Q4FY21 Company Update - Oriental Hotels - ICICI Direct

Oriental Hotels (OHL) operates in south India with Indian Hotels Company (IHCL) being one of the promoter entities. The company owns and operates seven hotels with ~820 rooms across business & leisure locations in south. It derives majority of revenues from two of its properties in Chennai 1) Taj Coromandel 2) Taj - Fisherman's Cove. After witnessing Covid induced severe financial strain in H1FY21, OHL achieved operational breakeven performance in H2FY21 despite a marginal pick-up in revenues. The same was attained via slew of measures undertaken by the company to become more efficient and linear in terms of costs in the Covid era. The company achieved significant cost reduction of 42% (i.e. Rs. 105 crore) in FY21. With quarterly revenue surpassing Rs. 42 crore from Q3FY21, the company generated EBITDA of Rs. 1.2 crore and Rs. 5.8 crore, respectively in Q3 & Q4FY21, respectively. Going forward, while H1FY22E looks challenging, with easing of restrictions post stabilisation of infections (likely from H2FY22E) and increased vaccinations, going ahead in the country, we expect the hotel sector to witness a sharp rebound in demand from H2FY22E. This should lead to healthy margins and profitability. With the likely recovery on cards, we expect revenue CAGR of 61% in FY21-23E with sharp uptick expected in FY23E and also expect the company to attain highest EBITDA margins in FY23E leading the company to report PAT over Rs. 15 crore.

For details, click on the link below: Link to the report

Shares of ORIENTAL HOTELS LTD. was last trading in BSE at Rs.39.4 as compared to the previous close of Rs. 37.95. The total number of shares traded during the day was 74096 in over 699 trades.

The stock hit an intraday high of Rs. 40 and intraday low of 37.6. The net turnover during the day was Rs. 2887687.

Source : Equity Bulls

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