EIH ASSO.HOTELS 2020-21 Annual Report Analysis

Wed, 31 Mar

EIH ASSO.HOTELS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

EIH ASSO.HOTELS Income Statement Analysis

• Operating income during the year fell 59.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 145.1% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 22.4% in FY21 as against 20.2% in FY20.
• Depreciation charges increased by 6.2% and finance costs increased by 18.8% YoY, respectively.
• Other income declined by 66.1% YoY.
• Net profit for the year declined by 170.4% YoY.
• Net profit margins during the year declined from 15.2% in FY20 to 26.4% in FY21.

EIH ASSO.HOTELS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,491	1,014	-59.3%
Other income	Rs m	90	31	-66.1%
Total Revenues	Rs m	2,581	1,045	-59.5%
Gross profit	Rs m	504	-227	-145.1%
Depreciation	Rs m	160	170	6.2%
Interest	Rs m	4	5	18.8%
Profit before tax	Rs m	430	-371	-186.4%
Tax	Rs m	50	-104	-306.6%
Profit after tax	Rs m	380	-267	-170.4%
Gross profit margin	%	20.2	-22.4
Effective tax rate	%	11.7	28.0
Net profit margin	%	15.2	-26.4

EIH ASSO.HOTELS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 429 million as compared to Rs 627 million in FY20, thereby witnessing an decrease of -31.6%.
• Current assets fell 37% and stood at Rs 878 million, while fixed assets fell 2% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 4 billion during FY20, thereby witnessing a fall of 13%.

EIH ASSO.HOTELS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,452	3,187	-7.7
Current Liabilities	Rs m	627	429	-31.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,467	3,895	-12.8
Current assets	Rs m	1,392	878	-36.9
Fixed Assets	Rs m	3,075	3,016	-1.9
Total Assets	Rs m	4,467	3,895	-12.8

EIH ASSO.HOTELS Cash Flow Statement Analysis

• EIH ASSO.HOTELS's cash flow from operating activities (CFO) during FY21 stood at Rs -119 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 94 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -11 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -36 million from the Rs 50 million net cash flows seen during FY20.

EIH ASSO.HOTELS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	570	-119	-
Cash Flow from Investing Activities	Rs m	-344	94	-
Cash Flow from Financing Activities	Rs m	-175	-11	-
Net Cash Flow	Rs m	50	-36	-

Current Valuations for EIH ASSO.HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.8, an decline from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 234.6, stands at -26.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at -76.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	81.7	33.3
TTM Earnings per share	Rs	12.5	-8.8
Diluted earnings per share	Rs	12.5	-8.8
Price to Cash Flow	x	11.9	-76.3
TTM P/E ratio	x	16.9	-26.7
Price / Book Value ratio	x	2.6	2.3
Market Cap	Rs m	8,883	7,465
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EIH ASSO.HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY21, from 2.2x during FY20. 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 deteriorated and stood at -69.1x during FY21, from 97.4x during FY20. 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 -8.4% during FY21, from 11.0% during FY21. 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 -11.5% during FY21, from 12.6% during FY20. 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 -6.7% during FY21, from 8.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.2	2.0
Debtors’ Days	Days	36	26
Interest coverage	x	97.4	-69.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.6	-6.7
Return on equity	%	11.0	-8.4
Return on capital employed	%	12.6	-11.5

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

EIH ASSO.HOTELS Share Price Performance

Over the last one year, EIH ASSO.HOTELS share price has moved up from Rs 210.0 to Rs 234.6, registering a gain of Rs 24.6 or around 11.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for EIH ASSO.HOTELS and quarterly results for EIH ASSO.HOTELS)

Read: Latest Annual Report Analysis of EIH ASSO.HOTELS