Fortis Healthcare (FORTIS) Q4 12/13 earnings summary

Executive summary

• FY13 consolidated revenue was ₹6,052 crore, including ₹1,808 crore from discontinued Dental Corporation operations; continuing-operations revenue was ₹4,243 crore, up 62% YoY.

• Strategic priorities shifted toward India and asset-light growth; Australia’s Dental Corporation stake was sold and Vietnam’s Hoan My stake was slated for divestment.

• RHT’s Singapore listing raised gross proceeds of SGD 511 million and reduced net debt-to-equity to 1.0x at March 31, 2013, from 1.6x a year earlier.

Financial highlights

• Continuing-operations operating EBITDA was ₹347 crore after RHT-related costs; consolidated PAT was ₹500 crore, including discontinued operations and a one-time RHT transaction gain.

• Continuing-operations PAT after exceptional items and minority interest was ₹491 crore; total consolidated PBT was ₹796 crore and PAT was ₹500 crore.

• Standalone revenue from operations rose to ₹353 crore from ₹281 crore, while standalone net profit fell to ₹17 crore from ₹201 crore.

Outlook and guidance

• FY14 plans included ~1,000 additional India beds and launches in Chennai and Ludhiana; FMRI began operating with 450 beds in Phase I.

• Fortis Hospital Arcot Road, Chennai, and Ludhiana were expected to launch in H2 FY14; the Mohali 55-bed oncology block was also targeted for H2 FY14.

• Growth plans prioritize brownfield and bolt-on expansion, operating and management contracts, leasing and asset-light projects to moderate capital expenditure.