Stock Report

Advani Hotels & Resorts India Ltd reports Q2FY23 results

Posted On : 2022-11-17 09:42:08( TIMEZONE : IST )

Advani Hotels and Resorts (India) Ltd., which owns and operates the 201-key, 5-Star Deluxe Caravela Beach Resort Goa, on a 23-acre estate, situated on Varca Beach in South Goa, has approved their Results for the quarter and half-year ended September 30, 2022 at their Board Meeting held on November 14, 2022.

Due to the seasonal nature of our business, the second quarter, which comprises of the months of July, August and September are historically the weakest, both in terms of Occupancy and Average Daily Rates, due to the heavy monsoon rains. Hence, the third and fourth quarters always have significantly better performance.

However, the results for the quarter ended September 2022 have been the best 2nd quarter results in the history of the Company. The Company achieved a Total Net Revenue of INR 1675 Lakhs in September 2022 quarter as compared to a Total Net Revenue of INR 579 Lakhs in the corresponding quarter of previous year. This reflects a growth of INR 1096 Lakhs or 189.3%.

The Company turned the corner from the losses incurred during the second wave of COVID-19 and achieved a Profit Before Tax of 1218 Lakhs in the half-year ended September 30, 2022, versus a Loss Before Tax of 800 Lakhs in the corresponding previous period.

In order to provide a complete picture of the financial performance of the Company with respect to the September 2022 quarter, we have provided below a comparision with the pre-Covid quarter of September 2019.

Some of the key performance indicators of the quarter ended September 2022 are below:

- Total Revenue of INR 1675 Lakhs in the quarter ended September 2022, as compared to a Total Revenue of INR 1174 Lakhs in the corresponding pre-Covid quarter ended September 2019.

- Earnings Before Interest, Taxes, Depreciation & Amortisation (EBITDA) of INR 385 Lakhs in the quarter ended September 2022, as compared to Loss of INR 81 Lakhs in the corresponding pre-Covid quarter ended September 2019.

The EBITDA margin achieved in the September 2022 quarter is 23.0% as against minus 6.9% in that of the corresponding pre-Covid quarter ended September 2019.

- The Average Net Total Revenue Per Sold Room per night (TrevPOR), excluding GST of INR 14,437 per night in the quarter ended September 30, 2022, versus INR 9,501 per night in quarter ended September 30, 2019. Thus, in the quarter ended September 2022, the Resort has exceeded the Pre-COVID TrevPOR of September 2019 by 52%.

- It is pertinent to note that the Company has grown its Total Income not by the Occupancy route, but rather by increasing the Total Revenue Per Occupied Room Per Night. In fact the Occupancy has decreased by 5% and yet the Total Revenue has grown significantly. This indicates that the Company has improved its rates and its margin.

- The Company is debt-free and the Cash and Bank Balances of the Company further improved to INR 3256 Lakhs as on September 30, 2022, versus INR 1115 Lakhs as on September 30, 2019. Thus, the Company has exceeded the PreCOVID Cash and Bank Balances of September 2019 by 292%.

Assuming that there are no disruptions due to external uncontrollable factors, such as COVID-19, Monkeypox, nuclear conflict, etc. and assuming 'Ceteris Paribus', we are projecting an annual Total Income ranging from Rs. 850 million to Rs. 920 million and a corresponding EBITDA of approximately 330 million in the current Financial Year 2022 - 2023.

To provide a broad perspective (beyond financial measures), the Caravela Beach Resort Goa has won the following prestigious awards during the quarter ended September 30, 2022:

- Goibibo Award for securing consistently high guest satisfaction scores of 4.5 stars out of maximum of 5.0 stars.

- MakeMyTrip Award for an 'Excellent' rating, with over 2000 customer reviews and a rating of 4.3 out of 5 stars.

These third-party validated awards provide a yardstick with which to measure performance from a qualitative perspective.

Lastly, the Company would like to inform all Shareholders that the Company has received NOC from the Goa Coastal Zone Management Authority for the proposed Banquet Hall and an additional swimming pool, subject to certain terms and conditions.

Shares of Advani Hotels & Resorts (India) Limited was last trading in BSE at Rs. 80.00 as compared to the previous close of Rs. 78.10. The total number of shares traded during the day was 1146 in over 64 trades.

The stock hit an intraday high of Rs. 80.45 and intraday low of 79.10. The net turnover during the day was Rs. 91698.00.