Chalet Hotels (CHALET) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 delivered record performance with consolidated revenue and EBITDA both up 20% year-over-year, driven by robust hospitality, rental, and residential segments.

• Portfolio occupancy reached 73.6%, with a 10% increase in average room rate and 10.3% RevPAR growth year-over-year.

• Strategic milestones included acquisition of an 11-acre beachfront land parcel in Goa for a new upper-upscale resort and continued progress on ongoing hotel and residential projects.

• Board approved unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2024.

• Appointment of Mr. Shwetank Singh as Executive Director for three years, effective 24 October 2024.

Financial highlights

• Q2 FY25 consolidated revenue was Rs 3,832 Mn (up 20% YoY); consolidated EBITDA at Rs 1,556 Mn (up 20% YoY) with a margin of 40.6%.

• Hospitality segment revenue grew 18% to Rs 3,352 Mn, with segment EBITDA at Rs 1,387 Mn and a margin of 41.4%.

• Rental and annuity revenue was Rs 419 Mn, up 39% YoY, with EBITDA of Rs 323 Mn and margin of 77%.

• Residential segment sold 32 units at an average rate of Rs 21,835 per sq ft, achieving 80% sales of the project.

• Net loss for Q2 FY25 was Rs 1,385.11 Mn, mainly due to a one-time deferred tax asset reversal of Rs 2,021.72 Mn.

Outlook and guidance

• H2 is expected to be robust, supported by domestic and international corporate travel, MICE, weddings, and continued leasing and residential sales momentum.

• ADR and occupancy growth are anticipated to continue, with Q3 and Q4 typically stronger than H1.

• CapEx guidance for the next six quarters is Rs 15 Bn, largely funded by internal accruals.

• Strong macroeconomic backdrop with 7% expected GDP growth in FY25 and continued infrastructure development.

• Board authorized the Finance Committee to negotiate and issue NCDs in tranches as deemed fit.