Shares of healthcare company Fortis Healthcare tanked over 8 per cent to hit an intra-day low of ₹595.8 on Monday after the company’s indirect wholly-owned subsidiary, International Healthcare, received an income tax demand of ₹76.19 crore for Assessment Year 2019-20.
“We hereby inform you that International Hospital Limited (IHL), an indirect wholly-owned subsidiary of the company, has received an Income Tax demand order amounting to ₹76,19,13,970 for Assessment Year 2019-20,” the company said in an exchange filing.
The Income Tax Department issued the order over disallowed interest expenses claimed by International Healthcare for FY19.
According to the exchange filing, the tax demand is unlikely to impact the company’s financials or operations. International Healthcare is evaluating all options including filing an appeal against the order.
At 1:05 PM, the stock was quoting at ₹627.20 per share, down 3.43 per cent from Friday’s close of ₹649.45 on the National Stock Exchange (NSE). The stock is down nearly 20 per cent from its 52-week high of ₹744.5, which it touched on December 30, 2024. By comparison, the benchmark Nifty50 index was trading at 21,859.30 level, down 1,045.15 points or 4.56 per cent.
Earlier in March this year, the company’s material subsidiary Fortis Hospitals received an income tax assessment order, demanding ₹89.53 crore (including interest of ₹9.54 crore).
Q3 Flashback
In the December 2024 quarter (Q3 FY25), Fortis Healthcare reported a consolidated revenue of ₹1,928.3 crore, up 14.8 per cent compared to ₹1,680 crore in the year-ago period (Q3 FY24). The company’s profit after tax (PAT) surged 89.5 per cent to ₹254 crore in Q3 FY25 from 134 crore in Q3 FY24.
In the hospital business, revenue grew 16.8 per cent to ₹1,623.1 crore as compared to ₹1,389.5 crore in Q3 FY24. In diagnostic business, net revenue stood at ₹305.2 crore as against ₹290.2 crore in Q3 FY24.
About Fortis Healthcare
Fortis Healthcare, an IHH Healthcare Berhad company, is an integrated healthcare provider with 28 facilities, more than 4,500 beds, and over 400 diagnostic centres across India, UAE, Nepal, and Sri Lanka. With over 23,300 employees, it offers a full spectrum of integrated healthcare services ranging from clinics to quaternary care facilities and a wide range of ancillary services. The company is listed on the BSE and NSE.
