Fortis Healthcare jumps 5% after December quarter earnings

Written By Unknown on Rabu, 13 Februari 2013 | 15.45

Fortis Healthcare surged as much as 12 percent intraday on Wednesday after reporting strong set of numbers in the third quarter of financial year 2012-13.

Consolidated total income of the company more than doubled to Rs 1539 crore in October-December quarter, which was higher than analysts' estimates.

Meanwhile, hospital chain operator's consolidated net profit jumped to Rs 705 crore from Rs 27 crore in the year ago quarter on the back of exceptional gain on dilution of stake in Religare Health Trust.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) margin at 9.9 percent, which was below estimates due to lower SRL margins and higher net business trust cost.

Company plans to infuse equity and bring down promoter holding to comply with SEBI regulations.

The research firm Macquarie says recent steps to deleverage the balance sheet provide significant protection on the downside to the stock. The firm maintained outperform rating on the stock with a target price of Rs 125.

At 12:34 hours IST, shares rose 4.93 percent to Rs 106.35 amid hefty volumes on Bombay Stock Exchange.



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