Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q2 FY22 Earnings Presentation
55 slides from Lemon Tree Hotels's earnings presentation, Oct 21, 2021
Slide 1: Outcome of the Board Meeting cover letter
emon ree HOTELS October 21, 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 Meet
Slide 2: Independent Auditor's Review Report (Consolidated)
Chartered Accountants Deloitte 7th Floor, Building 10, Tower B, DLF Cyber City Complex, Haskins & Sells LLP DLE City Phase Gurugram 122 002, - Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE B
Slide 3: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP 10 Lemon Tree Hotel Company Private Limited Wholly owned subsidiary company 1] Red Fox Hotel Company Private Limited Wholly owned subsidiary company 12 Poplar Homestead Holdings Private Limited Wholly owned subsidiary company 13 Madder Stays Private Limited Wholly owned
Slide 4: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP We did not review the interim financial statements of 20 subsidiaries and 1 limited liability partnership firm included in the consolidated unaudited financial results, whose interim financial statements reflects total assets of Rs 132,045.76 lakhs as at September 30, 20
Slide 5: Statement of Unaudited Consolidated Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Acrocity Hospitality District, New Dethi-110037 'Tel. OF Fax.: 011-46050110; t Gk Ts ites www. 'hatels.cont CIN: L74899DL1992PLC049022, Si of U dited C Ndated Fi: Results for the Quarter ond Half Year ended September 30, 2021 Half Yenr ended in La
Slide 6: Notes to consolidated financial results
Notes: 1 The Aud Commitee has reviewed the above results and the Board of Duectors has approved the above consolidated financial results at their respective meenngs held on October 20, 2021 and October 21, 2021. The statutory auditors have earned out a hmited review of the above standalone financial
Slide 7: Statement of Consolidated Assets and Liabilities
&. Statement of Consolidated Assets and Liabilities @ In Lakhs) Particulars Asat As at September 30, 2021 March 31, 2021 (Unaudited) (Audited) Assets Non-current assets (a) Property, plant and equipment 253,177.52 257,079.91 (b) Capital work-in-progress 26,082.63 24,178 34 (c) Investment Property 23
Slide 8: Consolidated Equity and Liabilities
(z In Lakhs) Particulars As at As at September 30, 202! March 31,2021 (Unaudited) (Audited) Equity And Liabilities Equity (a) Share capital 79,057 70 79,042 14 (b) Other Equity 6,640 35 12,715 70 85,698 08 91,757 84 Equsty attributable to owners of the paren! {c) Non-controlling interests 58,535.23
Slide 9: Statement of Consolidated Cash Flow
'7. Statement of Consolidated Cash flow (du Lekhs} Particulars Half year ended Half year ended September 30, 2021 {September 30, 2020 (Unaudited) (Unaudited) A. Cash Now from operating activities Loss before tax (10,195 06) (12,737 00) Non-cash adjustments to reconcile profit/(loss) before tax to ne
Slide 10: Notes to consolidated results
% The Code on Wages, 2019 and Code on social security, 2020 ("the codes") relating to empl: and notified benefits that received Presidential assent have not been notified. Further. the related rules for quantilymy the financtal smpact have not been noufied. The Group will assess the umpact of the co
Slide 11: Independent Auditor's Review Report (Standalone)
Chartered Accountants Deloitte s 7th Floor, Building 10, Tower B, DLF Cyber City Compiex, H as kins & Se il s L LP DLF City Phase II, Gurugram ~ 122 002, Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS
Slide 12: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP Our conclusion on the Statement is not modified in respect of this matter. 6 We did not review the interim financial results of Krizm Hotel Private Limited Employee Welfare Trust (the "Trust") included in the standalone interim unaudited financial results of the entity i
