Kamat Hotels (India) reports 23.8% EBITDA decline and 5.6 pp EBITDA Margin decline from 26.7% to 21.1%

30-05-2015 • About Kamat Hotels (India) ($KAMATHOTEL) • By InTwits

Kamat Hotels (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: Kamat Hotels (India) is a company in decline: FY2015 revenue growth was -3.6%, 5 years revenue CAGR was -3.1%.

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Kamat Hotels (India) ($KAMATHOTEL) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	1,203	1,477	1,685	1,603	1,545	-3.6%
EBITDA	384	438	372	427	326	-23.8%
Net Income	-134	-296	-624	-423	-652
Balance Sheet
Cash	68	57	99	91		-100.0%
Short Term Debt	1,331	1,144	2,431	4,121		-100.0%
Long Term Debt	4,486	4,868	4,297	2,436		-100.0%
Cash flow
Capex	614	594	478	41		-100.0%
Ratios
Revenue growth	-33.4%	22.8%	14.1%	-4.9%	-3.6%
EBITDA growth	26.3%	14.1%	-15.2%	14.9%	-23.8%
EBITDA Margin	31.9%	29.7%	22.1%	26.7%	21.1%	-5.6%
Net Income Margin	-11.2%	-20.0%	-37.0%	-26.4%	-42.2%	-15.9%
CAPEX, % of revenue	51.0%	40.2%	28.4%	2.6%		-2.6%
ROIC		3.2%	1.6%	2.3%		-2.3%
ROE		-15.7%	-33.5%	-28.7%		28.7%
Net Debt/EBITDA	15.0x	13.6x	17.8x	15.1x	0.0x	-15.1x

Revenue and profitability

The company's Revenue decreased on 3.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.2 pp from 7.4% to 12.7% in FY2015.

Net Income marign dropped on 15.9 pp from -26.4% to -42.2% in FY2015.

Appendix 1: Peers in Hotels

Below we provide Kamat Hotels (India) benchmarking against other companies in Hotels industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Asian Hotels (West) ($AHLWEST)		0.8%	-0.2%	3.1%	96.5%
Sterling Holiday Resorts (India) ($STERLINH)		69.9%	50.6%	21.3%	26.2%
Royale Manor Hotels & Industries ($RAYALEMA)		0.9%	2.2%	5.5%	18.9%
The Byke Hospitality ($THEBYKE)		47.6%	105.7%	54.3%	16.5%
Eih ($EIHOTEL)		12.4%	4.4%	5.3%	7.9%
Median (12 companies)	-22.5%	14.9%	8.6%	5.9%	6.0%
Kamat Hotels (India) ($KAMATHOTEL)		22.8%	14.1%	-4.9%	-3.6%

Top companies by EBITDA margin, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Jindal Hotels ($JINDHOT)					37.6%
Benares Hotels ($BENARAS)					33.6%
Advani Hotels & Resorts (India) ($ADVANIHOTR)					25.9%
Asian Hotels (East) ($AHLEAST)	30.8%	31.5%	23.7%	21.8%	23.5%
Eih ($EIHOTEL)	21.6%	23.1%	20.2%	21.7%	22.7%
Median (16 companies)	25.3%	21.7%	22.9%	20.0%	18.9%
Kamat Hotels (India) ($KAMATHOTEL)	31.9%	29.7%	22.1%	26.7%	21.1%

Top companies by CAPEX/Revenue, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Country Club (India) ($COUNCLB)	53.8%	58.7%	36.6%	49.6%
Asian Hotels (North) ($ASIANHOTNR)	60.3%	30.8%	60.2%	37.2%	36.1%
Sterling Holiday Resorts (India) ($STERLINH)	12.2%	48.8%	50.4%	18.7%
Mahindra Holidays & Resorts India ($MHRIL)	20.4%	26.0%	26.5%	15.4%	18.0%
Oriental Hotels ($ORIENTHOT)	31.7%	24.3%	17.7%	13.1%	7.5%
Median (12 companies)	20.4%	26.0%	17.6%	11.4%	4.8%
Kamat Hotels (India) ($KAMATHOTEL)	51.0%	40.2%	28.4%	2.6%

Top companies by ROIC, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
The Byke Hospitality ($THEBYKE)	6.0%	5.3%	14.5%	22.6%	24.1%
Advani Hotels & Resorts (India) ($ADVANIHOTR)					15.9%
Eih ($EIHOTEL)	4.5%	5.5%	4.5%	5.8%	6.3%
Mahindra Holidays & Resorts India ($MHRIL)	20.1%	13.4%	22.2%	16.3%	6.3%
Oriental Hotels ($ORIENTHOT)	8.1%	6.4%	4.3%	2.7%	3.8%
Median (23 companies)	7.8%	5.9%	5.0%	4.1%	3.2%
Kamat Hotels (India) ($KAMATHOTEL)		3.2%	1.6%	2.3%

Top companies by Net Debt / EBITDA

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Hotel Leelaventure ($HOTELEELA)	23.9x	62.5x	40.2x	33.5x	46.7x
Asian Hotels (North) ($ASIANHOTNR)	9.1x	28.4x	11.0x	15.4x	24.8x
Asian Hotels (East) ($AHLEAST)	-0.1x	-0.0x	9.8x	8.9x	7.1x
Oriental Hotels ($ORIENTHOT)	3.4x	4.3x	4.6x	6.0x	5.5x
Tgb Banquets And Hotels ($TGBHOTELS)	4.6x	3.7x	3.0x	2.7x	4.0x
Median (15 companies)	1.8x	1.8x	2.0x	0.9x	0.7x
Kamat Hotels (India) ($KAMATHOTEL)	15.0x	13.6x	17.8x	15.1x	0.0x

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