Financial and
Operational Review
SUMMARY OF FINANCIAL RESULTS (FY15 VS FY14)
FY15
S$’000
FY14
S$’000
Variance
%
FY15
INR’000
FY14
INR’000
Variance
%
Total Revenue
(a)(b)
130,590 93,508
40% 6,189,120 4,513,871
37%
Net Service and Hospital Income
excluding straight-lining, depreciation and
amortisation)
(b)(c)
91,561 62,352
47% 4,338,714 3,009,891
44%
Distributable Income
58,166 46,694
25%
–
–
–
The Total Revenue for FY15 in INR terms
grew 37% from FY14 mainly due to the
increase in Service Fee as a result of an
additional contribution from the newly
added Mohali Clinical Establishment,
increase in Base Fee and the commencement
of the Variable Fee from the Gurgaon
Clinical Establishment post-stabilisation
period which ended on 31 March 2014.
In addition, the revenue from the existing
portfolio of Clinical Establishments increased
as a result of the contractual increase of Base
Fees by 3%and higher Variable Fees recorded
by 12%.
Net Service Fee and Hospital Income
(excluding straight-lining, depreciation
and amortisation) increased by 44% due
to the increase in Total Revenue and
tight cost controls implemented by the
management.
DISTRIBUTABLE INCOME
The growth of the Net Service Fee and
Hospital Income translated to a 25%
growth in FY15 Distributable Income over
the corresponding year-to-date after
taking into consideration taxes, higher
hedging cost and higher expenses in
Singapore arising from higher finance costs
and the cost of setting up the MediumTerm
Note Programme.
FUNDING AND BORROWINGS
During the year, the Group entered into
an additional loan facility with DBS Bank
Ltd for an amount of S$32.5 million
and a loan facility with Deutsche Bank
AG, Singapore Branch, for an amount of
S$32.5 million, in connection with
the acquisition of Mohali Clinical
Establishment on 7May 2014. The Clinical
Establishment Acquisition, the Business
Acquisition and the P&M Acquisition
were S$56.6 million, S$0.8 million and
S$2.5 million respectively.
As at 31 March 2015, RHT’s outstanding
bank loans are at S$123,469,000.
Details of the bank loans are set out under
Note
24
of the Annual Financial Statements
which can be found on page 102
–
103 of the
Annual Report.
INVESTMENT IN FHTL
The Group is evaluating the options with
regards to the Group’s 49.0% interest
(indirectly) in Fortis Hospotel Limited
(“FHTL”), which owns the Gurgaon
Clinical Establishment and the Shalimar
Bagh Clinical Establishment and is
accounted for on a 100% consolidated basis.
Under the shareholders agreement entered
into between Fortis Health Management
Limited ("FHML") and Fortis Healthcare
Limited (“FHL”) in respect of FHTL
(“FHTL Shareholders Agreement”), FHML
has a call option on FHL’s 51.0% interest
in FHTL (“FHTL Call Option”), subject
to fulfilment of certain conditions,
including the receipt of the necessary
approvals from the requisite authorities
(“Call Events”). An application for such
approval has been made to the necessary
authorities but is awaiting approval. We
will continue to monitor the fulfilment of
conditions under the FHTL Call Option,
and will evaluate available options with
regards to FHTL if the Call Events do not
occur, including any rights we may have
under the FHTL Shareholders’ Agreement.
(a) exclude straight lining and gain on acquisition in connection with the acquisition of Mohali Clinical Establishment.
(b) excludes GST refunds.
(c) excludes one off stamp duty and gain on acquisition in connection with the acquisition of Mohali Clinical Establishment.
ANNUAL REPORT FY2015
7
