IHH Healthcare Bhd’s partial divestment of its stake in Apollo Hospitals, has led the world’s second largest healthcare group’s net profit for the first quarter of financial year 2017 ended March 31, to nearly double to RM470.05mil on a year-on-year comparison.
IHH announced that its net profit doubled following a RM313.4mil gain from the group’s divestment of a non-core 6.07% stake in Apollo Hospitals.
The partial sale of stake was done in March this year, as part of IHH’s plan to consolidate and rationalise its investment in India to its two recently acquired hospitals – Continental Hospitals and Global Hospitals.
To note, IHH further disposed its remaining 4.78% stake in the Apollo Hospitals for RM551.1mil on 19th May 2017.
Top line grew by 8.5% to RM2.68bil, compared to the preceding year corresponding quarter. IHH’s revenue growth was achieved on the back of operational expansion and sustained growth in inpatient admissions.
“The acquisition of Tokuda Group and City Clinic Group in June 2016, also contributed to the increase in the group’s first quarter revenue.
Moving forward, IHH is optimistic for commendable financial results, underpinned by the sustained demand for quality private healthcare in its home markets and key growth markets of India and Greater China.
In the year ahead, IHH expects to face cost pressures on several fronts. These include continued competition for talent, pre-operational and start-up costs from new operations, and higher purchasing costs with the stronger USD. It intends to mitigate these through prudent cost management, taking on higher revenue intensity procedures and ramping up new facilities to achieve optimum operational efficiencies.
/theSTAR 20-05-2017
Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.
Post a Comment