Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q4 FY2022 Earnings Presentation
62 slides from Lemon Tree Hotels's earnings presentation, May 27, 2022
Slide 1: Outcome of the Board Meeting letter
May 27, 2022 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 Dear Sir We wish
Slide 2: Independent Auditor's Report on Consolidated Financial Results
Chartered Accountants Deloitte 7th Floor Building 10 Tower B Haskins & Sells LLP DLF Cyber City Complex DLF City Phase II Gurugram-122 002 Haryana, India Tel: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY
Slide 3: Auditor's Report (continued)
Deloitte Haskins & Sells LLP 19. | Iora Hotels Private Limited Subsidiary company 20. | Ophrys Hotels Private Limited Subsidiary company 21. | Bandhav Resorts Private Limited Subsidiary company 22. | Valerian Management Services Private Limited Subsidiary company 23. | Carnation Hotels Private Limit
Slide 4: Auditor's Report: Emphasis of Matter
Deloitte Haskins & Sells LLP terms of their reports referred to in Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter Attention is invited to Note 4 of the Statement of Consolidated Financial Results which sets out the Group’s asse
Slide 5: Auditor's Responsibilities
Deloitte Haskins & Sells LLP Auditor’s Responsibilities (a) Audit of the Consolidated Financial Results for the year ended March 31, 2022 Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results for the year ended March 31, 2022 as a whole are free from mate
Slide 6: Auditor's Report (continued)
Deloitte Haskins & Sells LLP we are the independent auditors. For the other entities included in the Annual Consolidated Financial Results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by th
Slide 7: Auditor's Report: Other Matters
Deloitte Haskins & Sells LLP the Parent included in the Group, whose financial statements reflect total assets of Rs 373.31 lakhs as at March 31, 2022, total revenues of Rs. Nil and Rs 0.06 lacs for the quarter and year ended March 31, 2022 respectively, total net loss after tax of Rs. 0.04 lakhs an
Slide 8: Statement of Consolidated Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Aerocity Hospitality District, New Del 11 0037 Tel.: 011-46050101; Fax.: 011-46050110; E-Mail:sectdeptt@lemontreehotels.com:Websi www.lemontreehotels.com CIN: L74899DL1992PLC049022 Statement of Consolidated Financial Results for the Quarter and Ye
Slide 9: Notes to Consolidated Financial Results
Notes: 1. The Audit Committee has reviewed the above results and the Board of Directors has approved the above consolidated financial results at their respective meetings held on May 26, 2022 and May 27, 2022. Figures for the quarter ended March 31, 2022 and March 31, 2021 are balancing figures betw
Slide 10: Consolidated Assets and Liabilities
8. Statement of Consolidated Assets and Liabilities (@ In Lakhs) Particulars As at As at March 31, 2022 March 31, 2021 (Audited) (Audited) Assets Non-current assets (a) Property, plant and equipment 2,50,957.65 2,57,128.98 (b) Capital work-in-progress 29,455.09 24,178.34 (c) Investment Property 179.
