INDIAN HOTELS 2021-22 Annual Report Analysis

Tue, 14 Jun

INDIAN 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.

INDIAN HOTELS Income Statement Analysis

• Operating income during the year rose 94.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 308.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY22 as against 12.8% in FY21.
• Depreciation charges decreased by 0.9% and finance costs increased by 6.2% YoY, respectively.
• Other income declined by 5.8% YoY.
• Net profit for the year declined by 68.0% YoY.
• Net profit margins during the year grew from 44.1% in FY21 to 7.3% in FY22.

INDIAN HOTELS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	15,752	30,562	94.0%
Other income	Rs m	1,647	1,552	-5.8%
Total Revenues	Rs m	17,399	32,114	84.6%
Gross profit	Rs m	-2,018	4,204	-308.3%
Depreciation	Rs m	4,096	4,061	-0.9%
Interest	Rs m	4,028	4,277	6.2%
Profit before tax	Rs m	-8,495	-2,582	-69.6%
Tax	Rs m	-1,553	-358	-77.0%
Profit after tax	Rs m	-6,942	-2,224	-68.0%
Gross profit margin	%	-12.8	13.8
Effective tax rate	%	18.3	13.9
Net profit margin	%	-44.1	-7.3

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INDIAN HOTELS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 20 billion as compared to Rs 29 billion in FY21, thereby witnessing an decrease of -33.4%.
• Long-term debt down at Rs 14 billion as compared to Rs 22 billion during FY21, a fall of 37.6%.
• Current assets rose 132% and stood at Rs 27 billion, while fixed assets rose 0% and stood at Rs 103 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 129 billion as against Rs 114 billion during FY21, thereby witnessing a growth of 13%.

INDIAN HOTELS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	36,484	70,623	93.6
Current Liabilities	Rs m	29,481	19,637	-33.4
Long-term Debt	Rs m	22,238	13,879	-37.6
Total Liabilities	Rs m	113,947	129,316	13.5
Current assets	Rs m	11,539	26,741	131.7
Fixed Assets	Rs m	102,409	102,575	0.2
Total Assets	Rs m	113,947	129,316	13.5

INDIAN HOTELS Cash Flow Statement Analysis

• INDIAN HOTELS's cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -16 billion, an improvement of 1,272.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 17 billion, an improvement of 492% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 7 billion from the Rs -2 billion net cash flows seen during FY21.

INDIAN 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	-3,187	6,716	-
Cash Flow from Investing Activities	Rs m	-1,197	-16,425	-
Cash Flow from Financing Activities	Rs m	2,804	16,588	491.6%
Net Cash Flow	Rs m	-1,566	6,893	-

Current Valuations for INDIAN HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an improvement from the EPS of Rs -5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 216.0, stands at -138.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 10.0 times.
• The company's price to cash flow (P/CF) ratio stood at 131.2 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	13.2	21.5
TTM Earnings per share	Rs	-5.8	-1.6
Diluted earnings per share	Rs	-4.9	-1.6
Price to Cash Flow	x	-55.4	131.2
TTM P/E ratio	x	-22.7	-138.0
Price / Book Value ratio	x	3.3	3.4
Market Cap	Rs m	119,580	240,935
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for INDIAN HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 0.4x 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 0.4x during FY22, from -1.1x 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 -3.1% during FY22, from -19.0% 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 2.0% during FY22, from -7.6% 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 1.6% during FY22, from -2.6% 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	0.4	1.4
Debtors’ Days	Days	5	3
Interest coverage	x	-1.1	0.4
Debt to equity ratio	x	0.6	0.2
Return on assets	%	-2.6	1.6
Return on equity	%	-19.0	-3.1
Return on capital employed	%	-7.6	2.0

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 134.1 to Rs 216.0, registering a gain of Rs 82.0 or around 61.1%.

Overall, the S&P BSE SENSEX is up 1.1% over the year.

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

Read: Latest Annual Report Analysis of INDIAN HOTELS