Fortis Healthcare announces FY20 and Q4 FY20 Consolidated Financial Results

Fortis Healthcare Ltd. ("Fortis" or the "Company"), India's leading healthcare delivery company, today announced its audited consolidated financial results for the quarter and year ended March 31, 2020.

FINANCIAL HIGHLIGHTS

- The Company recorded a Profit after tax after Minority interest (PATMI) of INR 58 Crs in FY 20 versus a loss of INR 299 Crs in the previous year. PATMI for FY 20 was impacted by a non-cash Deferred Tax Asset (DTA) charge in Q3 FY20 of INR 102 Crs. This was due to the Company de-recognizing DTA in respect of one of its subsidiaries partially off-set due to recognition of DTA in certain other subsidiaries; basis their respective future taxable profits.

- For the quarter, PATMI stood at a loss of INR 45 Crs versus a profit of INR 136 Crs in Q4FY19. PATMI in Q4FY19 includes share in associates of INR 333 Crs which was on account of profit recognized by an associate Company for selling its hospital assets.

- Net debt to equity ratio stood at 0.14 times as of 31 March 2020 similar to the ratio as of 31 March 2019. Net debt (excluding lease liabilities) stood at INR 1,013 Crs versus INR 974 Crs in the previous year.

- Finance costs witnessed a decline of 39% to INR 205 Crs for the year as a result of lower borrowing costs, reduction in high cost debt and improvement in credit rating by 4 notches (from BBB- to A) during the year.

- Company witnessed an improvement in its workings capital management; led by higher collections, a streamlined billing process and better inventory management.

- FY 20 Hospital Business revenues at INR 3,752 Crs, up 6.4% over prior year. EBITDA for the business stood at INR 476 Crs representing a margin of 12.7% versus 2.8% in FY19

- Q4 FY20 Hospital business revenues at INR 913 Crs, versus INR 919 Cr in Q4 FY19 despite the Covid-19 impact in the quarter. EBITDA at INR 104 Cr, up 103% versus previous corr.

Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated, "Fortis has been through a transformational journey in the past several quarters and I am pleased to state that all our efforts to ensure business normalization and continuity have assisted Fortis in reestablishing itself as an eminent healthcare organization in the country. With a new Board and management team, a new direction with "An aspiration to be the most trusted healthcare organization in India" would see the Company strengthening its fundamental building blocks of clinical talent and patient servicing. In parallel, the Board would support and guide management in optimizing its key value levers related to capacity expansion, commissioning of high-end medical programs and technologies and digital transformation; all within an institutionalised framework of strong systems, governance protocols and internal control mechanisms. FY20 has been an inflexion year for the Company with a healthy operating and financial performance especially with respect to the hospitals business and we are working diligently on improving the diagnostics operations with clear cut objectives. I am hopeful that this is the beginning of an eventful period in the journey of Fortis and remain optimistic that as we move forward, we will continue to see a stronger organization and be able to enhance value for all our stakeholders."

Commenting on the results for the year, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, "Our business performance has seen a healthy turnaround in the year gone by led by a consistent quarter on quarter improvement. We have witnessed a robust margin expansion in the hospital business with a number of facilities seeing a strong operational performance. We have taken significant strides to ensure that we build on our fundamental strengths of clinical excellence and patient centricity and in parallel have undertaken a portfolio assessment to ensure that we leverage our existing geographical presence to drive higher synergies. Our diagnostics business potential is yet to be unlocked and we are taking the required measures to ensure that the business comes back on the growth trajectory in the near future. Cost efforts have and will always continue to be imbibed in the ways of our working across all parameters; be it expense lines, working capital, procurement or manpower productivity. This will ensure that we run a lean and nimble organization. In the end it is with a sense of pride and gratitude that I would also like to express my sincere appreciation to the grit and determination shown by our healthcare workforce in these challenging times of COVID. I remain optimistic that we will surmount these tough times and emerge as stronger healthcare organization that will be steadfastly focused on driving business and strengthening profitability."

Shares of FORTIS HEALTHCARE LTD. was last trading in BSE at Rs.123.15 as compared to the previous close of Rs. 123.55. The total number of shares traded during the day was 39825 in over 667 trades.

The stock hit an intraday high of Rs. 124.95 and intraday low of 122.3. The net turnover during the day was Rs. 4920116.

Source : Equity Bulls

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