Fortis Healthcare records 77% growth in total income

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Fortis Healthcare records 77% growth in total income

Fortis Healthcare records 77% growth in total income, EBITDA up by 122% to Rs 61.52 crore

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Fortis Healthcare Limited (FHL), one of India's largest private healthcare companies, announced its consolidated financial results for financial year ended March 31, 2007. The consolidated total income for the period stood at Rs 525.40 crore, as against Rs 297.08 crore last year. The consolidated EBITDA grew significantly to Rs 61.52 crore, up 122% over the last fiscal.

The EBITDA margins saw an improvement during the fiscal at 11.71 % as against 9.3% in the previous fiscal. This was achieved through changes in product and room mix, increased capacity utilization and strengthening of high-end procedures, particularly cardiac and specialty procedures across hospitals. Higher share of operate and management (O&M) contracts fee have also improved margins

FHL recorded a net loss of Rs 97.39 crore, which grew from Rs 52.92 crore in the previous fiscal. The net loss increase is primarily on account of incremental interest and goodwill amortization costs due to the full year impact of acquisition of Escorts Heart institute and Research Center Limited , as against six month impact in the last financial year.

In FY 07, FHL issued 10.67 million shares as pre-IPO placement raising Rs 153.70 crore. In FY 08, FHL issued 45.96 million shares through an IPO, raising Rs 496.80 crore. Out of these proceeds, FHL utilized Rs 361 crore in pre-payment of debt, particularly used for the strategic acquisition of Escorts Heart Institute and Research Centre Ltd (EHIRCL) in 2005-06. This is expected to bring down the interest costs in the coming years. FHL also utilized Rs 145 crore towards retirement of its preference capital.

Commenting on the performance and plans of the company, Mr Shivinder M Singh, MD, Fortis Healthcare Ltd said, "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 specialties, adding to the ones we already have in our group. Our entry into Jammu & Kashmir and launching of Fortis La Femme as a boutique hospital for women are important steps in our growth trajectory. 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. We are committed to bring in quality clinical care to the common man"

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Future growth drivers

In FY07, FHL commenced three important projects: Fortis Flt Lt Rajan Dhall Hospital in South Delhi, Fortis Hiranandani Hospital at Vashi, Mumbai, and Khyber Medical Institute in Kashmir. The Vasant Kunj hospital in New Delhi is a super-specialty hospital with "centers of excellence" in cardiac care, joint replacement, renal care, pulmono-thoracic surgery, and diabetic care, and also provides emergency trauma care services. It currently has six operating theaters and 120 beds, with capacity for up to 200 beds. Fortis Healthcare Ltd acquired equity interest in Hiranandani Healthcare Private Ltd, which has an agreement with Navi Mumbai Municipal Corporation to develop a 150-bed hospital. Khyber Medical Institute, Srinagar is a multi-specialty hospital with a focus on non-invasive cardiac care and gastroenterology.

Increased patient care infrastructure

FHL has the capacity to increase inpatient beds to approximately 1,790 beds and has performed more than 6,000 open heart surgeries, 5,000 angioplasties and 16,000 angiographies in the last fiscal. The number of doctors on FHL's rolls increased to 772 in FY07 as compared to 647 in FY06. The staff strength increased to 4666 from 3889 in the corresponding period.

Sourced From: Adfactors Public Relations Pvt Ltd