The Hindu Business Line : Fortis Healthcare posts Rs 97-cr loss

New Delhi, June 27 Fortis Healthcare Ltd announced net sales of Rs 512.35 crore for the financial year ended March 31, 2007 as against Rs 292.55 in the previous year. The company reported a loss of Rs 97.39 crore as against a loss of Rs 52.81crore during the previous financial year.

The company spokesperson declined to share its results for the last quarter, and said “it wasn’t mandatory” since it just got listed on the BSE in April this year.

This, said Fortis, was primarily on account of incremental interest and goodwill amortization costs due to the full year impact of acquisition of Escorts Heart Institute and Research Centre, as against a six month impact in the last financial year.

The super speciality hospital contributed Rs 319 crore on a consolidated basis, accounting for almost 60 per cent of the company’s income.

Operating profit, said Fortis, was up 122 per cent to Rs 61.52 crore for the year. Operating margins were also up at 11.71 per cent as against 9.3 per cent recorded in the previous fiscal.

The company has attributed this to changes in product and room mix, increased capacity utilisation and strengthening of high-end procedures, particularly cardiac and specialty procedures across hospitals.

Higher share of operation and management (O&M) contracts fee have also improved margins for the company. During the year, the company tied up with Sunrise Medicare, to manage the boutique hospial, Fortis La Femme.

The Ranbaxy-promoted company raised Rs 153.70 crore in pre-IPO placement and Rs 496.80 crore during its IPO in April this year. The company plans to use Rs 361 crore in pre-payment of debt from its acquisition of EHIRC in 2005-06.

Fortis utilised Rs 145 crore towards retirement of its preference capital.

Aggressive plans

“Last fiscal was an eventful year for the company with the starting of our hospital in Vasant Kunj, South Delhi, with a team of top class talent in key specialities, adding to the ones we already have in our group,” said Mr Shivinder M. Singh, Managing Director, Fortis Healthcare.

“We would continue to be in a high growth phase over the next few years, driven by improving efficiencies in existing hospitals and aggressive expansion plans through building, managing and acquiring hospitals,” he said in a statement.

The company is also reported to have signed an agreement with Ansal Properties and Infrastructure Ltd for a Fortis Medicity in Ansal’s Sushant Golf City in Lucknow.

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Fortis Healthcare posts Rs 97-cr loss