Fortis Healthcare, a Rs.4,700 crore healthcare company, has reduced its consolidated net loss to Rs.45.80 crore during the quarter ended June 2014 on account of lower employees expenditure of Rs.221.30 crore as against Rs.492 crore in the corresponding period of last year. Its other expenditure also declined to Rs.535 crore from Rs.684 crore. Its income from operations declined by 32.9 per cent to Rs.1,009 crore from Rs.1,504 crore due to discontinued of few foreign operations. The net debt of the company declined to Rs.1,065 crore from Rs.3,284 crore in the corresponding quarter of last year.
Its income from India improved to Rs.964.21 crore from Rs.811.87 crore. However, its income from outside India declined sharply to Rs.56.46 crore from Rs.705.53 crore mainly on account of discounting operations relating to Dental Corporation Holdings Ltd, Australia. Fortis Helathcare Australia Pty Ltd (FHA), a wholly owned subsidiary of the company entered into a non-banking indicative offer to divest its 63.5 per cent holding in DC to BUPA, Australia for a consideration of Australian Dollar 276 million in May 2013. Due to de-consolidation it added a net gain of Rs.9.61 crore as an exceptional item in the June 2013 quarter.
Its radiology and imaging business in Singapore, RadLink Asia, achieved revenue growth of 9 per cent to Rs.37 crore. Fortis Surgical Hospital, Singapore recorded revenues of Rs.10.4 crore versus Rs.8.9 crore in the corresponding previous quarter.
The company also discontinued its operations regarding Fortis Hoan My Medical Corporation, Vietnam and divested entire sake to Viva Holdings Vietnam (Pte) Ltd for a consideration of US$ 80 million. This de-consolidation had resulted in a net gain of Rs.13.77 crore and was included as an exceptional item for quarter ended September 2013.
Meanwhile, the company's subsidiary Escorts Heart Institute and Research Centre had received open tax demands of Rs.83.11 crore which is still pending. Further, Delhi Development Authority (DDA) had terminated the lease deeds and allotment letter relating to land parcels on which hospital on one of the subsidiary company exists. Consequent to termination, DDA issued show cause notice and initiated eviction proceedings against the subsidiary company and the matter is pending. The company also received recovery notice for Rs.733 crore in respect of non-compliance relating to provision of free treatment/beds to poor.
Aditya Vij, CEO, said, “We have had a strong first quarter with a significant improvement in our operating margins, a faster than expected ramp up of our newly opened Fortis Ludhiana Hospital and our flagship, the Fortis Memorial Research Institute (FMRI). The quality of our earnings has also improved dramatically with a focus on the higher value market segments.”
“With our thrust on excellence in healthcare, we launched the Fortis Centre for heart failure and transplants, at Fortis Malar Hospital, in Chennai. This is India's first comprehensive center for treatment of end stage heart failure offering the full spectrum of heart care treatment options including a heart transplant and an artificial heart programme,” he added.