KAMAT HOTELS 2022-23 Annual Report Analysis

Mon, 18 Dec

KAMAT 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.

KAMAT HOTELS Income Statement Analysis

• Operating income during the year rose 104.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 865.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 118.6% in FY23 as against 25.1% in FY22.
• Depreciation charges decreased by 9.1% and finance costs decreased by 56.3% YoY, respectively.
• Other income grew by 244.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 15.7% in FY22 to 106.1% in FY23.

KAMAT HOTELS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,445	2,949	104.1%
Other income	Rs m	12	41	244.1%
Total Revenues	Rs m	1,457	2,990	105.3%
Gross profit	Rs m	362	3,497	865.6%
Depreciation	Rs m	170	155	-9.1%
Interest	Rs m	505	221	-56.3%
Profit before tax	Rs m	-301	3,163	NA
Tax	Rs m	-74	34	NA
Profit after tax	Rs m	-227	3,129	NA
Gross profit margin	%	25.1	118.6
Effective tax rate	%	24.6	1.1
Net profit margin	%	-15.7	106.1

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KAMAT HOTELS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -60.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 397 million during FY22, a growth of 375.0%.
• Current assets rose 7% and stood at Rs 454 million, while fixed assets rose 13% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 30%.

KAMAT HOTELS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-1,812	1,424	NA
Current Liabilities	Rs m	5,750	2,297	-60.1
Long-term Debt	Rs m	397	1,887	375.0
Total Liabilities	Rs m	4,669	6,092	30.5
Current assets	Rs m	423	454	7.2
Fixed Assets	Rs m	4,245	4,801	13.1
Total Assets	Rs m	4,669	6,092	30.5

KAMAT HOTELS Cash Flow Statement Analysis

• KAMAT HOTELS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 286.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -407 million, an improvement of 734.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -911 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -133 million from the Rs 91 million net cash flows seen during FY22.

KAMAT 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	307	1,185	286.3%
Cash Flow from Investing Activities	Rs m	-49	-407	-
Cash Flow from Financing Activities	Rs m	-167	-911	-
Net Cash Flow	Rs m	91	-133	-

Current Valuations for KAMAT HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 126.9, an improvement from the EPS of Rs -9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 264.3, stands at 2.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 0.7 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	61.3	119.6
TTM Earnings per share	Rs	-9.6	126.9
Diluted earnings per share	Rs	-9.2	126.9
Price to Cash Flow	x	-30.5	0.7
TTM P/E ratio	x	-7.7	2.2
Price / Book Value ratio	x	-0.7	1.7
Market Cap	Rs m	1,214	2,376
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KAMAT HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY23, from 0.1x 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 15.3x 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 219.7% during FY23, from 12.5% 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 102.2% during FY23, from -14.4% 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 55.0% during FY23, from 6.0% 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	0.1	0.2
Debtors’ Days	Days	249	109
Interest coverage	x	0.4	15.3
Debt to equity ratio	x	-0.2	1.3
Return on assets	%	6.0	55.0
Return on equity	%	12.5	219.7
Return on capital employed	%	-14.4	102.2

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

KAMAT HOTELS Share Price Performance

Over the last one year, KAMAT HOTELS share price has moved up from Rs 113.5 to Rs 264.3, registering a gain of Rs 150.8 or around 132.8%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

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