INDIAN HOTELS 2023-24 Annual Report Analysis

Fri, 24 May

INDIAN 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.

INDIAN HOTELS Income Statement Analysis

• Operating income during the year fell 24.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.3% in FY24 as against 31.1% in FY23.
• Depreciation charges decreased by 45.2% and finance costs decreased by 51.3% YoY, respectively.
• Other income grew by 32.7% YoY.
• Net profit for the year grew by 12.7% YoY.
• Net profit margins during the year grew from 16.7% in FY23 to 24.9% in FY24.

INDIAN HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	58,099	44,056	-24.2%
Other income	Rs m	1,390	1,845	32.7%
Total Revenues	Rs m	59,489	45,901	-22.8%
Gross profit	Rs m	18,077	16,412	-9.2%
Depreciation	Rs m	4,161	2,282	-45.2%
Interest	Rs m	2,361	1,149	-51.3%
Profit before tax	Rs m	12,946	14,826	14.5%
Tax	Rs m	3,232	3,877	19.9%
Profit after tax	Rs m	9,714	10,949	12.7%
Gross profit margin	%	31.1	37.3
Effective tax rate	%	25.0	26.1
Net profit margin	%	16.7	24.9

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INDIAN HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 13 billion as compared to Rs 21 billion in FY23, thereby witnessing an decrease of -38.8%.
• Current assets fell 11% and stood at Rs 23 billion, while fixed assets fell 4% and stood at Rs 105 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 128 billion as against Rs 135 billion during FY23, thereby witnessing a fall of 5%.

INDIAN HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	79,820	101,439	27.1
Current Liabilities	Rs m	21,192	12,974	-38.8
Long-term Debt	Rs m	3,310	0	-100.0
Total Liabilities	Rs m	135,106	127,765	-5.4
Current assets	Rs m	25,897	23,113	-10.7
Fixed Assets	Rs m	109,202	104,652	-4.2
Total Assets	Rs m	135,106	127,765	-5.4

INDIAN HOTELS Cash Flow Statement Analysis

• INDIAN HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 15 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -12 billion, an improvement of 732.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs -471 million net cash flows seen during FY23.

INDIAN 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	16,190	15,277	-5.6%
Cash Flow from Investing Activities	Rs m	-1,446	-12,031	-
Cash Flow from Financing Activities	Rs m	-15,279	-7,403	-
Net Cash Flow	Rs m	-471	-4,157	-

Current Valuations for INDIAN HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 567.3, stands at 67.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 18.3 times.
• The company's price to cash flow (P/CF) ratio stood at 49.5 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	40.9	31.0
TTM Earnings per share	Rs	6.8	7.7
Diluted earnings per share	Rs	6.8	7.7
Price to Cash Flow	x	33.3	49.5
TTM P/E ratio	x	47.5	67.2
Price / Book Value ratio	x	4.9	6.5
Market Cap	Rs m	394,836	655,526
Dividends per share (Unadj.)	Rs	1.0	1.8

Ratio Analysis for INDIAN HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.2x 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 13.9x during FY24, from 6.5x 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 10.8% during FY24, from 12.2% 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 15.7% during FY24, from 18.4% 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 9.5% during FY24, from 8.9% 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	1.2	1.8
Debtors’ Days	Days	3	3
Interest coverage	x	6.5	13.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.9	9.5
Return on equity	%	12.2	10.8
Return on capital employed	%	18.4	15.7

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

INDIAN HOTELS Share Price Performance

Over the last one year, INDIAN HOTELS share price has moved up from Rs 375.3 to Rs 567.3, registering a gain of Rs 192.0 or around 51.2%.

Overall, the S&P BSE SENSEX is up 21.7% over the year.

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