Recently, the Competition Commision of India (CCI) approved IHH Healthcare's acquisition of controlling stake in the cash-strapped hospital chain. As part of the agreement, IHH Healthcare will infuse around Rs 4,000 crore by way of preferential allotment.
Indian hospital chain Fortis Healthcare Ltd, which is set to be acquired by Asia’s largest healthcare provider IHH Healthcare Bhd after a prolonged takeover battle, has registered a loss of Rs 167 crore in the second quarter ended on September, due to impairment charges. In the same quarter a year ago, the hospital major – which has operations in India, Dubai, Mauritius and Sri Lanka – had posted a net loss of Rs 45.9 crore.
The consolidated revenues of the company also declined about 5% to Rs 1,140 crore in the quarter from Rs 1,197 crore in the year-ago period. The company incurred a one-time loss of Rs 96.07 crore in the quarter as compared with a loss of Rs 46.76 crore a year ago.
“While this quarter has witnessed strong performance versus the trailing quarter, the impending investment by IHH would further help strengthen the business,” said Ravi Rajagopal, chairman of Fortis Healthcare.
Recently, the Competition Commision of India (CCI) approved IHH Healthcare’s acquisition of controlling stake in the cash-strapped hospital chain. As part of the agreement, IHH Healthcare will infuse around Rs 4,000 crore by way of preferential allotment. The healthcare major is also facing investigations over alleged diversion of funds by Shivinder Singh and Malvinder Singh. According to the company, the transaction is expected to be completed shortly.
As on September 30, 2018, the company had a net debt of Rs 1,497 crore and a net debt to equity ratio of 0.29 times.
Consolidated key financial highlights for the quarter
• Net loss of Rs 167 crore for the quarter from Rs 45.9 crore in the corresponding quarter last year, due to impairment of goodwill and investments respectively.
• Revenues of Rs 1,140 crore as against Rs 1,197 crore in the year-ago period
• EBITDAC of Rs 142 crore with a margin of 12.5% versus 16.7% in September quarter last year
• Operating EBITDA of Rs 75 crore with a margin of 6.6% as compared with 11% in the year-ago period
Key segments financial highlights for the quarter
• In the quarter, hospital business revenues were reported at Rs 900 crore compared with Rs 966 crore in the September quarter last year
• Operating EBITDAC of hospital business at Rs 88 crore with a margin of 9.7% as against 15.5% in Q2 last year
• Diagnostic business net revenues at Rs 235 crore versus Rs 224 crore in the same period last year, and diagnostic business EBITDA of Rs 54 crore with a margin of 23% similar to the same quarter last fiscal