Consolidated operating revenues in Q1 FY21 fell 46.77% to Rs 605.9 crore from Rs 1138.3 crore reported in Q1 FY20. Hospital business revenues were at Rs 488.3 crore (down 46.51% YoY) while the revenue from the diagnostic business was at Rs 140.4 crore (down 45.66% YoY) during the quarter.

Fortis recorded an EBITDA loss of Rs 98.8 crore in the June quarter as against a profit of Rs 161.8 crore in the same period last year. Fortis recorded an income of Rs 45 crore under exceptional items as it was a concession received due to COVID-19. Before exceptional items, the company reported a pre-tax loss of Rs 208.7 crore in Q1 FY21 as compared to a pre-tax profit of Rs 42.8 in Q1 FY20.

The results in the quarter reflect the impact of the COVID-19 pandemic that began in February and the subsequent nationwide lockdown that was witnessed. With the gradual opening up of the economy in May, the business momentum improved and saw initial signs of gradual uptick in progressive months. However, given the increase in cases across the country, the international travel restrictions still in-force, the limited period lockdowns in select states and the ongoing regulatory uncertainty; the company continues to face challenges resulting in the pace of recovery being slower than expected.

For the hospital business, both OPD and IPD volumes have shown a month on month improvement resulting in a gradual recovery of non-covid patient flow in the Company's facilities. While encouraging, majority patients are still choosing to further postpone elective surgeries. This is reflected in the hospital occupancy which witnessed a buoyant rise from 29% in the month of April '20 to 47% in June and stood at 51% for the month of July. Initial occupancy trends in August are similar to July.

The overall diagnostic business revenues reached 80% & 86% of pre-covid revenues in June'20 and July'20, respectively. Covid test volumes continue to witness a robust increase and contributed approx. 29% to overall diagnostic revenues in the quarter.

Despite the constrained environment, the company has been able to successfully manage its liquidity position by extending its cost rationalization initiatives including voluntary salary reductions, lower administrative and sales and marketing costs and undertaking only necessary capex allocation. In addition to this, better working capital management, availability of bank funding and a gradual improvement in business momentum is enabling the company to navigate the temporary challenges due to the current pandemic, the healthcare services provider said in a statement.

Fortis Healthcare is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Dubai and Sri Lanka with 36 healthcare facilities, approximately 4,000 operational beds and over 400 diagnostics centres.

Powered by Capital Market - Live News

Net loss of Fortis Healthcare reported to Rs 178.92 crore in the quarter ended June 2020 as against net profit of Rs 67.81 crore during the previous quarter ended June 2019. Sales declined 46.77% to Rs 605.95 crore in the quarter ended June 2020 as against Rs 1138.31 crore during the previous quarter ended June 2019.

Powered by Capital Market - Live News

The Board of Directors of Fortis Healthcare (Company), in their meeting held on 14 August 2020, has, in light of various considerations including the expiry of the current brand license agreements in April/May 2021, and to reinforce the complete disassociation of the Company from its erstwhile promoters, unanimously given an in-principle approval to discontinue the use of 'Fortis', 'La Femme' and 'SRL' as part of the name, brand and logo of the Company and its subsidiaries. Basis the in- principle approval, the Company has now approached Hon'ble Supreme Court for its consent in the matter.

Further, as part of its commercial strategy, the Company intends to, going forward, obtain a license to use the name, brand and logo 'Parkway' (on such terms as may be mutually agreedon an arm's length basis) as part of the name, brand and logo of the Company and its subsidiaries (excluding SRL and its subsidiaries and joint ventures) in relation to the hospital business. This rebranding decision has been taken by the Board of Directors based on brand research conducted by the Company.

Parkway' is a well renowned and internationally acclaimed brand in the field of healthcare, belonging to IHH Healthcare Berhad, the ultimate parent of Northern TK Venture Pte Ltd., the promoter of the Company which holds approx. 31% of its share capital. The IHH groupoperates more than 15,000 licensed beds across 78 hospitals in 10 countries worldwide and is Asia's largest integrated private healthcare provider.

IHH nominee directors on the board of the Company abstained from voting on the specific agenda item dealing with the Company obtaining a license to use the 'Parkway' name, brand and logo.

Also, the Board of Directors of the Company and SRL (material subsidiary of the Company) have decided to proceed with a proposed change in its name and branding. Accordingly, SRL would no longer be using 'SRL' name, brand and logo and would register and develop a new neutral name, brand and logo unrelated to the IHH group and the'Fortis' brand, for use in relation to the diagnostics business.

The above proposed changes are subject to the directions of the Hon'ble Supreme Court of India, finalisation of mutually agreed terms for license of the 'Parkway' brand, the receipt of all requisite corporate and other approvals, as may be required. The Company has today filedan appropriate application before Hon'ble Supreme Court of India in this regard.

Powered by Capital Market - Live News

Fortis Healthcare will hold a meeting of the Board of Directors of the Company on 14 August 2020.

Powered by Capital Market - Live News