Fortis Healthcare Ltd posts consolidated net loss of Rs45.90cr in Q2FY19 vs. net profit of Rs23.20cr in Q2FY18 : Misses Estimates

The company’s consolidated revenue stood at Rs1,139.90cr, down 4.78% yoy but up 9.39% qoq.

Nov 06, 2018 10:11 IST India Infoline Research Team

Fortis Healthcare Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 1,139.90 [4.8]
EBITDA 64.13 [39.8]
EBITDA Margin (%) 5.6 [326]
Net Loss (adjusted) 45.90 0
***EBITDA margin change is bps

Fortis Healthcare’s revenue in Q2FY19 declined 4.8% yoy to Rs1,139.9cr. EBITDA declined 39.8% yoy to Rs64.1cr in Q2FY19 vs. Rs106.4cr in Q2FY18. EBITDA margins stood at 5.6% in Q2FY19 vs. 0.8% in Q1FY19 and 8.9% in Q2FY18. Adjusted loss in Q2FY19 stood at Rs45.9cr vs. adjusted PAT of Rs23.2cr in Q2FY18. Company reported impairment of goodwill to the tune of Rs96.1cr during Q2FY19, which led to the company reporting loss during the quarter and H1FY19.

Other Highlights 
  • Company has said that hospital and diagnostics businesses witnessed steady improvement in operating profitability compared to the trailing quarter.
  • Hospital Business revenues declined 6.8% yoy to Rs900cr in Q2FY19 vs. Rs966cr in Q2FY18. On qoq basis, hospital business revenue grew by 9.8% yoy.
  • The hospital business occupancy stood at 69% in Q2FY19 occupancy as compared to 62% in Q1FY19. In October 2018, its occupancy was ~71%.
  • The ARPOB (Average Revenue per Occupied Bed) grew from Rs1.46cr in Q2FY18 to Rs1.49cr. and in Q1FY19 ARPOB stood at Rs1.52cr.
  • ALOS (Average length of stay) declined to 3.42 days in Q2FY19 from 3.46 days in Q2FY18.
  • Diagnostic Business revenue grew by 4.9% yoy to Rs235cr in Q2FY19 vs. Rs224cr in Q2FY18.
  • In Q2FY19, Fortis reported EBITDAC of Rs142cr. EBITDAC margin stood at 12.5% in Q2FY19 vs. 16.7% in Q2FY18 and 7.7% in Q1FY19.
  • Company has said that investment by IHH would help Fortis to strengthen the business.
  • Fortis Healthcare, in the short to medium term, would focus on commissioning new beds, launching new specialties and medical equipments.

Technical View:

Fortis Healthcare Ltd is currently trading at Rs. 139.70, down by 1.1 points or 0.78% from its previous closing of Rs. 140.80 on the BSE.
The scrip opened at Rs. 137.30 and has touched a high and low of Rs. 140.70 and Rs. 137.30 respectively. So far 6,85,172 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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