Hemas Holdings PLC (HHL) which has had the best quarter year-to-date for the period ended 31 December 2011 with consolidated revenues of Rs 5.3 billion is planning to set up hospitals in key towns, HHL officials said.
 “We want to expand our healthcare sector and we are targeting some more hospitals in the suburbs," a HHL official told the Business Times. The hospitals currently on the cards are Battaramulla and Ratmalana with 50 rooms each, while HHL already operates hospitals in Wattala and Galle.
HHL's second phase of hospital expansion began during the quarter, with project work for the third hospital in Battaramulla, Thalawathugoda starting late last year. Husein Esufally, CEO HHL in his statement had said that HHL's hospitals in Wattala and Galle are seeing increasing patronage amongst local residents. The official said that the Battaramulla hospital which was to start in mid 2012 will only be operational in the first half of 2013 while Ratmalana Hospital is yet at its inception. He added that each will cost some US$ 10 million.
He said the time span to complete these projects is not known.
HHL's healthcare sector showed a healthy performance recording a quarterly revenue of Rs 1.8 billion (up 10.0% year-on-year) for the period ended 31 December 2011 and quarterly earnings of Rs 86 million (up 33.3% year-on-year). Mr. Esufally has said that the healthcare sector was the main contributor to the year-to-date performance with a revenue growth of 14% and earnings growth of 53.6%.
HHL's Pharmaceuticals business maintained its leadership position in the industry for the period ended 31 December 2011with a market share of 16.65%, according to the officials.
HHL's earnings growth during the period ended 31 December 2011 was fueled by the leisure, healthcare and fast moving consumer goods sectors, which grew by 170.6%, 33.3% and 22.2% respectively.
Nine month earnings were mainly impacted by the underperformance of the power sector, which is experiencing low rainfalls in the catchment areas. As a result, Group earnings for the nine months ending 31 December 2011 declined by 6.9% to Rs 837 million, according to Mr . Esufally.
HHL’s FMCG sector enjoyed a good quarter, recording a revenue growth of 17% to achieve Rs. 1.7 billion with sector profits growing at 22.4% to end the quarter at Rs 174 million. HHL's transportation sector achieved a revenue of Rs. 182 million for the quarter ended 31 December 2011, a marginal decline of 0.6% from the previous year, whilst profits dropped 9.8% to Rs. 58 million.
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