quarter 3 & 9 months fortis healthcare ltd. interim results – fy2008 – 09 corporate...
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Quarter 3 & 9 MonthsQuarter 3 & 9 Months
Fortis Healthcare Fortis Healthcare Ltd.Ltd.
Interim Results – FY2008 – 09Corporate Presentation
Safe HarborSafe Harbor
Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue” and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Fortis does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
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Agenda
Result Highlights
Recent Developments
Hospital Performances
Legal Update
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Recent Developments
Recent DevelopmentsRecent Developments
Board approval for raising money by way of Rights Issue of Rs. 1000 Cr.
Funding for on going green field projects
Future expansions
Vashi gets Operating license from NMMC. Commences IPD services
Acquires majority stake in Clinique Darné, Mauritius along with financial partner CIEL
Acquires controlling stake in RM hospital, Bangalore
Signs up O&M Contract with RNMCS, Kota, Rajasthan
Civil Construction for Oncology Block at NOIDA started
MOU Signed with International Oncology Services Pvt. Ltd.
Cardiac Program launched at Malar Hospital in December
Awarded PPP project with Delhi Government for Ambulance services in NCT
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Foray to International Arena - MauritiusForay to International Arena - Mauritius
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Strategically located in the Indian Ocean,
between Asia, Africa and Australia and attracts
0.9 million high end tourists p.a. growing @ 7.8%.
Fulfills the Criteria of “Low Risk” exposure, Low
Investments and easier cultural fit
Potential Medical Value Tourism & Medical
Tourism
Friendly Tax Structure
Business Friendly Environment:
About Fortis Clinique DarneAbout Fortis Clinique Darne
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The hospital was revamped and rebuilt in the
year 1997
Located in the up-market locality of Floreal and
surrounded by residential localities.
Spread over 6 Acres of Land with Built up area -
115,000 sq ft, with potential to expand
Installed bed capacity of 120, Catering to the
high end customers of Mauritius and is also
called as the ‘Hospital for the Whites’.
Only Cardiac care hospital in the private
sector in Mauritius. Other Medical specialties
include Neuro Sciences, Nephrology Oby &
Gynae, Oncology, Internal Medicine, Plastic &
Cosmetic Surgery.
It has the 1.5 (Tesla) MRI, 64 slice CT and a CT.
Fortis Clinique DarneFortis Clinique Darne
Clinique DarneFortis Clinique DarneFortis Clinique Darne
Clinique DarneFortis Clinique DarneFortis Clinique Darne
Second hospital for Fortis in Southern India and
first in Bangalore
Operational since in April 2007
Land Area
Main Hospital ~ 8,000 Sq Ft
Additional Land available ~ 6,500 Sq Ft
No of Beds 100, expandable to 200
Pilot to gauge the Bangalore Market
Total Stake - 67.23% as on date.
Capex plans for expansions being firmed up
Current Specialties: Nephrology, Urology &
Critical Care.
Specialties proposed: Cardiac Sciences, Renal
Sciences & Neuro Sciences
Fortis Hospital, SeshadripuramFortis Hospital, Seshadripuram
Fortis Modi Hospital, KotaFortis Modi Hospital, Kota
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Second Hospital in western India Operational since November 2007 Specialties : Cardiology, Endocrinology,
Nephrology, Neurology, Orthopedics & Trauma, Respiratory Medicine, Urology, etc.
Land Area ~ 6,120 Sq Ft
Bed Capacity - 200 with Operational Beds – 100
Serve the catchments in Vadodara, Jodhpur, Indore, Bhopal & Gwalior
O&M arrangement with RNMCS Year O&M Fees Min Guarantee
Fees1st 4% Nil
2nd 4% Rs. 20 Lacs/annum3rd & 4th 5% Rs. 20 Lacs/annum5th & thereafter 6% Rs. 20 Lacs/annum
Jessa Ram (2003)La Femme (2005)
Vasant Kunj (2006)Fortis Mohali (2001)
HHPL (Mumbai) (2007)
Fortis, Bangalore (2009)
Fortis Noida (2004)
Fortis Jaipur (2008)
Escorts-Amritsar (2006)
Escorts-Faridabad (2006)Escorts-Delhi (2006)
Escorts-Raipur HCC (2006)
ISIC SC, Vasant Kunj (2006)
Goyal Hospital SC,Jodhpur (2006)
Kamayani SC, Agra (2006)
Arneja Hospital SC, Nagpur(2006)
Kalyani HCC, Gurgaon (2006)
Fortis City Centre (2006)
Sadbhavna Medical & Heart Institute, Patiala (2006)
Yashoda Hospital, Ghaziabad (2006)
Saraswati Heart Care, Allahabad (2006)
Birla Institute MRC, Gwalior (2006)
Ravindera Cath Lab, Hisar
Fortis Malar (Chennai) 2008
Escorts-Amiri Diagnostic Heart Center, Afghanistan (2006)
Fortis Modi Hospital, Kota (2009)
No. Capacity
Greenfield 3 970
Brownfield 9 1,419
O&M 4 600
HCC’s/SC’s 11 107
Total 26 3,096
Fortis Clinique Darné, Mauritius (2009)
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Result Highlights
Consolidated: FHL and SubsidiariesConsolidated: FHL and Subsidiaries
Network: FHL, Subsidiaries, Associates and O&M Hospitals
Network: FHL, Subsidiaries, Associates and O&M Hospitals
Snapshot – Executive SummarySnapshot – Executive Summary
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Consolidated Revenue Growth
@ 33% for Quarter on Quarter
@ 22% for 9 Months Y-o-Y
EBIDTA grows at 77% over Y-o-Y and stands at Rs. 83.7 Crs.
