IHH in the driver's seat, analysts expect Fortis to recover in 3 quarters

IHH is planning to use the funds infused in Fortis to finance the Religare Health Trust acquisition

With Malaysia’s healthcare giant IHH at the steering wheel, analysts expect India’s second-largest hospital network, Fortis Healthcare (FHL), would soon be on the road to recovery. 

The occupancy rate is expected to stabilise at around 70 per cent that would fuel a mid-teens margin by the year-end. “Recovery is going to take three more quarters. Going into 2019-20, things will start looking good on a sustainable basis,” said Deepak Malik of Edelweiss Securities. 

The company has seen a rebound in its occupancy levels in the second quarter to 69 per cent from 62 per cent in the previous quarter (Q1FY19). Occupancy levels