Hotel Leelaventure declines after Q4 net loss

The result was announced after market hours on Monday, 20 May 2013.

Meanwhile, the BSE Sensex was flat at 20,224.22.

On BSE, 28,000 shares were traded in the counter as against an average daily volume of 37,591 shares in the past one quarter.

The stock hit a high of Rs 21.65 and a low of Rs 20.80 so far during the day. The stock had hit a 52-week high of Rs 35.30 on 3 October 2012. The stock had hit a 52-week low of Rs 20 on 26 March 2013.

The stock had underperformed the market over the past one month till 20 May 2013, rising 1.17% compared with the Sensex's 6.35% rise. The scrip had also underperformed the market in past one quarter, falling 16.86% as against Sensex's 2.96% rise.

The small-cap company has an equity capital of Rs 83.73 crore. Face value per share is Rs 2.

Hotel Leelaventure's total income from operations (net) rose 44.01% to Rs 200.63 crore in Q4 March 2013 over Q4 March 2012.

The company reported net loss of Rs 433.46 crore in the year ended 31 March 2013 (FY 2013), as against net profit of Rs 18.63 crore in the year ended 31 March 2012. Total income from operations (net) rose 14.34% to Rs 653.86 crore in FY 2013 over FY 2012.

On consolidated basis, Hotel Leelaventure reported net loss of Rs 433.49 crore in FY 2013, as against net profit of Rs 18.62 crore in FY 2012. Total income from operations (net) rose 14.34% to Rs 653.86 crore in FY 2013 over FY 2012. The operational profit before interest and depreciation has substantially increased to Rs 112.66 crore in FY 2013, from Rs 18.57 crore in FY 2012, a six fold surge year-on-year (YoY). The increase in the revenue and operating profit has come mainly from the The Leela Palace, Delhi which is steadily improving performance and from The Leela, Goa, the company said in a statement.

The Leela Palace, Chennai with 326 rooms commenced its operations in January 2013 and is expected to contribute significantly to the company's revenue and operational profit in FY 2014, Hotel Leelaventure said in a statement.

The company has a total debt of Rs 4602 crore as on 31 March 2013 mainly on account of capital expenditure incurred to set up the Udaipur, Delhi and Chennai hotels, apart from acquiring plots at Agra, Pune and Bangalore, next to The Leela Palace, Hotel Leelaventure said in a statement.

Hotel Leelaventure said it has met its debt service obligations to the lenders during the year, in line with the approved corporate debt restructuring (CDR) package and is making all efforts to meet the debt service obligations in the current year also by monetization of the non-core assets and stake sale in one or two of its Hotel properties, retaining the operational management. Consequently, the interest burden would be substantially lower from FY 2014-15 onwards, the company said. Hotel Leelaventure said it has signed a Management Contract for managing hotel at Bhartiya City in Bangalore and a memorandum of understanding (MoU) for managing a hotel in Noida being developed by Supertech Group. The company said that it is in discussions with several other developers for managing their hotels in various locations in India and overseas. Hotel Leelaventure said it continues to follow this asset light strategy for future growth.

Hotel Leelaventure owns and manages The Leela Palaces, Hotels and Resorts. The ultra-luxury hotel group owns and manages eight award-winning properties in prime urban locations and magical holiday destinations across India including Mumbai, New Delhi, Gurgaon, Bangalore, Chennai, Goa, Udaipur and Kovalam. New properties under development include Jaipur, Bangalore, Noida, Agra and Lake Ashtamudi, Kerala. The Leela Palaces, Hotels and Resorts is committed to providing warm, gracious and anticipatory service in settings that capture the essence of India. The group has marketing alliances with Germany-based Kempinski hotels, US-based Preferred Hotels & Resorts and is a member of the Global Hotel Alliance based in Geneva, Switzerland.

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