U.P. HOTELS 2023-24 Annual Report Analysis

Thu, 22 Aug

U.P. 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.

U.P. HOTELS Income Statement Analysis

• Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.7% in FY24 as against 27.2% in FY23.
• Depreciation charges increased by 7.2% and finance costs decreased by 13.9% YoY, respectively.
• Other income grew by 42.8% YoY.
• Net profit for the year grew by 36.2% YoY.
• Net profit margins during the year grew from 17.9% in FY23 to 21.7% in FY24.

U.P. HOTELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,308	1,465	12.0%
Other income	Rs m	37	53	42.8%
Total Revenues	Rs m	1,345	1,518	12.8%
Gross profit	Rs m	356	450	26.5%
Depreciation	Rs m	74	80	7.2%
Interest	Rs m	0	0	-13.9%
Profit before tax	Rs m	318	423	32.9%
Tax	Rs m	85	105	24.0%
Profit after tax	Rs m	234	318	36.2%
Gross profit margin	%	27.2	30.7
Effective tax rate	%	26.6	24.8
Net profit margin	%	17.9	21.7

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

U.P. HOTELS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 269 million as compared to Rs 253 million in FY23, thereby witnessing an increase of 6.5%.
• Long-term debt down at Rs 3 million as compared to Rs 4 million during FY23, a fall of 18.5%.
• Current assets rose 123% and stood at Rs 1 billion, while fixed assets fell 25% and stood at Rs 754 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 22%.

U.P. HOTELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,199	1,516	26.5
Current Liabilities	Rs m	253	269	6.5
Long-term Debt	Rs m	4	3	-18.5
Total Liabilities	Rs m	1,483	1,816	22.5
Current assets	Rs m	477	1,062	122.5
Fixed Assets	Rs m	1,006	754	-25.0
Total Assets	Rs m	1,483	1,816	22.5

U.P. HOTELS Cash Flow Statement Analysis

• U.P. HOTELS's cash flow from operating activities (CFO) during FY24 stood at Rs -39 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 69 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 31 million from the Rs -5 million net cash flows seen during FY23.

U.P. 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	527	-39	-
Cash Flow from Investing Activities	Rs m	-522	69	-
Cash Flow from Financing Activities	Rs m	-10	0	-
Net Cash Flow	Rs m	-5	31	-

Current Valuations for U.P. HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.9, an improvement from the EPS of Rs 43.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,410.8, stands at 28.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 14.1 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	242.3	271.3
TTM Earnings per share	Rs	43.3	58.9
Diluted earnings per share	Rs	43.3	58.9
Price to Cash Flow	x	10.8	14.1
TTM P/E ratio	x	14.3	28.7
Price / Book Value ratio	x	2.3	3.7
Market Cap	Rs m	2,800	5,592
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for U.P. HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY24, from 1.9x 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 1,365.5x during FY24, from 884.9x 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 21.0% during FY24, from 19.5% 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 improved and stood at 27.9% during FY24, from 26.5% 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 improved and stood at 17.5% during FY24, from 15.8% 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	1.9	3.9
Debtors’ Days	Days	179	187
Interest coverage	x	884.9	1,365.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.8	17.5
Return on equity	%	19.5	21.0
Return on capital employed	%	26.5	27.9

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

U.P. HOTELS Share Price Performance

Over the last one year, U.P. HOTELS share price has moved up from Rs 936.1 to Rs 1,410.8, registering a gain of Rs 474.7 or around 50.7%.

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

(To know more, check out historical annual results for U.P. HOTELS and quarterly results for U.P. HOTELS)