Fortis Healthcare aims for profits this year

The company plans to sell the last of its overseas assets and strengthen its domestic presence

Fortis Healthcare, the country’s second largest in the segment, is looking to post profits this year after having significantly reduced its debt.

The company plans to sell the last of its overseas assets, a pathology lab in Dubai, and strengthen its presence in India.

Fortis has trimmed its debt from Rs 4,600 crore a couple of years ago to less than Rs 1,200 crore by selling most of its overseas assets. “We are done with operations abroad. We have one pathology lab in Dubai and we are working to wind it up,” said Bhavdeep Singh, chief executive officer.

Singh, who returned to Fortis as chief executive in July after four years, said the focus during his previous stint was on growth. “Today, our focus is on becoming the best patient care provider in the country. You will not read any headline on growth plans from us. It is not something we are thinking about now.”
 

Fortis had reported a consolidated income of Rs 4,089 crore in the year ended March 31, and a net loss of Rs 144 crore. Its finance cost stood at Rs 153 crore. This will come down further this year as the company has retired additional debt. “Debt is no longer significant. Cost and processes need to be managed better till operations become more efficient. Our goal is to work towards becoming profit after tax positive by the end of the year. I am optimistic about it. We are going to do certain things in the next 12-18 months that will help the financials,” Singh said.

Singh, along with the two promoter brothers, Malvinder Mohan Singh and Shivinder Mohan Singh, is working to review processes and introduce internal benchmarks to help cut costs and improve efficiency.

“We have started conducting business reviews in hospitals instead of in corporate offices. And, we are not going to the most comfortable of our hospitals. The meetings are held in secondary and tertiary hospitals. Before starting a review, we spend a couple of hours walking around to take stock of the situation,” said Singh.

Fortis will also look at expanding in areas where it has a smaller presence.