Slide 13: Statement of Unaudited Standalone Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Acracity Hospitality District, New Delhi-1 -10037 Tel.: 011-46050101; Fax.: 011-46050110; E-Mail: 'hotels.com:Website: www.lemontrechotels.com CIN: L74899D1.1992PLC049022 Statement of Unaudited Standalone Financial Results for the Quarter and Half
Slide 14: Notes to standalone financial results
Notes: financial results at their respective meetings held on October 1 The Audit Committec has reviewed the above results and the Board of Directors has approved the above standalone 20, 2021 and October 21, 2021. The statutory auditers have carried oul a limited review of the above standalone fina
Slide 15: Statement of Standalone Assets and Liabilities
7. Statement of Standalone Assets and Liabilties (& In Lakhs) As at As at March September Particulars 31, 2021 30, 2021 (Unaudited) (Audited) Assets Non-current assets (a) Property, plant and equipment 39,874.25 40,390.69 (b) Capital work-in-progress 1,583.35 1,547.59 230.34 232.54 (c} Investment Pr
Slide 16: Standalone Equity and Liabilities
(2 In Lakhs) As at As at March September Particulars 31, 2021 MW, 2021 (Unaudited) {Audited) Equity Aud Liabilities Equity (a) Share capital 79,057.70 79,042.14 (b) Other Equity 19,679.32 21,281.80 Total Equity 98,737.02 100,323.94 Liabilities Non-current liabilities (a) Financial liabilities 33,350
Slide 17: Statement of Standalone Cash Flow
8. Stat t of Standal Cash flow (@ In Lakhs) For the half For the half year ended year ended Particulars September September 30, 2021 30, 2020 (Unaudited) (Unaudited) Cash flow from operating activities Loss before tax (2,282.63) (2,746.16) Non-cash adjustments to reconcile profit before tax to net c
Slide 18: Standalone Cash Flow (continued)
(% In Lakhs) For the half For the half year ended year ended Particulars September September 30, 2021 30, 2020 (Unaudited) (Unaudited) Net increase in cash and cash equivalents (A + B + C) 237.05 1,239.33 Cash and cash equivalents at the beginning of the year 3,641.12 1,187.83 Cash and cash equivale
Slide 19: Lemon Tree Hotels Limited Q2 FY22
Lemon Tree Hotels Limited Q2 FY22 Earnings Presentation 21st Oct, 2021
Slide 20: 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 21: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 Q2 FY22 Operating Performance Trends 4 Q2 FY22 Financial Highlights & Results 5 Pipeline 6 Annexures 3
Slide 22: Lemon Tree – Snapshot as on 21st October 2021
Lemon Tree – Snapshot as on 21st October 2021 Current (17% of Branded By CY23 (20% of Branded Pipeline Mid Market Hotels in Mid Market Hotels in India*) India*) 8,497 1,965 10,462 rooms; rooms; rooms; 87 hotels 19 hotels 106 hotels Brand Current Pipeline By FY23 Aurika Hotels & Resorts 202 Rooms; 2
Slide 23: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q2 FY22 Q2 FY21 YoY Var (%) Cities 54 49 10% Hotels 87 81 7% Rooms 8,497 8,044 6% 5
Slide 24: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q2 FY22, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, We saw a significant improvement in performance against the previous quarter due to a strong recovery in demand. The gradual easing
Slide 25: Q2 FY22 Operating Performance Trends: Operational Inventory
Q2 FY22 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 5,200 97.0% 100.0% 95.4% 94.5% 94.2% 5,000 95.0% 5,037 % Operational Invetory Operational Invetory 4,953 4,800 4,908 4,888 90.0% 4,600 84.9% 85.0% 81.9% 4,400 4,408 80.0% 4,200 4,252 4,000 75.0% 3,800 70.0% Apr
Slide 26: Q2 FY22 Operating Performance Trends: Occupancy
Q2 FY22 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 60.0% 3,600 53.8% 53.6% 54.0% 50.9% 50.5% 51.5% 3,400 50.0% 3,200 39.6% 40.8% 3,230 40.0% Gross ADR (Rs) Occupancy (%) 34.8% 3,000 3,075 29.5% 30.0% 2,800 24.5% 2,775 20.0% 2,600 20.0% 2,400 2,429 10.0% 2,369 2,288 2,20
Slide 27: Q2 FY22 Operating Performance Trends: Revenue vs OPEX
Q2 FY22 Operating Performance Trends Improving Operating Efficiency and ‘V-Shaped’ Recovery Revenue vs OPEX Trend Revenue Trend 40.00 80.00 74.49 32.86 33.98 68.15 35.00 70.00 29.71 30.00 60.00 25.00 50.00 18.64 Rs. Cr Rs Cr 20.00 40.00 33.98 32.19 32.86 14.15 19.10 19.55 29.71 28.74 15.00 17.37 30.
