Fortis logs in seven-fold increase in net profit in Q1, FY10
New Delhi: On the back of improved cost management, Fortis Healthcare Ltd (FHL) has recorded more than seven-fold growth in net profit at Rs 7.55 crore during the first quarter 2009-10, as against Rs 94 lakh during the same quarter last fiscal.
Consolidated Q1 sales of FHL, which operates a network of 28 hospital in India and abroad, were up 27 percent at Rs 188.54 crore as against the same period in 2008-09.
It had sales of Rs 148.35 crore in Q1 2008-09.
The company said all the hospitals of FHL performed "exceedingly well" with Escorts Heart Institute and Research Centre (EHIRC), Delhi, and Fortis Escorts, Jaipur, recording a 50 percent jump in revenue.
"The revenue growth was because of better cost management. Also, our continued focus on medical programmes and strengthening of the Fortis brand across the country helped us achieve good results," FHL Chief Financial Officer Yogesh Sareen said.
During the quarter, FHL assumed the charge of S L Raheja Hospital in Mumbai, adding a capacity of adding 280 beds. In all, Sareen said FHL now has 3,300 beds and it plans to have 6,000 by 2011.
Besides, the company's key specialties – cardiac sciences, orthopedics, and neuro and gastro sciences – grew over 40 percent.
FHL also plans to invest in new medical programmes like neuro- and cardiac-science. "Besides, it would take up new medical research initiatives," Sareen said.
The company said that it is in the process of filing a Letter of Offer with market regulator SEBI for its plan to raise Rs 1,000 crore through equity shares with warrants on a rights basis.
It also said that it has utilised Rs 465.37 crore out of the IPO proceeds, while the un-utilised Rs 31.38 crore has been invested in fixed deposits.