Delving into Q4 2080/81: Performance Analysis of Leading Hotel Companies with Key Financial Insights

Sun, Aug 25, 2024 6:56 AM on Financial Analysis, Company Analysis, Exclusive,

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The fourth-quarter reports for the fiscal year 2080/81 have been publicly disclosed by six companies from Nepal’s hotels and tourism sector, providing a detailed insight into their financial performance. This analysis aims to meticulously evaluate the financial health of these companies, focusing on their unaudited fourth-quarter results for FY 2080/81.

Net Profit:

Among the hotels, Soaltee Hotel Limited (SHL) reported the highest net profit for the period, amounting to Rs. 60.11 Crores. Taragaon Regency Hotel Limited (TRH) follows closely, with a net profit of Rs. 51.83 Crores. Chandragiri Hills Limited (CGH) secured the third position with a net profit of Rs. 22.34 Crores.

Notably, Chandragiri Hills Limited (CGH) demonstrated the highest growth in net profit at 99.39% for Q4 FY 2080/81.

Paid-up Capital:

Taragaon Regency Hotel Limited (TRH) leads the sector with the highest paid-up capital, amounting to Rs. 196.21 Crores. City Hotels Limited (CITY) holds the second-highest position with a paid-up capital of Rs. 167.40 Crores. In contrast, Kalinchowk Darshan Limited (KDL) reported the lowest paid-up capital at Rs. 59.64 Crores.

Retained Earnings and Reserves:

Oriental Hotel Limited (OHL) leads in retained earnings and reserves with Rs. 274.59 Crores. Soaltee Hotel Limited (SHL) follows with Rs. 143.31 Crores, while Taragaon Regency Hotel Limited (TRH) ranks third with Rs. 91.47 Crores.

On the other hand, Chandragiri Hills Limited (CGH) and City Hotels Limited (CITY) reported negative reserves and surpluses.

Loans and Long-Term Liabilities:

As of Q4 2080/81, the total loans and long-term liabilities of hotels reached Rs. 3.86 Arba, with an average loan size of Rs. 64.46 Crores. City Hotels Limited (CITY) disbursed the highest loan amount at Rs. 325.1 Crores. Chandragiri Hills Limited (CGH) and Oriental Hotel Limited (OHL) are followed by loans of Rs. 201.6 Crores and Rs. 144.30 Crores, respectively.

Net Fixed Assets:

City Hotels Limited (CITY) leads with net fixed assets of Rs. 467.02 Crores. Oriental Hotel Limited (OHL) comes in second with Rs. 425.80 Crores, followed by Chandragiri Hills Limited (CGH), which reported a net fixed assets of Rs. 300.86 Crores.

Investment:

Soaltee Hotel Limited (SHL) recorded the highest investment of Rs. 36.08 Crores, followed by City Hotels Limited (CITY) with Rs. 35.82 Crores. Meanwhile, Oriental Hotel Limited (OHL) reported the lowest investment for this period.

Operating Income:

As of Q4 2080/81, the operating income of hotels reached Rs. 7.13 Arba, with an average operating income of Rs. 1.19 Arba. Soaltee Hotel Limited (SHL) disbursed the highest operating income of Rs. 2.5 Arba. Taragaon Regency Hotel Limited (TRH) and Oriental Hotel Limited (OHL) follow with operating income of Rs. 1.74 Arba and Rs. 1.22 Arba, respectively.

Operating Expenses:

The operating expenses of hotels reached Rs. 4.31 Arba, with an average operating expenses of Rs. 72 Crores. Soaltee Hotel Limited (SHL) disbursed the highest operating expenses of Rs. 1.61 Arba. Taragaon Regency Hotel Limited (TRH) and Oriental Hotel Limited (OHL) follow with operating expenses of Rs. 1 Arba and Rs. 86 Crores, respectively.

Earnings Per Share (EPS):

Taragaon Regency Hotel Limited (TRH) topped the list in terms of earnings per share (EPS), reporting Rs. 26.41 per share. Chandragiri Hills Limited (CGH) followed with an EPS of Rs. 14.56 per share.

*SHL -Par Value is Rs 10

Net Worth Per Share:

Oriental Hotel Limited (OHL) reported the highest net worth per share at Rs. 343.41, followed by Taragaon Regency Hotel Limited (TRH) at Rs. 146.62 and Kalinchowk Darshan Limited (KDL) at Rs. 101.30. The average net worth per share across the 6 companies stands at Rs. 134.45.

*SHL -Par Value is Rs 10

Price-to-Earnings (P/E) Ratio:

The P/E ratio, which indicates the price investors pay for each rupee of earnings, shows Taragaon Regency Hotel Limited (TRH) with the lowest P/E ratio at 30.55 times. In contrast, Kalinchowk Darshan Limited (KDL) reported the highest P/E ratio at 261.88 times. It is essential for investors to examine a company's fundamentals, as a lower valuation might indicate underlying issues. The P/E ratio is calculated based on the quarter-end closing prices, and current prices in the secondary market may differ.