- Oriental Hotel's revenue for Q4FY22 declined 13% QoQ to Rs. 66.1 crore due to lockdown during January 2022 on account of omicron. Margins were also lower by 800 bps QoQ to 17.5%. This led to a marginal PAT of Rs. 4 lakh vs. Rs. 9.2 crore reported in Q3. For the full year FY22, revenues grew 189% YoY to Rs. 219.4 crore though it was still 34% lower than pre-pandemic levels
- In our view, this minor blip in revenue is temporary as forward hotel booking data suggests strong buoyancy in demand with hotel booking for March-May crossing pre-pandemic levels led by wedding season, vacations and IPL matches. Further, with the opening of international borders for foreign tourists and resumption of corporate offices, we expect sharp traction in the revenues from H1FY23E onwards
- In terms of rooms supply, we expect launch of new hotel projects to get delayed due to higher land and input costs that would augur well for existing branded players. Further, hotel players are now leaner in terms of costs that are sustainable in nature. We expect healthy 29.2% revenue CAGR over FY22-24E. We expect the company's business to recover fully in FY23E while EBITDA to surpass pre-Covid levels in FY23E. Margins are seen at 18.1% and 20.2% for FY23E and FY24E, respectively
- The company enjoys strong patronage from IHCL. Operationally, OHL's properties are managed by IHCL apart from over 39% holding by Tata group. Hence, in our view, OHL has strong financial flexibility due to comfort arising from being an associate of IHCL
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Shares of Oriental Hotels Limited was last trading in BSE at Rs. 63.40 as compared to the previous close of Rs. 63.20. The total number of shares traded during the day was 112544 in over 1389 trades.
The stock hit an intraday high of Rs. 66.00 and intraday low of 63.05. The net turnover during the day was Rs. 7245989.00.