Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q4 FY21 Earnings Presentation
57 slides from Lemon Tree Hotels's earnings presentation, Jun 15, 2021
Slide 1: Outcome of the Board Meeting cover letter
emontree HOTE June 15, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Mumbai - 400001 Bandra (E), Mumbai - 400051 NSE Scrip Symbol: LEMONTREE BSE Scrip Code: 541233 Re: Outcome of the Board Meeting W
Slide 2: Independent Auditor's Report on Consolidated Results
‘é Chartered Accountants D el oitt e 7th Floor, Building 10, Tower B, DLF Cyber City Complex, . DLF City Phase - 11, Haskins & Sells LLP names Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUA
Slide 3: Auditor's Report: Basis for Opinion
Deloitte Haskins & Sells LLP required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. Basis for Opinion on the Au
Slide 4: Auditor's Report: Management Responsibilities
Deloitte Haskins & Sells LLP In preparing the Consolidated Financial Results, the respective Board of Directors of the companies included in the Group and of its associates are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable,
Slide 5: Auditor's Report continued
Deloitte Haskins & Sells LLP Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent applicable. e Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Information of the entities within t
Slide 6: Auditor's Report: Other Matters
Deloitte Haskins & Sells LLP published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our report is not modified in respect of this matter. ¢ We did not audit the financial statements of Krizm Hotel Private Limited Employee Welf
Slide 7: Annexure to Auditor's Report
Annexure — 1 TO INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS (Referred to in paragraph a (i) under the Opinion and Conclusion section of Independent Auditor’s Report on Audit of Annual Consolidated Financial Results and Revi
Slide 8: Statement of Consolidated Financial Results
Us Lemon Tree Hotels Limited Regd Office: Astet No. 6, Aerocity Hospitality District, New Delhi-110037 Tels O11 46050102; Fax.: O11 16050110; E Maihcecedeptt Glemontrechotch.com-Website: nw kemoatreehorels.comt ‘CEN: L74399DL1992PL.C049022 Statement of Con:olidated Financial Remlts for the Quarter a
Slide 9: Notes to consolidated results
Notes: 1. The Audit Comauttee has reviewed the above results and the Board of Directors has approved the above consolidated Gnancial results at their respective meetings held on June 14,2071 and June 15, 2021. Fagures for the quarter ended March 31, 2021 and March 31, 2020 are balancing figures betw
Slide 10: Statement of Consolidated Assets and Liabilities
7. Statement of Consolidated Assets and Liabilities (fu Lakhs) Particulars As at Asat ‘March 31, 2021 | March 31, 2020 (Audited) (Audited) Assets Non-current assets (@) Property, plant and equipmeat 257,079.91 265,180.14 (©) Capital work-in-progress 24,178.34 18,056 64 (© Investment Propenty 232.54
Slide 11: Equity and Liabilities
(lu Lakhs) Particulars Asat Asat ‘March 31, 2021 | March 31,2020 (Bs in takns) (Audited) {Audited) Equity And Liabilities Equity (a) Share capital 79,042.14 79,031 44 (©) Other Equity 12,715.70 3,207.73 Add: Adjustment in respect of change in ownership iterest of subsidiary (refer note 11) @ 16,589.
Slide 12: Statement of Consolidated Cash flow
8. Statement of Consolidated Cash flow (€ In Lokhs) Particulars Fortheyear | For the year ended March 31, | ended March 31, 2021 2020 (Audited) (Audited) ‘A. Cash flow from operating activinies Loss before tax 1874.49) 217.68)| ‘Non-cash adjustments to reconcile profit/(loss) before tax to net cash
Slide 13: Notes on Code on Wages and segments
9. The Code on Wages, 2019 and Code oa social security, 2020 (“ihe codes”) relating to employee and. Ddecefits that ial atcent have not boca, neh Rortbes the related rales for quantifying che Haauctat impart have not been notified. The Group wall assess the impact of the codes when the rules are nnt
Slide 14: Independent Auditor's Report on Standalone Results
Chartered Accountants H 7th Floor, Building 10, Tower B, e Ol e@ DLF Cyber City Complex, DLF City Phase - IL, Haskins & Sells LLP Taryn, nd Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RES
