SINCLAIRS HOTELS 2023-24 Annual Report Analysis

Tue, 25 Jun

SINCLAIRS 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.

SINCLAIRS HOTELS Income Statement Analysis

• Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 40.0% in FY24 as against 76.2% in FY23.
• Depreciation charges increased by 3.4% and finance costs decreased by 5.1% YoY, respectively.
• Other income grew by 160.5% YoY.
• Net profit for the year declined by 34.2% YoY.
• Net profit margins during the year declined from 58.1% in FY23 to 36.8% in FY24.

SINCLAIRS HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	538	559	3.9%
Other income	Rs m	36	93	160.5%
Total Revenues	Rs m	573	651	13.6%
Gross profit	Rs m	410	223	-45.5%
Depreciation	Rs m	47	49	3.4%
Interest	Rs m	14	13	-5.1%
Profit before tax	Rs m	384	254	-33.9%
Tax	Rs m	72	49	-32.3%
Profit after tax	Rs m	312	205	-34.2%
Gross profit margin	%	76.2	40.0
Effective tax rate	%	18.8	19.2
Net profit margin	%	58.1	36.8

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SINCLAIRS HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 70 million as compared to Rs 73 million in FY23, thereby witnessing an decrease of -3.6%.
• Current assets fell 24% and stood at Rs 612 million, while fixed assets fell 6% and stood at Rs 871 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 2 billion during FY23, thereby witnessing a fall of 14%.

SINCLAIRS HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,285	1,073	-16.5
Current Liabilities	Rs m	73	70	-3.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,733	1,483	-14.4
Current assets	Rs m	810	612	-24.4
Fixed Assets	Rs m	924	871	-5.7
Total Assets	Rs m	1,733	1,483	-14.4

SINCLAIRS HOTELS Cash Flow Statement Analysis

• SINCLAIRS HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs 155 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 287 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -435 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs 2 million net cash flows seen during FY23.

SINCLAIRS 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	178	155	-13.1%
Cash Flow from Investing Activities	Rs m	-7	287	-
Cash Flow from Financing Activities	Rs m	-170	-435	-
Net Cash Flow	Rs m	2	7	330.7%

Current Valuations for SINCLAIRS HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an decline from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 116.0, stands at 28.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 10.6 times.
• The company's price to cash flow (P/CF) ratio stood at 22.5 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	19.8	10.9
TTM Earnings per share	Rs	11.5	4.0
Diluted earnings per share	Rs	6.1	4.0
Price to Cash Flow	x	7.0	22.5
TTM P/E ratio	x	8.1	28.9
Price / Book Value ratio	x	2.2	5.3
Market Cap	Rs m	2,849	5,727
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for SINCLAIRS HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 8.7x during FY24, from 11.1x 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 20.7x during FY24, from 29.3x 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 19.1% during FY24, from 24.3% 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 24.9% during FY24, from 31.0% 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 14.7% during FY24, from 18.8% 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	11.1	8.7
Debtors’ Days	Days	92	73
Interest coverage	x	29.3	20.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.8	14.7
Return on equity	%	24.3	19.1
Return on capital employed	%	31.0	24.9

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

SINCLAIRS HOTELS Share Price Performance

Over the last one year, SINCLAIRS HOTELS share price has moved up from Rs 61.5 to Rs 116.0, registering a gain of Rs 54.5 or around 88.7%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

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