Fortis Healthcare showed signs of revival in the fourth quarter of FY19, with improved earnings before interest, tax, depreciation, and amortization (EBITDA). The company reported net profit (profit after tax and minority interests) of Rs 135.6 crore after accounting for exceptional items for the fourth quarter of FY19. This was against a loss of Rs 932 crore in the same period last year.
Consolidated revenues for the fourth quarter grew 9 percent to Rs 1184 crore. Consolidated operating EBITDA grew by 123 percent to Rs 167 crore in the quarter. Adjusted for the one-time off EBITDA from RHT Trust Manager (RHTTM), the consolidated operating EBITDA growth was at 88 percent. RHTTM is the trustee manager of the RHT Health Trust and is 100 percent owned by one of the step-down subsidiaries of Fortis Healthcare.
The one-off EBITDA from RHTTM relates to the one-time payment received by the trustee manager as a result of completion of the RHT transaction in January 2019. The hospital business’s operating EBITDA grew 120 percent to Rs 92 crore against Rs 42 crore in 4Q FY18. The diagnostics business operating EBITDA grew 48 percent to Rs 49 crore against Rs 33 crore in the corresponding period of the previous quarter.
For the full year of 2018-19, Fortis posted a loss of Rs 299 crore (after accounting for exceptional items), which has improved from Rs 1009 crore (loss) in 2017-18. Income from operations dipped by 2 percent YoY in 2018-19 to Rs 4469.36 crore. Consolidated operating EBITDA margins were at 7.3 percent against 8.5 percent in FY18.