CHALET HOTELS 2021-22 Annual Report Analysis

Tue, 6 Sep

CHALET HOTELS 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.

CHALET HOTELS Income Statement Analysis

• Operating income during the year rose 77.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3154.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY22 as against 1.0% in FY21.
• Depreciation charges increased by 0.8% and finance costs decreased by 5.0% YoY, respectively.
• Other income declined by 0.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 47.4% in FY21 to 14.8% in FY22.

CHALET HOTELS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,856	5,078	77.8%
Other income	Rs m	219	219	-0.1%
Total Revenues	Rs m	3,075	5,297	72.3%
Gross profit	Rs m	29	940	3,154.4%
Depreciation	Rs m	1,175	1,184	0.8%
Interest	Rs m	1,520	1,444	-5.0%
Profit before tax	Rs m	-2,446	-1,469	NA
Tax	Rs m	-1,092	-720	NA
Profit after tax	Rs m	-1,355	-749	NA
Gross profit margin	%	1.0	18.5
Effective tax rate	%	44.6	49.0
Net profit margin	%	-47.4	-14.8

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CHALET HOTELS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 12.5%.
• Long-term debt stood at Rs 21 billion as compared to Rs 18 billion during FY21, a growth of 22.0%.
• Current assets rose 16% and stood at Rs 6 billion, while fixed assets rose 10% and stood at Rs 36 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 42 billion as against Rs 38 billion during FY21, thereby witnessing a growth of 10%.

CHALET HOTELS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	14,128	13,389	-5.2
Current Liabilities	Rs m	7,649	8,606	12.5
Long-term Debt	Rs m	17,567	21,428	22.0
Total Liabilities	Rs m	38,091	42,074	10.5
Current assets	Rs m	5,551	6,422	15.7
Fixed Assets	Rs m	32,541	35,652	9.6
Total Assets	Rs m	38,091	42,074	10.5

CHALET HOTELS Cash Flow Statement Analysis

• CHALET HOTELS's cash flow from operating activities (CFO) during FY22 stood at Rs 622 million, an improvement of 3.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 693.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 4 billion, an improvement of 1,305% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 771 million from the Rs -238 million net cash flows seen during FY21.

CHALET HOTELS 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	602	622	3.4%
Cash Flow from Investing Activities	Rs m	-499	-3,961	-
Cash Flow from Financing Activities	Rs m	-341	4,109	-
Net Cash Flow	Rs m	-238	771	-

Current Valuations for CHALET HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.7, an improvement from the EPS of Rs -6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 331.9, stands at -1,327.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 13.4 times.
• The company's price to cash flow (P/CF) ratio stood at 105.3 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	13.9	24.8
TTM Earnings per share	Rs	-6.6	-3.7
Diluted earnings per share	Rs	-6.6	-3.7
Price to Cash Flow	x	-167.4	105.3
TTM P/E ratio	x	-22.2	-1,327.8
Price / Book Value ratio	x	2.3	3.4
Market Cap	Rs m	32,214	45,792
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CHALET HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY22, from 0.7x 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 0.0x during FY22, from -0.6x 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 improved and stood at -5.6% during FY22, from -9.6% 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 improved and stood at -0.1% during FY22, from -2.9% 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 improved and stood at 1.7% during FY22, from 0.4% 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	0.7	0.7
Debtors’ Days	Days	39	31
Interest coverage	x	-0.6	0.0
Debt to equity ratio	x	1.2	1.6
Return on assets	%	0.4	1.7
Return on equity	%	-9.6	-5.6
Return on capital employed	%	-2.9	-0.1

To see how CHALET HOTELS has performed over the last 5 years, please visit here.

CHALET HOTELS Share Price Performance

Over the last one year, CHALET HOTELS share price has moved up from Rs 176.8 to Rs 331.9, registering a gain of Rs 155.1 or around 87.7%.

Overall, the S&P BSE SENSEX is up 2.6% over the year.

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

Read: Latest Annual Report Analysis of CHALET HOTELS