Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
EIH: 3QFY01 operating profits up 125% - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 25, 2001

    EIH: 3QFY01 operating profits up 125%

    EIH, India's second largest hotel chain has reported a net profit of Rs 277 m for the 3QFY01, a growth of 80% YoY. This quarter marks the beginning of the peak season for the hotel industry. The company's operating profit margins have gone up from 13.8% in the 3QFY00 to 26.4% in the 3QFY01, an increase of 1,255 basis points.

    (Rs m) 3QFY00 3QFY01 Change 9mths FY00 9mths FY01 Change
    Sales 1,109 1,309 18.0% 2,990 3,466 15.9%
    Other Income 124 87 -29.6% 280 266 -5.1%
    Expenditure 956 964 0.8% 2,558 2,776 8.5%
    Operating Profit (EBDIT) 153 345 125.2% 432 690 59.9%
    Operating Profit Margin (%) 13.8% 26.4%   14.4% 19.9%  
    Interest 32 53 67.0% 119 149 25.0%
    Depreciation 59 67 12.7% 178 198 11.2%
    Profit before Tax 186 313 68.0% 414 609 47.0%
    Other Adjustments 10 11   29 32  
    Tax 22 25 11.7% 49 48 -2.9%
    Profit after Tax/(Loss) 154 277 79.8% 336 529 57.3%
    Net profit margin (%) 13.9% 21.2%   11.3% 15.3%  
    No. of Shares (eoy) (m) 52.4 52.4   725.0 958.0  
    Diluted number of shares 52.4 52.4        
    Diluted Earnings per share* 2.9 5.3        

    This excellent performance of the company has been driven by higher average room rates and higher occupancy rates in the company's metro city hotels which account for 80% of the company's profits. The company had revised its room tariffs in its prime properties by 5%-10% in October 2000, this too attributed to the rise in its revenues.

    The company's revenues grew by 18% YoY during this period. The company through its strict cost control measures has managed to curtail its operating expenses growth at less than 1%. This resulted in a stupendous growth in operating profits by 125% to Rs 345 m for the 3QFY01.

      1QFY00 1QFY01 2QFY00 2QFY01 3QFY00 3QFY01
    Operating Profit Margin (%) 18.9% 20.6% 11.0% 12.0% 13.8% 26.4%

    The company's operating margins have risen substantially in the 3QFY01 in comparison to the previous two quarters of 2001 as the fortunes of the industry pick up during the 3Q and 4Q as it is the peak season for tourists.

    The company's interest costs have gone up as a result of its ongoing expansions in Himachal Pradesh and Rajasthan.

    As these results are higher than our expectations we will need to relook at our full year forecast for FY01E. We are currently projecting a net profit of Rs 958 m for FY01E and will need to revise this upwards by around 20% YoY.

    On the current price of Rs 220 it is trading at 12.0x FY01E EPS of Rs 18.3.



    Equitymaster requests your view! Post a comment on "EIH: 3QFY01 operating profits up 125%". Click here!


    More Views on News

    Sorry! There are no related views on news for this company/sector.

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


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


    Detailed Quarterly Results With Charts