Fortis Healthcare posts Rs 53.88 crore net profit for December quarter

Fortis Healthcare | Representative Image.

Fortis Healthcare on Friday reported a consolidated net profit of Rs 53.88 crore for the quarter ended December 31, 2020, mainly on account of robust performance of its diagnostics segment and reduction in expenses. The company had posted a net loss of Rs 69.32 crore in the corresponding period of the previous fiscal, Fortis Healthcare said in a filing to the BSE.

Its consolidated revenue from operations during October-December 2020 stood at Rs1,177.03 crore. It was Rs 1,168.92 crore in the year-ago period, it added. The firm's board of directors also approved the acquisition of the balance 50 percent stake in DDRC SRL Diagnostics PVt Ltd by SRL Ltd, Fortis Healthcare said.

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"SRL's acquisition of the balance 50 per cent stake in the DDRC-SRL JV would be for a total purchase consideration of Rs 350 crore inclusive of the ownership of the DDRC brand," it added. The hospital business revenues for the third quarter ended December 2020 were at Rs 906.8 crore as against Rs 953.5 crore a year ago, according to the filing.

"Q3 FY21 diagnostics business gross revenues increased 22.8 per cent to Rs 306.2 crore, versus Rs 249.4 crore in the third quarter of 2019-20," it added. The total expenses of the company for the quarter ended December 2020 stood at Rs 1,101.79 crore. It was Rs 1,129.86 crore for the same period a year ago, the filing said.

The company has a comfortable leverage position with net debt (excluding leaseliabilities) at Rs 1,041 crore as of December 31, 2020, against Rs 1,113 crore as of September 30, 2020, Fortis said. Finance costs in the quarter witnessed a decline of 12 per cent to Rs 42.1 crore, primarily as a result of reduction in borrowing costs, it added.

"The company's Q3 results have shown a robust earnings performance with margins in the both businesses witnessing a healthy improvement," Fortis Healthcare Board of Directors Chairman Ravi Rajagopal said. As the company approaches the next fiscal, it remains optimistic that both its businesses would exhibit a progressively better performance and add value for all its stakeholders, he added.

In a similar vein, Fortis Healthcare MD and CEO Ashutosh Raghuvanshi said, "The quarter's performance has reiterated our belief that we are progressing towards normalisation by the start of the next fiscal." He added that both the businesses have witnessed an uptick in their performance led by the recovery in non-covid business metrics.

Both businesses are well placed for future growth and expansion, he added. Shares of Fortis Healthcare Ltd on Friday closed at Rs 167.40 per scrip on the BSE, down 2.28 per cent from its previous close. Shares of Fortis Healthcare Ltd on Friday closed at Rs 167.40 per scrip on the BSE, down 2.28 per cent from its previous close.