 "Fortis CEO steps down, reports Q2 net loss at Rs 58 crore")
Fortis Healthcare has reported a consolidated net loss of Rs 58.12 crore in the second quarter of the current financial year as against a net profit of Rs 32.06 crore in a year ago period. Consolidated revenue during the quarter under review stood at Rs 1,031 crore compared to Rs 1,281 crore in a year ago period showing a decline of about 19.5%.
Meanwhile, the Gurgaon-based company announced that Aditya Vij, chief executive of the company, has resigned and will leave the company by the end of this year. Vice chairman Shivinder Singh would take interim charge.
Vij was CEO of company since mid-2011 and now he will pursue his family business and investments.
"Our operating margins have strengthened progressively over the last few quarters as we see an enhancement in the quality of our hospital business and continue to focus on raising the bar in clinical excellence and patient care," said Vij.
According to the company, the reported results for Q2FY15 are not comparable to the corresponding previous period due to progressive divestments of the company's international businesses namely Fortis Hoan My, Vietnam and Quality Healthcare, Hong Kong during the course of FY 2014.
"Post the international divestments, Fortis is realigning its talent to further consolidate and grow its business," the company added in a statement.
During the quarter under review, the company announced the divestiture of RadLink-Asia Pte Ltd, Singapore, to Medi-Rad Associates Ltd, an indirect wholly-owned subsidiary of IHH Healthcare Berhad, for SGD 137 million. "This is in line with the company's strategic decision to intensify its focus on its businesses in India," the firm pointed out.
The net debt of the company as on 30 September 2014 was at Rs 1,205 crore, down from Rs 2,963 crore as on 30 September 2013 representing a comfortable net debt to equity ratio of 0.24x (as compared to 0.63x as on 30 September 2013).