It posted 53 percent rise in revenue for five financial years in a row until 2019
The business of Delta Hospital Limited -- a private medical facility for general and cancer patients -- continues to rise curiously compared to its competitors.
Delta says its business as a specialised cancer hospital is soaring due to the surge in cancer patients.
The hospital posted a 60 percent rise in its net profit for five years in a row until 2019, while that of one of its rivals, Samorita Hospital, slipped 15 percent during this period.
Delta Hospital on Sunday began online bidding through the electronic subscription system to explore its cut-off price. The bidding is a must for going public under the book building method.
Delta began its journey in 1989 as Delta Medical Centre. In 2007, the company changed its name to Delta Hospital Ltd.
The hospital was shuttered since Saturday over the death of a coronavirus patient in Dhaka.
Delta Hospital posted a 53 percent rise in its revenue in five financial years until 2019, reaching Tk65.33 crore. Net profit of the company rose 60 percent to Tk7 crore in this 2015-2019 period.
Last year's report shows that it generated 28 percent of its total revenue from sales of medicines and vaccines. Besides, it earned around 17 percent from pathology, 15 percent from linear accelerator therapy, and 12 percent from seat rent.
Other revenue sources were diagnosis, service charge, chemotherapy, and doctors' fees.
"There are around 14 to 15 lakh cancer patients in the country at present, while another 1.5 lakh people test positive for different types of cancer per year," said Md Bakbul Islam, chief financial officer of Delta Hospital.
He, however, did not comment on the hospital's ongoing standstill over the coronavirus patient's death.
In the meantime, a high official of the Financial Reporting Council on condition of anonymity said they were looking into the financial report of Delta Hospital.
While Delta sits back and enjoys gradual rise in its net profit, the hospital's closest competitor, Samorita Hospital, witnessed a net profit fall due to a surge in operating costs.
Samorita began its journey as a hospital in 1990. It posted a nine percent rise in revenue, reaching Tk37.43 crore in the last five financial years. Samorita's net profit fell by 15 percent, reaching Tk3.22 crore during this period.
The company gave 10 percent cash and five percent stock dividend to its stockholders in the 2018-19 financial year. Samorita's shares were selling for Tk60 at the Dhaka Stock Exchange on Sunday.
The hospital's highest share price was Tk84 while the lowest was Tk53 in the last two years.
"Nearly 50 percent of our revenue comes from medical services. Operating costs of our major revenue generating sector have increased, lowering our net profit," said Md Shariful Islam, company secretary of Samorita Hospital.
Delta Hospital share bidding begins
The bidding period for eligible investors to discover the cut-off price of Delta Hospital shares through electronic subscription system began Sunday. The electronic bidding will continue round the clock until 5pm on Wednesday.
Each eligible investor who intends to participate in the electronic bidding to determine the cut-off price of ordinary shares will require maintaining a minimum investment of Tk1 crore only at market price in the listed securities as of March 11 this year.
The stock market regulator -- Bangladesh Securities and Exchange Commission -- allowed the company to explore its cut-off price on February 11.
The company will raise a fund of Tk50 crore for business expansion and loan repayment.