THE INDIAN HOTELS 2017-18 Annual Report Analysis

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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)

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