Fortis Healthcare rose 1.61% to Rs 170.10 after the company's consolidated net profit stood at Rs 53.88 crore in Q3 December 2020 as against net loss of Rs 69.32 crore in Q3 December 2019.
On a consolidated basis, net sales rose 0.7% to Rs 1177.03 crore in Q3 FY21 from Rs 1168.92 crore in Q3 FY20. Profit before tax (PBT) soared 114.2% to Rs 103.13 crore in Q3 December 2020 as against Rs 48.14 crore in Q3 December 2019. Tax expense for the quarter tanked 58.1% to Rs 49.25 crore as against Rs 117.46 crore in Q3 December 2019. EBITDA grew 23.9% to Rs 200.60 crore in Q3 FY21 over Q3 FY20.
In Q3FY21, hospital business revenues were reported at Rs 906.80 crore versus Rs 953.50 crore in Q3FY20. As compared to Q2FY21 revenues grew 21.5%. The hospital business EBITDA was at Rs 138.7 crore versus Rs 133.8 crore in Q3FY20 (15.3% margin versus 14.0%). EBITDA increased 64% compared to Q2FY21.
In Q3FY21, diagnostics business gross revenues increased 22.8% to Rs 306.2 crore, (the highest ever quarterly revenues for SRL) versus Rs 249.4 crore in Q3FY20. As compared to Q2FY21 revenues grew 8.4%. The diagnostics business EBITDA increased 83.3% to Rs 73.0 crore (the highest ever quarterly EBITDA for SRL) versus Rs 39.8 crore in Q3FY20. The EBITDA for Q2FY21 stood at Rs 70.5 crore.
The board approved the acquisition of the balance 50% stake in DDRC SRL Diagnostics (DDRC-SRL) by SRL. DDRC- SRL is an existing 50:50 JV in Kerala between the DDRC group and SRL Diagnostics (a wholly owned subsidiary of SRL). Consummation of the transaction will be subject to the company's shareholders approval and other regulatory approvals as required.
Also Read
SRL's acquisition of the balance 50% 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. The JV has a string of diagnostic laboratories in the state of Kerala and commands the majority market share in the organised diagnostics segment in the state. The JV recorded revenues of Rs 160 crore in FY20.
The proposed acquisition provides SRL an opportunity to consolidate its leadership position in Kerala. It further complements its strategy of growing the B2C business segment and expanding the product portfolio comprising lifestyle diseases tests, specialized tests and preventive packages. Post the consummation of the transaction, the JV would be entirely consolidated with SRL which is currently being shown as Share in associate for SRL's existing 50% stake.
The company has a leverage position with net debt (excluding lease liabilities) of Rs 1,041 crore as of 31 December 2020 as against Rs 1,113 crore as of 30 September 2020. Finance costs in the quarter witnessed a decline of 12% to Rs 42.10 crore primarily as a result of reduction in borrowing costs. Overall Hospital Occupancy stood at 64% in Q3 FY21 over 68% in Q3 FY20 and 57% in Q2 FY21.
Ravi Rajagopal, the chairman of Fortis Healthcare, has stated that: "The company's Q3 results have shown a robust earnings performance with margins in the both businesses witnessing a healthy improvement. With the appreciable efforts of our medical workforce, we have and would continue to be at the forefront of the battle against the pandemic as long as its required. At the same time, we believe the time is apt for us to re-initiate investments in the business whether it be in increasing bed capacity or expanding medical programs."
"We would focus on further strengthening our talent base and enhancing our efforts towards digitization across the network. Our growth imperative also encapsulates inorganic efforts as reflected in SRL's announcement of the acquisition of the 50% stake in the DDRC-SRL JV. This we believe will further complement SRL's existing strategy and also provide it a platform for expanding its presence in other markets in South India. As we approach the next fiscal we remain optimistic that both our businesses would exhibit a progressively better performance and add value for all our stakeholders."
Fortis Healthcare, an IHH Healthcare Group company, is an integrated healthcare services provider. It has 36 healthcare facilities (including projects under development), 4,000 operational beds and over 400 diagnostics centres (including JVs). Fortis is present in India, United Arab Emirates (UAE) & Sri Lanka.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
