28 November 2022 02:34 am
Nawaloka Hospitals PLC continued to report losses through the second fiscal quarter ended in September 2022 as the revenues fell sharply raising questions if the once leading private sector healthcare service provider in the country is losing appeal among the public at a time when the private healthcare is among the sectors at the forefront in terms of growth and future prospects.
The company reported revenues of Rs.2.34 billion in the July – September quarter, down 44.1 percent from the same period a year ago extending its poor revenue streak for the third quarter in a row.
While it is immediately not clear what is behind the weakening sales record as the company doesn’t provide earnings commentary as part of its interim report, it appears that the company is losing market share in the growing healthcare sector.
The company was also seen keeping a close tab on its operating costs during the quarter compared to a year before, but what was unusual was the fall in the staff cost, raising questions if the company has been downsizing.
The staff cost for the quarter was Rs.433.2 million, down 23.2 percent from a year ago. This was unusual at a time when the companies have been raising their wages and other benefits to the staff to help them cope up with the soaring inflation.
Staff comprising healthcare professionals and support staff is an integral component which determines the success of running a hospital.
For the quarter, the company reported a loss of 8 cents a share or Rs.114.3 million compared to a profit of 29 cents a share or Rs.412.6 million in the same period last year.
For the six months through September the company reported a loss of Rs.323.1 million compared to a profit of Rs.777.2 million in the same period last year.
While the famed Dharmadasa family controls the majority or 65 percent stake in the company, billionaire businessman Dhammika Perera has 27.65 percent stake being its second largest shareholder after the family’s combined holding.
Market speculation is rife that the promoters of the company may exit the company at the right price amid several parties including Harry Jayawardena-led Melstacorp group and Sunshine Holdings actively looking to expand their footprint in the country’s healthcare sector.