EIH Ltd's revenue for Q4FY18 came in at Rs431.38cr, which increased by 16.9% yoy. The operating profits stood at Rs98.81cr for Q4FY18, witnessing a significant rise by 73.2% yoy. The EBITDA margin expanded significantly by ~745bps yoy to 22.9% in Q4FY18. The net profit after tax for the quarter came in at Rs56.13cr, an increase of 7.7% yoy. The consolidated revenue and operating profits for FY18 were in-line with estimates. However, the consolidated net profit beats the street estimates by 59%.
• The increase in revenue by 16.9% yoy in Q4FY18 is attributable towards re-opening of The Oberoi, New Delhi during the quarter and likely increase in the overall revenue per available room of the company. This further led to increase in EBITDA margin of the company as the reopened property is likely to have higher value added margin. The rise in EBITDA margin is further backed by likely rise in the average room rent of the company during the quarter.
• The company’s other income came in at Rs31.20cr in Q4FY18 as against Rs46.74cr in Q4FY17. This significantly led lower-than-expected rise in the net profit of the company for Q4FY18 as compared with rise in the EBITDA. The EBITDA increased by 73.2% yoy, whereas net profit increased marginally by 7.7% yoy during Q4FY18.
• The employee benefit expenses increased by ~14.3% yoy to Rs100.53cr for Q3FY18.
• The effective tax rate of the company for FY18 stood at ~30% as against ~34% in FY17.
• EIH’s consolidated revenue increased marginally by 5% yoy to Rs1,598.44cr in FY18 despite reopening of The Oberoi, New Delhi. This indicates that the hotel properties owned by subsidiary companies have likely witnessed comparatively lower rise in occupancy levels during the year. However, increase in consolidated EBITDA margin by ~160bps yoy in FY18 indicates rise in average room rent during the year by the subsidiary hotel properties. The consolidated adjusted net profit attributable to owner increased significantly by 31% yoy to Rs179.21cr in FY18.
• The share of net profit of associates and joint venture increased by ~43% yoy to Rs16.85cr in FY18.
• Consolidated debt (long term and short term) increased to Rs433.22cr as on March 31, 2018 as against Rs330.92cr as on March 31, 2017.
• The board of directors have recommended a dividend of Rs0.90 per share, subject to shareholders’ approval in annual general meeting.
EIH Ltd is currently trading at Rs174.70, down by 3 points or 1.69% from its previous closing of Rs177.70 on the BSE. The scrip opened at Rs177.70 and has touched a high and low of Rs180.80 and Rs173.90 respectively. So far 2,55,855 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 100 DMA.
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