Recently, Shivender Mohan Singh, CEO and managing director of Fortis Healthcare, announced, “Fortis Healthcare is eyeing acquisitions and is in talks with more than two players in south and west India. The company is hoping to close the transactions in the current financial year.”

A net profit of Rs 10.06 crore in the second quarter ended September 30, 2008 was reported by Fortis Healthcare. In the corresponding period of the previous year, a loss of Rs 15.23 crore had been reported by the company. The net income during the period increased 28 percent to Rs 155 crore from Rs 121 crore y-o-y.  

A net profit of nearly Rs 94 lakh was recorded in the Q1 (April-June) 2008. Mr. Singh said, “The core margins for the latest quarter rose to 18 percent from 8 percent a year ago. Since the operation has now stabilized, margins will remain same or improve in the coming quarters.”

Through this acquisition, Fortis, which as of now has 2,600 beds in 22 hospitals, will add 150 beds in Mumbai and another 400 by March. 

Singh added, “Ideally, we are looking for a ticket size between 150 and 200 beds hospital. Depending upon the deal structure, the firm would fund these transactions through internal accrual and debts.”