KAMAT HOTELS 2023-24 Annual Report Analysis

Wed, 23 Oct

KAMAT 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.

KAMAT HOTELS Income Statement Analysis

• Operating income during the year rose 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 65.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 39.8% in FY24 as against 118.6% in FY23.
• Depreciation charges increased by 14.2% and finance costs increased by 174.6% YoY, respectively.
• Other income grew by 183.3% YoY.
• Net profit for the year declined by 85.7% YoY.
• Net profit margins during the year declined from 106.0% in FY23 to 14.7% in FY24.

KAMAT HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,951	3,043	3.1%
Other income	Rs m	39	110	183.3%
Total Revenues	Rs m	2,990	3,153	5.5%
Gross profit	Rs m	3,499	1,212	-65.4%
Depreciation	Rs m	155	177	14.2%
Interest	Rs m	221	606	174.6%
Profit before tax	Rs m	3,163	539	-82.9%
Tax	Rs m	34	91	168.3%
Profit after tax	Rs m	3,129	448	-85.7%
Gross profit margin	%	118.6	39.8
Effective tax rate	%	1.1	16.8
Net profit margin	%	106.0	14.7

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

KAMAT HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -42.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 1.3%.
• Current assets rose 81% and stood at Rs 819 million, while fixed assets rose 12% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 1%.

KAMAT HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,424	1,970	38.3
Current Liabilities	Rs m	2,297	1,319	-42.6
Long-term Debt	Rs m	1,887	1,911	1.3
Total Liabilities	Rs m	6,092	6,178	1.4
Current assets	Rs m	454	819	80.6
Fixed Assets	Rs m	4,801	5,358	11.6
Total Assets	Rs m	6,092	6,178	1.4

KAMAT HOTELS Cash Flow Statement Analysis

• KAMAT HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 719 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 million from the Rs -133 million net cash flows seen during FY23.

KAMAT 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	1,162	719	-38.2%
Cash Flow from Investing Activities	Rs m	-407	1,446	-
Cash Flow from Financing Activities	Rs m	-888	-2,191	-
Net Cash Flow	Rs m	-133	-17	-

Current Valuations for KAMAT HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an decline from the EPS of Rs 126.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 192.0, stands at 12.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 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	119.7	117.5
TTM Earnings per share	Rs	126.9	17.3
Diluted earnings per share	Rs	106.1	15.2
Price to Cash Flow	x	1.2	10.4
TTM P/E ratio	x	1.3	12.8
Price / Book Value ratio	x	1.7	3.3
Market Cap	Rs m	2,376	6,509
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KAMAT HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY24, from 0.2x 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 deteriorated and stood at 1.9x during FY24, from 15.3x 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 22.8% during FY24, from 219.7% 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 29.5% during FY24, from 102.2% 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 17.1% during FY24, from 55.0% 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	0.2	0.6
Debtors’ Days	Days	109	105
Interest coverage	x	15.3	1.9
Debt to equity ratio	x	1.3	1.0
Return on assets	%	55.0	17.1
Return on equity	%	219.7	22.8
Return on capital employed	%	102.2	29.5

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

KAMAT HOTELS Share Price Performance

Over the last one year, KAMAT HOTELS share price has moved down from Rs 222.3 to Rs 192.0, registering a loss of Rs 30.3 or around 13.6%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

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