Slide 11: Consolidated Equity and Liabilities
(% In Lakhs) Particulars As at As at March 31, 2022 March 31, 2021 (Audited) (Audited) Equity And Liabilities Equity (a) Share capital 79,081.33 79,042.14 (b) Other Equity 4,043.55 12,715.70 Equity attributable to owners of the parent 83,124.88 91,757.84 (c) Non-controlling interests 56,763.00 61,73
Slide 12: Consolidated Cash Flow Statement
9. Statement of Consolidated Cash flow (@ In Lakhs) Particulars For the year ended For the year ended March 31, 2022 March 31, 2021 (Audited) (Audited) A. Cash flow from operating activities Loss before tax (14,459.23) (21,874.42) Non-cash adjustments to reconcile loss before tax to net cash flows:
Slide 13: Notes to Consolidated Financial Results (continued)
10. Subsequent to the year ended March 31, 2022, the Parent has acquired 25.10% stake (234,580 shares) in Carnation Hotels Private Limited from Mr. Rattan Keswani at an aggregate consideration of Rs. 1,885.01 lakhs on May 4, 2022 and accordingly Carnation Hotels Private Limited has become wholly own
Slide 14: Independent Auditor's Report on Standalone Financial Results
Deloitte A Fh Foor Bung 1 Chartered Accountants Tower B Haskins & Sells LLP mtr Cosa lai Gurugram-122 002 Haryana, India Tel: +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 RESULTS To The Board of
Slide 15: Auditor's Report: Basis for Opinion (Standalone)
Deloitte Haskins & Sells LLP Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2022 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, 2022 Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended March 31, 2022 as a whole is free from material
Slide 17: Auditor's Report (continued)
Deloitte Haskins & Sells LLP the independent auditors. For the other entity included in the Annual Standalone Financial Results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We rema
Slide 18: Auditor's Report: Other Matters (Standalone)
Deloitte Haskins & Sells LLP lakhs for the quarter ended and year ended March 31, 2022 respectively, and net cash inflows of Rs 20.12 lakhs for the year ended March 31, 2022 as considered in the statement. The financial statement of the trust have been audited by the other auditor whose reports have
Slide 19: Statement of Standalone Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Aerocity Hospitality District, New Delhi-110037 Tel.: 011-46050101; Fax.: 011-46050110; E-Mail:sectdeptt@lemontreehotels.com: Website: www.lemontreehotels.com CIN: L74899DL1992PLC049022 Statement of Standalone Financial Results for the Quarter and
Slide 20: Notes to Standalone Financial Results
Notes: 1. The Audit Committee has reviewed the above results and the Board of Directors has approved the above standalone financial results at their respective meetings held on May 26, 2022 and May 27, 2022. Figures for the quarter ended March 31, 2022 and March 31, 2021 are balancing figures betwee
Slide 21: Standalone Assets and Liabilities
7. Statement of Standalone Assets and Liabilties (% In Lakhs) As at March | As at March Particulars 31, 2022 31, 2021 (Audited) (Audited) Assets Non-current assets (a) Property, plant and equipment 39,487.86 40,390.69 (b) Capital work-in-progress 1,766.94 1,547.59 (c) Investment Property 228.15 232.
Slide 22: Standalone Equity and Liabilities
(& In Lakhs) As at March | As at March Particulars 31, 2022 31, 2021 (Audited) (Audited) Equity And Liabilities Equity (a) Share capital 79,081.33 79,042.14 (b) Other Equity 19,725.69 21,281.80 Total Equity 98,807.02 | _1,00,323.94 Liabilities Non-current liabilities (a) Financial liabilities (i) Bo
Slide 23: Statement of Standalone Cash Flow
