Fortis Healthcare's consolidated net profit declined by 37.5 per cent during the second quarter ended September 2016 to Rs.38.24 crore from Rs.61.15 crore in the corresponding period of last year due to lower other income and higher interest and tax burden. Its other income declined by 54 per cent to Rs.38.01 crore from Rs.82.34 crore. Further, its interest cost went up sharply by 55.9 per cent to Rs.46.05 crore from Rs.29.54 crore and taxation went up to Rs.24.20 crore from Rs.0.24 crore.
The hospital business revenue increased by 11 per cent to Rs.972 crore and that of diagnostics business improved by 12 per cent to Rs.213 crore. Its top 10 facilities grew by 12 per cent to reach revenues of Rs.748 crore. These contributed 77 per cent to total revenues. Occupancy across facilities grew significantly to reach 82 per cent versus 77 per cent in the corresponding previous period. Its medical tourism efforts registered sales of 97 crore from international patients.
The board of directors approve demerger of diagnostics business and taking steps in that direction. The pathology business contributed 87 per cent to total revenues of diagnostics business. The contribution of the imaging business to total revenues declined to 6.7 per cent from 7.7 per cent. Due to network rationalization. SRL performed over 4.1 million accessions during the quarter, a 7 per cent growth over the previous quarter. The business opened 13 new laboratories and existed from 2. It added over 172 collection points and exited 30 while launching 5 new tests in the quarter. As of September 30, 2016, SRL had a network of 337 labs and approx. 7,400 collection points.
Bhavdeep Singh, CEO, said, “I am particularly enthused by the superior quality of clinical work and patient care that has accentuated the consistent improvement in the operational indices of all our network hospitals. We have witnessed a considerable uptick in the occupancies, utilization and revenues of our hospitals and diagnostics business. Our costs have been under strict watch and this has resulted in strong margins and the improvement in the overall profit delta. The operations are in good nick and I am confident and sanguine about the future.”
The completed acquisition of 51 per cent economic interest in Fortis Hospital Ltd (FHTL). FHTL was a subsidiary of the RHT Health Trust and comprised 2 key clinical establishments of the Fortis Hospital Shalimar Bagh, New Delhi and the Fortis Memorial Research Institute, Gurgaon amongst the other clinical establishments in the RHT portfolio.
For the first half ended September 2016, Fortis' income increased by 9 per cent to Rs.2,280 crore from Rs.2,092 crore in the corresponding period of last year. Its net profit declined sharply by 60 per cent to Rs.63.50 crore from Rs.158.55 crore due to higher interest cost and lower other income. Interest cost went up by 38.2 per cent to Rs.88.04 crore from Rs.63.69 crore and other income declined to Rs.71 core from rs 122.20 crore in the corresponding period of last year. Further there was exception income of Rs.59.34 crore in the last period as compared to Rs.0.93 crore in the latest period.