VICEROY HOTELS 2023-24 Annual Report Analysis

Mon, 19 Aug

VICEROY 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.

VICEROY HOTELS Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY24 as against 7.2% in FY23.
• Depreciation charges increased by 62.3% and finance costs increased by 3102.2% YoY, respectively.
• Other income grew by 117.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.0% in FY23 to 1.7% in FY24.

VICEROY HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,195	1,382	15.6%
Other income	Rs m	5	10	117.9%
Total Revenues	Rs m	1,200	1,392	16.0%
Gross profit	Rs m	86	146	69.9%
Depreciation	Rs m	86	139	62.3%
Interest	Rs m	0	14	3,102.2%
Profit before tax	Rs m	5	3	-36.2%
Tax	Rs m	5	-21	NA
Profit after tax	Rs m	-1	24	NA
Gross profit margin	%	7.2	10.6
Effective tax rate	%	112.2	-732.1
Net profit margin	%	0.0	1.7

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VICEROY HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 635 million as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -75.2%.
• Long-term debt down at Rs 2 billion as compared to Rs 5 billion during FY23, a fall of 67.2%.
• Current assets rose 17% and stood at Rs 582 million, while fixed assets fell 11% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 4 billion during FY23, thereby witnessing a fall of 7%.

VICEROY HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-4,447	668	NA
Current Liabilities	Rs m	2,556	635	-75.2
Long-term Debt	Rs m	5,094	1,673	-67.2
Total Liabilities	Rs m	3,521	3,270	-7.1
Current assets	Rs m	498	582	16.9
Fixed Assets	Rs m	3,023	2,688	-11.1
Total Assets	Rs m	3,521	3,270	-7.1

VICEROY HOTELS Cash Flow Statement Analysis

• VICEROY HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 181 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -149 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 145 million, an improvement of 235% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 176 million from the Rs 99 million net cash flows seen during FY23.

VICEROY 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	-233	181	-
Cash Flow from Investing Activities	Rs m	439	-149	-
Cash Flow from Financing Activities	Rs m	-107	145	-
Net Cash Flow	Rs m	99	176	78.1%

Current Valuations for VICEROY HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.0, stands at -384.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.5 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at 1.1 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	28.2	21.9
TTM Earnings per share	Rs	0.0	0.4
Diluted earnings per share	Rs	0.0	0.4
Price to Cash Flow	x	1.6	1.1
TTM P/E ratio	x	-253.8	-384.7
Price / Book Value ratio	x	0.0	0.3
Market Cap	Rs m	122	173
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VICEROY HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x 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 1.2x during FY24, from 11.0x 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 improved and stood at 3.6% during FY24, from 0.0% 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 0.7% during FY24, from 0.8% 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 1.2% during FY24, from 0.0% 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	0.9
Debtors’ Days	Days	282	206
Interest coverage	x	11.0	1.2
Debt to equity ratio	x	-1.1	2.5
Return on assets	%	0.0	1.2
Return on equity	%	0.0	3.6
Return on capital employed	%	0.8	0.7

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

VICEROY HOTELS Share Price Performance

Over the last one year, VICEROY HOTELS share price has moved up from Rs 2.2 to Rs 122.0, registering a gain of Rs 119.8 or around 5548.1%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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