Fortis Q1 net loss is Rs 221 cr

Company reported net loss of Rs 60.42 crore in the same quarter a year-ago

Fortis Healthcare today posted a consolidated net loss of Rs 221.3 crore for the first quarter ended June 30, 2013, primarily due to a one-time forex loss relating to divestment of Australia-based Dental Corporation.

The company had reported net loss of Rs 60.42 crore in the same quarter a year-ago

Fortis Healthcare's income from operations during the quarter under review stood at Rs 1,503.63 crore. It was Rs 1,395.58 crore in the corresponding quarter of last year.

The healthcare major said results for the quarter included financials of Dental Corporation, Australia from April to May 2013 as against the full quarter in Q1 FY 2013 and are hence not comparable.

The divestiture of Dental Corporation was completed on May 31, 2013, and effective June 1, 2013 the business was deconsolidated, it added.

Commenting on the company's performance, Fortis Healthcare Group CEO Vishal Bali said: "This has been a significant quarter for the company in strengthening the balance sheet. Our India business continues to show robust organic growth. Over the coming quarters, we will continue to strengthen the organisation organically."

He added that the company continues to evaluate its portfolio of businesses to ensure the right strategic fit and further strengthen its focus in geographies and verticals that present relatively better growth opportunities, especially markets such as India.

"We are focusing on India as it contributes around 70% of the revenues. Though, we still have some international assets, our focus now remains India," Bali said in a conference call.

While, revenue from domestic business increased by 21.31% at Rs 811.87 crore, revenue from international business declined by 4.66% at Rs 705.53 crore.

When asked the company's growth plans in India, Bali said: "We have operationalised one hospital, while two more hospitals at Ludhiana and Chennai, would get operational in the current fiscal, thereby adding additional 500 bed capacity."

Bali said that the divestment of certain international assets has been done to strengthen the balance sheet and reduce debt.

The company's total debt now stands at Rs 3,283 crore, he added.

Besides the company said it made a preferential allotment of 18.8 million equity shares to International Finance Corporation (IFC) aggregating to an investment of nearly $33 million.

In addition, IFC further invested $55 million in the form of Foreign Currency Convertible Bonds (FCCBs) issued by the company. IFC's total investment in the Fortis now stands at $100 million.

Shares of Fortis Healthcare closed at Rs 96.05 apiece at the end of day's trade, up 1.21% from the previous day's close on the BSE.