Fortis Healthcare (FORTIS) Q4 11/12 earnings summary

Executive summary

• FY12 was a transformational year: the January 2012 international acquisition expanded the network to 10 countries, 75 hospitals and over 12,000 beds; consolidated revenue doubled as the expanded business was included for Q4.

Financial highlights

• Consolidated operating revenue was ₹2,984 crore, up 100% YoY; total income was ₹3,168 crore, up 63%, including ₹642 crore from international operations and ₹433 crore from diagnostics.

• Consolidated EBITDA was ₹587 crore, up 16% YoY; operating EBITDA was ₹403 crore, up 100% excluding the Parkway transaction impact. Net profit attributable to shareholders was ₹72.2 crore vs ₹124.4 crore.

• Standalone operating revenue was ₹281.1 crore vs ₹265.4 crore; standalone net profit was ₹201.4 crore vs ₹141.8 crore.

Outlook and guidance

• FY13 priorities are consolidation, integration and improving profitability; an asset-light model remained under active consideration.

• Plans called for ~1,500 new beds across four Indian hospitals in the coming year; the Gurgaon flagship was expected to open in Q2 FY13.

• A proposed Religare Health Trust IPO was intended to finance the clinical establishments division and reduce debt; execution depended on restructuring, approvals and market conditions.