Chalet Hotels sizzles as Q4 net profit spurts due to tax adjustment

Chalet Hotels advanced 4.08% to Rs 162.5 after consolidated net profit jumped 221.41% to Rs 42.78 crore on 14.23% fall in total income to Rs 237.63 crore in Q4 March 2020 over Q4 March 2019.

The company's profitability received a boost after it wrote back deferred taxes to the tune of Rs 38.83 crore in Q4 March 2020. The result was announced after market hours yesterday.

Consolidated EBITDA fell 29.6% to Rs. 73.5 crore in the March quarter from Rs 104.4 crore reported in the previous year same quarter. Profit before tax stood at Rs 4.88 crore in Q4 FY20, down by 71.7% from Rs 17.25 crore in Q4 FY19.

Chalet Hotels said that the tourism and hospitality industry as a whole has been adversely impacted by the spread of Covid-19. The company faces significant economic uncertainties due to COVID-19 which have impacted the operations of the company adversely starting from the month of March 2020 onwards particularly by way of reduction in occupancy of hotels and average realization rate per room and fall in revenue of other assets. The near-term impact is contingent on various external factors such as lifting of the lock down, travel restrictions and revival of the economy.

Segmentwise, revenue from hospitality segment was Rs 201.1 crore in Q4 FY20 as compared to Rs. 256.7 crore in Q4 FY19, down 21.7% YoY. Revenue from the retail & commercial segment surged to Rs 26.3 crore in the fourth quarter, from Rs 9.1 crore reported in the corresponding period last year.

Chalet Hotels is an owner, developer and asset manager of high-end hotels in key metro cities viz. Mumbai Metropolitan Region, Hyderabad, Bengaluru and Pune.

Powered by Capital Market - Live News