Fortis Healthcare Q4 loss widens to Rs 9.3 bn, firm starts recovery process

Mumbai, Jun 27: Fortis Healthcare Ltd (FHL) declared its financial results for the fourth quarter and financial year 2017-18 in the wee hours of Wednesday after deferring it thrice since May. The hospital chain, which is in the process of finding a buyer or investor, posted a net loss of Rs 9.32 billion in Q4FY18, as against a loss of Rs 680 million in the corresponding quarter last financial year.
The losses were primarily on the back of an exceptional loss of Rs 8.33 billion. The company said in its statement to the exchanges that the results were impacted by continuing business challenges, impairments, and provisions.
The revenues, too, fell by 3 per cent year-on-year for the fourth quarter to Rs 10.8 billion, while the earnings before interest, tax, depreciation, and amortisation (Ebitda) fell 11 per cent to Rs 750 million. The FY18 consolidated revenues stood at Rs 45.61 billion, similar to the previous year, while the losses for the full year stood at Rs 10.09 billion. The consolidated Ebitda for the full year increased by 7.4 per cent to Rs 3.89 billion.
The provisions in Q4FY18 are around Rs 5.8 billion, the recoverability of which is doubtful. These include certain inter-corporate deposits (ICDs) of Rs 4.45 billion, loans given to body corporates and interest thereon of Rs 255 million.
Meanwhile, Independent Director Rohit Bhasin, who was appointed to the Fortis board in May, tendered his resignation effective June 26.
The board of directors has said that the company has initiated legal action for recovery of these outstanding ICDs and other advances. It made provisions in the un-audited financial results in relation to the ICDs and other matters identified in the Luthra and Luthra investigation report, FHL said.
The company would now appoint an external agency to undertake scrutiny of the internal controls and compliance framework, and would also evaluate the internal organisational structure and reporting lines, delegation of powers of the board, among other things.