FORTIS HEALTHCARE LIMITED 
By In line with its strategy to expand its offerings and enhance its geographical footprint, the Company acquired 71.5% stake in Super Religare Laboratories (SRL), one of India’s leading diagnostic companies, for Rs 804 Cr. This strategic investment, in a profitable and growing healthcare services segment will enable Fortis to deliver end-to-end healthcare services to patients and also help augment footfalls in the hospitals.
Key financial and operational highlights for Q1 FY12: Consolidated FinancialsThe Company maintained its growth momentum during the quarter and reported consolidated operating revenue of Rs 483 Cr, representing a growth of
43% over the corresponding period last fiscal. This includes Rs 62 Cr from the newly added Diagnostic vertical (SRL). Operating EBITDA for the quarter stood at Rs 62 Cr, up 27%, representing a margin of 12.8%. The company reported net profit of Rs 14 Cr against a loss of Rs 14.3 Cr in the corresponding period last fiscal.1
Hospital BusinessOperating revenue from hospital business stood at Rs 421 Cr, representing a growth of 25% over the corresponding period last fiscal. The growth has been led by Fortis Mohali, Fortis Mulund, Fortis BG Road, Bengaluru and Fortis Escorts Jaipur.
Operating EBITDA was at Rs 60 Cr, a growth of 24% and margin of 14.9%. However, including the initial start-up losses at the newly commissioned facilities and one-time restructuring costs, the operating EBIDTA stood at Rs 53 Cr, up 10%. On a like-to-like basis, hospital business witnessed net profit of Rs 29 Cr, a growth of 34% over Q1FY11. However, including the start-up losses at the newly commissioned hospitals and one-time restructuring costs, net profit for the quarter stood at Rs 15 Cr.Other highlights of the hospital businessMr Aditya Vij joined as the Chief Executive Officer of the Company. Mr. Vij brings with him rich management experience spanning three decades in the corporate world. He also brings a strategic orientation and execution capabilities, with exceptional leadership qualities.
On June 28, 2011, the Company completed a decade of providing high quality healthcare services and reaffirmed its dedication to its vision of creating a world-class integrated healthcare delivery system, respected for clinical excellence and distinctive patient care. The construction work at the new Oncology Block at Fortis Mohali has begun and this will add depth and width to the existing medical programmes in the hospital. Once completed, the block would have a total of 75 beds.2
Recently, the Company consummated deals for six new hospitals and thereby added
1400 beds to the capacity. This includes built-to-suit properties at Bengaluru, Chennai, Indore and Pune. The Company launched the ‘Medex Transformers’ initiative, to foster medical excellence through processes and people. The areas of focus are clinical excellence, process orientation, people emphasis and customer satisfaction.Diagnostics businessOperating revenue of the Diagnostic business, for the post-acquisition period (~7 weeks), stood at Rs 62 Cr. The overall quarterly revenue for the business was Rs 123 Cr .
Operating EBITDA of SRL for the period under consideration stood at Rs 9 Cr, a margin of 14.3%. For the quarter, operating EBITDA is reported at Rs 16.8 Cr. SRL reported net loss of Rs 1 Cr for the period under consideration.Other highlights of the diagnostics businessSRL continued to add depth to its offerings and launched 19 new tests during the quarter, in the segments of oncology, nephrology, neurology and endocrinology. Two Polymerase Chain Reaction (PCR) based tests for detection of heredity breast cancer and a new range of tests for metabolic disorders were also launched.
SRL continued with its high standard of excellence as it became the diagnostic lab service provider for 18 new studies involving clinical trials.Commenting on the results, Mr. Shivinder M Singh, MD, Fortis Healthcare (India) Limited, said, “In this first quarter of the new fiscal, Fortis continued the growth momentum built up over the past year. We proudly commemorated our tenth anniversary and renewed our commitment to delivering quality healthcare across the nation – pledging free surgeries for patients in need, a second brandof low cost hospitals in smaller towns and the ‘10 in 10’ pledge to announce 10
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new hospitals in 10 weeks. We welcomed the SRL team into the Fortis family and moved a step closer towards creating an integrated healthcare platform. We are also very pleased to welcome our new CEO, Aditya Vij, who brings with him many years of valuable experience and unique leadership capabilities, to guide us going forward. Fortis remains focused on delivering on its promise and we are preparing for the next phase of growth: to bring quality healthcare, at affordable prices, to those who currently lack access to reliable healthcare.”
According to Mr. Aditya Vij, CEO, Fortis Healthcare (India) Limited, “It is an honour to be leading Fortis, recognised for its commitment to quality medicineand its patient-centric approach to healthcare delivery. We are intent on extending our presence beyond the large Indian cities, into India’s tier II and tier III towns over the next three years. To this end, we are focused on standardising our clinical and non-clinical processes, to create a uniform ‘Fortis experience’, no matter where our location. Clinical excellence and innovation will remain the bedrock of our operations, as we strive to distinguish ourselves in the fast- evolving healthcare landscape of our country”.
Network Hospitals:The Network revenues for the quarter grew by 24% and stood at Rs. 511 Cr. The growth was led by Mohali, Noida, Jaipur, Vashi, Jessaram, Mulund, Shalimar Bagh, Anandpur, BG Road and Kalyan.
The Network also witnessed a healthy growth in its International Patient revenue, which grew by 51% to Rs 31.4 Cr, compared to the corresponding quarter last fiscal. This reflects a contribution of 6.4% to the total network revenues.4
About Fortis Healthcare (India) Limited
Fortis Healthcare (India) Limited is committed to clinical excellence and patient-centric healthcare, which is manifest in hospital design, patient services, medical programmes and the compassionate approach of medical and non-medical hospital staff. Fortis commissioned its first hospital in 2001 at Mohali, near Chandigarh, and has expanded its operations to become a network with an over 9,700 bed capacity across 62 hospitals (Including 13 hospitals under project stage). The Fortis network has a large number of international accreditations, including four JCI (Joint Commission International) and eight NABH (National Accreditation Board for Hospitals) certifications. The network’s capability covers multi-speciality hospitals and super-speciality centres that provide tertiary and quaternary healthcare to patients in the major medical specialities.
DISCLAIMER
This press release may contain forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this press release, without obligation to notify any person of such revision or changes.
For further details please contact:
Ranjana Smetacek / Ruhee Dhar Gaurav Chugh / Pawanpreet Singh
Fortis Healthcare (India) Ltd Fortis Healthcare (India) Ltd
9958999840 / 9818102377 9958588900 ranjana.smetacek@fortishealthcare.com / ruhee.dhar@fortishealthcare.com
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