Fortis Healthcare Limited declared its Q2 results. The company’s Q2 net profit was up at Rs 12.97 crore versus Rs 4.3 crore. Its revenues were up at Rs 187.5 crore versus Rs 154.7 crore.
H1F10 revenue increased to Rs. 370.36 Cr. from Rs. 291.53Cr and net profit up to Rs. 20.52Cr as against Rs. 10.99 Cr.
Quarterly EPS stands at Rs. 0.57 as against Rs. 0.17 during Q2FY09.
Outlook
The company is in growth stage. 2 months ago, Fortis Healthcare sealed the biggest deal in the Indian healthcare industry when it acquired 10 hospitals from Wockhardt for Rs 910 crore helping it emerge as a pan-India player. The acquisition adds 1902 beds to its existing 3142 beds and expands its geographical presence to Mumbai, Bangalore and Kolkata.
Sensing the huge growth potential in the Indian healthcare industry, the company has been keen to scale up rapidly and acquisitions has been its preferred route for growth. After the controversial takeover of the Escorts group’s healthcare business in 2005, it snapped up Chennai-based Malar Hospital and Delhi-based, The Cradle, in 2007. With these acquisitions, the company seems well on its way to achieve its target of having around 40 hospitals, or approximately 6,000 beds, by 2012.
The company’s greenfield hospitals in Shalimar Bagh, Delhi and Gurgaon project are on track to be operational by end FY10 & FY11 respectively.
The management is very vibrant, and is capable of making the company to a largest hospital network in India. However, the negative about them is the way they get off from Ranbaxy, which is still alive in the minds of investors.
One, with long term view of 2 -3 years, can buy this stock and grow your money with the company.
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