THE BYKE HOSPITALITY 2021-22 Annual Report Analysis

Tue, 20 Sep

THE BYKE HOSPITALITY has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

THE BYKE HOSPITALITY Income Statement Analysis

• Operating income during the year rose 42.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.3% in FY22 as against 21.6% in FY21.
• Depreciation charges increased by 12.8% and finance costs increased by 20.0% YoY, respectively.
• Other income declined by 3.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 27.8% in FY21 to 13.7% in FY22.

THE BYKE HOSPITALITY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	656	933	42.2%
Other income	Rs m	9	9	-3.7%
Total Revenues	Rs m	665	942	41.6%
Gross profit	Rs m	142	236	66.0%
Depreciation	Rs m	265	299	12.8%
Interest	Rs m	85	102	20.0%
Profit before tax	Rs m	-199	-157	NA
Tax	Rs m	-17	-29	NA
Profit after tax	Rs m	-182	-128	NA
Gross profit margin	%	21.6	25.3
Effective tax rate	%	8.4	18.2
Net profit margin	%	-27.8	-13.7

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THE BYKE HOSPITALITY Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 353 million as compared to Rs 346 million in FY21, thereby witnessing an increase of 1.9%.
• Long-term debt stood at Rs 118 million as compared to Rs 71 million during FY21, a growth of 65.6%.
• Current assets rose 9% and stood at Rs 740 million, while fixed assets fell 3% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a fall of 0%.

THE BYKE HOSPITALITY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,699	1,572	-7.5
Current Liabilities	Rs m	346	353	1.9
Long-term Debt	Rs m	71	118	65.6
Total Liabilities	Rs m	2,634	2,628	-0.2
Current assets	Rs m	680	740	8.8
Fixed Assets	Rs m	1,954	1,889	-3.4
Total Assets	Rs m	2,634	2,628	-0.2

THE BYKE HOSPITALITY Cash Flow Statement Analysis

• THE BYKE HOSPITALITY's cash flow from operating activities (CFO) during FY22 stood at Rs 173 million, an improvement of 33.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -150 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 18 million from the Rs 3 million net cash flows seen during FY21.

THE BYKE HOSPITALITY Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	130	173	33.4%
Cash Flow from Investing Activities	Rs m	-75	-5	-
Cash Flow from Financing Activities	Rs m	-51	-150	-
Net Cash Flow	Rs m	3	18	468.9%

Current Valuations for THE BYKE HOSPITALITY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.2, an improvement from the EPS of Rs -4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 44.2, stands at -77.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	16.4	23.3
TTM Earnings per share	Rs	-4.5	-3.2
Diluted earnings per share	Rs	-4.5	-3.2
Price to Cash Flow	x	9.0	7.1
TTM P/E ratio	x	-4.0	-77.3
Price / Book Value ratio	x	0.4	0.8
Market Cap	Rs m	694	1,206
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for THE BYKE HOSPITALITY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY22, from 2.0x during FY21. 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 -0.5x during FY22, from -1.3x during FY21. 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 -8.2% during FY22, from -10.7% during FY22. 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 -3.2% during FY22, from -6.4% during FY21. 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 -1.0% during FY22, from -3.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.0	2.1
Debtors’ Days	Days	1,383	987
Interest coverage	x	-1.3	-0.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	-3.7	-1.0
Return on equity	%	-10.7	-8.2
Return on capital employed	%	-6.4	-3.2

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

THE BYKE HOSPITALITY Share Price Performance

Over the last one year, THE BYKE HOSPITALITY share price has moved up from Rs 30.4 to Rs 44.2, registering a gain of Rs 13.8 or around 45.4%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for THE BYKE HOSPITALITY and quarterly results for THE BYKE HOSPITALITY)

Read: Latest Annual Report Analysis of THE BYKE HOSPITALITY