Business of Lotus Eye Care Hospital
Lotus eye care has been promoted by Dr.S.K. Sundaramurthy who has over 25 years of experience in the in the field of eye surgery. Lotus has four super specialty hospitals which focus on eye care operating in South India.
Lotus eye care has two hospitals in Coimbatore, one in Salem and one in Tirupur and the total bed strength is 120. There are nine operation theaters and 3 lasik laser equipments. There were a total of 4200 surgeries performed during the calendar year 2007.
Lotus introduced Multi Scan Lasik in the year 1998 and Wave front based Esiris Custom Lasik in the year 2002 for the first time in India. Lotus was also the first hospital in South East Asia to have Epilasik in July 2004.
As part of its charitable drive Lotus Eye Care offers free screening schemes targeted at school children, textile laborers, patient suffering from glaucoma disorder and a few other schemes also.
Financials of Lotus Eye Care Hospital
Lotus eye care has been experiencing steady growth in revenues during the past five years. The revenues have grown from Rs.112.76 lakhs in the year ending 31st March 2003 to Rs.729.9 lakhs in the year ended 2007.
For the same period profit after taxes have grown from a loss of Rs.1.35 lakhs to a profit of Rs.128.68 lakhs. The profit growth has not been as steady as the revenue growth though as there was a loss of Rs.4.27 lakhs in the year ended 2005 because of significant jump in administrative expenditure.
The EPS for the year 2007 was Rs.1.21, 2006 was Rs.2.14 and 2005 was Rs. (0.23).
Objects of the IPO
Lotus Eye Care is coming out with the IPO primarily in order to raise funds for expansion of existing facilities, establishing new centers and meet working capital requirements.
Lotus Eye Care is planning to set up secondary eye care centers in the regions of RS Puram, Tirupur, Karur and a Tertiary Eye Care center at Salem. Additionally the premises right now at Salem and Tirupur are rented and Lotus plans to shift them to premises owned by them. There would be a fund requirement of Rs.1580 lakhs for the land acquisition.
The cost of constructing hospitals would total to Rs.1590 lakhs, equipment would total to another 980 lakhs.
Lotus Eye Care also plans to set up primary eye care units in Bangalore and Chennai which would focus on diagnosis, treating simple eye problems and optical sales. The expected investment on this is Rs.330 lakhs. The working capital requirements for the company is estimated to be around Rs.150 lakhs.
The funds requirement mentioned above would be taken care of by the IPO as well as debts from bank. Lotus has already got sanction for term loans from ICICI Bank, Indian Overseas Bank, ABN Amro bank and HDFC Bank for a total of Rs.999.54 lakhs.