HOTEL SILVER 2022-23 Annual Report Analysis

Mon, 9 Oct

HOTEL SILVER 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.

HOTEL SILVER Income Statement Analysis

• Operating income during the year rose 33.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.3% in FY23 as against 20.4% in FY22.
• Depreciation charges increased by 1.1% and finance costs increased by 4.9% YoY, respectively.
• Other income grew by 31.9% YoY.
• Net profit for the year declined by 4.4% YoY.
• Net profit margins during the year declined from 6.0% in FY22 to 4.3% in FY23.

HOTEL SILVER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	180	240	33.0%
Other income	Rs m	5	7	31.9%
Total Revenues	Rs m	185	246	32.9%
Gross profit	Rs m	37	37	0.2%
Depreciation	Rs m	11	11	1.1%
Interest	Rs m	19	19	4.9%
Profit before tax	Rs m	12	13	5.5%
Tax	Rs m	1	2	87.8%
Profit after tax	Rs m	11	10	-4.4%
Gross profit margin	%	20.4	15.3
Effective tax rate	%	10.8	19.2
Net profit margin	%	6.0	4.3

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HOTEL SILVER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 51 million as compared to Rs 36 million in FY22, thereby witnessing an increase of 42.1%.
• Long-term debt down at Rs 176 million as compared to Rs 219 million during FY22, a fall of 19.5%.
• Current assets fell 3% and stood at Rs 372 million, while fixed assets fell 4% and stood at Rs 149 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 521 million as against Rs 538 million during FY22, thereby witnessing a fall of 3%.

HOTEL SILVER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	282	293	3.9
Current Liabilities	Rs m	36	51	42.1
Long-term Debt	Rs m	219	176	-19.5
Total Liabilities	Rs m	538	521	-3.2
Current assets	Rs m	383	372	-2.9
Fixed Assets	Rs m	155	149	-4.0
Total Assets	Rs m	538	521	-3.2

HOTEL SILVER Cash Flow Statement Analysis

• HOTEL SILVER's cash flow from operating activities (CFO) during FY23 stood at Rs 30 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 million, an improvement of 85.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -46 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -21 million from the Rs 52 million net cash flows seen during FY22.

HOTEL SILVER 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	36	30	-18.0%
Cash Flow from Investing Activities	Rs m	-3	-5	-
Cash Flow from Financing Activities	Rs m	18	-46	-
Net Cash Flow	Rs m	52	-21	-

Current Valuations for HOTEL SILVER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 11.9, stands at 39.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	11.1	14.7
TTM Earnings per share	Rs	0.7	0.6
Diluted earnings per share	Rs	0.7	0.6
Price to Cash Flow	x	5.5	9.4
TTM P/E ratio	x	11.1	39.7
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	127	203
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HOTEL SILVER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.3x during FY23, from 10.8x 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 1.7x during FY23, from 1.7x 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 declined and down at 3.5% during FY23, from 3.8% 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 6.9% during FY23, from 6.1% 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 5.7% during FY23, from 5.5% 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	10.8	7.3
Debtors’ Days	Days	526	403
Interest coverage	x	1.7	1.7
Debt to equity ratio	x	0.8	0.6
Return on assets	%	5.5	5.7
Return on equity	%	3.8	3.5
Return on capital employed	%	6.1	6.9

To see how HOTEL SILVER has performed over the last 5 years, please visit here.

HOTEL SILVER Share Price Performance

Over the last one year, HOTEL SILVER share price has moved up from Rs 9.5 to Rs 11.9, registering a gain of Rs 2.4 or around 25.3%.

Overall, the S&P BSE SENSEX is up 12.5% over the year.

(To know more, check out historical annual results for HOTEL SILVER and quarterly results for HOTEL SILVER)