Fortis Healthcare finally reports March quarter earnings; stock rallies 3%
Fortis Healthcare, which delayed reporting results for the quarter as it completed an internal probe, said the goodwill impairment charges and write-offs were related to inter-corporate deposits and advances.
Fortis Healthcare share price rallied nearly 3 per cent after the pharma firm reported losses at Rs 932 crore in the March quarter, but on account of one-time write-offs of Rs 833.5 crore. Net loss for the year-ago quarter was Rs 63.8 crore.
Fortis shares gained as much as 3.6 per cent to Rs 138 on the BSE.
Fortis Healthcare, which is embroiled in a takeover battle that has drawn international bidders, said loss for the March quarter ballooned to Rs 932 crore ($136.3 million) hurt by impairment charges.
Fortis, which delayed reporting results for the quarter as it completed an internal probe, said the goodwill impairment charges and write-offs were related to inter-corporate deposits and advances.
Fortis detailed the findings of its internal investigation and said it was in the process of taking "suitable legal measures" against former Executive Chairman Malvinder Singh to recover payments and company assets held by him.
Fortis has become the target of a bidding war by suitors seeking to get a share of a boom in India`s private healthcare market. Its board is looking at bids from parties including Malaysia`s IHH Healthcare Bhd and a consortium of Manipal Health Enterprises and private equity firm TPG Capital.
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Despite the significant interest, no suitor has gone all out on the offer price mainly due to regulatory investigations into allegations that Fortis' founders, Malvinder Singh and Shivinder Singh, siphoned off funds from the company. They quit as directors in February but have denied any wrongdoing.
Fortis said it will appoint an external agency to investigate its internal controls and also evaluate its organisational structure, including the delegation of powers of the board.