ADVANI HOTELS 2023-24 Annual Report Analysis

Fri, 20 Sep

ADVANI HOTELS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ADVANI HOTELS Income Statement Analysis

• Operating income during the year rose 6.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.2% in FY24 as against 39.7% in FY23.
• Depreciation charges increased by 25.8% and finance costs decreased by 26.8% YoY, respectively.
• Other income grew by 51.8% YoY.
• Net profit for the year declined by 12.7% YoY.
• Net profit margins during the year declined from 29.0% in FY23 to 23.7% in FY24.

ADVANI HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	986	1,054	6.9%
Other income	Rs m	20	30	51.8%
Total Revenues	Rs m	1,006	1,084	7.8%
Gross profit	Rs m	392	339	-13.4%
Depreciation	Rs m	26	33	25.8%
Interest	Rs m	2	1	-26.8%
Profit before tax	Rs m	384	335	-12.7%
Tax	Rs m	98	85	-12.5%
Profit after tax	Rs m	286	250	-12.7%
Gross profit margin	%	39.7	32.2
Effective tax rate	%	25.4	25.5
Net profit margin	%	29.0	23.7

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ADVANI HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 214 million as compared to Rs 205 million in FY23, thereby witnessing an increase of 4.3%.
• Long-term debt down at Rs 1 million as compared to Rs 1 million during FY23, a fall of 0.0%.
• Current assets rose 22% and stood at Rs 547 million, while fixed assets rose 0% and stood at Rs 453 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,000 million as against Rs 900 million during FY23, thereby witnessing a growth of 11%.

ADVANI HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	627	719	14.6
Current Liabilities	Rs m	205	214	4.3
Long-term Debt	Rs m	1	1	0.0
Total Liabilities	Rs m	900	1,000	11.1
Current assets	Rs m	449	547	21.9
Fixed Assets	Rs m	451	453	0.4
Total Assets	Rs m	900	1,000	11.1

ADVANI HOTELS Cash Flow Statement Analysis

• ADVANI HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 292 million, an improvement of 12.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -128 million, an improvement of 50.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -165 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs 20 million net cash flows seen during FY23.

ADVANI HOTELS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	260	292	12.6%
Cash Flow from Investing Activities	Rs m	-85	-128	-
Cash Flow from Financing Activities	Rs m	-154	-165	-
Net Cash Flow	Rs m	20	-1	-

Current Valuations for ADVANI HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an decline from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 72.8, stands at 28.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.4 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 20.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	21.3	11.4
TTM Earnings per share	Rs	6.2	2.7
Diluted earnings per share	Rs	3.1	2.7
Price to Cash Flow	x	10.6	20.2
TTM P/E ratio	x	11.6	28.1
Price / Book Value ratio	x	5.8	7.9
Market Cap	Rs m	3,611	5,696
Dividends per share (Unadj.)	Rs	3.4	2.8

Ratio Analysis for ADVANI HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 2.2x during FY23. 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 280.1x during FY24, from 234.9x during FY23. 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 declined and down at 34.7% during FY24, from 45.6% during FY24. 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 declined and down at 46.7% during FY24, from 61.3% during FY23. 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 declined and down at 25.1% during FY24, from 32.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.2	2.6
Debtors’ Days	Days	100	25
Interest coverage	x	234.9	280.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	32.0	25.1
Return on equity	%	45.6	34.7
Return on capital employed	%	61.3	46.7

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

ADVANI HOTELS Share Price Performance

Over the last one year, ADVANI HOTELS share price has moved down from Rs 43.6 to Rs 0.0, registering a loss of Rs 43.6 or around 100.0%.

Overall, the NIFTY 50 is up 0.3% over the year.

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