Net Profit @ Rs. 5.1 Crs. for Q3 – FY09 grows 39% over the trailing quarter*
Operating revenues for Network hospitals grows to Rs. 542 Crs. over 9 Months Y-o-Y @ 24% *Excluding exceptional items
Snapshot – Executive SummarySnapshot – Executive Summary
Key Performance highlights:
Blood Banks at Delhi (Escorts) and NOIDA get NABH accreditations.
Malar - Renowned Dr. K R Bala Subramanian joins in. Revenues in December - Rs. 2.75 Cr (Highest). 3rd quarter of sequential growth
Delhi (Escorts) crosses Rs. 20 Cr/month Revenue mark.
Noida – Eminent Orthopedic surgeon, Dr. P.S. Maini joins, along with his team. Orthopedic department further strengthens
Mohali – Touched new high in number of Angioplasties and Cardiac Surgeries
La Femme – Launch of In-Vitro Fertilization (IVF) program. Maximum Deliveries – 117 and highest ARPOB for any Fortis Group Hospital (Rs. 1.18 Cr on an annualized basis).
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Operating Revenues – Across Fortis HospitalsOperating Revenues – Across Fortis Hospitals
436.5
141.6
541.9
190.8
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
550.0
600.0
Q3 9M
FY08 FY09
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+35%
+24%
Rs. in Crores
121.6
374.3
161.1
458.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
Q3 9M
FY08 FY09
+33%
+22%
FHL Network FHL Statutory
Summary – Consolidated Profit and Loss – Y-o-Y
Quarter – III Nine Months Change [+/-]
FY09 FY08 FY09 FY08 Quarter - III Nine Months
Total Income #
167 138 482 401 +21% +20%
Direct Costs 46 40 135 119 +15% +13%
Employee Costs
39 34 112 102 +17% +10%
Other Costs 51 43 151 133 +18% +14%
EBIDTA 31 21 84 47 +47% +77%
Interest Costs 11 15 34 47 -27% -26%
Dep. & Amot 12 14 36 34 -12% +5%
PAT* 5 (7) 16 (46) _ _
Rs. in Crores
# Includes non-operating Income* PAT is after exceptional items (Rs. 6.40 Cr for 9 months FY 09)
EBIDTA & PAT – 9 Months (Consolidated )EBIDTA & PAT – 9 Months (Consolidated )
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Rs. in Crores
47.2
83.7
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
EBIDTA9M - FY08 9M - FY09
77%
(45.6)
16.1
(60.0)
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
10.0
20.0
30.0
40.0
PAT9M - FY08 9M - FY09
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Hospital PerformancesHospital Performances
Hospital wise Operating RevenuesHospital wise Operating Revenues
98.2
115.9
62.5
72.8
129.8
146.4
9.6
27.6
38.1
43.7
18.7
29.8
47.053.0
10.214.9 13.3
21.2
5.16.9
0
20
40
60
80
100
120
140
160
Mohali NOIDA EscortsDelhi
EscortsJaipur
EscortsFaridabad
EscortsAmritsar
VasantKunj
La Femme Malar Jessa Ram
9MFY08 9MFY09
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+18%
+16%
+13%
+189%
+15%
+59%
+13%
+46% +34
%
Rs. in Crores
+60%
Hospital wise Operating EBIDTAHospital wise Operating EBIDTA
17.7
25.9
7.7
15.6
1.8
17.8
(4.7)
(2.4)
5.0
7.2
1.4
6.4
(5)
0
5
10
15
20
25
30
Mohali NOIDA Escorts Delhi Escorts Jaipur Escorts Faridabad Escorts Amritsar
9MFY08 9MFY09
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+46%
+103%
+9x
+49%
+44%
+357%
Rs. in Crores
Mohali and NoidaMohali and Noida
19.5
22.8
10
15
20
25
NOIDA
Q3FY08 Q3FY09
31.9
41.5
15
20
25
30
35
40
45
50
Mohali
Q3FY08 Q3FY09
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MOHALI:
Revenue grew @ 30% and 18% over Corresponding quarter and nine months respectively
Dr. T S Mahant coveted with Himachal Ratan award by the HP State Govt.
