Chalet Hotels Ltd (BOM:542399) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...

GuruFocus News
4 min read

In This Article:

  • Consolidated Revenue: INR 3.8 billion, a growth of 20% year on year.

  • Hospitality Revenue: INR 3.4 billion, a growth of 18%.

  • EBITDA: INR 1.6 billion, a growth of 20% with a margin of 40.6%.

  • Hospitality Segment EBITDA: INR 1.4 billion, a growth of 18% with margins at 41.4%.

  • Rental and Annuity Revenue: INR 419 million, a growth of 39% year on year.

  • Residential Real Estate Sales: 32 units sold at an average rate of INR 21,835 per square foot.

  • Net Debt: INR 16.6 billion as of September 30, 2024.

  • Average Cost of Finance: 8.52%, a reduction of 35 basis points from March 2024.

  • Occupancy Rate: 73.6%, up 40 basis points.

  • Average Room Rate: 10% improvement over Q2 FY24.

  • RevPAR Growth: 10.3% year on year.

  • Deferred Tax Asset Reversal: INR 2 billion, resulting in a negative PAT of INR 1.4 billion for the quarter.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Chalet Hotels Ltd (BOM:542399) reported a 20% increase in consolidated revenue year-on-year, demonstrating strong financial performance.

  • The hospitality segment saw an 18% revenue growth, with stable occupancy rates at 74% and a 10% increase in average room rates.

  • The company achieved a significant milestone by acquiring an 11-acre beachfront land parcel in Varca, which will enhance its leisure portfolio.

  • Chalet Hotels Ltd won the KPMG ESG Excellence Award 2024 and was recognized as one of the best workplaces for women in India.

  • The company has a robust CapEx plan of INR 15 billion for the next six quarters, indicating a strong commitment to growth and expansion.

Negative Points

  • There have been delays in the opening of the Taj at the terminal in Delhi International Airport, now expected by June 2026.

  • The company faced a one-time non-cash impact due to the reversal of deferred tax assets, resulting in a negative PAT of INR 1.4 billion for the quarter.

  • Other expenses increased due to one-offs such as advertisement costs for the residential sector and legal expenses related to expansion.

  • The net debt increased to INR 16.6 billion, despite internal accruals funding most of the CapEx and land acquisitions.

  • The hospitality segment in Mumbai reported only a 7% growth in ADR, which was lower than expected due to competitive pressures and weather conditions.

Q & A Highlights

Q: Is it fair to assume that AR growth will be better than Q2 or at least double-digit for the second half? A: We don't provide forward-looking numbers, but typically H2 is better than H1 in our industry. We expect a decent Q3 and Q4. - Sanjay Sethi, CEO

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