Slide 28: Q2 FY22 Performance Highlights – Operational Metrics
Q2 FY22 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 14.1% 28.2% 5.6% 8,497 YoY 3,028 QoQ 3,028 8,044 15.8% 5,192 5,192 2,654 2,852 3,305 2,362 End of Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY2
Slide 29: Q2 FY22 Performance Highlights – Financial Metrics
Q2 FY22 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 35.8 35.8 103.6% 129.9% YoY 96.9 QoQ 96.9 149.9% 1,647% YoY QoQ 47.6 42.2 14.3 2.0 Q2 FY21 Q2 FY22 Q1 FY22 Q2 FY22 Q2 FY21 Q2 FY22 Q1 FY22 Q2 FY22 EBITDA Margin (%) Cash profit (Rs. Cr)
Slide 30: Consolidated Profit & Loss Statement – Q2 FY22
Consolidated Profit & Loss Statement – Q2 FY22 Rs. Cr Q2 FY22 Q1 FY22 Q2 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 96.9 42.2 47.6 129.9% 103.6% Other income 1.9 2.1 6.0 -9.6% -68.0% Total expenses 63.0 42.2 39.3 49.2% 60.4% EBITDA 35.8 2.0 14.3 1647.4% 149.9% EBITDA margin (%) 36.2%
Slide 31: Consolidated P&L Breakup – Q2 FY22 vs Q2 FY21
Consolidated Profit & Loss Statement Breakup – Q2 FY22 vs Q2 FY21 Total without Keys Hotels Keys Hotels Total Rs. Cr YoY Change YoY Change YoY Change Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 (%) (%) (%) Inventory 4,256 4,256 0% 936 936 0% 5,192 5,192 0% ARR 2,445 2,796 -13% 2,053 2,122 -3% 3,
Slide 32: Operational Performance by Brands & Region
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) Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change By Brand (#Rooms) FY22 FY21 (bps) F
Slide 33: Discussion on Consolidated Financial & Operational Performance
Discussion on Consolidated Financial & Operational Performance – Q2 FY22 Revenue from operations stood at Rs. 96.9 Cr in Q2 FY22, up 104% as compared to Rs. 47.6 Cr in Q2 FY21. On a sequential basis, revenue from operations increased 129.9% from Rs. 42.2 Cr in Q1 FY22 ADR increased by 14.1% from 2
Slide 34: Consolidated P&L – H1 FY22 vs H1 FY21
Consolidated Profit & Loss Statement – H1 FY22 vs H1 FY21 Rs. Cr H1 FY22 H1 FY21 YoY Change (%) FY21 Revenue from operations 139.0 88.3 57.5% 251.7 Other income 4.0 9.1 -55.6% 13.3 Total Income 143.1 97.4 46.9% 265.0 Total expenses 105.3 75.6 39.2% 190.5 EBITDA 37.8 21.8 73.6% 74.5 EBITDA w/o Other
Slide 35: Consolidated Balance Sheet – H1 FY22 vs H1 FY21
Consolidated Balance Sheet – H1 FY22 vs H1 FY21 Rs. Cr H1 FY22 H1 FY21 YoY Change (%) Shareholder's Funds 857.0 744.0 15% Non-controlling interests 585.4 861.4 -32% Total Shareholder’s equity 1,442.3 1,605.4 -10% Total Debt 1,697.2 1,661.7 2.1% Other Non-current liabilities 472.6 467.4 1% Other Curr
Slide 36: Expansion Plans – Hotels under Development
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 is Rs. 10,060 Million Tota
Slide 37: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 21st Oct, 2021) Management Contracts Pipeline Rooms Expected Opening date Lemon Tree Hotel Kalina/BKC, Mumbai 70 Dec-21 Lemon Tree Hotel, Sonamarg 40 Mar-22 Lemon Tree Hotel, Rishikesh 102 Mar-22 Keys Lite, Rishikesh 39 Mar-22 The Spectrum, G
Slide 38: Extracts from first ESG Report of Lemon Tree Hotels for FY21
