Fortis reports robust Q2 and H1 FY17 results
Group Consolidated revenues for Q2 up 11%, Operating EBITDA up 40%
Group Consolidated revenues for H1 up 10%, Operating EBITDA up 40%
Hospital Business operating EBITDA more than doubled compared to trailing and corresponding quarter
Hospital Business continues to witness strong profitable growth with highest ever EBITDAC* for Q2 at Rs 164 Cr, 16.8% margin and for H1 at Rs 303 Cr, 16.1% margin
Diagnostics business records healthy margin at 25.3% for the quarter and 23.9% for H1
Fortis Healthcare Ltd. (Fortis), India’s leading healthcare delivery Company, today, announced its consolidated results for the quarter ended September 30, 2016 (Q2FY17).
Commenting on the results, Mr. Bhavdeep Singh, CEO Fortis Healthcare 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.”
In August 2016, the Board of Directors of Fortis Healthcare Limited approved a proposal to demerge its diagnostics business, including that housed in its majority owned subsidiary SRL Limited into another majority owned subsidiary, Fortis Malar Hospitals Limited pursuant to a composite scheme of arrangement and amalgamation. A Press Release dated August 19, 2016 detailing the entire transaction, pre and post shareholding structure, rationale and share entitlement and exchange ratios is available on the Company website www.fortishealthcare.com
In October 2016, the Company completed its acquisition of 51% economic interest in Fortis Hospotel Limited (FHTL). FHTL, was a subsidiary of the RHT Health Trust (RHT), and comprised 2 key clinical establishments of the Fortis Hospital Shalimar Bagh, New Delhi and the Fortis Memorial Research Institute (FMRI), Gurgaon amongst the other clinical establishments in the RHT portfolio. As a result of the majority acquisition of FHTL, FHTL will become a subsidiary of Fortis effective mid - October and hence will be consolidated with Fortis. The transaction would result in a lower service fees .i.e. net business trust fees that Fortis pays to RHT thereby positively impacting its operating profitability (EBITDA).
The Company maintained a healthy balance sheet with net debt as of 30 September 2016 at Rs 728 Cr, representing a net debt to equity ratio of 0.15x versus 0.09x in the corresponding previous quarter and 0.18x in the trailing quarter.
Key Highlights - Hospital Business
Key Highlights - Diagnostics Business
The lab medicine i.e. the pathology business contributed 87% to total revenues and grew 10% over the previous corresponding quarter. The contribution of the imaging business to total revenues declined to 6.7% from 7.7% in the corresponding previous period, mainly due to network rationalization. Clinical Trials, Wellness and the International segment contributed 6.0% to the overall revenues of the Diagnostics business.
SRL performed over 4.1 million accessions during the quarter, a 7% growth over the previous quarter. Through these accessions it undertook 9.42 million tests as compared to 8.54 million tests in Q2FY16.
The business opened 13 new laboratories and exited 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. 7400 collection points.
The business continued to have a well -diversified geographical mix with no over dependence on any region, allowing it to optimally capitalize on its pan India network. The business witnessed 33% revenues from the north, 26% from the west, 19% from the south, 20% from East and Central India and 2% from International for the period ended 30th September, 2016.
CLINICAL EXCELLENCE Q2 FY 17
AWARDS & ACCOLADES Q2 FY 17