Fortis Health care looking for acquisitions

Bolstered by the performance, Fortis Healthcare is looking for acquisition to add around 400 beds in the next six months.

The company is at the various stage of discussion with more than two players in South and West India and is hoping to close the transactions in the current financial year, said Shivender Mohan Singh CEO and managing director of Fortis Healthcare.

Fortis Healthcare reported a net profit of Rs 10.06 cr in the second quarter ending September 2008, against a loss of Rs 15.23 crore in the corresponding period of the previous year.

During the period, net income rose 28% to Rs 155 cr from Rs 121 cr in the second quarter of the last year.

In the first quarter April – June 2008, the company had reported a net profit of around Rs 94 lakh.
Singh said that the core margins for the latest quarter rose to 18% from 8% in the year ago.

“Since the operation has now stabilized, the margin will remain same or improve in coming quarters.”

Fortis, which currently has 2,600 beds in its 22 hospitals, will add 150 beds in Mumbai and another 400 through acquisitions by March, Singh said.

“Ideally we are looking for a ticket size between 150 beds and 200 beds hospital.” Depending upon the structure of the deal, the company would fund these transactions through internal accrual and debts, he added.

The hospital chain, which is targeting 40 hospitals by 2012, also expects to start a new hospital in New Delhi in first half of 2009/10 with an initial capacity of 250 beds. Following the results, the company’s share price gained 4% to close at Rs 56 against the previous close of Rs 53.85.