Fortis registers 82% revenue growth

Operating EBITDA at 48.5 cr, up 70% q-o-q; Interest costs related to recent acquisition bring the net down

Fortis Healthcare Limited, one of India’s leading healthcare providers with a network of 48 hospitals, today announced the un-audited consolidated results for the three month period ended June 30, 2010.

The Company maintained the growth momentum with a record operating EBITDA. Several complex medical procedures were performed at hospitals across the network and newer services inaugurated; thereby reaffirming the company’s commitment towards medical excellence. There was significant increase in revenues from international patients during the quarter.

Key financial and operational highlights for Q1 FY11:

• Fortis Malar Hospital - Chennai carried out its first heart transplant, catapulting it into the select league of hospitals with the advanced capability to perform such complex procedures.
• Other landmark surgeries performed during the quarter involved a combined cardiac bypass and liver tumour surgery; removal of a parasitic twin protruding out of the abdomen of a child, a feat that is being covered by Discovery Channel.
• Fortis Escorts Heart Institute, Delhi; Fortis Hospital, Mohali; Fortis Hospital, Noida; Fortis Escorts, Jaipur and Fortis Malar Hospital, Chennai led the performance with a record growth in Operating Revenue of 15%, 25%, 39%, 37% and 33% respectively.
• Income from key Super Specialities viz. Cardiac Sciences, Orthopaedics and Neuro Sciences grew 20%, 16% and 63% respectively, across the Network
• Operating Revenue grew by 82% over Q1 FY10 and stood at Rs.337.9 Cr. This includes Rs. 94.2 Cr. from newly acquired hospitals from Wockhardt.
• Operating EBITDA of base business was Rs. 48.5 Cr, a healthy 73% growth over Q1 FY10.
• Net loss for the quarter was reported at Rs. 14.3 Cr. This includes the net interest costs and other related expenses on overseas borrowings for investments in Parkway Holdings Limited, of Rs. 35.9 Cr. Excluding such costs, the net profit for the quarter stood at Rs. 21.6 Cr, up 186% over Q1 FY10.
• Capacity expansion work commenced at Fortis Escorts Heart Institute – Delhi, Fortis Mohali and Fortis Escorts Jaipur hospitals. Mulund Hospital is expected to commission its radiation oncology unit in the ensuing quarter.
• The 414 bedded hospital at EM Bypass Road, Kolkata and 250 bedded hospital at Shalimar Bagh, New Delhi are ready for commencement of services in the ensuing quarter.
• The company issued US$100 Million 5% Foreign Currency Convertible Bonds (FCCBs) during the quarter, to fund potential acquisitions as the company takes steps to establish itself as a global healthcare provider.
• The company also called for the conversion of detachable warrants from the holders of the rights shares, thereby infusing Rs. 1342 Cr. of equity. This will reduce the financial leverage of the company.

Network hospitals:

The Network revenues for the quarter grew by 70% and stood at Rs.413 Cr. The growth is attributed to the addition of Fortis Hospitals (earlier called as Wockhardt hospital) which contributed Rs.94.2 Cr. during the quarter. The hospitals across the network performed over 12,000 cardiac procedures, over 2,500 Orthopaedic procedures and ~2,000 Oncology procedures.

Fortis Clinique Darné hospital in Mauritius grew significantly and attained new heights in medical care. The new medical programs on Mother and child and neonatal ICU helped achieving highest ever revenues for the hospital, during the quarter.

Fortis Hiranandani Hospital – Vashi launched a MedSpa Centre and started an IVF programme at the hospital, as it expanded the gamut of medical services and endeavoured to entrench itself as a reputed player in the market.

Commenting on the results, Mr. Shivinder M Singh, Managing Director, Fortis Healthcare Limited, said, “The past quarter has been very exciting for us at Fortis. Apart from establishing our vision of being a Pan-Asian healthcare player, we have continued our focus on clinical excellence through improved quality of care and improving operating efficiencies.

We firmly believe that the 'Fortis-edge' we have created in India can create significant value for customers in Asia, just as it continues to provide a caring and high quality experience for our patients in India.”