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  1. Fortis Healthcare shares gain despite 74% fall in Q1 net profit, here is why

Fortis Healthcare shares gain despite 74% fall in Q1 net profit, here is why

Fortis Healthcare shares jumped over 4 per cent in the early trade on Friday after the board gave an approval to demerge its diagnostic business which includes operations in SRL Ltd

By: | New Delhi | Updated: August 5, 2016 4:29 PM
BSE Sensex, NSE Nifty, fortis healthcare Fortis Healthcare shares jumped over 4 per cent in the early trade on Friday (Photo: Reuters)

Fortis Healthcare shares jumped over 4 per cent in the early trade on Friday after the board gave an approval to demerge its diagnostic business which includes operations in SRL Ltd and also approved an enabling fund raising option up to Rs 5,000 crore including but not limited to QIP, FCCB, convertible securities or any other method. However, the company reported 74.07 per cent year-on-year fall in consolidated net profit at Rs 25.26 crore for the quarter ended June 30, 2016 against Rs 97.40 crore in the corresponding quarter a year ago. Gross sales of the company grew by 7.64 per cent year-on-year to Rs 1,103.22 crore during the quarter under review against Rs 1024.95 crore in the same quarter last year.

At 9.34 am, shares of the company were trading 3.02 per cent up at Rs 193. The scrip opened at Rs 192.90 and has touched a high and low of Rs 195.70 and Rs 191.10, respectively, in trade so far. Later, the scrip closed 0.64 per cent up at Rs 188.55.

In a BSE filing, the company said, “The board on August 4 gave in-principle approval to demerge its diagnostic business which includes operations in SRL Ltd, and in this regard the board has formed a restructuring committee to detail the nuances of the demerger structure, including valuation, share entitlement ratio and incidental matters and to present the same before the board on August 19 for final approval.”

On a standalone basis, the company reported net loss of Rs 7.05 crore for the quarter ended June 30, 2016 against net loss of Rs 19.31 crore in the corresponding quarter a year ago.

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