Firm’s loss widens to Rs 914 cr in Q4
Beleaguered Fortis Healthcare, which is embroiled in a takeover battle that has drawn international bidders, on Wednesday reported widening of its consolidated net loss to Rs 914.32 crore for the fourth quarter ended March 2018, hit by continuing business challenges, provisions and impairments.
Fortis, which delayed reporting results for the quarter as it completed an internal probe, said the goodwill impairment charges and write-offs were related to intercorporate deposits and advances. The company had posted a net loss of Rs 37.52 crore for the corresponding period of the previous fiscal, Fortis Healthcare said.
Consolidated income from operations stood at Rs 1,086.38 crore for the quarter as against Rs 1,123.43 crore in the same period a year ago. For the fiscal year ended March, the company posted a net loss of Rs 934.42 crore. It was Rs 479.29 crore for the previous fiscal year. Consolidated income from operations of the company stood at Rs 4,560.81 crore for the fiscal, from Rs 4,573.71 crore in 2016-17.
"Net profit for the year was negatively impacted by continuing business challenges, impairments and provisions," Fortis Healthcare said. During the year, the performance of the business was impacted by external headwinds related to the healthcare sector and internal challenges, it said.
The key factors include regulatory changes with respect to pricing on certain medical consumables, management bandwidth constraints due to the group's and promoter related issues and prolonged transaction and due diligence process.
Besides, funding constraints also led to a less than optimal capex spend resulting in delay of key business initiatives, it added.
The hospital business, specifically in North India, was significantly impacted for a few months during the year as a result of several highly publicised patient related incidents in a few hospitals, Fortis Healthcare said.
The company said it has made provisions in the fourth quarter of the fiscal year 2018 related to certain amounts totalling to approximately Rs 580 crore due to the company, the recoverability of which is doubtful.