Home / Companies / Company-results /  Fortis Healthcare posts Rs58 crore loss in Sep quarter

New Delhi: Hospital chain Fortis Healthcare Ltd reported a consolidated net loss of 58 crore for the quarter ended September compared with a profit of 32 crore a year ago as the divestment of international assets cut into revenue and it spent more on expansion in India.

Revenue declined by 19% to 1,031 crore in the quarter, compared with 1,282 crore in the same quarter last year.

“Since the company sold off its international business, it would not be fair to compare their performance with previous fiscal year," said Girish Bakhru, an analyst with HSBC.

Fortis sold its stake in its Hong Kong-based Quality Healthcare to British medical services group Bupa for $355 million in 2013. It also sold its 65% stake in Vietnam-based hospital chain Fortis Hoan My Medical Corporation for $80 million.

The company said that its consolidated revenue from its India business rose by 11% to 978 crore.

“Our operating margins have strengthened progressively over the last few quarters as we see an enhancement in the quality of our hospital business and continue to focus on raising the bar in clinical excellence and patient care," said Aditya Vij, chief executive of Fortis Healthcare.

In its attempt to focus on India, the company divested its entire stake in healthcare service provider RadLink-Asia Pte Ltd and its arm RadLink Singapore to Medi-Rad Associates for more than 655 crore in September this year. Fortis also launched a 260-bed hospital in Ludhiana in January.

“The company has been expanding in India and service charge paid to Religare Health Trust is also increasing. These factors have contributed to net loss for this quarter," said another analyst who requested anonymity.

In 2012, Fortis-sponsored Religare Health Trust (RHT) raised 2,260 crore (510 million Singapore dollars) by listing its units on the Singapore Exchange. Through this, the assets of the company became a part of RHT while the Indian-listed firm became a purely healthcare services company. Fortis, through its wholly-owned subsidiaries, holds a 28% stake in RHT.

The company also announced that its CEO Aditya Vij will step down by the end of this year.

“My personal commitments at this juncture require me to concentrate on my family business and investments, as I set a future professional agenda. I will be relinquishing my role with a sense of accomplishment and wish the entire Fortis team all success," Vij said in a company statement.

Shivinder Singh, executive vice-chairman of the company, will assume additional responsibility for the company’s operations in the interim, the statement said.

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