THE INDIAN HOTELS 2019-20 Annual Report Analysis

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THE INDIAN HOTELS 2019-20 Annual Report Analysis
Tue, 1 Dec

THE INDIAN HOTELS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

THE INDIAN HOTELS Income Statement Analysis

  • Operating income during the year fell 1.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY20 as against 18.4% in FY19.
  • Depreciation charges increased by 23.3% and finance costs increased by 79.4% YoY, respectively.
  • Other income grew by 58.8% YoY.
  • Net profit for the year grew by 22.8% YoY.
  • Net profit margins during the year grew from 6.4% in FY19 to 7.9% in FY20.

THE INDIAN HOTELS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 45,120 44,631 -1.1%
Other income Rs m 834 1,324 58.8%
Total Revenues Rs m 45,954 45,956 0.0%
Gross profit Rs m 8,297 9,675 16.6%
Depreciation Rs m 3,279 4,042 23.3%
Interest Rs m 1,901 3,411 79.4%
Profit before tax Rs m 3,951 3,546 -10.3%
Tax Rs m 1,571 448 -71.5%
Profit after tax Rs m 2,961 3,637 22.8%
Gross profit margin % 18.4 21.7
Effective tax rate % 39.8 12.6
Net profit margin % 6.4 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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THE INDIAN HOTELS Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 19 billion as compared to Rs 21 billion in FY19, thereby witnessing an decrease of -9.0%.
  • Long-term debt stood at Rs 21 billion as compared to Rs 17 billion during FY19, a growth of 26.0%.
  • Current assets rose 24% and stood at Rs 14 billion, while fixed assets rose 27% and stood at Rs 83 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 115 billion as against Rs 96 billion during FY19, thereby witnessing a growth of 20%.

THE INDIAN HOTELS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 43,480 43,568 0.2
 
Current Liabilities Rs m 20,895 19,008 -9.0
Long-term Debt Rs m 16,875 21,258 26.0
Total Liabilities Rs m 95,838 115,183 20.2
 
Current assets Rs m 11,588 14,373 24.0
Fixed Assets Rs m 65,384 83,029 27.0
Total Assets Rs m 95,838 115,183 20.2
* 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 FY20 stood at Rs 8 billion, an improvement of 15.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -5 billion, an improvement of 29.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -3 billion, an improvement of 23% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 615 million from the Rs -186 million net cash flows seen during FY19.

THE INDIAN HOTELS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 7,114 8,235 15.7%
Cash Flow from Investing Activities Rs m -3,882 -5,019 -
Cash Flow from Financing Activities Rs m -3,433 -2,654 -
Net Cash Flow Rs m -186 615 -
* 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 3.1, an improvement from the EPS of Rs 2.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 120.0, stands at -42.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 37.9 37.5
TTM Earnings per share Rs 2.5 3.1
Diluted earnings per share Rs 3.7 4.5
Price to Cash Flow x 24.9 12.8
TTM P/E ratio x -63.1 -42.8
Price / Book Value ratio x 3.6 3.2
Market Cap Rs m 142,652 96,856
Dividends per share (Unadj.) Rs 0.5 0.5
* 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 0.8x during FY20, from 0.6x during FY19. 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 2.0x during FY20, from 3.1x during FY19. 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 8.3% during FY20, from 6.8% during FY20. 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 11.6% during FY20, from 10.7% during FY19. 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 6.1% during FY20, from 5.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.6 0.8
Debtors’ Days Days 26 24
Interest coverage x 3.1 2.0
Debt to equity ratio x 0.4 0.5
Return on assets % 5.1 6.1
Return on equity % 6.8 8.3
Return on capital employed % 10.7 11.6
* 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 down from Rs 149.6 to Rs 120.0, registering a loss of Rs 29.7 or around 19.8%.

Overall, the S&P BSE SENSEX is up 9.1% 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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Related Views on News

THE INDIAN HOTELS Announces Quarterly Results (4QFY20); Net Profit Down 42.9% (Quarterly Result Update)

Jun 11, 2020 | Updated on Jun 11, 2020

For the quarter ended March 2020, THE INDIAN HOTELS has posted a net profit of Rs 668 m (down 42.9% YoY). Sales on the other hand came in at Rs 11 bn (down 14.6% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

THE INDIAN HOTELS Announces Quarterly Results (3QFY20); Net Profit Up 21.4% (Quarterly Result Update)

Feb 1, 2020 | Updated on Feb 1, 2020

For the quarter ended December 2019, THE INDIAN HOTELS has posted a net profit of Rs 2 bn (up 21.4% YoY). Sales on the other hand came in at Rs 14 bn (up 3.7% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.

THE INDIAN HOTELS 2018-19 Annual Report Analysis (Annual Result Update)

Jun 5, 2019 | Updated on Jun 5, 2019

Here's an analysis of the annual report of THE INDIAN HOTELS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of THE INDIAN HOTELS. Also includes updates on the valuation of THE INDIAN HOTELS.

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