Fortis Healthcare's operating profit increases in Q2FY16

Fortis Healthcare (FHL) declared its Q2FY16 results yesterday. The company's revenue increased by 4.55 per cent to Rs 1097 crore in Q2FY16 as compared to same period in previous quarter. Its total expenditure increased by 2.73 per cent to Rs 1026 crore in Q2FY16 on quarterly basis.

FHL's EBITDA boosted by 40.54 per cent to Rs 71 crore in Q2FY16 as compared to the previous quarter. The company's EBITDA margin expanded by 166 basis points to 6.47 per cent in Q2FY16 on quarterly basis. Its PBT reduced by 48.96 per cent to Rs 42.54 crore in Q2FY16 on quarterly basis as it witnessed exceptional loss of Rs 20.61 crore in Q2FY16 against exceptional gain of Rs 87.25 crore in Q1FY16. Meanwhile, FHL's interest expense reduced by 13.42 per cent to Rs 27.55 crore and other income rose by 127.25 per cent to Rs 72.81 crore in Q2FY16 on quarterly basis. The company reported that the net profit decreased by 61.07 per cent to Rs 33.98 crore in Q2FY16 as compared to previous quarter. Its net profit margin contracted by 522 basis points to 3.1 per cent in Q2FY16 on quarterly basis.

FHL divested company's international businesses, namely RadLink Asia, Singapore and Fortis Surgical Hospital Singapore, which were a part of the Company’s business in Q2 FY15 and were divested in Q1 FY16.

On yearly basis, FHL's revenue increased by 6.39 per cent to Rs 1097 crore in Q2FY16 as compared to the same period in previous fiscal year. The company's total expenditure rose marginally by 0.83 per cent to Rs 1026 crore in Q2FY16 on yearly basis. Its EBITDA rose by 420.91 per cent to Rs 71 crore in Q2FY16 on yearly basis. FHL reported net profit of Rs 33.98 crore in Q2FY16 against net loss of Rs 58.12 crore in Q2FY15.

FHL's shareholding pattern indicates that FII holdings expanded by 154 basis points to 10.8 per cent while DII holdings contracted by 4 basis points to 0.25 per cent in September 2015 quarter. The share price of the company increased by 3.39 per cent on bourses in early trades and is trading at Rs 163.3 on intraday basis.

FHL manages and operates a network of multispecialty hospitals and diagnostic centers. The Company establishes, maintains, operates, runs, manages or administers hospitals, medicare, healthcare, diagnostic, health aids and research centers. The Company also offers day care specialty facilities. It operates its healthcare delivery services in India, Dubai, Mauritius and Sri Lanka with approximately 54 healthcare facilities and approximately 260 diagnostic centers. FHL's clinical specialties include nephrology, cardiology, oncology, dermatology, ophthalmology, obstetrics and gynecology. The Company offers medical procedures, including knee replacement surgery, kidney transplant surgery, cancer treatment, hip replacement surgery, eye surgery and liver transplant surgery, among others.