RATING

RECOMMENDATION

Strong Sell

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

  • Bharat Hotels Limited Growth

Get info on Bharat Hotels Limited Unlisted Shares before buying, selling, and investing - Read our Research report on Bharat Hotels Peer Comparison & Information like - Revenue Growth, EPS Growth, & Bharat Hotels Profitability Ratios.

We can see a decline in all the growth factors of the company as the industry of hospitality is facing difficult times due to COVID 19 restrictions.

Bharat Hotels Limited Revenue Growth

Growth in %

  • -70.32%

    1 Year

  • -38.92%

    3 Year

  • -22.64%

    5 Year

Due to COVID-19, the hospitality industry has been severely impacted and, due to that, total revenue of the company in FY21 has witnessed a significant downfall of 70% from FY20. As COVID-19 started in the later quarter of FY20, total revenue in FY20 was also impacted, leading to a Rs. 231 Cr. downfall from FY19. The major downfall in revenue is due to lower realisation of Rs. 194 Cr. in rooms and apartment income and Rs. 139 Cr. in food and beverages. On the other hand, other income witnessed an increase of Rs. 11 Cr. due to excess provision/credit balances written back of Rs. 11 Cr. in FY21 against Rs. 0.7 Cr. in FY20. It must be noted that some of the hotels owned by the company were accommodating doctors on COVID-19 duty at fixed rates paid by the government, which increased the occupancy but lower revenue realisation, reducing the revenue altogether.

Bharat Hotels Limited Net Profit Growth(PAT)

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The company has reported positive profits only in the financial years of 2018 and 2019. In FY21, net loss was Rs. 77 Cr., which shows a de-growth of 21% from FY20. Although the company had a strong impetus on cost optimization by reviewing all expenses to ensure only the very critical expenses were incurred, by which the company has been able to generate a positive EBIDTA despite a substantial reduction in revenue. With a significant amount of depreciation and interest expense in FY21, the company has accumulated a loss of Rs. 77 Cr. Although depreciation and interest expenses were significant enough for the reduction of profits, they were low in absolute terms when compared with FY20. 

Bharat Hotels Limited EPS Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

In FY21, there were no changes made in the equity structure of the company, which led to a fall in the EPS entirely due to the increase in the losses generated by the company. 

  • Bharat Hotels Limited Book Value Growth

Growth in %

  • -10.80%

    1 Year

  • -3.69%

    3 Year

  • -3.28%

    5 Year

With a consistent number of equity shares of 7,59,91,199, the changes in the book value have been entirely brought about by an increase or decrease in the overall equity of the company. In FY21, the book value of the company witnessed a de-growth of 11% from FY20. The reason for such a de-growth is the major fall in the retained earnings of the company, which de-grew by 21% in FY21 from FY20 due to the loss reported in FY21. The net assets of the non-controlling interests have contributed significantly to a further reduction in the overall equity, which amounted to negative 65 Cr. in FY21 from negative 52 Cr. in FY20. 

Bharat Hotels Limited EBITDA Growth

Growth in %

  • -82.60%

    1 Year

  • -49.15%

    3 Year

  • -30.19%

    5 Year

From FY20 to FY21, the company generated an EBITDA of 29 Cr. The company has been able to generate positive EBITDA due to prudent cost management and only incurring crucial expenses despite a substantial fall in the overall revenue. Although EBITDA in FY21 de-grew by 83% from FY20, Total expenses decreased by 63%, primarily on account of a decrease in other expenses. Power and fuel and commissions accounted for the largest fall in other expenses of Rs. 30 Cr. and Rs. 16 Cr., respectively. 

Bharat Hotels Limited Operating Profit Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Due to lower EBITDA realisation in FY21 than in FY20, the company's EBIT in FY21 stood at a negative Rs. 45 Cr., whereas in FY20 it stood at a positive Rs. 86 Cr. Depreciation has fallen in FY21 by Rs. 8 Cr, indicating a de-growth of 10% in FY21 from FY20. The reason for the lower depreciation amount is due to lower additions of plant and machinery and higher disposals, resulting in a lower depreciation amount but lower EBITDA, indicating a fall in the EBIT of the company. 

Bharat Hotels Limited Asset Growth

Growth in %

  • -2.83%

    1 Year

  • -1.48%

    3 Year

  • -0.49%

    5 Year

In FY21, total assets witnessed a marginal downfall of 3% from FY20. Non-current assets comprise 79% of the assets due to the heavy capital intensive nature of the hospitality industry. Current assets of the company grew significantly by 161% in FY21 from FY20, mostly on account of assets held for sale for Rs. 439 Cr. as the company had undergone a resolution plan to reduce its outstanding debt. The company has discontinued its "Aircraft Charter operations," under which it currently owns two aircraft, which also similarly reduced the overall non-current assets of the company in FY21. The fall in the receivables and the reduction in cash and short-term investments of Rs. 22 Cr. and Rs. 16 Cr., respectively, reduced the overall assets of the company in FY21. 

