INDIAN HOTELS 2020-21 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

INDIAN HOTELS 2020-21 Annual Report Analysis
Mon, 6 Sep

INDIAN 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.

INDIAN HOTELS Income Statement Analysis

  • Operating income during the year fell 64.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 120.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 12.8% in FY21 as against 22.6% in FY20.
  • Depreciation charges increased by 1.3% and finance costs increased by 18.5% YoY, respectively.
  • Other income grew by 25.4% YoY.
  • Net profit for the year declined by 297.9% YoY.
  • Net profit margins during the year declined from 7.6% in FY20 to 39.9% in FY21.

INDIAN HOTELS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 44,631 15,752 -64.7%
Other income Rs m 1,324 1,661 25.4%
Total Revenues Rs m 45,956 17,412 -62.1%
Gross profit Rs m 10,085 -2,018 -120.0%
Depreciation Rs m 4,042 4,096 1.3%
Interest Rs m 3,411 4,042 18.5%
Profit before tax Rs m 3,955 -8,495 -314.8%
Tax Rs m 448 -1,553 -447.0%
Profit after tax Rs m 3,508 -6,942 -297.9%
Gross profit margin % 22.6 -12.8
Effective tax rate % 11.3 18.3
Net profit margin % 7.6 -39.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Watch Now: A Massive 15x Opportunity in Electric Vehicles

INDIAN HOTELS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 29 billion as compared to Rs 19 billion in FY20, thereby witnessing an increase of 55.1%.
  • Long-term debt stood at Rs 22 billion as compared to Rs 21 billion during FY20, a growth of 4.6%.
  • Current assets fell 20% and stood at Rs 12 billion, while fixed assets rose 2% and stood at Rs 102 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 114 billion as against Rs 114 billion during FY20, thereby witnessing a fall of 0%.

INDIAN HOTELS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 43,568 36,484 -16.3
 
Current Liabilities Rs m 19,008 29,481 55.1
Long-term Debt Rs m 21,258 22,238 4.6
Total Liabilities Rs m 114,418 113,947 -0.4
 
Current assets Rs m 14,373 11,539 -19.7
Fixed Assets Rs m 100,045 102,409 2.4
Total Assets Rs m 114,418 113,947 -0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INDIAN HOTELS Cash Flow Statement Analysis

  • INDIAN HOTELS's cash flow from operating activities (CFO) during FY21 stood at Rs -3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion, an improvement of 206% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -2 billion from the Rs 615 million net cash flows seen during FY20.

INDIAN 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 8,235 -3,187 -
Cash Flow from Investing Activities Rs m -5,019 -1,197 -
Cash Flow from Financing Activities Rs m -2,654 2,804 -
Net Cash Flow Rs m 615 -1,566 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INDIAN HOTELS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.8, an decline from the EPS of Rs 2.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 146.0, stands at -24.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 7.6 times.
  • The company's price to cash flow (P/CF) ratio stood at -61.0 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 37.5 13.2
TTM Earnings per share Rs 2.9 -5.8
Diluted earnings per share Rs 2.9 -5.8
Price to Cash Flow x 23.0 -61.0
TTM P/E ratio x -24.9 -24.9
Price / Book Value ratio x 3.2 3.3
Market Cap Rs m 173,632 173,632
Dividends per share (Unadj.) Rs 0.5 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INDIAN HOTELS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY21, from 0.8x 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 -1.1x during FY21, from 2.2x 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 -19.0% during FY21, from 8.1% 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 -7.6% during FY21, from 11.4% 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 -2.5% during FY21, from 6.0% 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 0.8 0.4
Debtors’ Days Days 2 5
Interest coverage x 2.2 -1.1
Debt to equity ratio x 0.5 0.6
Return on assets % 6.0 -2.5
Return on equity % 8.1 -19.0
Return on capital employed % 11.4 -7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

INDIAN HOTELS Share Price Performance

Over the last one year, INDIAN HOTELS share price has moved up from Rs 101.9 to Rs 146.0, registering a gain of Rs 44.1 or around 43.3%.

Overall, the S&P BSE SENSEX is up 49.2% over the year.

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

Equitymaster requests your view! Post a comment on "INDIAN HOTELS 2020-21 Annual Report Analysis". Click here!

1 Responses to "INDIAN HOTELS 2020-21 Annual Report Analysis"

reddy

Oct 3, 2021

iam interested to know about Indian Hotels

Like 
  
Equitymaster requests your view! Post a comment on "INDIAN HOTELS 2020-21 Annual Report Analysis". Click here!

Related Views on News

THE INDIAN HOTELS 2019-20 Annual Report Analysis (Annual Result Update)

Dec 1, 2020 | Updated on Dec 1, 2020

Here's an analysis of the annual report of THE INDIAN HOTELS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of THE INDIAN HOTELS. Also includes updates on the valuation of THE INDIAN HOTELS.

THE INDIAN HOTELS Announces Quarterly Results (4QFY20); Net Profit Down 42.9% (Quarterly Result Update)

Jun 11, 2020 | Updated on Jun 11, 2020

For the quarter ended March 2020, THE INDIAN HOTELS has posted a net profit of Rs 668 m (down 42.9% YoY). Sales on the other hand came in at Rs 11 bn (down 14.6% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

THE INDIAN HOTELS Announces Quarterly Results (3QFY20); Net Profit Up 21.4% (Quarterly Result Update)

Feb 1, 2020 | Updated on Feb 1, 2020

For the quarter ended December 2019, THE INDIAN HOTELS has posted a net profit of Rs 2 bn (up 21.4% YoY). Sales on the other hand came in at Rs 14 bn (up 3.7% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

More Views on News

Most Popular

5 Green Energy Stocks to Watch as India Readies for a Revolution(Views On News)

Oct 13, 2021

The excitement around green energy stocks has opened up a huge contrarian opportunity in the traditional energy space.

Could HDFC Bank be a Big EV Winner? The Answer Will Surprise You...(Profit Hunter)

Oct 13, 2021

Why should investors take it for granted that India's Tesla will be one of the major auto stocks?

Tata Group Stocks are on Fire: Which one Should You Buy?(Profit Hunter)

Oct 15, 2021

Tata group stocks are on fire. Find out which one deserves your attention.

Massive Surge in the Shares of Tata Motors Today. Key Factors Favouring the Rally(Views On News)

Oct 13, 2021

Tata Motors zooms 23% after report of TPG investing Rs 75 bn in EV arm.

India's Big PSU Selloff: Watch Out for these Top Stocks(Views On News)

Oct 15, 2021

The government's plan to divest its stakes in PSUs could spark off a rally in these four stocks.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK INDIAN HOTELS

  • Track your investment in INDIAN HOTELS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

INDIAN HOTELS 5-YR ANALYSIS

COMPARE INDIAN HOTELS WITH

MARKET STATS