Chalet Hotels Limited announces earnings for Q4, FY2020

Chalet Hotels Limited ("Chalet"), owner, developer and asset manager of high-end hotels in key metro cities of India, announces its results for the fourth quarter and financial year 2019-20 (FY20).

The tourism and hospitality industry as a whole has been adversely impacted by the spread of CoVID-19. The Company faces significant economic uncertainties due to COVID-19 which have impacted the operations of the Company adversely starting from the month of March 2020 onwards particularly by way of reduction in occupancy of hotels and average realization rate per room and fall in revenue of other assets. The near-term impact is contingent on various external factors such as lifting of the lock down, travel restrictions and revival of the economy.

Performance for Q4FY20:

Total income stands at Rs. 2,376 Mn as compared to Rs. 2,771 mn in the previous year same quarter EBITDA stands at Rs. 735 Mn as compared to Rs. 1,044 Mn, in the previous year same quarter Profit After Tax (PAT) stands at Rs.422Mn as compared to Rs.133Mn in the previous year same quarter EPS stands at Rs. 2.09 per share as compared to Rs. 0.69 in the previous year same quarter.

Performance for FY20:

Total income stands at Rs. 10,090 Mn as compared to Rs. 10,348 Mn in the previous year
EBITDA stands at Rs. 3,645 Mn as compared to Rs. 3,668 Mn in the previous year
Profit After Tax (PAT) was at Rs. 996 Mn as compared to Rs. (76) Mn in the previous year
EPS was at Rs. 5.01 per share as compared to Rs. (0.43) in the previous year

Segmental Performance:

- For Q4FY20 Segment revenue for hospitality was Rs. 2,011 Mn as compared to Rs. 2,567 Mn

* Segment profit margin before interest, depreciation and tax was at 34.2% as compared to 41.7% in the same quarter of previous year

* ADR for the quarter was steady at Rs. 8,890 with occupancy at 61% a drop of 2,100 bps led by travel restrictions and lockdown due to COVID-19

- For FY20 Segment revenue for hospitality was Rs. 8,755 Mn as compared to Rs. 9,137 Mn

* Led by constant focus on operating efficiencies the Segment profit margin before interest, depreciation and tax was at 38.6% as compared to 39.0% for the previous year

* ADR for the year grew by 3% to Rs. 8,482 with occupancy of 71% a drop of 600 bps on COVID impact

Retail & Commercial Segment

- Q4FY20: Revenue was at Rs. 263 Mn (Straight Line Impact on lease Rentals Rs 46 Mn) compared to Rs. 91 Mn (Straight Line Impact on lease Rentals Rs 23 Mn) previously with the segment profit margin before interest, depreciation and tax at 54%

- FY20: Revenue was at Rs. 1,003 Mn (Straight Line Impact on lease Rentals Rs 375 Mn) compared to Rs. 391 Mn (Straight Line Impact on lease Rentals Rs 96 Mn) previously with the segment profit margin before interest, depreciation and tax at 61%

Development Pipeline Update:

- Recommencement of the three ongoing projects (2 office buildings and Hotel at Hyderabad) to be reviewed in Q2FY20 basis demand and cashflow situation

- Proposed New Hotels: 'Hyatt Regency' at Airoli and 'W' at Powai, Mumbai have been deferred

- Completion of 88 rooms and Spa at Novotel Pune Nagar Road deferred to 2021

- Renaissance Mumbai Convention Center Hotel, renovations to be limited to 44 rooms and public areas while the Brand Change postponed to '2021'

Sharing his views on the quarter performance, Mr. Sanjay Sethi, MD & CEO, Chalet Hotels Limited, said, "The year had started for Chalet on a good note, notwithstanding economic headwinds the Company continued to deliver on rate growth and implementing cost efficiencies.

What we see today are unprecedented times, we started bracing for the impact of COVID-19 from January 2020 onwards with certain business actions taken as early as February 2020. As part of the industry with direct impact of the restrictions put by the Government for the control of the pandemic, we believe the actions taken by us today are key to our near to mid-term revival.

With the new regulations to open up the economy we are gearing-up our portfolio for a quick scale up and eagerly waiting to welcome our guests."

Shares of Chalet Hotels Ltd was last trading in BSE at Rs.160.5 as compared to the previous close of Rs. 163.6. The total number of shares traded during the day was 28873 in over 940 trades.

The stock hit an intraday high of Rs. 175 and intraday low of 160.45. The net turnover during the day was Rs. 4747384.

Source : Equity Bulls

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