Bharat Hotels Limited Cash Flow from Operations

Growth in %

  • -51.34%

    1 Year

  • -18.25%

    3 Year

  • -4.90%

    5 Year

In the previous financial years before 2021, the company has a positive trajectory with its cash flows from operation. However, in FY21, cash flow from operations ran out of its previous growth trajectory and witnessed a de-growth of 51% in FY21 compared to FY20. The reason for such a fall is primarily due to losses incurred in FY21 and further lower exceptional adjustments have reduced the overall cash flow from operations. Although in FY21, current liabilities grew with a decrease in current assets, which gave impetus to cash flow in FY21, it wasn't substantial enough to cover the fall caused by losses and lower than exceptional items adjustments. 

  • Bharat Hotels Limited Solvency Ratios

Bharat Hotels Limited D/E Ratio

The debt equity of the company in FY21 has witnessed a growth rate of 16% from FY20. Overall debt in FY21 has increased by 2% on account of an increase in long-term borrowings. The company has availed the resolution framework for COVID-19 related stress as provided by the Reserve Bank of India dated August 6, 2020. Accordingly, the interest on interest from March ’20 to August ’20 has been converted into the term loan, which will be payable as per their respective repayment schedule after a moratorium of 2 years, which has increased the long term borrowings. Further reduction in equity on account of an increase in losses in FY21. Equity has witnessed a downfall of 10%, which led to an increase in the overall debt to equity of the company. 

Bharat Hotels Limited Current Ratio

The current ratio has witnessed a growth of 191% in FY21 from FY20. The company has witnessed an increase in the current assets of Rs. 332 Cr. on account of assets held for sales of its "Aircraft Charter operations," under which it currently owns two aircraft. Current liabilities, on the other hand, have witnessed a de-growth of 45% in FY21 from FY20. As with the restructuring process the company has gone through, the company's short-term borrowings have been converted into term loans, which has led to a decrease in the current liabilities and an increase in the current ratio of the company. 

Bharat Hotels Limited Quick Ratio

The reason for the increase in the quick ratio is the same as the increase in the current ratio of the company in FY21 from FY20. 

Bharat Hotels Limited Interest Coverage Ratio

The interest coverage ratio of the company in FY21 has decreased substantially, primarily attributable to an increase in the losses incurred by the company in FY21 from FY20. Interest payments, on the other hand, have reduced by 6%, indicating a positive sign for the company. 

  • Bharat Hotels Limited Operating Efficiency

All the efficiency ratios of the company have declined in this financial year as the revenue of the company has been negatively impacted by COVID-19, which has led to a decline in the EBIT, EBITDA, and PAT of 152%, 83%, and 21%, respectively, which led to a decline in all the operating margins of the company. 

Bharat Hotels Limited Operating Profit EBIT Margin(OPM)

Bharat Hotels Limited Profit Before Tax Margin (PBT Margin)

Bharat Hotels Limited Profit After Tax Margin (PAT Margin)

  • Bharat Hotels Limited Profitablity Ratio


Bharat Hotels Limited Return on Equity(RoE)

In FY21, the ROE of the company witnessed a substantial de-growth of 36% from FY20. As per DuPont Analysis, the primary reason for the fall in ROE is the substantial fall in the net income margin of 360% in FY21 from FY20, which was a result of the COVID-19 impact in the hospitality industry, along with poor management control. Asset turnover of the company has also witnessed a de-growth of 73%, which was due to the immobilisation of assets to generate revenue in lieu of health and safety concerns in FY21. The equity multiplier, on the other hand, has improved as the company has a higher debt amount than the overall equity, which the company can use to finance its projects and expansion plans. 

Bharat Hotels Limited Return on Capital Employed(RoCE)

ROCE of the company has remained positive and witnessed a growth strategy for the previous financial years. Overall in FY20 and FY21, the company's ROCE was significantly impacted by COVID-19, which impacted the latter quarter of FY20 and the entire FY21. ROCE in FY21 has declined by a significant downfall of 154% from FY20, primarily attributable to lower realisation of revenue and a subsequent downfall of EBIT in FY21 from FY20. 

Bharat Hotels Limited Return to Assets (RoA)

The company's ROA decreased by 24% in FY21 compared to FY20. The primary reason for the fall is the lower asset turnover of the company. Asset turnover of the company stood at 0.06 in FY21, while it was 0.22 in FY20, translating into a fall of 73%, which was a result of lower revenue realisation due to COVID-19. Consequently, with lower asset turnover, the ROA of the company in FY21 has been significantly impacted. 

  • Bharat Hotels Limited Valuation Ratios

Bharat Hotels Limited Dividend Yield

Bharat Hotels Limited Earning Yield