Fortis Q3 net loss narrows to Rs 69.32 cr on good show in hospital business

Fortis Healthcare on Friday reported narrowing of its consolidated net loss to Rs 69.32 crore for the quarter ended December 31, 2019, mainly on account of robust performance in its hospital business.

The company had posted a net loss of Rs 180.11 crore for the corresponding period of the previous financial year, Fortis Healthcare said in a filing to the BSE.

Its consolidated revenue from operations stood at Rs 1,168.92 crore for the quarter under consideration. It was Rs 1,103.27 crore for the same period a year ago.

The third quarter of 2019-20 continues to witness earnings growth with margin expansion in the hospitals business. Hospital business revenues stood at Rs 953.5 crore, a growth of 7.3 per cent. Hospital business contributes around 80 per cent to overall revenues and Ebitda, Fortis Healthcare said.

The diagnostic business gross revenue was Rs 249.4 crore as against Rs 242.6 crore, a growth of 2.8 per cent. This was impacted by the abnormally severe winter in north and central India especially in the month of December, it added.

Net debt-to-equity ratio stood at 0.17 times. Net debt was Rs 1,237 crore in the quarter, Fortis Healthcare said.

"The Q3 results are the third successive quarter of an improved earnings performance specifically from the hospital business," Fortis Healthcare Board of Directors Chairman Ravi Rajagopal said.

While the diagnostics business has shown a stable performance, the company is cognisant of the inherent potential that this business offers, he added.

In a similar vein, Fortis Healthcare MD and CEO Ashutosh Raghuvanshi said, "I am pleased with our hospital business operations having progressively improved over successive quarters as reflected in the continuous margin expansion being witnessed."

The company continues to focus on the key expense line items across the network in order to ensure that "we run a leaner organisation and our balance sheet remains robust with low gearing and a more efficient working capital cycle", he added.

Shares of Fortis Healthcare on Friday closed at Rs 156.05 per scrip on the BSE, down 0.95 per cent from its previous close.