FORTIS UPDATE ON 20.05.2025

Key Developments as of May 20, 2025: Q4 FY25 Results Today: Fortis Healthcare is scheduled to announce its audited financial results for the fourth quarter and the full fiscal year ended March 31, 2025, today. This is the most significant immediate update for the company. Final Dividend Consideration: Along with the results, the Board of Directors will also consider and recommend a final dividend, if any, on the equity shares for FY 2024-25. Tax Notice to Subsidiary: Fortis Healthcare recently faced a tax notice of ₹76 crore to its subsidiary, International Hospital Limited (IHL). However, an earlier report from May 6, 2025, mentioned that a rectification order from the Income Tax department had corrected previous errors and eliminated an ₹89.53 crore tax demand for the assessment year 2022-23 for its subsidiary, Fortis Hospitals. Acquisition: Fortis Healthcare is set to acquire a 228-bed hospital in Punjab for ₹462 crore. Previous Quarter Performance (Q3 FY25): The company reported a strong performance in Q3 FY25 (December 2024 quarter), with net profit jumping 89% to ₹254 crore. Board Changes: Leo Puri has been appointed as the new Chairman of its Board of Directors. Expansion Plans: Fortis continues its expansion strategy, aiming to add around 2,200 beds over the next few years, including brownfield expansions at existing hospitals (like Faridabad, Bengaluru, Kolkata, Shalimar Bagh) and commissioning new facilities (e.g., Manesar). They had planned to add about 700 beds in FY25. Institutional Holdings: Foreign Institutional Investors (FIIs) increased their holding to 27.40% as of March 2025, up from 23.31% in June 2024. Mutual Funds, however, decreased their holding slightly. Legal Developments: The Delhi High Court is seeking Daiichi Sankyo's response on RHC's (RHC Holding Pvt Ltd, associated with the erstwhile promoters) appeal over the Fortis trademark sale. Legal issues related to the former promoters continue.