Slide 15: Basis for Opinion on Standalone Results
Deloitte Haskins & Sells LLP Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2021 We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under
Slide 16: Auditor's Responsibilities (Standalone)
Deloitte Haskins & Sells LLP Auditor’s Responsibilities (a) Audit of the Standalone Financial Results for the year ended March 31, 2021 Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended March 31, 2021 as a whole is free from material
Slide 17: Auditor's Report continued
Deloitte Haskins & Sells LLP Standalone Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities or business activities included in the Annual Standalone Financial Results of which we are the independent auditors. For
Slide 18: Auditor's Report: Other Matters (Standalone)
Deloitte Haskins & Sells LLP respectively and total comprehensive income/(loss) of Rs. 0.01 lacs and Rs. (0.08) lacs for the quarter and year ended March 31, 2021, respectively, and net cash outflows of Rs. 20.45 lacs for the year ended March 31, 2021 as considered in the Statement. The financial st
Slide 19: Annexure to Standalone Auditor's Report
Deloitte Haskins & Sells LLP Annexure — 1 TO INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS (Referred to in paragraph a (i) under the Opinion and Conclusion section of Independent Auditor’s Report on Audit of Annual Standalone F
Slide 20: Statement of Standalone Financial Results
— ‘Lemon Tree Hotels Limited Regd Office: Accet No. 6, Aerociey Hocpitality District, New Delli-110037 ‘Tel: 01146050103; Fax: 01116055110; com: Website: warm. CEN: 174999DL1992PL.C049012 ‘Statement of Standalone Financial Rests for the Quarter and Year ended March 31, 2021 (In Lakhs, exeeptper shar
Slide 21: Notes to standalone results
U Notes: 1. The Audit Comanitee las reviewed the above results and the Board of Director: has appmced the shorn ctandatone Sinancial recults ot their rexpective meetingsheld on June 14, 2021 and June 15, 2021. Figures for the quarter ended March 31, 2021 and March 31, 2020 are balancing figure: betm
Slide 22: Statement of Standalone Assets and Liabilities
8. Statement of Standalone Assets and Liabilties (€ In Lakhs) AsatMareh | As at March Particulars 31,2021 | 32,2020 (Audited) | (Audited) Assets ‘Non-current assets (@) Property. plant and equipment 40,390.69} 42,190.28 (©) Capital work-in-progress 154759] 1,449.78 (9 Tuvcoucas Piopaty 23254 23693 ©
Slide 23: Standalone Equity and Liabilities
(2 In Lakhs) Asat March | As at March Particulars 31,2021 ‘31, 2020 {Audited (Audited) 79,042.14 21,281.80 Total Equiry 100,323.94 Liabilities Non-current liabilities (@) Financial liabilities (Borrowings 32,331.48] 28,151.53 (@ Lease liability 16,691.50] 1657494 () Provisions 154.44 135.43, A9.N774
Slide 24: Statement of Standalone Cash flow
\ 9. Statement of Staudatone Cash flow (¥ In Lakhs) For the year | For the year yearended | year ended Particulars March 31, | March 31, 2021 2020 (Audited) {| (Audited) Cash flow from operating activities Coss)/Profit before tax (538674)| 4,064.76 ‘Nox-cash adjustments to reconcile profit before ta
Slide 25: Standalone cash flow continued
iW (dn Lakhs) For the year | For the year yearended | year ended Particulars March 31, | March 31, 2021 2020 (Sudited) | (Audited) ‘Net increase im cash and cash equivalents (A+B + C) 2,453.29 14723 Cash and cash equivalents at the beginning of the year 1,187.83 1,040.60 ‘Cash and cash equivalents a
Slide 26: Lemon Tree Hotels Limited Q4 FY21
Lemon Tree Hotels Limited Q4 FY21 Earnings Presentation 15th June, 2021
Slide 27: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 28: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 12M FY21 Operating Performance Trends 4 Q4 FY21 Financial Highlights & Results 5 12M FY21 Financial Results 6 Pipeline 7 Annexures 3
Slide 29: Lemon Tree – Snapshot as on 15th June 2021
Lemon Tree – Snapshot as on 15th June 2021 Current (17% of Branded By CY23 (20% of Branded Pipeline Mid Market Hotels in India*) Mid Market Hotels in India*) 8,309 2,109 10,418 rooms; rooms; rooms; 84 hotels 21 hotels 105 hotels Brand Current Pipeline By FY23 Aurika 139 Rooms; 1 Hotel 669 Rooms; 1 H
Slide 30: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q4 FY20 Q4 FY21 YoY Var (%) Cities 48 52 8% Hotels 80 84 5% Rooms 8,006 8,309 4% Loyalty 1.16 mn 1.30 mn* Members 12% Notes: *Loyalty Members for Q4-FY21 is as of 31st January 2021 5
Slide 31: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q4 FY21, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “The quarter gone by, started on a steady note for us, with a sustained recovery in markets and sequential improvement in consumptio
Slide 32: FY21 Operating Performance Trends: Operational Inventory
FY21 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 6,000 93.7% 94.8% 100.0% 92.1% 92.3% 91.8% 89.6% 89.3% 85.5% 86.9% 83.9% 90.0% 5,000 71.5% 80.0% % Operational Invetory Operational Invetory 70.0% 4,000 57.5% 60.0% 3,000 50.0% 40.0% 2,000 30.0% 20.0% 1,000 2,987
Slide 33: FY21 Operating Performance Trends: Occupancy-ADR
FY21 Operating Performance Trends Occupancy-ADR Trend 70.0% Rising Occupancy Levels 3,600 3,400 60.0% 3,200 50.0% 3,000 2,854 Gross ADR (Rs) Occupancy (%) 2,796 40.0% 2,800 2,638 2,664 2,595 2,564 2582 2,539 30.0% 2,472 2490 2,600 2,396 2422 2,400 20.0% 2,200 10.0% 22.2% 38.6% 41.7% 34.6% 33.1% 38.1
Slide 34: FY21 Operating Performance Trends: Revenue vs OPEX
FY21 Operating Performance Trends Revenue vs OPEX Trend 35.00 Constantly Improving Operating Efficiency 32.41 31.03 29.58 28.74 30.00 25.00 21.61 20.00 17.41 Rs Cr 15.80 15.91 15.76 16.17 14.02 19.06 15.00 17.65 17.71 10.94 16.23 13.86 10.00 12.55 11.31 11.19 11.73 10.76 10.43 10.37 5.00 - April May
Slide 35: Q4 FY21 Performance Highlights – Operational Metrics
Q4 FY21 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms -1.2% -44.9% 3.8% 8,309 4,530 8,006 YoY QoQ 0% 10.8% 5,192 5,192 2,814 3,117 2,498 2,528 2,498 End of Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q4 FY21 Q4
Slide 36: Q4 FY21 Performance Highlights – Financial Metrics
Q4 FY21 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) -46% 39% -53% 36% 176.1 YoY 64.4 QoQ YoY QoQ 95.1 95.1 30.4 30.4 68.4 22.3 Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q4 FY21 Q3 FY21 Q4 FY21 EBITDA Margin (%) Cash profit (Rs. Cr) -509 bp
Slide 37: Consolidated Profit & Loss Statement – Q4 FY21
Consolidated Profit & Loss Statement – Q4 FY21 Rs. Cr Q4 FY20 Q3 FY21 Q4 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 176.1 68.4 95.1 39.1% -46.0% Other income 0.4 2.2 1.9 -15.4% 356.8% Total expenses 112.2 48.3 66.6 37.8% -40.7% EBITDA 64.4 22.3 30.4 36.3% -52.7% EBITDA margin (%) 36.
Slide 38: Consolidated Expenses – FY20 vs FY21
Consolidated Expenses – FY20 vs FY21 Cost Rationalization Q4 YoY -33% -47% YoY 50.0 42.9 YoY -30% 40.2 40.0 -53% YoY YoY 26.8 30.0 Rs. Cr 22.6 Q4 FY20 20.0 14.6 14.5 Q4 FY21 10.2 10.0 6.9 - Employee Benefit Expense Cost of F&B Consumed Power & Fuel Expenses Other Expenses Cost Rationalization 12M Yo
Slide 39: Consolidated Profit & Loss Statement Breakup – Q4 FY21
Consolidated Profit & Loss Statement Breakup – Q4 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ADR 4,856 2,745 -43% 2,751 1,209 -56% 4,530 2,498 -45% O
Slide 40: Operational Performance by Brands & Region
Operational Performance by Brands & Region – Q4 FY20 vs. Q4 FY21 (On Full inventory basis) Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR/room (Rs. Lacs) Hotel level EBITDAR Margin Change Change Change By Brand (#Rooms) Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Chan
Slide 41: Discussion on Consolidated Financial & Operational Performance
Discussion on Consolidated Financial & Operational Performance – Q4 FY21 Revenue from operations stood at Rs. 95.1 Cr in Q4 FY21, down 46.0% as compared to Rs. 176.1 Cr in Q4 FY20. On a sequential basis, revenue from operations increased 39.1% from Rs 68.4 Cr in Q3 FY21 ADR decreased by 44.9% fr
Slide 42: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY20 FY21 YoY Change (%) Revenue from operations 669.4 251.7 -62% Other income 5.8 13.3 129% Total Income 675.2 265.0 -61% Total expenses 426.0 190.5 -55% EBITDA 249.2 74.5 -70% EBITDA w/o Other Income 243.4 61.3 -75% EBITDA margin (%) 36.9% 28.1% (
Slide 43: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY20 FY21 YoY Change (%) Shareholder's Funds 988.9 917.6 -7% Non-controlling interests 555.9 617.4 11% Total Shareholder’s equity 1,544.8 1,535.0 -1% Total Debt 1,577.5 1,685.0 6.8% Other Non-current liabilities 464.3 470.0 1% Other Current liabiliti
