CHALET HOTELS 2023-24 Annual Report Analysis

Thu, 18 Jul

CHALET 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.

CHALET HOTELS Income Statement Analysis

• Operating income during the year rose 25.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.2% in FY24 as against 40.8% in FY23.
• Depreciation charges increased by 18.0% and finance costs increased by 27.3% YoY, respectively.
• Other income declined by 76.6% YoY.
• Net profit for the year grew by 51.8% YoY.
• Net profit margins during the year grew from 16.2% in FY23 to 19.6% in FY24.

CHALET HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,285	14,173	25.6%
Other income	Rs m	846	198	-76.6%
Total Revenues	Rs m	12,130	14,370	18.5%
Gross profit	Rs m	4,600	5,846	27.1%
Depreciation	Rs m	1,173	1,384	18.0%
Interest	Rs m	1,545	1,967	27.3%
Profit before tax	Rs m	2,728	2,694	-1.3%
Tax	Rs m	895	-88	NA
Profit after tax	Rs m	1,833	2,782	51.8%
Gross profit margin	%	40.8	41.2
Effective tax rate	%	32.8	-3.3
Net profit margin	%	16.2	19.6

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CHALET HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 19 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 77.5%.
• Long-term debt down at Rs 19 billion as compared to Rs 22 billion during FY23, a fall of 16.0%.
• Current assets rose 25% and stood at Rs 9 billion, while fixed assets rose 15% and stood at Rs 47 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 56 billion as against Rs 48 billion during FY23, thereby witnessing a growth of 17%.

CHALET HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,317	18,379	20.0
Current Liabilities	Rs m	10,776	19,128	77.5
Long-term Debt	Rs m	22,077	18,546	-16.0
Total Liabilities	Rs m	47,863	55,872	16.7
Current assets	Rs m	7,044	8,821	25.2
Fixed Assets	Rs m	40,819	47,051	15.3
Total Assets	Rs m	47,863	55,872	16.7

CHALET HOTELS Cash Flow Statement Analysis

• CHALET HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 44.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion, an improvement of 7.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -384 million from the Rs 123 million net cash flows seen during FY23.

CHALET 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	4,769	6,894	44.6%
Cash Flow from Investing Activities	Rs m	-5,924	-6,349	-
Cash Flow from Financing Activities	Rs m	1,260	-1,078	-
Net Cash Flow	Rs m	123	-384	-

Current Valuations for CHALET HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an improvement from the EPS of Rs 8.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 763.7, stands at 59.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 11.1 times.
• The company's price to cash flow (P/CF) ratio stood at 32.5 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	55.0	69.0
TTM Earnings per share	Rs	8.9	13.5
Diluted earnings per share	Rs	8.4	12.8
Price to Cash Flow	x	26.3	32.5
TTM P/E ratio	x	43.2	59.9
Price / Book Value ratio	x	4.6	7.4
Market Cap	Rs m	70,242	135,186
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CHALET HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.7x 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 deteriorated and stood at 2.4x during FY24, from 2.8x 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 improved and stood at 15.1% during FY24, from 12.0% 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 improved and stood at 12.6% during FY24, from 11.4% 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 improved and stood at 8.5% during FY24, from 7.1% 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	0.7	0.5
Debtors’ Days	Days	19	14
Interest coverage	x	2.8	2.4
Debt to equity ratio	x	1.4	1.0
Return on assets	%	7.1	8.5
Return on equity	%	12.0	15.1
Return on capital employed	%	11.4	12.6

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

CHALET HOTELS Share Price Performance

Over the last one year, CHALET HOTELS share price has moved up from Rs 468.2 to Rs 763.7, registering a gain of Rs 295.5 or around 63.1%.

Overall, the S&P BSE SENSEX is up 21.3% over the year.

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