Fortis Healthcare Ltd's Q4FY18 consolidated net loss widens to Rs932.02cr yoy : Misses Estimates

The company’s consolidated revenue stood at Rs1,086.38cr, down 3.3% yoy and 3.06% qoq.

Jun 27, 2018 03:06 IST India Infoline Research Team

Fortis Healthcare Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,086.38 [3.3]
EBITDA 12.67 [84.0]
EBITDA Margin (%) 1.2 [586]
Net Loss (adjusted) 932.02 [1,274.1]
***EBITDA margin change is bps


Reco. Price


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Fortis Healthcare's revenue in Q4FY18 declined 3.3% yoy to Rs1,086.4cr. EBITDA was down 84% yoy to Rs12.7cr in Q4FY18 vs. Rs79cr in Q4FY17. EBITDA margins in Q4FY18 were at 1.2% vs. 4.6% in Q3FY18 and 7% in Q4FY17. Due to the exceptional loss of Rs833.5cr in the quarter, company reported loss of Rs932cr in Q4FY18 vs. loss of Rs67.8cr in Q4FY17.
  • The exceptional loss of Rs833.5cr is related to impairment of goodwill, capital work in progress and write-off of inter corporate deposits (ICDs), loans and recoverable amounts.
  • Considering the Investigation Report issued by Luthra & Luthra, Fortis has decided to appoint an external agency to establish the highest level of governance and internal controls.
  • Fortis Board has said that their key priority is to ensure that current bidding process is fair and transparent and maximizes the shareholder value.
  • Fortis has withdrawn demerger of the diagnostics business (SRL) and has received approval by the National Company Law Tribunal (NCLT).
  • Net debt at the end of FY18 stood at Rs1,404cr and net debt to equity ratio stood at 0.26x vs. net debt to equity ratio of 0.2x in FY17. 
  • Hospital business contributed 80% of the revneue, while SRL contributed 20% in Q4FY18.
  • Hostpital business EBITDA margin was down 20bps yoy to 4.8% in Q4FY18.
  • SRL's EBITDA margin was down 430bps yoy to 15.6% in Q4FY18.
  • In FY2018, the top 10 facilities contributed 76.5% of the hospital business revenue. 
  • For FY18, compnay has reported total loss of Rs1,009.2cr.

Technical View:

Fortis Healthcare Ltd ended at Rs. 134.50, down by 2.9 points or 2.11% from its previous closing of Rs. 137.40 on the BSE.
The scrip opened at Rs. 136 and touched a high and low of Rs. 137.85 and Rs. 133.50 respectively. A total of 17,03,731 (NSE+BSE) shares were traded on the counter. The stock traded above its 50 DMA.

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