The performance of Lemon Tree Hotels (LTH) improved sharply during Q4FY21 vs. Q3. Revenues grew 39.1% QoQ to Rs. 95.1 crore (vs. I-direct estimate: Rs. 64.5 crore), also backed by improved demand for weddings, staycations and social events. Concerted focus on costs across verticals led to a drop of 40.7% YoY in total expenditure to Rs. 66.6 crore (up 37.8% QoQ). EBITDA margin was at 30% vs. 29.4% in Q3FY21 and 36.3% last year. However, with higher interest (Rs. 44.5 crore), depreciation (Rs. 26.1 crore), net loss was at Rs. 26.7 crore (vs. I-direct estimate: net loss Rs. 45.4 crore). Gross debt at FY21 was at Rs. 1,685 crore with average cost of borrowings at 8.3% (down 130 bps YoY). Overall, the company closed FY21 with an EBITDA of Rs. 61 crore despite sharp drop in revenues and also managed liquidity well even after aggressive room additions done just before the Covid era. Going ahead, as Covid cases subside and with increased vaccination drive in coming months, we expect the demand environment to improve. Moreover, with rising consumer inclination for hygiene and safety, there would be a structural shift towards a preference for branded hotel players. Lemon Tree being the branded player in mid-scale and premium space is likely to be the major beneficiary of this structural revival, going forward.
For details, click on the link below: Link to the report
Shares of Lemon Tree Hotels Ltd was last trading in BSE at Rs.41.4 as compared to the previous close of Rs. 41.65. The total number of shares traded during the day was 423615 in over 3777 trades.
The stock hit an intraday high of Rs. 42.3 and intraday low of 40. The net turnover during the day was Rs. 17356913.