X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
THE INDIAN HOTELS 2017-18 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?  

THE INDIAN HOTELS 2017-18 Annual Report Analysis
Wed, 19 Dec

THE INDIAN HOTELS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

THE INDIAN HOTELS Income Statement Analysis

  • Operating income during the year rose 2.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.3% in FY18 as against 15.2% in FY17.
  • Depreciation charges increased by 0.6% and finance costs decreased by 16.9% YoY, respectively.
  • Other income grew by 12.4% YoY.
  • Net profit for the year declined by 327.0% YoY.
  • Net profit margins during the year grew from 1.1% in FY17 to 2.5% in FY18.

THE INDIAN HOTELS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 40,206 41,036 2.1%
Other income Rs m 549 617 12.4%
Total Revenues Rs m 40,755 41,653 2.2%
Gross profit Rs m 6,096 6,704 10.0%
Depreciation Rs m 2,994 3,012 0.6%
Interest Rs m 3,238 2,690 -16.9%
Profit before tax Rs m 414 1,618 291.3%
Tax Rs m 1,137 1,211 6.4%
Profit after tax Rs m -456 1,035 -327.0%
Gross profit margin % 15.2 16.3
Effective tax rate % 275.0 74.8
Net profit margin % -1.1 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THE INDIAN HOTELS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 14 billion as compared to Rs 18 billion in FY17, thereby witnessing an decrease of -24.2%.
  • Long-term debt down at Rs 23 billion as compared to Rs 28 billion during FY17, a fall of 16.5%.
  • Current assets rose 32% and stood at Rs 12 billion, while fixed assets rose 5% and stood at Rs 64 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 94 billion as against Rs 86 billion during FY17, thereby witnessing a growth of 9%.

THE INDIAN HOTELS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 25,177 41,811 66.1
 
Current Liabilities Rs m 18,393 13,934 -24.2
Long-term Debt Rs m 27,899 23,292 -16.5
Total Liabilities Rs m 86,343 93,745 8.6
 
Current assets Rs m 9,263 12,195 31.7
Fixed Assets Rs m 60,381 63,596 5.3
Total Assets Rs m 86,343 93,745 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THE INDIAN HOTELS Cash Flow Statement Analysis

  • THE INDIAN HOTELS's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 957 million, an improvement of 107% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 665 million from the Rs 15 million net cash flows seen during FY17.

THE INDIAN HOTELS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 5,345 4,921 -7.9%
Cash Flow from Investing Activities Rs m 8,550 -5,287 -
Cash Flow from Financing Activities Rs m -13,814 957 -
Net Cash Flow Rs m 15 665 4,395.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for THE INDIAN HOTELS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an improvement from the EPS of Rs -0.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 147.3, stands at 86.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 3.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 40.6 34.5
TTM Earnings per share Rs -0.5 0.9
Diluted earnings per share Rs -0.6 1.3
Price to Cash Flow x 67.4 32.6
TTM P/E ratio x 105.9 86.4
Price / Book Value ratio x 4.7 3.7
Market Cap Rs m 145,719 118,940
Dividends per share (Unadj.) Rs 0.4 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for THE INDIAN HOTELS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.5x during FY17. 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 1.6x during FY18, from 1.1x during FY17. 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 2.5% during FY18, from -1.8% during FY18. 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 7.6% during FY18, from 7.4% during FY17. 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 4.0% during FY18, from 3.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.5 0.9
Debtors’ Days Days 25 29
Interest coverage x 1.1 1.6
Debt to equity ratio x 1.1 0.6
Return on assets % 3.2 4.0
Return on equity % -1.8 2.5
Return on capital employed % 7.4 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

THE INDIAN HOTELS Share Price Performance

Over the last one year, THE INDIAN HOTELS share price has moved up from Rs 118.0 to Rs 147.3, registering a gain of Rs 29.3 or around 24.8%.

Overall, the S&P BSE SENSEX is up 8.6% over the year.

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

Equitymaster requests your view! Post a comment on "THE INDIAN HOTELS 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

THE INDIAN HOTELS Announces Quarterly Results (3QFY19); Net Profit Up 41.7% (Quarterly Result Update)

Feb 14, 2019 | Updated on Feb 14, 2019

For the quarter ended December 2018, THE INDIAN HOTELS has posted a net profit of Rs 2 bn (up 41.7% YoY). Sales on the other hand came in at Rs 13 bn (up 10.5% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

THE INDIAN HOTELS Announces Quarterly Results (2QFY19); Net Profit Up 25.6% (Quarterly Result Update)

Nov 15, 2018 | Updated on Nov 15, 2018

For the quarter ended September 2018, THE INDIAN HOTELS has posted a net profit of Rs 380 m (up 25.6% YoY). Sales on the other hand came in at Rs 10 bn (up 13.3% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

Chalet Hotels IPO: Should You Bet on This High-End Hotel Chain Owner? (IPO)

Jan 29, 2019

Should you subscribe to the IPO of Chalet Hotels Ltd?

Lemon Tree Hotels IPO: India's Largest Hotel Chain in the Mid-Priced Hotel Sector (IPO)

Mar 23, 2018

Should you subscribe to the IPO of Lemon Tree Hotels Ltd?

More Views on News

Most Popular

The One Real Estate Stock to Buy Now(The 5 Minute Wrapup)

Feb 13, 2019

The real estate sector is ready to make a comeback. This is the stock to consider buying.

Don't Be Afraid of the Market; Buy Stocks Like This One(The 5 Minute Wrapup)

Feb 14, 2019

During this tough period in the market, a contrarian approach holds huge potential upside for this Smart Money Secrets stock.

Small Caps Under Seige: Could This Be A Once-in-a-Decade Wealth Creating Opportunity?(Profit Hunter)

Feb 14, 2019

Don't let the dark clouds hovering over small caps scare you into hiding; it will rain gold as sentiments recover. Indeed, there is a blood bath. And if you are a first time investor, the correction is deep enough to scare you out of markets.

The 4-Point Plan to Accelerate India to a 10 Trillion Dollar Economy(The 5 Minute Wrapup)

Feb 12, 2019

Two questions I have been eagerly waiting to ask you ever since Budget 2019 was announced.

The Train to 'Small-Cap-Profits Land' is Back on the Station!(Profit Hunter)

Feb 15, 2019

Why its great news that prices for small caps over the last few days have been falling like there's no tomorrow.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK THE INDIAN HOTELS

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

MORE ON THE INDIAN HOTELS

THE INDIAN HOTELS 8-QTR ANALYSIS

COMPARE THE INDIAN HOTELS WITH

MARKET STATS