FORTIS FY15 CONSOLIDATED INDIA REVENUES AT RS 3928 CRS VS RS 3448 CRS (YOY) OPERATING EBITDAC GROWS 42% (YOY)
Q4 FY15 CONSOLIDATED INDIA REVENUES AT RS 1016 CRS VS RS 885 CRS (QOQ) OPERATING EBITDAC GROWS 91% (QOQ)
Q4 FY15 HOSPITAL BUSINESS EBITDAC GROWS 117% (QOQ) NET DEBT TO EQUITY AT A HEALTHY 0.25x
Fortis Healthcare Ltd. (Fortis), India’s leading healthcare delivery Company, today, announced its consolidated results for the quarter and year ended March 31, 2015 (Q4FY15 and FY15).
India Business - Key Financial Highlights for the year (FY15)
*EBITDAC refers to EBITDA before net business trust costs
India Business - Key Financial Highlights for the quarter (Q4FY15)
Reported Group Financial Highlights for FY15 and Q4FY15
The reported results for FY15 are not comparable with the corresponding previous period due to progressive divestments of the Company’s international businesses.
Commenting on the results, Mr Shivinder M Singh, Executive Vice Chairman, Fortis Healthcare Ltd, said, “With the improvement in margins for the fourth successive quarter and the overall enhancement in the operating and financial indices of our business, I believe we have set in motion a number of sustainable programs towards becoming PAT positive in the near future.”
The Company divested the last of its international assets .i.e. The Fortis Surgical Hospital, Singapore and RadLink Asia, Singapore for a consideration of SGD 55 Mn and SGD 111 Mn respectively. Both these divestitures were consummated in April and May, 2015 respectively. With this the Company has successfully completed a series of divestments and used the proceeds to pare debt and further intensify its focus on the India market.
The net debt of the Company as on 31 March 2015 was at Rs 1,183 Crs, representing a net debt to equity of 0.25x times as compared to 0.17x times as on 31 March 2014. This is consistent with the Company’s plans to continue to maintain a healthy balance sheet. The Company has also recently (May 21, 2015) redeemed USD 100 Mn bonds which it had issued in the year 2010. The redemption of the bonds was made from cash proceeds from the sale of the Singapore assets. This would further reduce the debt on the Company’s balance sheet.
Strategic Direction
With the international divestments successfully completed, the Company strategy is firmly to enhance its focus on the India market. To this effect, the Company’s emphasis would largely be on strengthening existing operations while utilizing its asset light growth strategy to expand organically and primarily through brownfield expansions. With its substantial scale and leadership position in the country, the Company expects that India, a high growth market will continue to perform well and will be the mainstay of the Company’s operations for the foreseeable future.
Growth & Expansion Plans
The Company’s plans for future growth are primarily based on bolt on and existing bed expansions. It has formulated an “Earn the Right to Grow Strategy” which encapsulates defined metrics for future bolt on expansion with a focus on expanding margins, adding high end medical programs and ensuring additional operational beds are margin accretive at the earliest. Such calibrated expansion would entail investment primarily by the Religare Health Trust in line with the Company’s stated asset light growth strategy. The Company does not envisage any M&A in the near future and would steadfastly focus on growth and expansion by adding beds in its existing facilities across locations such as Mumbai, Amritsar, NCR, Kolkata, Jaipur, Bengaluru and Ludhiana.
Within H1FY16, two Greenfield hospitals are slated to be commissioned .i.e. Arcot Road, Chennai, a 200 bed multispecialty hospital and Sacred Heart, Bengaluru a 70 bed boutique Mother & Child facility. Both these facilities will consolidate and further strengthen the Company’s presence in these key markets.
Key Highlights - Hospital Business
Key Highlights - Diagnostics Business
Board Appointments
The Board of the Company during the quarter also approved the appointment of Mr. Ravi Umesh Mehrotra as a Non-Independent Non-Executive Director and Ms. Shradha Suri Marwah as an Independent Director. Both these appointments will add considerable width and depth to the Board of Fortis Healthcare Limited, while bringing about greater gender diversity.
Mr Ravi Umesh Mehrotra has over 25 years of experience in Financial Services, globally. He is currently associated with the Religare Group and is a Director in Religare Enterprises Ltd, Religare Health Insurance Co Ltd and, Religare Capital Markets Ltd. Prior to this, Ravi was associated with PineBridge Investments (erstwhile AIG) where he was the Global Head of Retail & Intermediary Channels.
Ms Shradha Suri Marwah is part of the Suri Group. She has over 14 years of experience and is well known for her role in taking Subros Limited, a leading auto air-conditioning systems manufacturing company, to new heights. She is recognised for her abilities in Change management, Research & Development, Human Resources, Quality and IT systems that enable decision support in organisations.
Awards and Recognitions
Awards to our Senior Doctors for meritorious service
Other significant awards
About Fortis Healthcare Limited
Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care speciality facilities. Currently, the company operates its healthcare delivery services in India, Dubai, Mauritius and Sri Lanka with 54 healthcare facilities (including projects under development), approximately 10,000 potential beds and 260 diagnostic centres.
DISCLAIMER
This press release may contain forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this press release, without obligation to notify any person of such revision or changes.
For further details please contact:
Raghu Kochar / Nibha Bhandari Vyas
Fortis Healthcare Ltd
9811617256 / 98110 65557
Anurag Kalra / Gaurav Chugh
Fortis Healthcare Ltd
9810109253 / 9958588900