Lemon Tree Hotels Ltd Q4 FY20 loss at Rs. 17.91 crore

Lemon Tree Hotels Ltd has reported financial results for the period ended March 31, 2020.

Financial Results (Q4 FY19-20) - QoQ Comparison

The company has reported total income of Rs.176.54 crores during the period ended March 31, 2020 as compared to Rs.202.79 crores during the period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.(17.91) crores for the period ended March 31, 2020 as against net profit / (loss) of Rs.12.19 crores for the period ended December 31, 2019.

The company has reported EPS of Rs.(0.23) for the period ended March 31, 2020 as compared to Rs.0.15 for the period ended December 31, 2019.

Financials	Q4 FY19-20	Q3 FY19-20	% Change
Total Income	₹ 176.54 crs	₹ 202.79 crs	-12.94%
Net Profit	₹ (17.91) crs	₹ 12.19 crs	-246.92%
EPS	₹ (0.23)	₹ 0.15	-253.33%

Financial Results (Q4 FY19-20) - YoY Comparison

The company has reported total income of Rs.176.54 crores during the period ended March 31, 2020 as compared to Rs.153.07 crores during the period ended March 31, 2019.

The company has posted net profit / (loss) of Rs.(17.91) crores for the period ended March 31, 2020 as against net profit / (loss) of Rs.32.45 crores for the period ended March 31, 2019.

The company has reported EPS of Rs.(0.23) for the period ended March 31, 2020 as compared to Rs.0.41 for the period ended March 31, 2019.

Financials	Q4 FY19-20	Q4 FY18-19	% Change
Total Income	₹ 176.54 crs	₹ 153.07 crs	15.33%
Net Profit	₹ (17.91) crs	₹ 32.45 crs	-155.19%
EPS	₹ (0.23)	₹ 0.41	-156.1%

Financial Results (12 months ended FY 19-20) - YoY Comparison

The company has reported total income of Rs.675.22 crores during the 12 months period ended March 31, 2020 as compared to Rs.559.43 crores during the 12 months period ended March 31, 2019.

The company has posted net profit / (loss) of Rs.(9.53) crores for the 12 months period ended March 31, 2020 as against net profit / (loss) of Rs.52.87 crores for the 12 months period ended March 31, 2019.

The company has reported EPS of Rs.(0.12) for the 12 months period ended March 31, 2020 as compared to Rs.0.67 for the 12 months period ended March 31, 2019.

Financials	Year Ended FY19-20	Year Ended FY18-19	% Change
Total Income	₹ 675.22 crs	₹ 559.43 crs	20.7%
Net Profit	₹ (9.53) crs	₹ 52.87 crs	-118.03%
EPS	₹ (0.12)	₹0.67	-117.91%

Commenting on the performance for Q4 FY20, Mr. Patanjali Keswani, Chairman & Managing Director - Lemon Tree Hotels Limited said, "We began Q4 FY20 on a robust note, witnessing healthy occupancy and increase in ADRs across all segments in the months of January and February. However, the growing concerns around the spread of Covid-19 followed by the nation-wide lockdown announced by the central government impacted the operating environment for hotels significantly. Despite these challenges, on a consolidated basis we have reported better than expected results, with our Q4FY20 revenue from operations increasing by 17% y-o-y led by a 2.8% increase in the ADR and 45.5% increase in the operational inventory. Our EBITDA in Q4 FY20 increased by 12.4% y-o-y on old accounting basis.

Since middle of March we have taken numerous steps related to our business mix and operating expenses when the visible reduction in demand for hotel rooms began. We have tapped into our strong B2B network across industries and ensured that our occupancy remains at sustainable levels. In April, we tied up with leading healthcare chains as well to provide rooms for their doctors and paramedical staff. Furthermore, we are now working with the Government to combat the pandemic, by converting some of our hotels into paid quarantine facilities at lower than normal rates for those flying-in from outside India. Along with these steps, we have immediately executed multi-layered measures to improve our overall operating costs with specific focus on fixed costs. Some of the major cost optimization measures include controlling our electricity and water costs, raw material costs, overhead costs and wage bill. In the wake of the current situation, we have decided not to lay off any of our permanent employees. In order to do so we have undertaken significant salary cuts at the managerial level and above. Overall, we are focused towards rationalizing our operating model, which has enabled us to significantly reduce our operating expenses in the months of April and May by almost 60%. Therefore, even in the midst of the lockdown we broke even at the hotel operating level in April and are poised to do significantly better in May. While we have limited visibility in the near-term, such performance provides us adequate comfort that Lemon Tree with its strong business and proven model will be one of the first to bounce back when things start normalizing over the next year or so.

In the current environment, our major priority is preserving liquidity. Accordingly, we are going to take some immediate steps to strengthen our balance sheet, details of which are given ahead in this presentation. These, we believe, will adequately strengthen our balance sheet and will provide us comfort in continuing our asset light expansion. We are looking at the future in an optimistic and positive manner. While we are currently operating at sub-optimal levels, in the near-term there should be a gradual bounce back as travel restrictions and consumer sentiments are restored. We are confident that our fundamentally strong business model, significant liquidity, our asset-light approach, and our established brand in the hospitality industry will help us successfully weather these challenging times."

Shares of Lemon Tree Hotels Ltd was last trading in BSE at Rs.17.95 as compared to the previous close of Rs. 18.3. The total number of shares traded during the day was 1114979 in over 1343 trades.

The stock hit an intraday high of Rs. 19.2 and intraday low of 17.7. The net turnover during the day was Rs. 21137455.

Source : Equity Bulls

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