8. Statement of Standalone Cash flow (& In Lakhs) For the year | For the year year ended | year ended Particulars March 31, March 31, 2022 2021 (Audited) (Audited) Cash flow from operating activities Loss before tax (2,260.76) (5,386.74) Non-cash adjustments to reconcile loss before tax to net cash
Slide 24: Standalone Cash Flow (continued)
(& In Lakhs) For the year | For the year year ended | year ended Particulars March 31, March 31, 2022 2021 (Audited) (Audited) Cash flows used in financing activities Proceeds from issuance of share capital 84.26 23.00 Payment of Lease liabilities (1,341.12) (1,060.08) Proceeds from long term borrow
Slide 25: Lemon Tree Hotels Limited
Lemon Tree Hotels Limited Q4 FY22 Earnings Presentation 27th May, 2022 Aurika, Hotels and Resorts, Udaipur
Slide 26: Disclaimer
Q4 FY22 Earnings Presentation 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
Slide 27: Inclusion in India Small Cap Index
Q4 FY22 Earnings Presentation Lemon Tree Premier, Mumbai Lemon Tree Hotels has been included in the India Small Cap Index effective from 1st June 2022 3
Slide 28: Lemon Tree Snapshot as on 31st March 2022
Q4 FY22 Earnings Presentation Lemon Tree – Snapshot as on 31st March 2022 Current (17% of Branded Pipeline By CY25 Mid Market Hotels in India*) 8,489 2,179 10,668 Group rooms; rooms; rooms; 87 hotels 22 hotels 109 hotels Brand Current Pipeline By FY25 Aurika Hotels & Resorts 194 Rooms; 2 Hotels 801
Slide 29: Sequential focus: Apr'20 – Mar'22
Sequential focus: Apr’20 – Mar’22 Cost optimization ARR Recovery EBITDA Margin expansion 5
Slide 30: EBITDA Margin Expansion driven by permanent cost rationalization
Q4 FY22 Earnings Presentation EBITDA Margin Expansion driven by permanent cost rationalization Revenue (Rs. Cr) & EBITDA Margins Revenue (Rs. Cr) & EBITDA Margins 37% 45% 36% 42% 25 0.0 50 .0% 32% 36% 36% 30% 35% 29% 45 .0% 33% 32% 28% 28% 32% 31% 20 0.0 40 .0% 27% 35 .0% 15 0.0 30 .0% 17% 25 .0% 5%
Slide 31: Gross ARR Recovery
Q4 FY22 Earnings Presentation Gross ARR Recovery 4,644 4,530 4,133 4,093 4,002 3,901 3,028 2,626 2,654 2,654 2,528 2,362 Gross ARR In Q4FY22, Lemon Tree Gross ARR was 90% compared to Q4FY20 Trends for the 5,192 owned/leased rooms 7
Slide 32: FY22 Gross ARR – LTH vs All India
Q4 FY22 Earnings Presentation FY22 Gross ARR – LTH vs All India LTH vs All India 7000 5850 6000 5480 5400 5000 5120 4800 5000 4200 4300 4300 3800 3700 4000 4298 3200 4204 4025 3959 4038 3000 3429 3075 3230 2775 2000 2369 2429 2288 1000 0 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Slide 33: Lemon Tree 'RESET' Resilience in FY22
Lemon Tree ‘RESET’ Resilience in FY22 9
Slide 34: FY22 Month on Month Occupancy-ARR Trend
Q4 FY22 Earnings Presentation FY22 Month on Month Occupancy-ARR Trend Post an expected steep drop in Jan’22 due to reports of new infections, Feb’22 and Mar’22 showed recovery with Mar’22 equivalent ~60% Occupancy 62% 58% 60% 57% 6,0 00 62 .0% 54% 54% 54% 5,5 00 51% 52 .0% 5,0 00 41% 42 .0% 35% 34%
Slide 35: FY22 Revenue and Expense Trend
Q4 FY22 Earnings Presentation FY22 Revenue and Expense Trend Improving Operating Efficiency and Superior Recovery Revenue vs OPEX Trend 55.2 52.0 48.1 38.8 38.9 32.9 34.0 29.7 Rs Cr 26.4 18.6 26.1 26.3 14.2 23.7 21.4 21.3 10.2 19.1 19.5 18.9 17.4 14.3 11.6 9.1 Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Slide 36: Q4 and FY22 Operating Performance
Q4 and FY22 Operating Performance 12
Slide 37: Q4 FY22 Performance Highlights – Operational Metrics
Q4 FY22 Earnings Presentation Q4 FY22 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 54% 5% 2% YoY 4,093 QoQ 4,093 6% 8,309 YoY 8,489 3,901 YoY 5,192 5,192 3,117 3,297 2,654 End of Q4 FY21 Q4 FY22 Q4 FY21 Q4
