The idea of Shifa International Hospital (SHFA) was first conceived in New York, in the middle of 1985. The principal object was to establish medical centers in Pakistan, and the first hospital was set up in Islamabad. The Shifa Hospital was incorporated on September 20, 1987 as a private limited company and converted into the public limited company on October 12, 1989. The hospital listed at the KSE in1995. Since that time, it has the unique position in the Pakistani corporate sector since it is the only healthcare enterprise in the corporate sector which is listed on the stock exchange of Pakistan.
The construction of the hospital was started in 1987 by acquiring over 11 acres of land in Islamabad without any borrowed money the hospital started with Rs 500 million in equity. Initially, the Shifa hospital offered the medical treatment related to Radiology, Radiation Oncology, Laboratories, Operating Rooms, Dialysis, and ICU/CCU. After, one and a half decade the Shifa International Hospital has expanded to different blocks with already finished covered area of 315000 square feet. Shifa International Hospital offers 150 IPD beds with quality care and OPD facility in 35 different specializations.
It is rather unfortunate in Pakistan that only one healthcare provider is registered at the stock market. Predominantly the health care sector in Pakistan consists of privately own units, and the hospitals run by the government. So, it is impossible to compare the result with any other health care provider.
From the revenue of Rs 3,412.7 million in FY11, the hospital's top line clocked in at Rs 4,451.8 million in FY12, a 30 percent year-on-year growth over FY11. The gigantic growth in the revenue is mainly attributable to utilisation of hospital's Inpatient care department (IPD) which alone contributed to 43 percent of gross revenue of the hospital and then higher revenue at the external pharmacies and the external pickup points of Shifa hospital's medical lab contributed as well.
The other income during this period also fattened up to 14 percent. This increase was largely consisting of the sale of scrap, gain on foreign-currency translation and liabilities written back. During this period, the bottom line of the hospital saw an increase of only 1 percent. The reason behind the non eye-catching increase in net profit was largely due to the increase in operating costs due to higher utilisation of services. The operating cost in FY12 was 15 percent higher than the year before.
During this financial year, the margins of the hospital dropped a little due to the nature of business, the cost of providing operation has again gone up during the period. However, the Shifa Hospital reported an earning of Rs 464.6 million for the financial year 2014 as compared to Rs 388.2 million in the financial year 2013.
The top line to Rs 6,393.1 million from Rs 5,315.6 million in last financial year, a 20 percent increase during the year-on-year comparison. Again, the major source of this higher revenue was increase in the number of patient visits, higher number of surgeries and procedure. Similarly, the revenue of external pharmacies, lab picks up points also contributed.

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Shifa International Hospitals Limited
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Rs (mn)                     9MFY14   9MFY15           chg
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Net revenue                   4,642   5,405           16%
Other operating income           43      35          -18%
Operating costs               4,109   4,777           16%
Finance cost                    144     127          -12%
Profit before taxation          432     536           24%
Provision for taxation          131     176           34%
Profit for the year             301     361           20%
Operating profit margin          11%     12%   up 100 bps
Net profit margin                 6%      7%   up 100 bps
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