Indian Hotels: Margin pressure - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indian Hotels: Margin pressure

Jan 16, 2004

Indian Hotels Company Limited (IHCL), the hospitality major, reported a strong performance for the December quarter. The company clocked an 11% topline growth, while its bottomline has grown by nearly 49% in the December quarter on a YoY basis. What is, however, disturbing is that the company's operating margins have dropped significantly and the improvement in bottomline was mainly due to higher other income, extraordinary income (sale of assets) as well as due to a smaller base (due to extraordinary expenses) in December last year. Lower interest expenses has also contributed to the bottomline improvement.

(Rs m) 3QFY03 3QFY04 Change 9mFY03 9mFY04 Change
Net Sales 1,689 1,878 11.2% 3,974 4,539 14.2%
Other Income 16 44 179.2% 173 201 16.4%
Expenditure 1,290 1,538 19.3% 3,233 3,867 19.6%
Operating Profit (EBDIT) 400 340 -15.0% 740 673 -9.1%
Operating Profit Margin (%) 23.7% 18.1%   18.6% 14.8%  
Interest 94 54 -42.5% 294 181 -38.6%
Depreciation 116 121 4.1% 351 350 -0.3%
Profit before Tax 205 209 1.9% 268 343 28.1%
Extraordinary items (33) 11   (33) (18)  
Tax 60 53 -10.9% 86 87 0.3%
Profit after Tax/(Loss) 112 166 48.6% 148 238 60.6%
Net profit margin (%) 6.6% 8.8%   3.7% 5.3%  
No. of Shares 45.0 45.1   45.0 45.1  
Diluted Earnings per share* 9.9 14.7   4.4 7.0  
P/E Ratio         63.9  
(* annualised)            

To Read the Full Story, Subscribe or Sign In
To Read the Full Story, Subscribe or Sign In


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

INDIAN HOTELS SHARE PRICE


Dec 7, 2021 (Close)

TRACK INDIAN HOTELS

  • Track your investment in INDIAN HOTELS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

INDIAN HOTELS - SUN INTL. COMPARISON

COMPARE INDIAN HOTELS WITH

MARKET STATS