Question

Fortis Healthcare (amount in Rs. Millions)
	2018	2017	2016
Net Profit	-9,344	4,793	397
Total Revenue	47,005	47,397	43,524
Net Profit Margin	13.69%	40.64%	20.84%
Apollo Hospitals (amount in Rs. millions)
	2018	2017	2016
Net Profit (PAT)	596	1,311	2,352
Total Revenue	82,756	72,774	62,597
Net Profit Margin	0.70%	1.80%	3.80%

Please make a comparative analysis in 250 words for both companies over three years. Make sure the analysis goes into reason for the changes and sounds professional.

Answer 1

Fortis Health care

In 2018 company is making loss of $9344 million even when the total revenue is $47005, possible causes are increase in expenses of doing business such as cost of goods used in the hospital and tax provisions.

In 2017 company seems to be in a better position than 2018 as company is making profit although not as expected because the profit made is 10.11% whereas profit margin was of 40.64%.

In 2016, company is making negligible profit of 0.91% whereas the expected rate was 20.84%.

Considering all the three years the company is stumbling and and can collapse very soon if this trend continues.

Apollo Hospitals

In 2018 company is meeting its net profit margin in fact slightly higher than that, net profit is 0.72%. Company seems to have just Ok performance as profit is still low but managed to meet the return ratio.

In 2017 Again the company meets its net profit ratio i,e 1.80%.

In 2016 the company just misses the profit margin by 0.05%,

Looking at all the three years, the company seems stable although the profits are marginal.

If we compare Apollo hospitals and Fortis healthcare, we can say Apollo Hospitals is more stable whereas Fortis healthcare is volatile.