News Source: www.indiainfoline.com
Advani Hotels suffers first ever gross operating loss in Q1
News Source/Courtesy: www.indiainfoline.com

Advani Hotels and Resorts Limited informed the exchanges Tuesday that the company is having gross operating loss in the Q1 of the financial year 2020-2021 for the first time in its history of 30 years.

The company operates a Five Star Deluxe resort under the Brand name of Caravela Beach Resort at Goa. During the lockdown period, the hotel business came to complete halt. The revenue from Rooms, Events and F&B is Nil after March 22, 2020.

The power consumption has reduced substantially only to meet the normal maintenance of the rooms and critical equipment's.The overheads cost have been reduced by 91% when compared with March 2020. The payroll cost has also come down drastically.

Hospitality industry is the most hit industry due to Covid-19, the recovery expected to be slow since the restrictions on wedding having more than 50 pax still continues as on date. The company is planning to restart it operations from October 1, 2020 with 130 rooms and is spending on Capex items to ensure Hygiene and safety for its guests and its employees.

Until February 29, 2020, the company had achieved total net revenue of Rs6678lac, and a profit before tax of Rs1416lac, as compared to a total net revenue of Rs6391lac and profit before tax of Rs1083lac, during the corresponding 11-month period of the preceding financial year. Thus, the company was on a growth trajectory until February 29, 2020.

During the month of March 2020, the Caravela Beach Resort Goa abruptly received a number of cancellations due to the Covid-19 pandemic. International flights were not allowed to land and this led to cancellations from foreign customers. Subsequently, in order to control the spread of the Coronavirus, a national lockdown came into effect and domestic travel also came to a stand-still. Thus, the total net revenue for the month of March 2020 was only Rs437lac, as against Rs767lac recorded in March 2019.

Due to the above, for the quarter ended March 31, 2020, the company reported a total net revenue of Rs2070lac, as compared to total net revenue of Rs2366lac, during the corresponding quarter of the preceding financial year.

Despite the adverse impact of the Covid-19 pandemic during the month of March 2020, the company achieved total net revenue of Rs7116lac, and a profit before Tax of Rs1405lac in the financial year 2019-2020, as compared to a total net revenue of Rs7173lac.

Advani Hotels & Resorts (India) shares ended at Rs44.40, down Rs0.60 or 1.33% from its previous closing of Rs45 on the BSE.

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News Source: www.indiainfoline.com

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