Courtesy/News Source: equitybulls.com

Chalet Hotels Limited ("Chalet"), owner, developer and asset manager of high-end hotels in key metro cities of India, announces its results for the second quarter of financial year 2019-20.

PBT of Rs. 200 mn compared to Rs. (286) mn YoY

Steady increase in RevPAR to Rs. 5802 compared to Rs. 5672 YoY

Healthy EPS at Rs. 0.5 per share compared to Rs. (0.73) per share (not annualised)

Chalet Hotels Ltd.'s total income for Q2FY20 stands at Rs. 2,405 Mn as compared to Rs. 2,572Mn and EBITDA at Rs. 867 Mn as compared to Rs. 541 Mn, in the previous year same quarter. For the previous year, EBITDA includes exchange loss of Rs. 389 Mn (current year - NIL).

Profit Before Tax (PBT) grew to Rs. 200 Mn as compared to Rs. (286) Mn in the previous year same quarter, indicating a positive growth as a result of healthy capital structuring and tight cost control. Profit After Tax (PAT) grew to Rs. 103 Mn as compared to loss of Rs. (125) Mn in the previous year same quarter.

RevPAR increased by 2% to Rs 5,802 as compared to Rs 5,672 for the same quarter last year. Chalet Hotels Ltd.'s Hotel platform comprises five operating hotels and a hotel with a co-located serviced residence. Chalet Hotels Ltd.'s assets are currently branded with global partners like JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance and Four Points by Sheraton, which are part of the Marriott Group.

Segmental Performance Q2 FY20:

Segmental revenue for hospitality was Rs. 2,046 Mn for the quarter, with the segmental profit margin before interest depreciation and tax at Rs. 749 Mn with margins at 36.6% led by sluggish overall demand environment

ADR for the quarter stood at Rs 7,815 higher by 3% from the same quarter last year
Occupancy for the quarter was at 74.2% as compared to 74.6% in the previous year same quarter

Revenue for Retail & Commercial Segment was at Rs. 307 Mn (Straight Line Impact on lease Rentals Rs 202 Mn) compared to Rs. 105 Mn in the previous year same quarter with the segmental profit margin before interest depreciation and tax at 72%.

The retail F&B hub, The Orb now has 15 outlets open as of Oct 2019
Office Tower at Sahar has successfully achieved Phase 1 of occupancy and is currently two-third occupied

H1FY20 performance:

Total income for H1FY20 stands at Rs. 4,867 Mn as compared to Rs. 5,028 Mn and EBITDA at Rs. 1,721 Mn as compared to Rs. 1,412 Mn, in the previous year same quarter. For the previous year, EBITDA includes exchange loss of Rs. 389 Mn (current year - NIL).

Sharing his views on the quarter performance, Mr. Sanjay Sethi, MD & CEO, Chalet Hotels Limited, said, "Chalet Hotels Ltd.'s focus on growth coupled with sectoral demand supply arbitrage has provided for continuous ADR growth and steady occupancy. The hotels have countered economic headwinds to deliver a stable performance. A close watch on efficiency and productivity led to effective control on overheads.

The recent cut on GST rate for the hospitality sector augurs well for the demand environment, while the lowering of corporate tax rates provides a much-needed boost to the overall economy. We continue to remain prudent in our cost management and capital structuring, as we remain committed to deliver stakeholder value with a special focus on sustainable growth."