employees cost went up by 47.6 per cent to Rs 62.73 crore and other expenditure jumped by 122 per cent to Rs 134.13 crore from Rs 60.56 crore. The depreciation provision increased to Rs 21.52 crore from Rs 11.35 crore. These higher provisions put pressure on bottom line.
Shivinder M Singh, managing director, said, “The past quarter has been very exciting for us at Fortis. Apart from establishing our vision of being a Pan-Asian healthcare player, we have continued our focus on clinical excellence through improved quality of care and improving operating efficiencies. We firmly believe that the 'Fortis-edge' we have created in India can create significant value for customers in Asia, just as it continues to provide a caring and high quality experience for our patients in India.”
Fortis Healthcare has issued 877 lakh equity share of Rs 10 each on rights basis against conversion of detachable warrants, at an exercise price of Rs 153 per detachable warrant, aggregating to Rs 1342 crore. Further, it has also allotted 21,600 equity shares to the eligible employees under Stock Options. Consequent to the above said allotments, the paid up equity share capital has gone up to Rs 405 crore from Rs 227 crore in the last period.
The company commenced capacity expansion work at Fortis Escorts heart Institute, Delhi, Fortis Mohali and Fortis Escorts Jaipur hospitals. Mulund Hospital is expected to commission its radiation oncology unit in the ensuing quarter. The 414 bedded hospital at EM Bypass Road, Kolkata and 250 bedded hospital at Shalimar Bagh, New Delhi are ready for commencement of services in the ensuing quarter.
Fortis Healthcare issued US$100 million 5 per cent FCCBs during the quarter under review to fund potential acquisitions as the company takes steps to establish itself as a global healthcare provider. It called for the conversion of detachable warrants from the holders of the rights shares, thereby infusing Rs 1,342 crore of equity. This will reduce the financial leverage of the company.
The network revenues for the quarter grew by 70 per cent and stood at Rs 413 crore due to the addition of Fortis Hospitals (earlier called as Wockahrdt Hospital) which contributed Rs 94.2 crore. The hospitals across the network performed over 12,000 cardiac procedures, over 2,500 orthopedic procedures and 2,000 oncology procedures.
Fortis Clinique Darne hospital in Mauritius grew significantly and attained new heights in medical care. The new medical programs on Mother and child and neonatal ICU helped achieving highest ever revenues for the hospital, during the quarter ended June 2010. Fortis Hiranandani Hospital at Vashi launched a MedSpa Centre and started at IVF program at the hospital, as it expanded the gamut of medical services and endeavored to entrench itself as a reputed player in the market.