ASIAN HOTELS (EAST) 2021-22 Annual Report Analysis

Tue, 8 Nov

ASIAN HOTELS (EAST) has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ASIAN HOTELS (EAST) Income Statement Analysis

• Operating income during the year rose 68.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 7.9% in FY22 as against 18.7% in FY21.
• Depreciation charges decreased by 0.4% and finance costs increased by 4.8% YoY, respectively.
• Other income declined by 36.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 60.6% in FY21 to 37.6% in FY22.

ASIAN HOTELS (EAST) Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	544	917	68.7%
Other income	Rs m	106	67	-36.9%
Total Revenues	Rs m	649	984	51.5%
Gross profit	Rs m	-102	-72	NA
Depreciation	Rs m	194	193	-0.4%
Interest	Rs m	142	149	4.8%
Profit before tax	Rs m	-332	-347	NA
Tax	Rs m	-2	-2	NA
Profit after tax	Rs m	-330	-345	NA
Gross profit margin	%	-18.7	-7.9
Effective tax rate	%	0.6	0.6
Net profit margin	%	-60.6	-37.6

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ASIAN HOTELS (EAST) Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 934 million in FY21, thereby witnessing an increase of 12.0%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY21, a growth of 12.0%.
• Current assets fell 10% and stood at Rs 1 billion, while fixed assets fell 0% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 9 billion during FY21, thereby witnessing a fall of 2%.

ASIAN HOTELS (EAST) Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,244	6,867	-5.2
Current Liabilities	Rs m	934	1,047	12.0
Long-term Debt	Rs m	1,017	1,140	12.0
Total Liabilities	Rs m	9,310	9,158	-1.6
Current assets	Rs m	1,349	1,210	-10.3
Fixed Assets	Rs m	7,419	7,407	-0.2
Total Assets	Rs m	9,310	9,158	-1.6

ASIAN HOTELS (EAST) Cash Flow Statement Analysis

• ASIAN HOTELS (EAST)'s cash flow from operating activities (CFO) during FY22 stood at Rs 26 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -104 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 67 million, an improvement of 1,852% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -10 million from the Rs 4 million net cash flows seen during FY21.

ASIAN HOTELS (EAST) Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-71	26	-
Cash Flow from Investing Activities	Rs m	79	-104	-
Cash Flow from Financing Activities	Rs m	-4	67	-
Net Cash Flow	Rs m	4	-10	-

Current Valuations for ASIAN HOTELS (EAST)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -29.9, an decline from the EPS of Rs -28.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 132.1, stands at -18.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at -14.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	47.1	79.5
TTM Earnings per share	Rs	-28.6	-29.9
Diluted earnings per share	Rs	-19.1	-20.0
Price to Cash Flow	x	-12.0	-14.7
TTM P/E ratio	x	-4.9	-18.4
Price / Book Value ratio	x	0.2	0.3
Market Cap	Rs m	1,794	2,232
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASIAN HOTELS (EAST)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.4x during FY21. 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 -1.3x during FY22, from -1.3x during FY21. 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 declined and down at -5.0% during FY22, from -4.6% during FY22. 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 declined and down at -2.5% during FY22, from -2.3% during FY21. 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 declined and down at -2.1% during FY22, from -2.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.4	1.2
Debtors’ Days	Days	516	464
Interest coverage	x	-1.3	-1.3
Debt to equity ratio	x	0.1	0.2
Return on assets	%	-2.0	-2.1
Return on equity	%	-4.6	-5.0
Return on capital employed	%	-2.3	-2.5

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 up from Rs 105.1 to Rs 132.1, registering a gain of Rs 26.9 or around 25.6%.

Overall, the S&P BSE SENSEX is up 1.9% over the year.

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

Read: Latest Annual Report Analysis of ASIAN HOTELS (EAST)