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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* 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 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 -
* 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 -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
* 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 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
* 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 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)

Annual Report FAQs

What is the current share price of INDIAN HOTELS?

INDIAN HOTELS currently trades at Rs 277.3 per share. You can check out the latest share price performance of INDIAN HOTELS here...

What was the revenue of INDIAN HOTELS in FY22? How does it compare to earlier years?

The revenues of INDIAN HOTELS stood at Rs 32,114 m in FY22, which was up 84.6% compared to Rs 17,399 m reported in FY21.

INDIAN HOTELS' revenue has fallen from Rs 41,748 m in FY18 to Rs 32,114 m in FY22.

Over the past 5 years, the revenue of INDIAN HOTELS has grown at a CAGR of -6.3%.

What was the net profit of INDIAN HOTELS in FY22? How does it compare to earlier years?

The net loss of INDIAN HOTELS stood at Rs -2,224 m in FY22, which was down -68.0% compared to Rs -6,942 m reported in FY21.

This compares to a net profit of Rs 3,508 m in FY20 and a net profit of Rs 2,446 m in FY19.

Over the past 5 years, INDIAN HOTELS net profit has grown at a CAGR of NaN%.

What does the cash flow statement of INDIAN HOTELS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of INDIAN HOTELS reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 6,716 m as compared to Rs -3,187 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -16,425 m as compared to Rs -1,197 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 16,588 m as compared to Rs 2,804 m in FY21.

Here's the cash flow statement of INDIAN HOTELS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations4,9217,1148,235-3,1876,716
From Investments-5,287-3,882-5,019-1,197-16,425
From Financial Activity957-3,433-2,6542,80416,588
Net Cashflow665-186615-1,5666,893

What does the Key Ratio analysis of INDIAN HOTELS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of INDIAN HOTELS reveals:

  • Operating profit margins witnessed a fall and down at 13.8% in FY22 as against 12.8% in FY21.
  • Net profit margins grew from 44.1% in FY21 to 7.3% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.6 in FY21.

Here's the ratio/financial analysis of INDIAN HOTELS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)16.918.522.6-12.813.8
Net Profit Margin (%)1.55.47.9-44.1-7.3
Debt to Equity Ratio (x)0.60.40.50.60.2

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