Kamat Hotels – Expects occupancy rate in Q4 FY’09 to be around 60%

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Financial Performance

Total income from operation for the quarter ended December’08 posted a fall of 30% to Rs 29.58 crore. The fall in the sales is due to fall in occupancies and average room rates. OPM (%) crashed by 2340 bps to 28.5% and led operating profit to decline by 62%. Spike in interest cost and depreciation led company to report loss of Rs 0.51 crore at PBT before forex level as against of Rs 15.87 crore. Further forex loss of Rs 2.36 crore and EO income of Rs 1.71 crore on the account of refundable luxury tax paid in FY’05 led company to report net loss of Rs 1.52 crore as against of Rs 10.79 crore in the corresponding pervious period.

Other Highlights

  • Orchid Hotels: Occupancy rate and average room rate (ARR) decreased to 60% and 10200 in the quarter review as against 77% and 11500.
  • VITS Mumbai: Occupancy rate decreased to 63.2% compared to 76% in the corresponding pervious quarter. Average room rate declined to Rs 5200 in the quarter ended December’08 from Rs 7200 in the quarter ended December’07.
  • As reliance increase the power price per unit charge to Rs 10.50 from Rs 7, the heat, Light & power cost increased to Rs 3.18 crore.
  • Spike in interest cost is due to rise in the interest rates by the banks.
  • Debt on the books as on the 31st December’08 is Rs 110 crore excluding FCCB and expects to increase it to Rs 250 crore by the end of FY’10.
  • Cash on the books as on 31st December’08 is Rs 0.88 crore.
  • Company will continue the expansion plans of Orchid Mumbai and green field projects Orchid Nagpur & VITS Bhubaneswar. It expects these hotels to be operational by end of 2009.
  • Generally, the 50% of revenues for the quarter comes from foreign tourist but after the attack this has decreased to 35%.
  • VITS Nagpur Average room rate increased to Rs 2800 from Rs 1400 in the corresponding pervious period.
  • Occupancy rate for the month of December’08 crashed to 40% due to terrorist attack in the Mumbai.
  • Expects occupancy rate in Q4 FY’09 to be around 60%.
  • Capex for FY’10 would be around Rs 140 crore.

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