ORIENTAL HOTELS 2023-24 Annual Report Analysis

Wed, 3 Jul

ORIENTAL 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.

ORIENTAL HOTELS Income Statement Analysis

• Operating income during the year fell 0.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.9% in FY24 as against 28.5% in FY23.
• Depreciation charges increased by 6.1% and finance costs decreased by 14.7% YoY, respectively.
• Other income grew by 3.8% YoY.
• Net profit for the year declined by 9.8% YoY.
• Net profit margins during the year declined from 14.1% in FY23 to 12.7% in FY24.

ORIENTAL HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,945	3,932	-0.3%
Other income	Rs m	108	112	3.8%
Total Revenues	Rs m	4,053	4,043	-0.2%
Gross profit	Rs m	1,123	978	-12.9%
Depreciation	Rs m	227	240	6.1%
Interest	Rs m	201	172	-14.7%
Profit before tax	Rs m	803	678	-15.6%
Tax	Rs m	248	177	-28.5%
Profit after tax	Rs m	555	501	-9.8%
Gross profit margin	%	28.5	24.9
Effective tax rate	%	30.9	26.2
Net profit margin	%	14.1	12.7

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ORIENTAL HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 18.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 34.3%.
• Current assets fell 40% and stood at Rs 647 million, while fixed assets rose 14% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 8%.

ORIENTAL HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,390	6,184	14.7
Current Liabilities	Rs m	1,093	1,289	18.0
Long-term Debt	Rs m	1,528	1,004	-34.3
Total Liabilities	Rs m	10,041	10,877	8.3
Current assets	Rs m	1,075	647	-39.8
Fixed Assets	Rs m	8,966	10,230	14.1
Total Assets	Rs m	10,041	10,877	8.3

ORIENTAL HOTELS Cash Flow Statement Analysis

• ORIENTAL HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 906 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -568 million, an improvement of 456.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -404 million, an improvement of 61% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -67 million from the Rs -105 million net cash flows seen during FY23.

ORIENTAL 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	1,038	906	-12.8%
Cash Flow from Investing Activities	Rs m	-102	-568	-
Cash Flow from Financing Activities	Rs m	-1,047	-404	-
Net Cash Flow	Rs m	-105	-67	-

Current Valuations for ORIENTAL HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 137.2, stands at 48.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 26.5 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	22.1	22.0
TTM Earnings per share	Rs	3.1	2.8
Diluted earnings per share	Rs	3.1	2.8
Price to Cash Flow	x	18.0	26.5
TTM P/E ratio	x	25.4	48.9
Price / Book Value ratio	x	2.3	3.2
Market Cap	Rs m	12,390	19,628
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for ORIENTAL HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 1.0x 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 5.0x during FY24, from 5.0x 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 8.1% during FY24, from 10.3% 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 declined and down at 11.8% during FY24, from 14.5% 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 declined and down at 6.2% during FY24, from 7.5% 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	1.0	0.5
Debtors’ Days	Days	171	131
Interest coverage	x	5.0	5.0
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.5	6.2
Return on equity	%	10.3	8.1
Return on capital employed	%	14.5	11.8

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

ORIENTAL HOTELS Share Price Performance

Over the last one year, ORIENTAL HOTELS share price has moved up from Rs 89.2 to Rs 137.2, registering a gain of Rs 48.0 or around 53.8%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

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