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INDIAN HOTELS 2018-19 Annual Report Analysis
Sun, 31 Mar

INDIAN HOTELS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

INDIAN HOTELS Income Statement Analysis

  • Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY19 as against 16.9% in FY18.
  • Depreciation charges increased by 8.8% and finance costs decreased by 30.5% YoY, respectively.
  • Other income grew by 22.1% YoY.
  • Net profit for the year grew by 286.8% YoY.
  • Net profit margins during the year grew from 1.5% in FY18 to 5.4% in FY19.

INDIAN HOTELS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 41,036 45,120 10.0%
Other income Rs m 713 870 22.1%
Total Revenues Rs m 41,748 45,990 10.2%
Gross profit Rs m 6,928 8,363 20.7%
Depreciation Rs m 3,012 3,279 8.8%
Interest Rs m 2,786 1,937 -30.5%
Profit before tax Rs m 1,843 4,017 118.0%
Tax Rs m 1,211 1,571 29.8%
Profit after tax Rs m 632 2,446 286.8%
Gross profit margin % 16.9 18.5
Effective tax rate % 65.7 39.1
Net profit margin % 1.5 5.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

INDIAN HOTELS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 21 billion as compared to Rs 14 billion in FY18, thereby witnessing an increase of 49.9%.
  • Long-term debt down at Rs 17 billion as compared to Rs 23 billion during FY18, a fall of 27.5%.
  • Current assets fell 5% and stood at Rs 12 billion, while fixed assets rose 3% and stood at Rs 84 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 95 billion as against Rs 93 billion during FY18, thereby witnessing a growth of 2%.

INDIAN HOTELS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 41,811 43,480 4.0
 
Current Liabilities Rs m 13,934 20,895 49.9
Long-term Debt Rs m 23,292 16,875 -27.5
Total Liabilities Rs m 93,144 95,143 2.1
 
Current assets Rs m 12,195 11,588 -5.0
Fixed Assets Rs m 80,949 83,555 3.2
Total Assets Rs m 93,144 95,143 2.1
* 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 FY19 stood at Rs 7 billion, an improvement of 44.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -186 million from the Rs 665 million net cash flows seen during FY18.

INDIAN HOTELS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 4,921 7,114 44.6%
Cash Flow from Investing Activities Rs m -5,287 -3,882 -
Cash Flow from Financing Activities Rs m 957 -3,433 -
Net Cash Flow Rs m 665 -186 -
* 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 2.1, 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 154.4, stands at 89.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 4.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 34.5 37.9
TTM Earnings per share Rs 0.5 2.1
Diluted earnings per share Rs 0.4 1.7
Price to Cash Flow x 49.6 27.7
TTM P/E ratio x 286.1 89.6
Price / Book Value ratio x 3.7 3.6
Market Cap Rs m 156,751 158,445
Dividends per share (Unadj.) Rs 0.4 0.5
* 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 deteriorated and stood at 0.6x during FY19, from 0.9x during FY18. 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 3.1x during FY19, from 1.7x during FY18. 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 5.6% during FY19, from 1.5% during FY19. 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 9.9% during FY19, from 7.1% during FY18. 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 4.6% during FY19, from 3.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.9 0.6
Debtors’ Days Days 3 3
Interest coverage x 1.7 3.1
Debt to equity ratio x 0.6 0.4
Return on assets % 3.7 4.6
Return on equity % 1.5 5.6
Return on capital employed % 7.1 9.9
* 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 127.4 to Rs 154.4, registering a gain of Rs 27.0 or around 21.2%.

Overall, the S&P BSE SENSEX is up 16.3% 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 591.2 per share. You can check out the latest share price performance of INDIAN HOTELS here...

What was the revenue of INDIAN HOTELS in FY19? How does it compare to earlier years?

The revenues of INDIAN HOTELS stood at Rs 45,990 m in FY19, which was up 10.2% compared to Rs 41,748 m reported in FY18.

INDIAN HOTELS' revenue has grown from Rs 43,180 m in FY15 to Rs 45,990 m in FY19.

Over the past 5 years, the revenue of INDIAN HOTELS has grown at a CAGR of 1.6%.

What was the net profit of INDIAN HOTELS in FY19? How does it compare to earlier years?

The net profit of INDIAN HOTELS stood at Rs 2,446 m in FY19, which was up 286.8% compared to Rs 632 m reported in FY18.

This compares to a net loss of Rs -832 m in FY17 and a net loss of Rs -1,818 m in FY16.

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 FY19 and stood at Rs 7,114 m as compared to Rs 4,921 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -3,882 m as compared to Rs -5,287 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -3,433 m as compared to Rs 957 m in FY18.

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

(Rs m)FY15FY16FY17FY18FY19
From Operations4,9486,1885,3454,9217,114
From Investments-7,2583,3818,550-5,287-3,882
From Financial Activity4,911-11,965-13,814957-3,433
Net Cashflow2,597-2,36915665-186

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 18.5% in FY19 as against 16.9% in FY18.
  • Net profit margins grew from 1.5% in FY18 to 5.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.4 as compared to 0.6 in FY18.

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

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)3.211.714.916.918.5
Net Profit Margin (%)-8.3-4.5-2.11.55.4
Debt to Equity Ratio (x)2.11.31.10.60.4

Read: Latest Annual Report Analysis of INDIAN HOTELS

 

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