KUALA LUMPUR (May 31): IHH Healthcare Bhd swung back to black with a net profit of RM375.62 million for its first quarter ended March 31, 2021 (1QFY21), from a net loss of RM319.79 million in 1QFY20, amid higher earnings before interest, tax, depreciation and amortisation (EBITDA), and higher share of profits from joint ventures and associates.

Ebitda rose 31% to RM960.63 million, from RM734.42 million, while revenue rose 11% to RM3.95 billion from RM3.56 billion – largely due to Covid-19 related services rendered – IHH's stock exchange filing today showed.

"The group was in active collaboration with the public healthcare sector of the countries it operates in since late January 2020 to provide Covid-19 screening, laboratory testing and vaccination services. The group’s operations in Singapore also treated Covid-19 patients, performed temperature screenings and on arrival tests at the Singapore borders, as well as other Covid-19 related medical services. In addition, the group’s hospitals in Malaysia, Turkey and India treated walk-in Covid-19 patients. The acquisition of Prince Court  Medical Centre in September 2020 also contributed to the increase in revenue," IHH said.

Lower depreciation and amortisation expenses also boosted its bottom line, in addition to lower net finance costs, IHH noted. Excluding exceptional items such as the RM400.48 million impairment of goodwill over Ravindranath GE Medical Associates Pte Ltd (also known as Global Hospitals) that were recorded in 1HFY20, IHH said its net profit grew 80% to RM340.6 million.

In a separate statement, Managing Director and Chief Executive Officer (CEO) Dr Kelvin Loh noted that its strong recovery demonstrates IHH's agility in responding to Covid-19 by undertaking operational changes and new initiatives. “We will remain adaptive to manage the challenges that will come from the tightening Covid-19 measures. Our Refreshed Strategy, which puts trust at the centre of all we do and has underpinned our resilience, remains a focus," he said.

However, he cautioned that the resurgence of Covid-19, including in India, Malaysia, Turkey and Singapore, shows the fight is far from over. "Our hearts are especially with our Indian friends, colleagues and patients amid this devastating health crisis. We continue to stand by them and stand ready to provide additional support where needed; a commitment that applies to all countries where we operate. The safety of our colleagues, patients and communities remains our top priority,” Loh said.

Shares in IHH closed 0.75% or four sen lower at RM5.30 today, valuing it at RM46.53 billion. It saw 1.15 million shares done.