Brigade Hotel Ventures (BRIGHOTEL) Q4 17/18 earnings summary

Executive summary

• FY18 total income ₹16,946.89 lakh; net loss ₹1,178.10 lakh, with ₹1,055.04 lakh of estimated demerger stamp duty recorded as an exceptional item.

• Hotel business transfer from Brigade Enterprises was approved by NCLT; the scheme covered operating hotels, a hotel under construction and hotel-related land bank.

• Around 1,000 hotel keys were operational; management expected the key count to double over the next 2–3 years.

Financial highlights

• Revenue from operations ₹16,646.43 lakh vs ₹8,178.77 lakh; prior period covers Aug. 24, 2016–Mar. 31, 2017.

• Total expenses ₹17,474.58 lakh; loss before exceptional items and tax ₹527.69 lakh, compared with prior-period profit of ₹174.28 lakh.

• Exceptional stamp duty expense ₹1,055.04 lakh; loss before tax ₹1,582.73 lakh and net loss ₹1,178.10 lakh.

• Operating cash flow ₹8,397.23 lakh; investing cash outflow ₹16,019.62 lakh; financing cash inflow ₹8,591.56 lakh.

Outlook and guidance

• Management described hospitality prospects as bright, citing tourist inflows to India and an expectation that operational keys would double from around 1,000 over 2–3 years.

• Management expected the hotel portfolio to perform better than the industry average.