FINANCIAL STATEMENTS

ANALYSIS IN HOSPITALITY
BY : MR. ANIRUDHA THENGANE
ROLL NO : HRD 2118169
BIMHRD MARKETING
INTRODUCTION

• Base Company – Chalet hotels

• Peer Company – The Oberoi Group
• The Oberoi Group is a luxury hotel group with its head office in Delhi. Founded
in 1934, the company owns and operates 31 luxury hotels, two river cruise ships
in 5 countries, primarily under its Oberoi Hotels & Resorts and Trident brands.
• Chalet Hotels was incorporated as a private limited company with the name
'Kenwood Hotels Private Limited' on January 6 1986 operating in Mumbsi, Pune,
Hyderabad, Bengaluru.
ANALYSIS
CHALET HOTELS
• Market cap – Rs 4,471 crores
• Market Price – Rs 220
• Face value – Rs 10.00
• 52 Week high – Rs 292.80
• 52 Week low – Rs 122.65
THE OBEROI GROUP
• Market cap – Rs 7,535 crores
• Market Price – Rs 120.50
• Face value – Rs 2.00
• 52 Week high – Rs 155
• 52 Week low – Rs 82
RATIOS

Curr. Ratio MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

Chalet Hotels 0.89 1.02 0.83 0.79 0.74

The Oberoi 0.55 0.61 0.58 0.64 0.93
Group

Quick Ratio MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

Chalet Hotels 0.35 0.45 0.28 0.44 0.35

The Oberoi 0.42 0.52 0.50 0.55 0.82

Group
 Inventory MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
Turnover Ratio
Chalet Hotels 0.73 2.49 2.50 2.62 2.22

The Oberoi 9.96 25.83 30.64 31.54 30.86

Hotels

ACCOUNT MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

RECEIVABLE
TURNOVER
RATIO
THE OBEROI
GROUP 6.540182 7.522868 7.234839 7.038441 8.125761
CHALET HOTELS 14.36111 25.50877 21.61871 15.23092 22.21374
CHALET HOTELS Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 THE OBEROI GROUP Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

PROFITABILITY RATIOS PROFITABILITY RATIOS

PBDIT Margin (%) 12.22 35.12 36.84 35.53 57.37 PBDIT Margin (%) -54 22.91 26.31 22.4 22.81

PBIT Margin (%) -25.63 23.71 25.15 21.84 39.53 PBIT Margin (%) -81.72 12.97 18.34 14.32 14.15

PBT Margin (%) -78.1 8.48 -2.11 -18.73 9.27 PBT Margin (%) -102.39 8.07 10.6 12.88 10.02

Net Profit Margin (%) -41.08 8.35 -1.03 -12.36 19.92 Net Profit Margin (%) -79.29 9.21 7.34 8.31 7.56

Return on Networth / Equity (%) -8.15 5.26 -0.7 -19.31 23.47 Return on Networth / Equity (%) -11.72 4.26 3.96 3.98 3.77

Return on Capital Employed (%) -2.28 7.26 8.69 6.31 10.21 Return on Capital Employed (%) -10.67 5.19 8.68 5.91 5.79

Return on Assets (%) -2.98 2.1 -0.28 -2.71 3.94 Return on Assets (%) -9.38 3.18 2.94 2.96 2.77

Total Debt/Equity (X) 1.16 0.97 0.94 4.47 3.86 Total Debt/Equity (X) 0.08 0.13 0.15 0.14 0.1

Asset Turnover Ratio (%) 7.26 25.14 27.58 21.94 19.79 Asset Turnover Ratio (%) 11.83 34.5 40.06 35.68 36.66

PROFIT MARGIN RATIOS

CHALET HOTELS ( IN CHALET HOTELS Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
CR) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Dividend Payout Ratio (NP)

Basic EPS (Rs.) -5.7 3.98 -0.58 -5.9 8.87 (%) 0 0 0 0 0
Diluted EPS (Rs.) -5.7 3.98 -0.58 -5.9 8.87 Dividend Payout Ratio (CP)
Cash EPS (Rs.) -0.45 9.41 5.13 0.63 17.67 (%) 0 0 0 0 0

THE OBEROI GROUP

(IN CR) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 THE OBEROI GROUP

Basic EPS (Rs.) -5.72 2.18 1.98 1.96 1.69 Dividend Payout Ratio (NP)
(%) 0 0 45.38 45.81 0
Diluted EPS (Rs.) -5.72 2.18 1.98 1.96 1.69
Dividend Payout Ratio (CP)
Cash EPS (Rs.) -3.57 4.53 4.14 3.87 3.62 (%) 0 0 21.76 23.25 0

PE RATIO MARCH 2021

CHALET HOTELS -39.76

THE OBEROI GROUP -29.55

 COMPANY’S
CHALET HOTELS Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Total Debt/Equity (X)

Interest Coverage Ratios (%)
1.16
-0.58
0.97
1.72
0.94
0.95
4.47
0.89
3.86
1.29
RISK AND
Interest Coverage Ratios (Post Tax) (%) -0.58 1.72 0.95 0.89 1.29
FUTURE
THE OBEROI GROUP Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
NEEDS
Total Debt/Equity (X) 0.08 0.13 0.15 0.14 0.1
Interest Coverage Ratios (%) -8.02 4 6.78 12.44 12.47

Interest Coverage Ratios (Post Tax) (%) -8.02 4 6.78 12.44 12.47
RISKS & NEEDS

Chalet hotels & The Oberoi Group

• Ownership strength is slightly missing the benchmark
• The stock’s market price justifies its intrinsic value
• The company seems highly inefficient in case of asset management
• The company might not be able to sustain any adverse condition
 CONCLUSION

CHALET HOTELS THE OBEROI GROUP

• The company has a strong degree of Operating leverage, • The company has significantly decreased its debt by 136.71 Cr.
Average Operating leverage stands at 7.36.
• Company is virtually debt free.
• The company has shown a poor profit growth of -5.57% for
• The company has an efficient Cash Conversion Cycle of 66.18
the Past 3 years.
days.
• The company has shown a poor revenue growth of -29.03%
• The company has shown a poor profit growth of -245.12% for
for the Past 3 years.
the Past 3 years.
• Company has a poor ROE of -1.14% over the past 3 years.
• The company has shown a poor revenue growth of -31.56% for
• Company has a poor ROCE of 4.22% over the past 3 years the Past 3 years.

• Company has low Interest coverage ratio of -0.56. • Company has a poor ROE of -1.14% over the past 3 years.

• Company has a poor ROCE of -0.39% over the past 3 years

• Company has negative cash flow from operations of -123.31.