The Hindu Business Line : Fortis Q2 health weakens with Rs 26.7 cr net loss

New Delhi, Oct. 29 The Ranbaxy-promoted Fortis Healthcare has reported a net loss of Rs 26.7 crore for the second quarter ended September 30. Last fiscal, the company had reported a loss of Rs 20.36 crore for the same quarter.

Net sales for the quarter, at Rs 128.72 crore, were marginally higher than Rs 121.36 crore reported during the corresponding quarter the previous year.

Fortis, which owns the Escorts Heart Institute and Research Centre, admits to at least Rs 10-crore hit by the exit of some of its doctors, including Executive Director and Chief Cardiologist Dr Naresh Trehan after a public fallout between the Fortis management and Dr Trehan in May.

“The development did see a dip in our sales, however, we have put a good team together and hope to fill up our beds in the coming quarters,” said Mr Daljit Singh, President-Strategy and Organisational Development, Fortis. Consolidated EBITDA for the quarter were at Rs 10.26 crore.

The company acquired stake in Chennai-based Malar Hospital and expects to make an open offer and complete the acquisition during the third quarter, said Mr Pawanpreet Singh, CFO, Fortis. Revenues from Malar are expected to be incorporated in the quarter thereafter.

Shares of the company closed on Monday at Rs 77.10, down 2.71 per cent from the previous close.

“We have been concentrating on a growth trajectory. We have acquired Malar Hospital, and also commenced our Gurgaon project and our Shalimar Bagh hospital,” said Mr Daljit Singh. The flagship, Fortis-Escorts Hospital at Jaipur was also inaugurated during the last quarter.

Fortis expects better results in the coming quarters. It also expects to continue with its expansion ambitions. “Our strategy of inorganic growth remains, and we will continue to look at opportunities that come up,” said Mr Pawanpreet Singh.

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