Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
M a r g i n s i m p a c t o n s t a r t - u p c o s t s o f n e w h o s p i t a l s …
Fortis Healthcare’s Q1FY12 revenues grew 43.0% YoY to | 483 crore. This
robust growth was mainly due to additional revenue inflow of | 62.3 crore
from Super Religare Labs. The organic growth stood at 25% over the
corresponding period last fiscal. The inorganic growth remained in line
with our estimates. However, operating margins got impacted by 191 bps
YoY due to initial start-up losses at the newly commissioned greenfield
facilities. With the decline in operating margins and higher tax outgo, its
net profit for the quarter declined sequentially by 52% while it improved
compared to last year.
ƒ Increase in capacity drives revenue growth
With the addition of six new hospitals and acquisition of Super
Religare Labs, the company has been able to post revenue growth
of 43% YoY during the quarter while organic growth stood at 25%
YoY. Hospitals with a maturity period of three years and more (i.e.
82% of operating revenue) continued to perform better recording
average occupancy levels of over 79% and average revenue per bed
of over | 1.1 crore per annum. However, average occupancy levels
and ARPOB witnessed pressure on account of the new launch of
hospitals. As a result, average occupancy levels for the quarter
declined by 600 bps to 72% YoY while average revenue per bed
(ARPOB) saw a marginal rise of 4.8% YoY.
ƒ Margin declines on start-up costs
Operating margins have been impacted by 150 bps YoY to 12.7%
on account of incurring of start-up costs on the launch of three
major hospitals at Delhi, Kolkata and Mulund (Mumbai). However,
on a like-to-like basis, it improved to 14.8%.
V a l u a t i o n s
Post Super Religare Lab’s (SRL) acquisition, we expect FY12E revenue
and EPS growth of 64.7% and 31%, respectively. At the CMP of | 148, the
stock is trading at 20.3x and 16.1x its FY12E and FY13E EV/EBITDA,
respectively. The valuations are looking stretched but the company’s
constant growth focus and strong management team supports our
positive outlook on the company. We have maintained our target price at
| 185 with a BUY rating on the stock (based on DCF model).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
M a r g i n s i m p a c t o n s t a r t - u p c o s t s o f n e w h o s p i t a l s …
Fortis Healthcare’s Q1FY12 revenues grew 43.0% YoY to | 483 crore. This
robust growth was mainly due to additional revenue inflow of | 62.3 crore
from Super Religare Labs. The organic growth stood at 25% over the
corresponding period last fiscal. The inorganic growth remained in line
with our estimates. However, operating margins got impacted by 191 bps
YoY due to initial start-up losses at the newly commissioned greenfield
facilities. With the decline in operating margins and higher tax outgo, its
net profit for the quarter declined sequentially by 52% while it improved
compared to last year.
ƒ Increase in capacity drives revenue growth
With the addition of six new hospitals and acquisition of Super
Religare Labs, the company has been able to post revenue growth
of 43% YoY during the quarter while organic growth stood at 25%
YoY. Hospitals with a maturity period of three years and more (i.e.
82% of operating revenue) continued to perform better recording
average occupancy levels of over 79% and average revenue per bed
of over | 1.1 crore per annum. However, average occupancy levels
and ARPOB witnessed pressure on account of the new launch of
hospitals. As a result, average occupancy levels for the quarter
declined by 600 bps to 72% YoY while average revenue per bed
(ARPOB) saw a marginal rise of 4.8% YoY.
ƒ Margin declines on start-up costs
Operating margins have been impacted by 150 bps YoY to 12.7%
on account of incurring of start-up costs on the launch of three
major hospitals at Delhi, Kolkata and Mulund (Mumbai). However,
on a like-to-like basis, it improved to 14.8%.
V a l u a t i o n s
Post Super Religare Lab’s (SRL) acquisition, we expect FY12E revenue
and EPS growth of 64.7% and 31%, respectively. At the CMP of | 148, the
stock is trading at 20.3x and 16.1x its FY12E and FY13E EV/EBITDA,
respectively. The valuations are looking stretched but the company’s
constant growth focus and strong management team supports our
positive outlook on the company. We have maintained our target price at
| 185 with a BUY rating on the stock (based on DCF model).
No comments:
Post a Comment