Fortis Malar Hospitals Reports Mixed Financial Results for Q1 FY25

Fortis Malar Hospitals, a microcap healthcare services company, recently announced its financial results for the quarter ended June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, Fortis Malar has seen a negative performance in the quarter, with a score of -18 compared to -13 in the previous quarter. However, there are some positive aspects to the company’s financials. The half-yearly Profit After Tax (PAT) has increased to Rs 0.67 crore from the preceding 12-month period, which was at Rs -15.71 crore. This shows a significant improvement in the company’s profitability. Additionally, the company’s Profit Before Tax less Other Income (PBT) for the quarter is at its highest in the last five quarters, indicating a positive trend in the near term. The company also has a strong cash position, with cash and cash equivalents at its highest in the last six half-yearly periods. Moreover, the company has been reducing its debt and has a low Debt-Equity Ratio.

However, there are some areas of concern in Fortis Malar’s financials. The net sales for the half-yearly period have decreased by -85.63% year on year, indicating a negative trend in the near term. The PAT for the same period has also decreased by -85.63% year on year. The company’s operating cash flow has been falling each year for the past three years, which could be a cause for concern. The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters. The company’s efficiency has also decreased, with the Operating Profit Margin at its lowest in the last five quarters. Additionally, the company’s pace of settling its debtors has slowed down, with the Debtors Turnover Ratio at its lowest in the last five half-yearly periods.

Overall, Fortis Malar’s financial performance for the quarter ended June 2024 has been negative, but there are some positive aspects to the company’s financials. Investors should carefully consider all the information before making any investment decisions.