THE BYKE HOSPITALITY 2022-23 Annual Report Analysis

Fri, 31 Mar

THE BYKE HOSPITALITY 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.

THE BYKE HOSPITALITY Income Statement Analysis

• Operating income during the year rose 22.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 35.0% in FY23 as against 25.3% in FY22.
• Depreciation charges decreased by 0.6% and finance costs decreased by 0.1% YoY, respectively.
• Other income grew by 31.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 13.7% in FY22 to 2.0% in FY23.

THE BYKE HOSPITALITY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	933	1,144	22.6%
Other income	Rs m	9	11	31.3%
Total Revenues	Rs m	942	1,155	22.7%
Gross profit	Rs m	236	400	69.7%
Depreciation	Rs m	299	297	-0.6%
Interest	Rs m	102	102	-0.1%
Profit before tax	Rs m	-157	12	NA
Tax	Rs m	-29	-11	NA
Profit after tax	Rs m	-128	23	NA
Gross profit margin	%	25.3	35.0
Effective tax rate	%	18.2	-89.6
Net profit margin	%	-13.7	2.0

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THE BYKE HOSPITALITY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 348 million as compared to Rs 353 million in FY22, thereby witnessing an decrease of -1.2%.
• Long-term debt down at Rs 89 million as compared to Rs 118 million during FY22, a fall of 24.2%.
• Current assets fell 31% and stood at Rs 510 million, while fixed assets rose 4% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 6%.

THE BYKE HOSPITALITY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,572	1,595	1.5
Current Liabilities	Rs m	353	348	-1.2
Long-term Debt	Rs m	118	89	-24.2
Total Liabilities	Rs m	2,628	2,469	-6.1
Current assets	Rs m	740	510	-31.1
Fixed Assets	Rs m	1,889	1,959	3.7
Total Assets	Rs m	2,628	2,469	-6.1

THE BYKE HOSPITALITY Cash Flow Statement Analysis

• THE BYKE HOSPITALITY's cash flow from operating activities (CFO) during FY23 stood at Rs 607 million, an improvement of 250.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -405 million, an improvement of 8,682.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -232 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -30 million from the Rs 18 million net cash flows seen during FY22.

THE BYKE HOSPITALITY 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	173	607	250.7%
Cash Flow from Investing Activities	Rs m	-5	-405	-
Cash Flow from Financing Activities	Rs m	-150	-232	-
Net Cash Flow	Rs m	18	-30	-

Current Valuations for THE BYKE HOSPITALITY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an improvement from the EPS of Rs -3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.3, stands at 56.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	23.3	28.5
TTM Earnings per share	Rs	-3.2	0.6
Diluted earnings per share	Rs	-3.2	0.6
Price to Cash Flow	x	8.7	5.5
TTM P/E ratio	x	-11.6	56.6
Price / Book Value ratio	x	0.8	1.1
Market Cap	Rs m	1,206	1,750
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for THE BYKE HOSPITALITY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 2.1x 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 1.1x during FY23, from -0.5x 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 1.4% during FY23, from -8.2% 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 6.8% during FY23, from -3.2% 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 5.1% during FY23, from -1.0% 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	2.1	1.5
Debtors’ Days	Days	987	663
Interest coverage	x	-0.5	1.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-1.0	5.1
Return on equity	%	-8.2	1.4
Return on capital employed	%	-3.2	6.8

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 down from Rs 37.0 to Rs 32.3, registering a loss of Rs 4.7 or around 12.6%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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