Kamat Hotels -
Q3 concall highlights -
Revenues - 86 vs 84 cr
EBITDA - 26 vs 33 cr ( due higher lease and employee cost due hiring for Jamnagar, Sambhajinagar, Noida and Ayodhya properties )
PAT - 42 vs 28 cr ( due exceptional gain of 35 cr )
Entered into a JV to develop a 5 star property at Puri ( near the Jagannath temple ). The partner investor will infuse equity so that Kamat Hotels doesn’t have to take on any debt for the said development. Hotels at Ayodhya and Noida to go live in Q4
Opened Orchid - Jamnagar and IRA hotel in Sambhajinagar in Q3
Company’s debt is down from 298 to 172 cr QoQ
Company is guiding for flattish topline for FY 24. Expecting the growth kick to come in from FY 25 onwards as the a/m new hotels scale up. Plus, the company is also gonna open a few more Hotels in the near future @ Chandigarh, Bhavnagar, Dehradun ( all three by the brand name - Orchid )
Company is still confident of achieving an EBITDA of 100 cr for FY 24
Finance costs to fall from 13 cr / Qtr to around 6-7 cr / Qtr from Q4 onwards
Ayodhya is seeing a tourist influx of aprox 5 lakh / day against an expectation of 1 lakh / day. Whatever capacity is being put up in Ayodhya, is likely to get consumed ASAP. Company is targeting 2 more hotels in Ayodhya in medium term - both likely to be on leased model
WRT further / future expansions - company is extremely careful before selecting the locations that they intend to expand into. A lot of thought has gone into expanding to Dehradun, Jamnagar, Chandigarh, Ayodhya, Noida etc. Company could have expanded at a much higher rate. But they r being extremely selective wrt locations and leverage ( ie avoiding it and only getting into lease / management models )
For FY 25, company is targeting a topline of Rs 400 cr and an EBITDA of Rs 150 cr !!!
Kamat family has a long history of operating several Restaurants ( not under the Kamat hotels - entity ). They do place a lot of attention to their in-hotel restaurants and consider them as integral to the overall success of their Hotels business
Intend to be net debt free by Mar 25 as the current and future cash flows are expected to be strong !!!
Disc: holding, intend to add more, biased, not SEBI registered
Looks like a tree hit to me
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