EIH ASSO.HOTELS 2023-24 Annual Report Analysis

Wed, 17 Jul

EIH ASSO.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.

EIH ASSO.HOTELS Income Statement Analysis

• Operating income during the year rose 14.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.4% in FY24 as against 28.1% in FY23.
• Depreciation charges increased by 1.9% and finance costs increased by 104.6% YoY, respectively.
• Other income grew by 85.3% YoY.
• Net profit for the year grew by 25.4% YoY.
• Net profit margins during the year grew from 19.2% in FY23 to 21.1% in FY24.

EIH ASSO.HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,371	3,848	14.2%
Other income	Rs m	71	131	85.3%
Total Revenues	Rs m	3,441	3,979	15.6%
Gross profit	Rs m	947	1,133	19.6%
Depreciation	Rs m	165	169	1.9%
Interest	Rs m	4	8	104.6%
Profit before tax	Rs m	848	1,087	28.2%
Tax	Rs m	202	277	37.0%
Profit after tax	Rs m	646	810	25.4%
Gross profit margin	%	28.1	29.4
Effective tax rate	%	23.8	25.5
Net profit margin	%	19.2	21.1

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EIH ASSO.HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 608 million as compared to Rs 668 million in FY23, thereby witnessing an decrease of -9.1%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 13%.

EIH ASSO.HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,966	4,628	16.7
Current Liabilities	Rs m	668	608	-9.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,215	5,917	13.5
Current assets	Rs m	2,002	2,381	19.0
Fixed Assets	Rs m	3,213	3,534	10.0
Total Assets	Rs m	5,215	5,917	13.5

EIH ASSO.HOTELS Cash Flow Statement Analysis

• EIH ASSO.HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 775 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -638 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -169 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -32 million from the Rs 8 million net cash flows seen during FY23.

EIH ASSO.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	912	775	-15.0%
Cash Flow from Investing Activities	Rs m	-887	-638	-
Cash Flow from Financing Activities	Rs m	-17	-169	-
Net Cash Flow	Rs m	8	-32	-

Current Valuations for EIH ASSO.HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an improvement from the EPS of Rs 21.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 916.0, stands at 34.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 19.2 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	110.6	126.3
TTM Earnings per share	Rs	21.2	26.6
Diluted earnings per share	Rs	21.2	26.6
Price to Cash Flow	x	15.5	19.2
TTM P/E ratio	x	19.5	34.4
Price / Book Value ratio	x	3.3	4.1
Market Cap	Rs m	12,903	18,751
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for EIH ASSO.HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY24, from 3.0x 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 137.6x during FY24, from 219.1x 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 17.5% during FY24, from 16.3% 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 23.7% during FY24, from 21.5% 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 13.8% during FY24, from 12.5% 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	3.0	3.9
Debtors’ Days	Days	17	21
Interest coverage	x	219.1	137.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.5	13.8
Return on equity	%	16.3	17.5
Return on capital employed	%	21.5	23.7

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

EIH ASSO.HOTELS Share Price Performance

Over the last one year, EIH ASSO.HOTELS share price has moved up from Rs 521.9 to Rs 916.0, registering a gain of Rs 394.1 or around 75.5%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for EIH ASSO.HOTELS and quarterly results for EIH ASSO.HOTELS)