EIH ASSO.HOTELS 2022-23 Annual Report Analysis

Tue, 18 Jul

EIH ASSO.HOTELS 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.

EIH ASSO.HOTELS Income Statement Analysis

• Operating income during the year rose 72.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 197.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.1% in FY23 as against 16.3% in FY22.
• Depreciation charges increased by 5.4% and finance costs increased by 15.1% YoY, respectively.
• Other income grew by 173.1% YoY.
• Net profit for the year grew by 401.6% YoY.
• Net profit margins during the year grew from 6.6% in FY22 to 19.2% in FY23.

EIH ASSO.HOTELS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,952	3,371	72.7%
Other income	Rs m	26	71	173.1%
Total Revenues	Rs m	1,978	3,441	74.0%
Gross profit	Rs m	318	947	197.5%
Depreciation	Rs m	157	165	5.4%
Interest	Rs m	3	4	15.1%
Profit before tax	Rs m	184	848	361.4%
Tax	Rs m	55	202	267.3%
Profit after tax	Rs m	129	646	401.6%
Gross profit margin	%	16.3	28.1
Effective tax rate	%	30.0	23.8
Net profit margin	%	6.6	19.2

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EIH ASSO.HOTELS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 668 million as compared to Rs 469 million in FY22, thereby witnessing an increase of 42.6%.
• Current assets rose 76% and stood at Rs 2 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 26%.

EIH ASSO.HOTELS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,323	3,966	19.3
Current Liabilities	Rs m	469	668	42.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,125	5,215	26.4
Current assets	Rs m	1,137	2,002	76.1
Fixed Assets	Rs m	2,988	3,213	7.5
Total Assets	Rs m	4,125	5,215	26.4

EIH ASSO.HOTELS Cash Flow Statement Analysis

• EIH ASSO.HOTELS's cash flow from operating activities (CFO) during FY23 stood at Rs 912 million, an improvement of 139.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -887 million, an improvement of 142.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -17 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 million from the Rs 7 million net cash flows seen during FY22.

EIH ASSO.HOTELS 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	381	912	139.6%
Cash Flow from Investing Activities	Rs m	-367	-887	-
Cash Flow from Financing Activities	Rs m	-7	-17	-
Net Cash Flow	Rs m	7	8	10.6%

Current Valuations for EIH ASSO.HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.2, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 520.2, stands at 24.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.9 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	64.1	110.6
TTM Earnings per share	Rs	4.2	21.2
Diluted earnings per share	Rs	4.2	21.2
Price to Cash Flow	x	46.5	15.9
TTM P/E ratio	x	103.2	24.5
Price / Book Value ratio	x	3.2	3.3
Market Cap	Rs m	10,508	12,903
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for EIH ASSO.HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY23, from 2.4x 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 219.1x during FY23, from 55.4x 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 16.3% during FY23, from 3.9% 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 21.5% during FY23, from 5.6% 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 12.5% during FY23, from 3.2% 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	2.4	3.0
Debtors’ Days	Days	14	17
Interest coverage	x	55.4	219.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.2	12.5
Return on equity	%	3.9	16.3
Return on capital employed	%	5.6	21.5

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 405.4 to Rs 520.2, registering a gain of Rs 114.9 or around 28.3%.

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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