On the basis of recent developments including operational and financial performance of The Byke Hospitality Ltd (TBHL) for FY19 (audited) and Q1FY19 (unaudited), the Rating Committee has reviewed the long term bank facilities rating and reaffirmed the rating as CARE BBB+ / Stable (Triple B plus; Outlook: Stable). The outlook has been revised from Negative to Stable.
The long term ratings assigned to the bank facilities of The Byke HospHaiHy Limited derives comfort from stable operational performance of the room revenue and F&B business, the vast experience of the promoters in the hospitality industry, asset light business model, comfortable capital structure and the improving geographic presence of the company. The ratings also favorably take into account the company's exit from the loss making room chartering business.
The rating strengths continue to be tempered by moderate liquidity and high susceptibility to economic cycles and operations in highly competitive industry.
TBHL's ability to maintain its operating metrics and capital structure while undertaking expansion remains the key rating sensitivity.
The revision in outlook from 'Negative' to 'Stable' is on account of exit from the loss making room chartering business. The company's room revenue and food and beverage segment showed stable performance in FY19.
Shares of THE BYKE HOSPITALITY LTD. was last trading in BSE at Rs.19.4 as compared to the previous close of Rs. 20.55. The total number of shares traded during the day was 13057 in over 216 trades.
The stock hit an intraday high of Rs. 21.35 and intraday low of 18.5. The net turnover during the day was Rs. 251844.