Average Occupancy was 71% at the hospital
NOIDA:
Revenue grew @ 17% and 16% over Corresponding quarter and nine months respectively
Blood Bank at the hospital awarded with NABH Accreditation
Average Occupancy at 69%
Oncology block work in progress
+30%
+17%
Rs. in Crores
Rs. in Crores
Escorts DelhiEscorts Delhi
41.1
54.5
0
10
20
30
40
50
60
Escorts Delhi
Q3FY08 Q3FY09
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Revenue grew by 32% over corresponding
quarter
6th consecutive quarter of growth, on an
ongoing basis
Operating EBIDTA – 18% for the quarter
Crosses Rs. 20 Cr Revenue/month mark in
Dec’ 08
Observed highest occupancy @ 75% in
December
ARPOB at Rs. 1.05 Crores + for Q-3
Highest number of PTCA (286) and Cath Lab
(666) procedures in a month recorded in Q-3
+32%
Rs. in Crores
Escorts Amritsar and JaipurEscorts Amritsar and Jaipur
5.9
9.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Escorts Jaipur
Q3FY08 Q3FY09
5.8
11.1
0
2
4
6
8
10
12
14
Escorts Amritsar
Q3FY08 Q3FY09
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AMRITSAR:
Revenue grew @ 90% and 59% over Corresponding quarter and nine months respectively
Achieves maximum revenue on a month on month basis throughout the year
Operating EBIDTA @ 28% for the quarter
The hospital was awarded as “The Best Hospital for standing up for Patient Rights” in an “Annual Conference of All India Human Rights Association”
The hospital also touched landmark of 10,000 Cardiac procedures
JAIPUR:
Revenue grew @ 51% over Corresponding quarter
Reports maximum Angiographies (107) and deliveries (34) in the month of December
OPD footfalls crossed 1,00,000
Average Occupancy was @ 54%
+90%
+51%
Rs. in Crores
Rs. in Crores
Fortis Malar & La FemmeFortis Malar & La Femme
3
5.6
0
1
2
3
4
5
6
La Femme
Q3FY08 Q3FY09
4.50
7.8
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Malar
Q3FY08 Q3FY09
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Fortis Malar Hospital:
Revenue grows @ 73% over Corresponding quarter
Cardiac Sciences program launched on 15th Dec 2008
Revenue grew sequentially over last 9 months.
Dentistry program added
Average Occupancy at 58% (adj.)
ICU beds capacity expansion and renovation underway
LA FEMME:
Revenue grew @ 85% over Corresponding quarter
Achieved maximum number of deliveries (117) in the month of December
Pre-survey for NABH conducted
Occupancy @ 51%
+73%
+85%
Rs. in Crores
Rs. in Crores
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Legal UpdateLegal Update
Legal Update:Legal Update:
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Escorts:Conversion and sale of Society: Anil Nanda matter.
HC dismissed the suit along with all the applications vide order dated July 3, 2008. Anil Nanda and Goetze India filed appeal against the order.Hon’ble High Court allowed the appeal and restored the suit and the interim order dated 30.09.2005 passed in the suit vide judgment dated 16.01.09. Next Date: March 2, 2009.
Property: DDA terminated the Lease Deed based on violation of 25% free bed condition and merger/ conversion resulting in transfer of land without DDA approval. - No Change, Next Date: March 24, 2009
Income Tax Matters:Assessment of erstwhile Delhi and Chandigarh Society levying a demand of Rs. 124 Crs.Demand for Rs. 81 Cr. set aside earlier this year by ITAT and ordered for fresh assessment, process for which is being initiated by the departments pending.
Rajan Dhall:Property: Lease Deed terminated by DDA on Nov 30, 2005 on grounds that the Society failed to construct the building within the stipulated period; and the land has been transferred
No Change, Next Date: April 13, 2009Estate Officer issued a show cause notice under the Public Premises Act for eviction. No Change, Next Date: March 6, 2009
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Thank YouThank You