Putting down some of the things that I came across from management commentary and AR:
- In Q1FY25 concall, management claimed to have 300Cr of Cash on book, which seems questionable
Net Debt Q4FY24 = 1824 Cr
Net Debt Q1FY25 = 1862 Cr (increased by 38Cr)
Cash on books as on Q4FY24 = 262 Cr
Free Cash generated in Q1FY25 = 34 Cr (per concall)
Did company take additional debt of ~72-75Cr in Q1FY25 to achieve 300Cr cash with increased net debt of 1862Cr?
In reality, net-debt increased by 38Cr inspite of generating 34Cr cash. This means cash outflow of 62Cr (capex).
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Inconsistent commentary on Capex numbers for planned renovation+new rooms+ACIC integration.
– In Q4FY24 concall, management claimed that company will spend 65Cr in FY25 for capex that includes all above activities
(1) 40Cr for renovation & new rooms
(2) 25Cr for ACIC integration
– In Q1FY25 concall, management claim to spend 138Cr for capex including same all above activities.
Mismatch (increase) of ~73Cr in near-term capex number commentary between Q4 and Q1. Though total 168Cr (138 + 30 incurred in FY24) capex seems reasonable(?) for: 111 rooms (Kolkata new hotel) + 137 rooms (rebranding Noida) + 54 rooms (new rooms Bangalore) + 22 rooms (new rooms Pune) + ACIC integration -
Some minor not-so-good things with loan given to others and MD.
Credit impairment of 35Cr for loans (to others) which was given in the same year.
Disc: Invested
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