Fortis Malar Hospitals Limited, a prominent healthcare provider, has released its unaudited financial results for the third quarter ended December 31, 2022, showing a reduction in losses compared to the same period last year.

Financial Performance

The company reported a standalone loss before tax of Rs 1.17 crore for Q3 FY2023, a significant improvement from the Rs 2.71 crore loss recorded in the corresponding quarter of the previous year. This represents a 56.83% reduction in losses year-over-year.

Revenue from operations saw a modest increase, rising to Rs 21.90 crore from Rs 20.45 crore in the same quarter last year, marking a 7.09% growth.

Operational Expenses

Total expenses for the quarter stood at Rs 24.57 crore. The major components of these expenses included:

Key Financial Metrics

• Earnings per share (EPS) for the quarter was negative at Rs 0.62, reflecting the company's current loss-making position.
• The company's revenue growth, coupled with the narrowed losses, suggests potential improvements in operational efficiency.

Ongoing Litigation

Fortis Malar Hospitals is currently dealing with a legal matter concerning the regularization of its hospital building. The Chennai Metropolitan Development Authority has requested certain clearances and certificates. The company has stated that any expenses related to building regularization will be borne by Fortis Health Management Limited, as per their agreement.

Looking Ahead

While Fortis Malar Hospitals continues to face challenges, the reduction in losses and increase in revenue indicate positive momentum. The company's ability to manage expenses and resolve ongoing legal matters will be crucial for its future financial health and operational stability.

Fortis Malar Hospitals Limited , a healthcare services provider, has reported a significant profit for the quarter ended June 30, following the sale of its business operations. The company's financial results, released on August 4, highlight its transition phase and financial position post-divestment.

Key Financial Highlights

• Profit After Tax: Rs 417.65 crore
• Other Income: Rs 460.72 crore
• Earnings Per Share (EPS): Rs 2.23 (not annualized)

Financial Performance

Fortis Malar Hospitals reported a standalone profit after tax of Rs 417.65 crore for the quarter. This substantial profit comes primarily from other income, which stood at Rs 460.72 crore. The company's earnings per share for the quarter were Rs 2.23.

Business Operations and Future Plans

The company disclosed that it no longer has any business operations following a slump sale transaction. Despite this, Fortis Malar maintains a strong financial position with cash and cash equivalents of approximately Rs 3,232.39 crore, which the company believes is sufficient to meet its obligations as they fall due.

Management Strategy

The management and Board of Directors are currently evaluating various corporate restructuring options for the future course of action. While there is no immediate visibility of commencing new business operations, the company is progressing with the finalization of plans for its future direction.

Subsidiary Update

During the quarter, Malar Stars Medicare Limited, the subsidiary company, converted to a Section 8 Company as per the provisions of the Companies Act, 2013. This change became effective from May 14, and the subsidiary's name was changed to Malar Stars Medicare.

Regulatory Compliance

The company has filed appeals against various tax demands, including:

• VAT appeals (tax demand: Rs 254.55 crore)
• GST appeal (tax demand: Rs 4.82 lakh)
• Income tax appeal (tax demand: Rs 150.61 lakh)

Fortis Malar remains confident in its position regarding these matters and considers the possibility of any significant financial exposure to be remote.

Other Developments

Pursuant to a notification issued by the Government of Tamil Nadu regarding the revision of minimum wage rates, the company has reversed a provision of Rs 408.20 crore towards earlier minimum wages payable. This reversal has been considered as other income in the financial results for the quarter.

The unaudited financial results were approved by the Board of Directors at their meeting. The company continues to prepare its financial statements on a going concern basis, supported by its current cash position and projected cash flows.

Fortis Malar Hospitals Limited remains committed to meeting its financial obligations and resolving ongoing legal and tax matters while exploring future opportunities for corporate restructuring and potential new business ventures.