Slide 38: Q4 FY22 Performance Highlights – Financial Metrics
Q4 FY22 Earnings Presentation Q4 FY22 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) -17% EBITDA (Rs. Cr) QoQ 26% 46% 65.6 -32% YoY 143.7 QoQ YoY 119.5 119.5 95.1 44.5 44.5 30.4 Q4 FY21 Q4 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q4 FY22 Q3 FY22 Q4 FY22 EBITDA Margin
Slide 39: Consolidated Profit & Loss Statement – Q4 FY22
Q4 FY22 Earnings Presentation Consolidated Profit & Loss Statement – Q4 FY22 Rs. Cr Q4 FY22 Q4 FY21 Q3 FY22 QoQ Change (%) YoY Change (%) Revenue from operations 119.5 95.1 143.7 -16.8% 25.7% Other income 7.6 1.9 2.4 223.9% 303.1% Total expenses 82.7 66.6 80.4 2.9% 24.3% EBITDA 44.5 30.4 65.6 -32.2%
Slide 40: Consolidated P&L Breakup – Q4 FY22 vs Q4 FY21
Q4 FY22 Earnings Presentation Consolidated Profit & Loss Statement Breakup – Q4 FY22 vs Q4 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr Q4 FY22 Q4 FY21 YoY Change Q4 FY22 Q4 FY21 YoY Change Q4 FY22 Q4 FY21 YoY Change (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ARR 4,338
Slide 41: Operational Performance by Brands & Region
Q4 FY22 Earnings Presentation Q4 FY22 Operational Performance by Brands & Region (On full inventory basis) Hotel level Average Daily Rate Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) EBITDAR/room (Rs.) Margin (Rs. Lacs) Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 Chan
Slide 42: Consolidated Profit & Loss Statement – FY22 vs FY21
Q4 FY22 Earnings Presentation Consolidated Profit & Loss Statement – FY22 vs FY21 FY22 vs FY21 Rs. Cr FY22 FY21 YoY Change (%) Revenue from operations 402.2 251.7 60% Other income 14.0 13.3 6% Total Income 416.3 265.0 57% Total expenses 268.3 190.5 41% EBITDA 147.9 74.5 99% EBITDA margin (%) 35.5% 2
Slide 43: Consolidated Balance Sheet – FY22 vs FY21
Q4 FY22 Earnings Presentation Consolidated Balance Sheet – FY22 vs FY21 FY22 vs FY21 Rs. Cr FY22 FY21 YoY Change (%) Shareholder's Funds 831.1 917.6 -9% Non-controlling interests 567.7 617.4 -8% Total Shareholder’s equity 1,398.9 1,535.0 -9% Total Debt 1,698.6 1,685.3 0.8% Other Non-current liabilit
Slide 44: Operating performance over 5 years
Q4 FY22 Earnings Presentation Operating performance over 5 years Rooms are being added Occupancy (%) FY18 FY19 FY20 FY21 FY22 8,006 8,309 8,489 Trends for the 5,192 owned/leased rooms 2814 3117 3297 5,411 4,870 1841 675 675 675 1593 481 573 4,517 4,517 4,517 78% 26% 23% 36% 77% 78% 71% 53% 59% 74% 7
Slide 45: Operating Performance over 5 years
Q4 FY22 Earnings Presentation Operating Performance over 5 years Revenue from operations (Rs. Million) EBITDA (Rs. Million) & EBITDA margins 36.9% 35.5% 6,694 31.9% 29.3% 28.1% 5,495 4,843 4,022 2,517 1,440 1,787 2,492 745 1,479 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY22 EBITDA Margin% i
Slide 46: Expansion Plans
Q4 FY22 Earnings Presentation Lemon Tree Premier, Mumbai Expansion Plans 22
Slide 47: Management contracts – Signings/Opening over the years
Q4 FY22 Earnings Presentation Management contracts – Signings/Opening over the years In the last 5 years: 1400 3,052 rooms were signed 2856 rooms were opened 1200 1146 Deal Pipeline For Q4 FY22 1000 927 No. of Rooms 800 679 Term Sheets signed 600 for 8 hotels – 777 507 rooms 378 400 317 305 225 171
Slide 48: Portfolio Breakup as on 31st March 2022 – Pipeline
Q4 FY22 Earnings Presentation Portfolio Breakup as on 31st March 2022 – Pipeline (Owned + Managed) Hotels (Total: 22) Rooms (Total: 2179) 2 2 91 1 801 1207 80 17 Aurika Hotels & Resorts Lemon Tree Premier Aurika Hotels & Resorts Lemon Tree Premier Lemon Tree Hotels Keys by Lemon Tree Hotels Lemon Tr
