Medico Intercontinental Reports Mixed Q1 Results: Standalone Profit Up, Consolidated Loss

Medico Intercontinental Limited (MIL) has announced its unaudited financial results for the first quarter ended June 30, revealing a mixed performance across its standalone and consolidated operations.

Standalone Performance

On a standalone basis, MIL demonstrated resilience with improved profitability:

• Revenue from operations stood at Rs 1,306.68 crore
• Net profit increased to Rs 55.60 crore, up from Rs 49.71 crore in the corresponding quarter of the previous year

This represents a year-on-year growth of approximately 11.85% in standalone net profit.

Consolidated Results

However, the consolidated figures paint a different picture:

• Consolidated revenue from operations reached Rs 2,135.49 crore
• The company reported a consolidated net loss of Rs 248.80 crore

The stark contrast between standalone profit and consolidated loss suggests challenges within the group's subsidiaries or joint ventures.

Key Financial Metrics

Change in Accounting Policy

MIL has implemented a significant change in its accounting policy for joint venture investments:

• The company has adopted the equity method of accounting for investments in joint ventures, specifically for MEDICO LAB
• This change replaces the previously used proportionate consolidation method
• The new policy has been applied retrospectively, with comparative figures restated accordingly

Corporate Governance and Investor Relations

The company's Board of Directors approved these results on August 14. Additionally, MIL has announced:

• The Annual General Meeting (AGM) is scheduled for September 30
• The AGM will be conducted via video conferencing
• The e-voting period for shareholders will run from September 27 to September 29

Outlook

While the standalone results show promise, the consolidated loss indicates potential areas of concern within the group structure. Investors and analysts will likely seek clarity on the factors contributing to the consolidated loss and the company's strategies to address these challenges in the coming quarters.

As Medico Intercontinental navigates through this period of mixed performance, the market will be watching closely to see how the company leverages its standalone strength to improve its overall group performance.