ADVERTISEMENT

Motilal Oswal: Indian Hotels’ Cost Saving Initiatives To Aid Performance Ahead

Motilal Oswal: Indian Hotels’ Cost Saving Initiatives To Aid Performance In Coming Quarters



Guests are seen in the lobby at the Taj Mansingh Hotel in New Delhi. (Photographer: Amit Bhargava/Bloomberg News)
Guests are seen in the lobby at the Taj Mansingh Hotel in New Delhi. (Photographer: Amit Bhargava/Bloomberg News)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The revenue per available room performance of Indian Hotels Company Ltd. standalone improved over April–June during the quarter, led by improvement in occupancy; however, average room rates declined over the same period.

Thus, the performance been improving on a sequential basis, although on a low base. Indian Hotels reduced its total cost by 51% during the quarter, compared with the last year.

80% of this was contributed by variable cost and the balance came from fixed. The company expects further cost savings from the coming quarters, which would aid performance.

Consolidated revenue declined 86% YoY to Rs 1,436 million (estimate Rs 1,428 million) in April-June 2020. Ebitda loss was in line with our estimates and stood at Rs 2,660 million versus profit of Rs 1,734 million last year (estimate loss of Rs 2,673).

The company reported adjusted net loss of Rs 3,445 million versus profit of Rs 39 million last year.

Click on the attachment to read the full report:

Motilal Oswal India Hotels Q1FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.