Mumbai: Fortis Healthcare Ltd, the hospital chain promoted by former promoters of drug maker Ranbaxy Laboratories Ltd, on Friday reported a growth in net profit to Rs7.55 crore on revenues of Rs185.43 crore for the quarter ended 30 June.
The company, which is India’s second largest hospital chain after Apollo Hospitals Ltd and has 3,300 beds across the country, posted a net profit of Rs94 lakh in the year-ago quarter on revenues of Rs139 crore.
The company, however, is yet to make provisions for the impact of increased rate of minimum alternate tax as the Budget recommendation was passed after the financial reporting period for the quarter.
Fortis, which is proposing a nationwide expansion by a mix of acquisitions and new hospitals, had in April announced it would raise up to Rs1,000 crore by issuing equity shares and warrants.
“Hospital business, though initially highly cost-intensive, can improve profits once the volume is built up because of the almost constant fixed costs on operations, which is the main reason for the high profit even with a comparatively low growth in income,” a Mumbai-based industry analyst with a investment bank said on condition of anonymity.
Fortis posted higher expenditure on materials and employee expenses, among other costs, during the period, compared with a year ago.
The hospital company that was in talks to acquire a majority stake in the Mumbai-based Wockhardt Hospitals Ltd, promoted by the Khorakiwala family, and recently entered into a strategic tie-up with Mumbai’s S.L. Raheja Hospital to manage that property.