Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

EIH Ltd - Q4FY20 First Cut - ICICI Securities

Posted On: 2020-06-28 17:59:53


(CMP: Rs. 66; MCap: Rs. 3,767 crore)

EIH's Q4FY20 broadly remained ahead of our estimates at operational level after taking into account the impact of covid on the hotel business. However, PAT remained lower than estimates due to impairment in the value of non-current investment to tune of Rs. 16 crore.

Q4FY20 Earnings Summary

- EIH's revenues for the quarter declined ~18.5% YoY to Rs. 351 crore (vs. I-direct estimates of Rs. 316 crore). The lower decline in the quarter comes on a back of healthy performance of its domestic owned hotels during Jan-Feb period (pre-Covid period)

- Owing to lower revenues and negative operating leverage due to higher fixed costs, margins declined by 481bps YoY to 19.5% (vs I-direct estimates of 14.8%) while in the previous quarter, the company reported EBITDA margins of over 28%. On absolute terms, EBITDA for Q4FY20 declined 34.7% YoY to Rs. 68.5 crore (I-direct estimates of Rs. 66.2 crore)

- For the quarter, the company's PAT stood at Rs. 15.6 crore (vs. I-direct estimates of Rs. 17.2 crore), declining 79% QoQ as company made provision of Rs. 16 crore towards impairment in the value of non-current investment in its subsidiary company

The consequences of the COVID-19 outbreak on the Company's business for the quarter have been limited, as business was impacted only in the latter half of March. In view of the continued impact in Q1/FY20, several cost rationalisation measures have been initiated subsequent to the year. Based on enquiries received, and analysis of market trends, the Management expects demand to gradually pick for Domestic leisure and business travel, social events within prescribed norms once airlines are allowed to commence operations fully. Hotels in most locations have been allowed to resume operations effective 8th June, 2020, with the balance expecting to open by 1st July 2020. The Company, despite the unpredictable times, is relatively insulated from the risk of a liquidity crisis owing to its healthy financial position and debt free status.

We would be coming out with a detailed report soon post the conference call.

Shares of EIH LTD. was last trading in BSE at Rs.66 as compared to the previous close of Rs. 66.8. The total number of shares traded during the day was 56372 in over 958 trades.

The stock hit an intraday high of Rs. 69 and intraday low of 65.5. The net turnover during the day was Rs. 3760671.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Tata Consultancy Services - Q1FY21 Result Update - ICICI Securities

Arvind Fashions - Company Update - ICICI Securities

Result Preview - Telecom - ICICI Securities

Result Preview - Banking & Financial Services - ICICI Securities

1QFY21 Results Preview for Banks & NBFC's - A washout quarter - HDFC Securities

Maintain REDUCE on Tata Consultancy Services - Positives factored in - HDFC Securities

National Aluminium - Quant Pick - ICICI Securities

Cement - Q1FY21 Result Preview - ICICI Securities

Consumer Discretionary - Q1FY21 Result Preview - ICICI Securities

Paints - Dealer Check - July 2020 - ICICI Securities

Auto and auto ancillary - Q1FY21 Result Preview - ICICI Securities

Real Estate (Sector Update) - Greenshoots visible - HDFC Securities

Cement (Sector Update) - Prices, retail sales hold up despite COVID - HDFC Securities

TCI Express - Branch economics, cost levers as margin tailwinds - ICICI Securities

Mishra Dhatu Nigam - Space order inflow may slow down in FY21 - ICICI Securities

Century Plyboards - Compelling BUY; top pick in building materials - ICICI Securities

Building material - Sector Update - ICICI Securities

ISGEC Heavy Engineering - On a strong footing despite macro headwinds - ICICI Securities

Telecom - Growth breaks due to Covid-19 crisis - ICICI Securities

Pfizer Ltd - Company Update - ICICI Securities

Petronet LNG - Quant Pick - ICICI Securities

Earnings Wrap Q4FY20: Quarter end lockdown takes toll, one-offs rule Q4FY20

Autos & Transportation Sector Update Report - Focus on '3Cs' - HDFC Securities

Banking Sector Credit Trends - Weakness building - HDFC Securities

India Equity Strategy Report - Back to pre-covid levels - HDFC Securities

Strategy: Cyclicals to lead earnings recovery over FY20-22 - ICICI Securities

JK Cement - Ripe for re-rating - ICICI Securities

Phillips Carbon Black - Company Update - ICICI Securities

Information Technology - Q1FY21 Result Preview - ICICI Securities

Motherson Sumi Systems Ltd - Company Update - ICICI Securities

HDFC Ltd - Quant Pick - ICICI Securities

Auto Sales Data for June 2020 - Angel Broking

FMCG - Sector Review 4QFY20 - Disruption visible, growth divergence increases - HDFC Securities

Maintain ADD on ONGC - Impairment loss drags earnings - HDFC Securities

Maintain BUY on Ahluwalia Contracts - Looking ahead - HDFC Securities

RIL-Intel Deal - Angel Broking

Strategy: 'Out of turn' change in NIFTY50 due to Vedanta delisting - ICICI Securities

Time Technoplast - Q4FY20 Result Update - ICICI Securities

Monthly Auto Volumes - July 2020 - ICICI Securities

Oil & Natural Gas Corporation - Q4FY20 Result Update - ICICI Securities

Minda Industries - Q4 FY20 Result Update - ICICI Securities

Auto Sales - June 2020 - Acuité Ratings & Research

Bharat Electronics - Q4FY20 Result Update - ICICI Securities

Petronet LNG - Q4FY20 Result Update - ICICI Securities

Tata Steel - Q4FY20 Result Update - ICICI Securities

Phoenix Mills - Q4FY20 Result Update - ICICI Securities

Jun-20 Volumes expectations: Sales to rise over 2x from May-20 levels for Hero, Maruti - HDFC Securities

Maintain REDUCE on RBL Bank - Risks more evident - HDFC Securities

Maintain ADD on Subros - Expect market share gains to continue - HDFC Securities

Maintain ADD on Petronet LNG - One offs in opex drag profitability - HDFC Securities







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019