INDIAN HOTELS 2022-23 Annual Report Analysis

Fri, 26 May

INDIAN 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.

INDIAN HOTELS Income Statement Analysis

• Operating income during the year rose 90.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 330.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.1% in FY23 as against 13.8% in FY22.
• Depreciation charges increased by 2.5% and finance costs decreased by 44.8% YoY, respectively.
• Other income declined by 10.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 7.3% in FY22 to 16.7% in FY23.

INDIAN HOTELS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,562	58,099	90.1%
Other income	Rs m	1,552	1,390	-10.4%
Total Revenues	Rs m	32,114	59,489	85.2%
Gross profit	Rs m	4,204	18,077	330.0%
Depreciation	Rs m	4,061	4,161	2.5%
Interest	Rs m	4,277	2,361	-44.8%
Profit before tax	Rs m	-2,582	12,946	NA
Tax	Rs m	-358	3,232	NA
Profit after tax	Rs m	-2,224	9,714	NA
Gross profit margin	%	13.8	31.1
Effective tax rate	%	13.9	25.0
Net profit margin	%	-7.3	16.7

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INDIAN HOTELS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 21 billion as compared to Rs 20 billion in FY22, thereby witnessing an increase of 7.9%.
• Long-term debt down at Rs 3 billion as compared to Rs 14 billion during FY22, a fall of 76.2%.
• Current assets fell 3% and stood at Rs 26 billion, while fixed assets rose 6% and stood at Rs 109 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 135 billion as against Rs 129 billion during FY22, thereby witnessing a growth of 4%.

INDIAN HOTELS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	70,623	79,820	13.0
Current Liabilities	Rs m	19,637	21,192	7.9
Long-term Debt	Rs m	13,879	3,310	-76.2
Total Liabilities	Rs m	129,316	135,106	4.5
Current assets	Rs m	26,731	25,897	-3.1
Fixed Assets	Rs m	102,575	109,202	6.5
Total Assets	Rs m	129,316	135,106	4.5

INDIAN HOTELS Cash Flow Statement Analysis

• INDIAN HOTELS's cash flow from operating activities (CFO) during FY23 stood at Rs 16 billion, an improvement of 141.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -15 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -471 million from the Rs 7 billion net cash flows seen during FY22.

INDIAN 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	6,716	16,190	141.1%
Cash Flow from Investing Activities	Rs m	-16,425	-1,446	-
Cash Flow from Financing Activities	Rs m	16,588	-15,279	-
Net Cash Flow	Rs m	6,893	-471	-

Current Valuations for INDIAN HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an improvement from the EPS of Rs -1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 383.1, stands at 56.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.8 times, while the price to sales ratio stands at 9.4 times.
• The company's price to cash flow (P/CF) ratio stood at 28.5 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	21.5	40.9
TTM Earnings per share	Rs	-1.6	6.8
Diluted earnings per share	Rs	-1.6	6.8
Price to Cash Flow	x	184.4	28.5
TTM P/E ratio	x	-152.3	56.0
Price / Book Value ratio	x	3.4	4.9
Market Cap	Rs m	240,935	394,836
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for INDIAN HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.4x 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 6.5x during FY23, from 0.4x 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 12.2% during FY23, from -3.1% 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 18.4% during FY23, from 2.0% 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 8.9% during FY23, from 1.6% 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	1.4	1.2
Debtors’ Days	Days	3	3
Interest coverage	x	0.4	6.5
Debt to equity ratio	x	0.2	0.0
Return on assets	%	1.6	8.9
Return on equity	%	-3.1	12.2
Return on capital employed	%	2.0	18.4

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 220.7 to Rs 383.1, registering a gain of Rs 162.5 or around 73.6%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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