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ASIAN HOTELS (EAST) 2022-23 Annual Report Analysis

Wed, 23 Aug

ASIAN HOTELS (EAST) has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ASIAN HOTELS (EAST) Income Statement Analysis

• Operating income during the year rose 83.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.8% in FY23 as against 4.4% in FY22.
• Depreciation charges increased by 8.7% and finance costs increased by 96.0% YoY, respectively.
• Other income grew by 611.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 7.9% in FY22 to 25.4% in FY23.

ASIAN HOTELS (EAST) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	512	938	83.2%
Other income	Rs m	3	20	611.5%
Total Revenues	Rs m	515	958	86.1%
Gross profit	Rs m	-23	307	NA
Depreciation	Rs m	33	36	8.7%
Interest	Rs m	0	0	96.0%
Profit before tax	Rs m	-53	291	NA
Tax	Rs m	-13	52	NA
Profit after tax	Rs m	-40	239	NA
Gross profit margin	%	-4.4	32.8
Effective tax rate	%	24.6	18.0
Net profit margin	%	-7.9	25.4

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ASIAN HOTELS (EAST) Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 272 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -74.0%.
• Current assets fell 57% and stood at Rs 525 million, while fixed assets fell 74% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 73%.

ASIAN HOTELS (EAST) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,867	2,029	-70.5
Current Liabilities	Rs m	1,047	272	-74.0
Long-term Debt	Rs m	1,140	0	-100.0
Total Liabilities	Rs m	9,158	2,465	-73.1
Current assets	Rs m	1,210	525	-56.6
Fixed Assets	Rs m	7,407	1,940	-73.8
Total Assets	Rs m	9,158	2,465	-73.1

ASIAN HOTELS (EAST) Cash Flow Statement Analysis

• ASIAN HOTELS (EAST)'s cash flow from operating activities (CFO) during FY23 stood at Rs 88 million, an improvement of 235.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -27 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -101 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs -10 million net cash flows seen during FY22.

ASIAN HOTELS (EAST) Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	26	88	235.6%
Cash Flow from Investing Activities	Rs m	-104	-27	-
Cash Flow from Financing Activities	Rs m	67	-101	-
Net Cash Flow	Rs m	-10	5	-

Current Valuations for ASIAN HOTELS (EAST)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.8, an improvement from the EPS of Rs -3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 128.5, stands at 13.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	44.4	54.2
TTM Earnings per share	Rs	-3.5	13.8
Diluted earnings per share	Rs	-2.3	13.8
Price to Cash Flow	x	-397.0	10.5
TTM P/E ratio	x	-13.2	13.6
Price / Book Value ratio	x	0.3	1.4
Market Cap	Rs m	2,232	2,898
Dividends per share (Unadj.)	Rs	0.0	2.5

Ratio Analysis for ASIAN HOTELS (EAST)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.2x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 594.7x during FY23, from -212.9x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 11.8% during FY23, from -0.6% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 14.4% during FY23, from -0.7% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 9.7% during FY23, from -0.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.9
Debtors’ Days	Days	831	236
Interest coverage	x	-212.9	594.7
Debt to equity ratio	x	0.2	0.0
Return on assets	%	-0.4	9.7
Return on equity	%	-0.6	11.8
Return on capital employed	%	-0.7	14.4

To see how ASIAN HOTELS (EAST) has performed over the last 5 years, please visit here.

ASIAN HOTELS (EAST) Share Price Performance

Over the last one year, ASIAN HOTELS (EAST) share price has moved down from Rs 155.0 to Rs 128.5, registering a loss of Rs 26.5 or around 17.1%.

Overall, the S&P BSE SENSEX is up 11.1% over the year.

(To know more, check out historical annual results for ASIAN HOTELS (EAST) and quarterly results for ASIAN HOTELS (EAST))