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

| More

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Posted On: 2021-06-16 15:05:38 (Time Zone: UTC)


(CMP: Rs. 42; MCap: Rs. 3,328 crore)

The performance of Lemon Tree improved sharply during Q4FY21 vs Q3 and the same remained above our estimates.

Q4FY21 Earnings Summary

- Revenues for the quarter grew 39.1 % QoQ to Rs. 95.1 crore (vs. I-direct est: Rs. 64.5 crore) that was also backed by improved demand for weddings, staycations, and social events during the fourth quarter

- Operating inventory increased from 91.2% of total inventory in Q3 to 93.4% in Q4 FY21 backed by improved demand. Occupancy on full inventory improved from 42.4% in Q3 FY21 to 56% in Q4 FY21

- Concerted focus on cost management across verticals led to a drop of 40.7% YoY in total expenditure to Rs. 66.6crore, while it was up 37.8% QoQ

- Company reported EBITDA of Rs. 28.5 crore (I-direct est: Rs. 19.7 crore). The resultant EBITDA margin came in at 30% vs 29.4% reported last quarter and 36.3% last year

- However, with higher interest (Rs. 44.5 crore) and depreciation (Rs. 26.1 crore), company reported net loss of Rs. 26.7 crore (vs I-direct estimated net loss of Rs. 45.4 crore)

- Gross debt at the end of FY21 stood at Rs. 1,685 crore and after adjusting for about Rs. 141 crore cash, net debt was Rs. 1544 Cr. The average cost of borrowings has reduced 130bps YoY to 8.3%

- During the quarter, the company has expanded managed hotels vertical through new launches in the domestic market such as Bhubaneswar, Aligarh and Vijayawada. It has also signed a License Agreement for an upcoming hotel at Biratnagar. Further, Lemon Tree has allocated around 6 hotels to various hospitals in Gurugram, Delhi, Bengaluru, and Hyderabad for treatment of mild Covid patients due to influx of second wave during April-June period

Given the increasing consumer inclination for hygiene and safety, there would be a structural shift towards a preference for branded hotel players. This should drive consolidation in the domestic space, and that would bode well for organized and branded players, including Lemon Tree Hotels in the medium to longer term. Moreover, as Covid cases across the country subside and with vaccination drives expected to accelerate in the coming months, we expect the demand environment to improve. This should help drive a gradual and sustainable uptick in performance for entire branded hotel space including Lemon Tree hotels. We would be coming up with a detailed report soon post the conference call.

Shares of Lemon Tree Hotels Ltd was last trading in BSE at Rs.42.25 as compared to the previous close of Rs. 42.05. The total number of shares traded during the day was 397681 in over 2641 trades.

The stock hit an intraday high of Rs. 43.2 and intraday low of 41.05. The net turnover during the day was Rs. 16753494.


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:

Q1FY22 Result Update - Syngene International - ICICI Direct

Sterlite Technologies - Q1FY22 First Cut - ICICI Direct

Bajaj Auto - Q1FY22 First Cut - ICICI Direct

UltraTech Cement - Q1FY22 First Cut - ICICI Direct

HUL - Q1FY22 First Cut - ICICI Direct

Q1FY22 Result Update - Bajaj Finserv - ICICI Direct

Hindustan Zinc - Q1FY22 First Cut - ICICI Direct

Q1FY22 Analyst Meet - Company Update - Avenue Supermarts - ICICI Direct

Q1FY22 Result Update - Indian Bank - ICICI Direct

FY2020-21 AGM Update - Trent Ltd - ICICI Direct

Q1FY22 Result Update - Supreme Industries - ICICI Direct

Indian Energy Exchange - Q1FY22 First Cut - ICICI Direct

CSB Bank - Q1FY22 First Cut - ICICI Direct

Hindustan Unilever - Q1FY22RU - First cut - YES SECURITIES

Asian Paints Report - Demand rebound strong; profitability, not so much! - HDFC Securities

Maintain ADD on Supreme Industries - Demand recovery to make up for Q1 loss - HDFC Securities

Maintain REDUCE on Jubilant FoodWorks - No fireworks to sustain expensive valuation - HDFC Securities

Mahindra CIE Automotive - Continues to walk the talk - ICICI Securities

Jubilant Foodworks - Capitalizing on the opportunity (per our expectations) - accelerated store expansion - ICICI Securities

Equitas Small Finance Bank - Focus on building stable, scalable bank with prudent and conservative approach - ICICI Securities

CEAT - Challenging quarter amidst rising input costs - ICICI Securities

Havells India - Likely market shares gains across segments - ICICI Securities

I-direct Instinct - PPAP Automotive - ICICI Direct

Consumer Durables Sector Update Report - Inspiring recovery; rich valuation to sustain - HDFC Securities

CEAT - Q1 FY22 first cut - YES Securities

Havells India - Q1 FY22 first cut - YES Securities

Polycab India - Q1 FY22 first cut - YES Securities

Jubilant Foodworks - Q1 FY22 results and investor call takeaways - YES Securities

Asian Paints - Q1 FY22 results and investor call takeaways - YES Securities

Bajaj Finance - Q1 FY22 Result Report - YES Securities

CRISIL Ltd - Q2 CY21 Result Report - YES Securities

HCL Technologies - Q1 FY22 Result Report - YES Securities

Gland Pharma - Q1 FY22 Result Report - YES Securities

ICICI Prudential Life - Q1 FY22 Result Report - YES Securities

Syngene International - Q1 FY22 Result Report - YES Securities

Q1FY22 Company Update - GTPL Hathway - ICICI Direct

Supreme Industries - Q1FY22 First Cut - ICICI Direct

Bajaj Finserv - Q1FY22 First Cut - ICICI Direct

Polycab India - Q1FY22 First Cut - ICICI Direct

Rallis India - Q1FY22 First Cut - ICICI Direct

Q1FY22 Result Update - Asian Paints - ICICI Direct

Gladiator Stocks - Kansai Nerolac Paints - ICICI Direct

Q1FY22 Result Update - Nippon Life India AMC - ICICI Direct

Q1FY22 Result Update - Bajaj Finance - ICICI Direct

Q1FY22 Company Update - Mastek Ltd - ICICI Direct

ICICI Prudential Life - Strong performance in tough times - HDFC Securities

Maintain REDUCE on Bajaj Finance - Speed bumps to a fast recovery - HDFC Securities

Maintain BUY on Mastek - Strong growth engine - HDFC Securities

First cut and detailed views on Asian Paints Q1FY22 Results - YES SECURITIES

Larsen & Toubro Infotech - Margin trajectory will be the key - ICICI Securities


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

disclaimer copyright © 2005 - 2020