Sri Lanka’s Asiri Hospital Holdings Dec profits surge 194-pct
ECONOMYNEXT – Profits at Sri Lanka’s Asiri Hospital Holdings, a unit of diversified Softlogic Holdings, surged 194 percent to 741.6 million in the December 2017 from a year earlier, on capital gains from a divesture and improving revenue and margins, interim accounts showed.
The company reported earnings of 65 cents a share in the quarter. In the nine months to end December, earnings were 1.37 rupees a share on total profits of nearly 1.6 billion rupees, up 93 percent from a year earlier.
Asiri Hospital Holdings last traded at 24.90 rupees.
Revenue in the quarter grew 14 percent to 3 billion rupees, cost of sales declined 10.5 percent to 1.6 billion rupees, expanding gross profits 18.2 percent to 1.4 billion rupees.
Administrative expenses fell 8.3 percent to 655.8 million rupees. Selling and distribution costs fell 32 percent to 108.7 million rupees.
Finance costs fell 11.5 percent to 217 million rupees.
Other income and gains amounted to 590 million rupees, ballooning from 41.6 million rupees a year earlier which included a capital gain of 185.5 million rupees on the divesture of a 50 percent stake on Asiri AOI Cancer Centre, the company said.
Interest bearing borrowings were 9.6 billion rupees as at end December 2017, which includes 468 million rupees from its subsidiary Asiri Surgical, a listed hospital.
The hospital group’s debt amounted to nearly 47 percent of the hospital group’s total assets, down from 50.2 percent a year earlier.
The company said 2 billion rupees was due to suppliers for the construction of Asiri Hospital Kandy.
Softlogic Holdings held a 48.44 in the hospital group as at end December 2017. TPG Growth held 28.86 percent.
The group operates four hospitals with a combined bed capacity of 584, with a fifth, a 140 bed hospital under construction in Kandy. It also has an island-wide network of laboratories.
Listed Asiri Surgical Hospital, a subsidiary of the hospital group, reported earnings of 27 cents a share in the December quarter on profits of 140 million rupees, up 61.5 percent from a year earlier.
Asiri Surgical was up 10 cents Monday morning at 10.40 rupees.
Revenue in the quarter grew 11.8 percent to 865.7 million rupees, cost of sales fell 2 percent to 511.3 million rupees, expanding gross profits 30 percent to 354.4 million rupees.
In the nine months to December, Asiri Surgical reported earnings of 93 cents a share on total profits of 493 million rupees, up 157 percent from a year earlier.
In the financial year ending March 2017, unlisted subsidiary 264-bed Central Hospital accounted for 36 percent of group revenue and 21 percent of profits.
Asiri Hospital accounted for 30 percent of group revenue and 66 percent of profits. Asiri Surgical contributed 27 percent to revenue and 9 percent of profits. (COLOMBO, February 19, 2018)