Lemon Tree Hotels Limited announces Q3FY21 results

Lemon Tree Hotels Limited has announced the financial results for the period ended December 31, 2020.

Q3FY21 Highlights

Revenue

- Revenue from operations stood at Rs. 68.4 Cr in Q3 FY21, down 65.7% as compared to Rs. 199.6.8 Cr in Q3 FY20. On a sequential basis, revenue from operations increased 43.7% from Rs 47.6 Cr in Q2 FY21

- ADR decreased by 45.6% from 4,644 in Q3 FY20 to 2,528 in Q3 FY21. On a sequential basis, ADR decreased by 4.7% from Rs 2,654 in Q2 FY21

- Occupancy on full inventory decreased by 2,885 bps from 71.3% in Q3 FY20 to 42.4% in Q3 FY21. On a sequential basis, the occupancy on full inventory increased by 1,008 bps from 32.4% in Q2 FY21. Occupancy on operational inventory stood at 46.5%

- Fees from managed hotels stood at Rs. 1.6 Cr in Q2 FY21 (2.3% of Revenue from operations)

Cost

- Total expenses stood at Rs. 48.3 Cr in Q3 FY21 down 59.2% as compared to Rs 118.4 Cr in Q3 FY20. On a sequential basis, expenses increased by 22.9% Rs 39.3 Cr in Q1 FY21 due to higher operational inventory & better occupancy

Operating Margins

- EBITDA decreased by 73.5% from Rs 84.4 Cr in Q3 FY20 to Rs 22.3 Cr in Q3 FY21. On a sequential basis, EBITDA increased 55.8% from Rs 14.3 Cr in Q2 FY21. EBITDA without other income increased 141.7% from Rs 8.3 Cr in Q2 FY21 to Rs 20.1 in Q3 FY21

- EBITDA margin contracted by 1,000 bps from 41.6% in Q3 FY20 to 31.6% in Q3 FY21. On a sequential basis, the EBITDA margin expanded by 489 BPS from 26.7% in Q2 FY21. EBITDA margin without other income expanded by 1,191 BPS in Q3 FY21 from Q2 FY21

Profit After Tax

- Profit after tax decreased from Rs 11.0 Cr in Q3 FY20 to Rs (45.7) Cr in Q3 FY21. The PAT in Q2 FY21 was Rs (53.5) Cr

- Cash Profit for Q3 FY21 stood at Rs -18.4 Cr vs Rs 33.7 Cr in Q3 FY20. The Cash Profit in Q2 FY21 was -4.6 Cr

Commenting on the performance for Q3 FY21, Mr. Patanjali Keswani, Chairman & Managing Director - Lemon Tree Hotels Limited said, "We are pleased to report a resilient performance during this quarter driven by some improvement in the macro-economic environment and a gradual growth in demand and consumption. Healthy traction from the retail segment continued in this quarter as well. We saw higher demand coming from the leisure segment for staycations, day-use, work-from-hotels among others. Our operational inventory increased from 86.8% of our total inventory in Q2 FY21 to 91.2% in Q3 FY21. Our occupancy on full inventory improved from 32.4% in Q2 FY21 to 42.4% in Q3 FY21. On operational inventory, our occupancy stood at 46.5% in Q3 FY21. The combined effect of higher operational inventory and better occupancy led to a topline increase of 43.7% from Rs 47.6 Cr in Q2 FY21 to Rs 68.4 Cr in Q3 FY21.

From a profitability standpoint, we have been able to continue most of the cost-rationalization measures undertaken since March last year. Our Net EBITDA grew by 141.7% to Rs 20.1 Cr in Q3 FY21 from Rs 8.3 Cr in Q2 FY21. Our EBITDA margin expanded by 1,191 BPS to 29.4% in Q3 FY21 from 17.5% in Q2 FY21.

In the near term, we are seeing strong demand from the retail & MSMEs and a gradual recovery from the large corporates. Going forward, we expect a sustained revival in the domestic economy which should build in positive momentum for recovery in demand and consumption which is already visible in the current quarter i.e. Q4. We believe that the improving macro indicators, robust liquidity in the market and normalization in day-to-day activities will have a positive cascading effect on the travel and tourism sector. Looking ahead, while we anticipate a gradual revival in corporate travel in the quarters ahead, leisure demand is already strong and this traction will further increase in the months ahead. Overall, we are confident that further stabilization of the macro-economic environment and our revamped operating model will lead to sustained EBITDA growth in the next 4 quarters."

Shares of Lemon Tree Hotels Ltd was last trading in BSE at Rs.41.65 as compared to the previous close of Rs. 42.3. The total number of shares traded during the day was 97919 in over 385 trades.

The stock hit an intraday high of Rs. 42.55 and intraday low of 41.25. The net turnover during the day was Rs. 4063763.

Source : Equity Bulls

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