Fortis Healthcare (FORTIS) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated income rose 4.3% YoY to Rs 548 crore; EBITDA was Rs 61.8 crore, while attributable net loss narrowed to Rs 55.5 crore from Rs 98.1 crore.ocument-source]32ocument-source]

• Disruption from a leadership change at the flagship Delhi hospital weighed on revenue; growth at other hospitals offset the impact. Cash profit was Rs 5.4 crore versus a cash loss of Rs 16.2 crore in FY07.ocument-source]9ocument-source]

• Expansion continued with Jaipur’s opening, Malar Hospitals’ addition in Chennai, and construction of Shalimar Bagh and Gurgaon hospitals.ocument-source]18ocument-source]

Financial highlights

• Consolidated operating income was Rs 507.1 crore versus Rs 519.4 crore YoY; total income was Rs 548.0 crore versus Rs 525.4 crore.ocument-source]70ocument-source]

• Consolidated EBITDA, stated as profit before interest, depreciation and tax, was Rs 61.8 crore; consolidated net loss attributable to shareholders was Rs 55.5 crore versus Rs 98.1 crore.ocument-source]32ocument-source]70ocument-source]

• Standalone total income increased 43% to Rs 190.1 crore; PAT was Rs 2.6 crore versus a Rs 48.7 crore loss in FY07, and EPS was Rs 0.12 versus negative Rs 2.85.ocument-source]19ocument-source]38ocument-source]

• Standalone operating income rose to Rs 157.9 crore from Rs 128.5 crore; operating profit before finance, depreciation and tax increased to Rs 43.5 crore from Rs 13.9 crore.ocument-source]38ocument-source]

Outlook and guidance

• FY09 focus is on realizing benefits from FOS, centralized procurement and newer facilities; management expected positive returns from early in the year and robust revenue growth.ocument-source]6ocument-source]

• Shalimar Bagh was expected to commission in H1 2009; Gurgaon Medicity was planned in phases, reaching 1,000 beds in the second phase.ocument-source]32ocument-source]

• Long-term strategy targets a 40-hospital network by 2012 through greenfield development, acquisitions, O&M contracts and expansion of existing facilities.ocument-source]10ocument-source]