Slide 44: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Under-development hotels Type Rooms Expected Opening date Ownership (%) Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Aurika, Intl. Airport, Mumbai# Owned 669 CY23 58.91% Total 738 Total estimated project cost2 is Rs. 10,060 Million Total capi
Slide 45: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 15th June, 2021) Management Contracts Pipeline Rooms Expected Opening date Lemon Tree Premier, Coorg 63 Sept-21 Keys Prima, Dehradun 40 Aug-21 Red Fox Hotel, Neelkanth 80 July-21 Lemon Tree Hotel Kalina/BKC, Mumbai 70 Oct-21 Lemon Tree Hotel,
Slide 46: Annexures
leone ANNEXURES
Slide 47: Portfolio Breakup as on 15th June 2021 - Operational
Portfolio Breakup as on 15th June 2021 - Operational Owned (incl. on leased Operational Portfolio Leased Managed/ Franchised Total land) 15.06.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 139 0 0 0 0 1 139 Lemon Tree Premier 7 1442 2 161 9 911 18 2514 Lemon Tree Hotels 13 1241 4
Slide 48: Portfolio Breakup as on 15th June 2021 - Pipeline
Portfolio Breakup as on 15th June 2021 - Pipeline Owned (incl. on leased Pipeline Portfolio Leased Managed/ Franchised Total land) 15.06.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika # 1 669 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 2 113 2 113 Lemon Tree Hotels 1 69 0 0 15 1138 16
Slide 49: Strategically positioned in key geographies with share of branded hotel sector
Strategically positioned in key geographies with Lemon Tree share of total branded hotel sector Jaipur: FY20 – 5.2% Kolkata: FY20 – 3.8% FY24E – 3.5% FY24E – 2.6% Ahmedabad:FY20 – 5.4% Hyderabad: FY20 – 9.5% FY24E – 3.3% FY24E – 7.5% Mumbai: FY20 – 3.2% Chennai: FY20 – 1.9% FY24E – 6.4% FY24E – 1.9%
Slide 50: Operating performance
Operating performance Rooms are being added Occupancy Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 FY21 8,309 8,006 17% CAGR 5,411 3 1 17 4,870 2 8 14 3,698 3,249 1 8 41 675 978 1 5 93 461 843 481 573 283 317 71% 72% 74% 53% 37% 36% 4 ,5 17 78% 77% 73% 74% 75% 75% 78% 77% 74% 79% 77%
Slide 51: Operating margins
Operating margins Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 6,694 29.7% 31.9% 27.9% 29.3% 28.1% 5,495 4,843 3,680 4,121 2,517 1,033 1,247 1,440 1,787 2,492 745 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Cash profit Debt to Equity Ratio 1.02 1.
Slide 52: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY19 FY20 FY21 Revenue from operations 549.5 669.4 251.7 Other income 9.9 5.8 13.3 Total Income 559.4 675.2 265.0 Total expenses 380.7 426.0 190.5 EBITDA 178.7 249.2 74.5 EBITDA w/o Other Income 168.8 243.4 61.3 EBITDA margin (%) 31.9% 36.9% 28.1% F
Slide 53: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY19 FY20 FY21 Shareholder's Funds 875.0 988.9 917.6 Non-controlling interests 432.2 555.9 617.4 Total Shareholder’s equity 1,307.2 1,544.8 1,535.0 Total Debt 1,204.2 1,577.5 1,685.0 Other Non-current liabilities 38.0 464.3 470.0 Other Current liabil
Slide 54: Operational Performance by Ageing – FY21 vs. FY20
Operational Performance by Ageing – FY21 vs. FY20 Adult Hotels Toddler Hotels Infant Hotels Under-development Parameters Financial year (Stable - older than 3 (Stabilizing - between 1- (New - less than 1 year hotels years) 3 years old) old) FY20 24 6 11 Hotels 1 2 FY21 28 13 0 Operating Rooms FY20 2
Slide 55: The hotel business cycle
The hotel business cycle Occupancy 70% Illustrative: 15 Room Hotel with 65% Investment = 300 60% Cycle Top (2) Middle (3) Bottom (2) Occupancy 70% or m ore 63-68% 60% or le ss Rooms Sold 12 10 8 A verage Daily Rate 13 10 7 Revenue 156 100 56 3:2:1 Expenses 60 50 40 EBITDA 96 50 16 Hotel RoCE 32% 17%
Slide 56: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q4 and FY21 Earnings Conference Call Time • 4:00 PM IST on Wednesday, June 16, 2021 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221(Available all over India) • Hong K
Slide 57: About Us
About Us Lemon Tree Hotels (LTH) is the largest mid-priced hotel sector chain, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. LTH operates in the mid-market sector, consisting of the upscale, upper