Byke Hospitality’s Bottomline Increases By 38% YoY
Biswajit Yadav / 14 Feb 2014
The company performed well showing a strong topline and bottomline growth in the Q3FY14. Company posted a topline growth of around 49% YoY basis in the Q3FY14. Due to boost in topline, the bottomline of the company has increased by more than 38% YoY to Rs 4.88 crore.
The Byke Hospitality formerly known as Suave Hotels, are into operating hotels and restaurants in Goa and Maharashtra. They also provide services like travels and tourism in India. The company announced its unaudited financial results for the quarter ended December 31, 2013 on February 13, 2014.
The company has performed well showing a strong topline and bottomline growth in the Q3FY14. The company has posted a topline growth of around 49% YoY basis to Rs 49.17 crore in the Q3FY14 compared to the same quarter of the previous year. The topline has grown due to lease contracts and high occupancy ratio in their hotels like Byke-Neelkanth and Byke-Hidden Paradise.
The total expenses which accounts around 84% of the total revenue has increased by more than 48% YoY basis to Rs 41.27 crore in this quarter compared to the same period of the previous year. The total expenses have increased mainly due to increase in depreciation, operation cost and other expenses. The depreciation in this quarter has increased by more than 62% on YoY basis to Rs 1.41 crore compared to the same period of the previous year. The operation cost which constitutes around 82% of the total expenditure has increased by more than 37% YoY to Rs 33.87 crore compared to the same quarter of the previous year. The other expense has also increased by more than 227% YoY to Rs 4.95 crore compared to the same quarter of the previous year.
One noticeable factor is that the profit margin in this quarter of the company has increased. The EBITDA in this quarter has increased by more than 57% YoY basis to Rs 7.91 crore compared to the same quarter of the previous year. The EBITDA has increased mainly due to topline growth and also due to reduction in operational cost as proportionate to increase in sales. The operational expenditure in the Q3FY14 has reduced to 69% of the total income as compared to 74% of the total income in the Q3FY13. The EBITDA margin in this quarter has also increased to 19% YoY as compared to 18% in the Q3FY13.
Due to boost in topline, the bottomline of the company has increased by more than 38% YoY to Rs 4.88 crore for the quarter ended December 31, 2013 as compared to Rs 3.53 crore for the quarter ended December 31, 2012. The PAT margin in this quarter has reduced to 9.92% in the Q3FY14 as compared to 10.70% in the Q3FY13. The PAT margin has reduced mainly due to increase in tax. The tax in this quarter has increased by more than 172% YoY to Rs 2.51 crore compared to the same period of the previous year.
The stock is trading at P/E (TTM) of 37.84x. We have recommended the stock earlier at Rs 257 (July 1, 2013), we have also advised to book partial profit on August 22, 2013. Still we advise our investors to hold the stock as we expect it will perform well as the company has posted a robust topline and bottomline growth in the Q3 result.
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