Brigade Hotel Ventures (BRIGHOTEL) Q4 20/21 earnings summary

Executive summary

• FY21 operations were severely affected by COVID-19: revenue fell to ₹6,428 lakh from ₹22,856 lakh, and net loss widened to ₹12,681 lakh from ₹3,244 lakh.

• 1,474 hotel keys were operational at year-end, including 129 added during FY21; average occupancy was 23.4%.

• Management expected recovery as travel restrictions eased, but said FY22 impact remained difficult to assess.

Financial highlights

• Revenue from operations was ₹6,291 lakh versus ₹22,752 lakh; other income was ₹137 lakh versus ₹104 lakh, taking total income to ₹6,428 lakh versus ₹22,856 lakh.

• Total expenses were ₹18,670 lakh versus ₹26,902 lakh; loss before exceptional items and tax was ₹12,242 lakh versus ₹4,046 lakh.

• Exceptional charges totaled ₹3,500 lakh: ₹500 lakh impairment of property, plant and equipment and ₹3,000 lakh investment impairment; FY20 exceptional charges were ₹600 lakh.

• Loss before tax was ₹15,742 lakh; a ₹3,061 lakh deferred tax credit brought net loss to ₹12,681 lakh, versus ₹3,244 lakh in FY20.

• Cash from operations was negative ₹1,165 lakh versus positive ₹5,262 lakh; cash and cash equivalents ended FY21 at ₹1,165 lakh.

Outlook and guidance

• Management viewed the pandemic impact as temporary and expected operations to revive when international travel restrictions eased.

• FY22 business impact remained difficult to ascertain amid the evolving pandemic; management cited positive results from digital customer outreach.

• Management did not foresee an adverse impact on meeting liabilities as due, while noting actual COVID-19 effects could differ from estimates.