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Lemon Tree Hotels Q3 profit drops 2% to Rs 12.20 cr

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The hotel chain's consolidated net profit dropped 2.2% to Rs 12.20 crore in Q3 December 2019 (Q3 FY20) as against Rs 12.47 crore reported in Q3 December 2018 (Q3 FY19).

Net sales surged 39.3% year-on-year (YoY) to Rs 199.62 crore in Q3 FY20. Profit before tax slipped 9.9% to Rs 15.64 crore YoY. Current tax expenses slumped 64.4% to Rs 1.50 crore during the period under review. The result was announced after market hours yesterday, 13 February 2020.

EBITDA climbed 65.7% to Rs 81 crore during Q3 FY20 as against Q3 FY19. EBITDA margin stood at 40.7% in Q3 FY20 as compared to 34.2% in Q3 FY19.

The average daily rate rose 4% to Rs 4,644 in Q3 FY20 as against Rs 4,465 in Q3 FY19. The occupancy rate fell to 71.3% in Q3 FY20 from 72.8% in Q3 FY19. The revenue per available room (RevPAR) rose 1.9% to Rs 3,311 in Q3 FY20 as compared to Rs 3,249 in Q3 FY19.

Commenting on the Q3 FY20 performance, Patanjali Keswani, the chairman & managing director of Lemon Tree Hotels, has said that, "I am pleased to share that we have delivered strong performance during the quarter despite subdued market sentiments and external challenges in certain micro markets. In Q3 FY20, our revenue from operations grew by 39.3% YoY primarily driven by the addition of 978 rooms over the last one year and acquisition of Keys Hotels."

"On the operational front, our team is doing a remarkable task of seamlessly consolidating operations. As there are significant opportunities to derive multiple synergies from this acquisition, we are confident of delivering strong operational and financial performance from Keys Hotels in the upcoming quarters."

"During the year, we have operationalized 3 large owned Hotels at Mumbai, Udaipur and Kolkata. Going forward, even as we anticipate the industry cycle to positively turn in the near-term, we continue to build on our cost leadership and strengthen our leading position in the mid-priced hotel segment in India. We believe, we are well-poised to capitalize on the upcoming opportunities led by the stabilization of a large inventory commissioned in the down-cycle, successful integration of Keys Hotels, and aggressive ramp-up of our asset-light model through managed hotels," he added.

Lemon Tree Hotels operates a chain of upscale business and leisure hotels. The company is engaged in acquiring land, building, leasing, owning, managing and marketing hotels.

Shares of Lemon Tree Hotels rose 2.38% to Rs 56 on BSE. It traded in the range of Rs 54.50 to Rs 57.50 in the intraday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 14 2020. 15:30 IST
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