Extracts from first ESG Report of Lemon Tree Hotels for FY21 To read the full report please visit: https://www.lemontreehotels.com/factsheet/Policies/LTH_ESG_ Report_2021.pdf This report covers all 41 owned/leased hotels across 23 cities for the reporting period from 1st April 2020 to 31st March 202
Slide 39: FY21 ESG Report – Impact
FY21 ESG Report – Lemon Tree’s first | Impact Impact of our Environment, Social and Governance initiatives: Renewable energy in the Operations audited (internally) for Opportunity Deprived Indians electricity mix in FY21 cases of corruption and bribery (ODIs) employed in FY21 Reduction in normalized
Slide 40: FY21 ESG Report – Vision FY26
FY21 ESG Report – Lemon Tree’s first | 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, mitigating and adapting to sh
Slide 41: FY21 ESG Report – Vision FY26 Goals
FY21 ESG Report – Lemon Tree’s first | Vision FY26 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) GHG emissions water Buildings workforc
Slide 42: FY21 ESG Report – Policy Architecture
FY21 ESG Report – Lemon Tree’s first | Policy Architecture In a rapidly evolving business Embracing Redefining Providing environment addressing ESG issues Environmental Social Effective is crucial to ensure the longevity of Stewardship Engagement Governance an organization. Through our well- defined
Slide 43: FY21 ESG Report – Governance Structure
FY21 ESG Report – Lemon Tree’s first | Governance Structure Our efforts to integrate ESG across our business operations is effectively supported by a dynamic governance structure The Board ESG Taskforce Management Sets the vision for meeting Develops ESG strategy, Implements ESG related ESG requirem
Slide 44: Annexures
kena ANNEXURES
Slide 45: Portfolio Breakup as on 21st Oct 2021 - Operational
Portfolio Breakup as on 21st Oct 2021 - Operational Owned (incl. on Operational Portfolio Leased Managed/ Franchised Total leased land) 21.10.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 139 0 0 1 63 2 202 Lemon Tree Premier 7 1442 2 161 9 911 18 2514 Lemon Tree
Slide 46: Portfolio Breakup as on 21st Oct 2021 - Pipeline
Portfolio Breakup as on 21st Oct 2021 - Pipeline Owned (incl. on Pipeline Portfolio Leased Managed/ Franchised Total leased land) 21.10.2021 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 669 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 2 130 2 130 Lemon Tree Hotels 1 69 0
Slide 47: Lemon Tree's share of branded hotel sector in key geographies
Strategically positioned in key geographies with Lemon Tree’s share of total branded hotel sector Jaipur: FY20 – 5.1% Kolkata: FY20 – 2.9% FY26E – 4.0% FY26E – 2.6% Ahmedabad:FY20 – 4.2% Hyderabad: FY20 – 8.9% FY26E – 3.4% FY26E – 8.5% Mumbai: FY20 – 2.1% Chennai: FY20 – 2.5% FY26E – 6.0% FY26E – 2.
Slide 48: Operating performance
Operating performance Rooms are being added Occupancy Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 FY21 8,309 8,006 Note: Drop in occupancy levels is on account of second wave of CoVID-19 17% CAGR 5,411 2814 3117 4,870 3,698 3,249 1841 675 978 1593 461 843 481 573 283 317 71% 53% 72%
Slide 49: 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 50: Consolidated Profit & Loss Statement – FY21
Consolidated Profit & