EIH 2024-25 Annual Report Analysis

Thu, 17 Jul

EIH has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

EIH Income Statement Analysis

• Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.1% in FY25 as against 38.0% in FY24.
• Depreciation charges increased by 2.3% and finance costs increased by 10.0% YoY, respectively.
• Other income grew by 93.3% YoY.
• Net profit for the year grew by 13.6% YoY.
• Net profit margins during the year grew from 27.0% in FY24 to 28.1% in FY25.

EIH Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	25,113	27,431	9.2%
Other income	Rs m	1,147	2,218	93.3%
Total Revenues	Rs m	26,260	29,649	12.9%
Gross profit	Rs m	9,534	9,620	0.9%
Depreciation	Rs m	1,315	1,345	2.3%
Interest	Rs m	194	213	10.0%
Profit before tax	Rs m	9,172	10,280	12.1%
Tax	Rs m	2,395	2,581	7.7%
Profit after tax	Rs m	6,777	7,699	13.6%
Gross profit margin	%	38.0	35.1
Effective tax rate	%	26.1	25.1
Net profit margin	%	27.0	28.1

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EIH Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 6 billion as compared to Rs 5 billion in FY24, thereby witnessing an increase of 9.1%.
• Current assets rose 34% and stood at Rs 14 billion, while fixed assets rose 16% and stood at Rs 45 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 61 billion as against Rs 53 billion during FY24, thereby witnessing a growth of 15%.

EIH Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	39,396	46,128	17.1
Current Liabilities	Rs m	5,130	5,595	9.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	52,933	60,923	15.1
Current assets	Rs m	10,725	14,374	34.0
Fixed Assets	Rs m	38,990	45,137	15.8
Total Assets	Rs m	52,933	60,923	15.1

EIH Cash Flow Statement Analysis

• EIH's cash flow from operating activities (CFO) during FY25 stood at Rs 8 billion, an improvement of 15.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -1 billion, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 3 billion from the Rs -14 million net cash flows seen during FY24.

EIH Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	7,117	8,251	15.9%
Cash Flow from Investing Activities	Rs m	-5,415	-3,717	-
Cash Flow from Financing Activities	Rs m	-1,669	-1,128	-
Net Cash Flow	Rs m	-14	2,933	-

Current Valuations for EIH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.3, an improvement from the EPS of Rs 10.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 390.6, stands at 34.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	40.2	43.9
TTM Earnings per share	Rs	10.8	12.3
Diluted earnings per share	Rs	10.8	12.3
Price to Cash Flow	x	34.7	29.7
TTM P/E ratio	x	43.6	34.3
Price / Book Value ratio	x	5.1	5.8
Market Cap	Rs m	202,524	268,735
Dividends per share (Unadj.)	Rs	1.2	1.5

Ratio Analysis for EIH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY25, from 2.1x during FY24. 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 49.2x during FY25, from 48.3x during FY24. 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 16.7% during FY25, from 17.2% during FY25. 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 22.7% during FY25, from 23.8% during FY24. 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 13.0% during FY25, from 13.2% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	2.1	2.6
Debtors’ Days	Days	29	32
Interest coverage	x	48.3	49.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.2	13.0
Return on equity	%	17.2	16.7
Return on capital employed	%	23.8	22.7

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

EIH Share Price Performance

Over the last one year, EIH share price has moved down from Rs 413.5 to Rs 390.6, registering a loss of Rs 23.0 or around 5.6%.

Overall, the S&P BSE SENSEX is up 2.3% over the year.

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