Slide 49: Expansion Plans – Pipeline of Management Contracts
Q4 FY22 Earnings Presentation Expansion Plans – Pipeline of Management Contracts (as on 31st March 2022) # Management Contracts Pipeline City Rooms Expected Opening date 1 Keys Lite, Tapovan, Rishikesh Rishikesh 39 Apr-22 2 Keys Select by Lemon Tree Hotels, Gandhi Ashram, Ahmedabad Ahmedabad 52 Jul-
Slide 50: Expansion Plans – Hotels under Development
Q4 FY22 Earnings Presentation Expansion Plans – Hotels under Development Expected Under-development hotels Type Rooms Ownership (%) Opening date Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Aurika, Mumbai International Airport Owned 669 CY23 58.91% Total 738 Total estimated project cost
Slide 51: Aurika, Mumbai Airport (MIAL) | Image Representation
Q4 FY22 Earnings Presentation Aurika, Mumbai Airport (MIAL) | Image Representation 27
Slide 52: Lemon Tree Mountain Resort, Shimla | Image Representation
Q4 FY22 Earnings Presentation Lemon Tree Mountain Resort, Shimla | Image Representation 28
Slide 53: Lemon Tree Mountain Resort, Shimla | Image Representation
Q4 FY22 Earnings Presentation Lemon Tree Mountain Resort, Shimla | Image Representation 29
Slide 54: Annexures
Q4 FY22 Earnings Presentation ANNEXURES Aurika, Hotels and Resorts, Udaipur 30
Slide 55: Environment Social Governance (ESG) – Vision FY26
Q4 FY22 Earnings Presentation Environment Social Governance (ESG) – Vision FY26 In the area of Environment, we are focused on becoming more energy At the center of our ESG approach is our commitment to efficient, adopting renewable creating sustained value. This is across all stakeholders - energy,
Slide 56: ESG – Vision FY26 linked to Sustainable Development Goals
Q4 FY22 Earnings Presentation ESG – Vision FY26 linked to Sustainable Development Goals Our ambitions for FY26 are based on the following goals and aspirations: 15% 50% 40% 10% 100% 30% 15% Reduction in Renewable Reduction in Reduction in Certified Green ODIs in the Women across Energy energy (RE) G
Slide 57: Portfolio Breakup as on 31st March 2022 - Operational
Q4 FY22 Earnings Presentation Portfolio Breakup as on 31st March 2022 - Operational Owned (incl. on Operational Portfolio Leased Managed/ Franchised Total leased land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 139 0 0 1 55 2 194 Lemon Tree Premier 7 1442 2 161 9 9
Slide 58: Portfolio Breakup as on 31st March 2022 - Pipeline
Q4 FY22 Earnings Presentation Portfolio Breakup as on 31st March 2022 - Pipeline Owned (incl. on Pipeline Portfolio Leased Managed/ Franchised Total leased land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 669 0 0 1 132 2 801 Lemon Tree Premier 0 0 0 0 1 80 1 80 Lem
Slide 59: Strategically positioned in key geographies
Q4 FY22 Earnings Presentation Strategically positioned in key geographies Map is updated as of 15th May 2022 35
Slide 60: The hotel business cycle
Q4 FY22 Earnings Presentation 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 more 63-68% 60% or less Rooms Sold 12 10 8 Average Daily Rate 13 10 7 Revenue 156 100 56 3:2:1 Expenses 60 50 40 EBITDA
Slide 61: Conference Call Details
Q4 FY22 Earnings Presentation Conference Call Details Lemon Tree Hotels Limited (LTH) Q4 & FY22 Earnings Conference Call Time • 2:00 PM IST on Monday, May 30, 2022 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221(Available
Slide 62: About Lemon Tree Hotels
Q4 FY22 Earnings Presentation About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest mid market hotel chain and the third largest overall, on the basis of controlling interest in owned and leased rooms. We operate across the upper upscale, upscale, upper-midscale, midscale and economy