Press Releases

Fortis reports first time ever Cash Profit for FY08 @ Rs 5.43 Crores

Financial Highlights (Consolidated FY08)

• Total income at Rs 548 Crore
• Consolidated EBITDA up Rs 61.54 Crore
• Operating Margin at 11.23%
• Reports Cash profit of Rs 5.43 Crore
• Cost control and efficiency enhancement measures lead to improvement in gross margins of approx 3% of operating income.

Financial highlights (Consolidated Q4FY08)

• Consolidated Revenues for the quarter @ 147 Crores.
• Consolidated EBITDA at Rs 14.29 Crore
• Employee costs and other expenses up on account of starting up of new Greenfield hospitals.

Operational Highlights

• Foray in South India with the acquisition of 49% stake in Malar Hospitals Ltd, Chennai
• Enters Rajasthan with Launch of Fortis Escorts Hospital in Jaipur.
• Two state-of-art hospitals under construction at Shalimar Bagh and Gurgaon in Delhi NCR. Project on schedule to be commenced in FY 10 & FY 11 respectively.
• JCI and NABH quality accreditation for Mohali and Noida hospitals respectively
• Fortis-Escorts Cardiac program for Pediatric becomes one of the largest in the country with a record number of procedures performed.
• The renal transplant programme started and established in Vasant Kunj and Noida hospitals.
• Established one of the largest joint replacement programs in the country. The knee & hip replacement and other orthopedic procedures grew by 26% during the year.
• Escorts Hospital at New Delhi adjudged as best super specialty hospital in Delhi by “Voice”, a consumer organization funded and supported by Union Ministry of Consumer affaires

New Delhi, June 30, 2008: Fortis Healthcare Limited (FHL), one of India’s largest private healthcare companies with network of 22 hospitals* and more than 2570 beds, has reported a consolidated total income for the fourth quarter of FY08 of Rs 147.01 Crore and consolidated EBIDTA of Rs 14.29 Crore.

On quarter-on-quarter basis, total income grew by 4% in Q4FY08. However, as compared to the trailing quarter, the total income grew by ~7% to Rs 147.01 Crore compared to Rs 137.62 Crore in Q3FY08. The gross margins for the quarter grew by 1% over the same period as an outcome of purchase and supply management initiatives undertaken during the year. The Q4FY08 results of the company clearly exhibit the benefits achieved from the streamlining plan which has helped it considerably improve it’s financial performance.

For FY 08, FHL reported consolidated total income of Rs 548 Crore, as against Rs 525 Crore in FY07. There was a temporary disruption and resultant drop in revenues of Escorts hospital – Delhi due to the change in the leadership. The operating income in all other existing facilities posted an impressive growth of 16% on year-on-year basis. The consolidated EBITDA for FY08 stood at Rs 61.54 Crore. Cash profit for FY08 stood at Rs 5.43 Crore.

Commenting on the results, Mr. Shivinder M Singh, CEO& MD, Fortis Healthcare, said, “This was the year for setting the organization for a higher level of performance. There was a specific focus on consolidation of the medical programme and faculty and we should see it’s benefits in the following quarters.”
The company is poised to benefit from the growing market for healthcare delivery services in India over the longer term. The ability of the company to ramp-up bed capacity and scale up operations in new hospitals within a short period will stand it in good stead. In the long run this will not only help Fortis in growing its top line but also significantly contribute to bottom-line growth.

Fortis Escorts Hospital at Jaipur has performed well since it’s launch in the last fiscal and should see break even soon. Our Hospital in Vashi will commence operations during the second quarter of FY09, marking the entry of Fortis in Western India, having already entered the South with the acquisition of Malar Hospitals Ltd.

“Our focus has always been on quality patient care and service excellence. In order to establish a pan-India presence, we shall continue to aggressively expand our network of hospitals through green field projects, acquisition of hospitals, establishment of satellite heart command centers and entering into Operation and Management (O & M) contracts. We believe the growing affluence, sophistication and awareness about healthcare services of patients throughout India will lead to higher demand for quality healthcare services which is our Forte,” Mr. Singh said.

Future Growth Drivers
With the acquisition of 49% stake in Malar Hospital Fortis has forayed into South India. Significant investments planned for the hospital in the current fiscal will see Malar emerge as a strong healthcare delivery player in South India.
The Fortis Hospital at Vashi, a multi super specialty hospital, is expected to be launched in early part of second quarter of FY09.

Construction of the company’s green field multi-specialty hospital in Shalimar Bagh is on schedule and the hospital is expected to be commissioned in FY09. Further the company’s seven-star multi super-specialty flagship hospital: Fortis International Institute of Bio-Medical Sciences (FIIMS) at Gurgaon is under construction and is expected to commission in FY11.

Fortis is well entrenched and has established a strong brand equity in the industry. With an aggressive growth strategy, management depth and width to manage a large network and its focus on delivering quality patient care the company is well placed to capture the growing opportunity in the healthcare delivery market.

Forward Looking Statement
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Fortis Healthcare Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

*About Fortis Healthcare Limited
Fortis Healthcare Ltd incorporated in 1996, has a network of 14 hospitals and 8 satellite / heart command centers, including one heart command centre in Afghanistan. These hospitals include multi specialty hospitals, as well as super-specialty centers providing tertiary and quaternary healthcare to patients in areas such as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and mother and child care.

For more details, please contact:

Mr. Pawanpreet Singh
Fortis Healthcare Limited
9873429549
pawanpreet.singh@fortisheathcare.com

Mr. Sudarshan Mazumdar
Fortis Healthcare Limited
9810955533
Sudarshan.mazumdar@fortishealthcare.com

Mr. Mani Lamba/Arun Rajendaran
Adfactors PR Pvt. Ltd.
9818280809/09821570091
Mani.lamba@adfactorspr.comarunr@adfactorspr.com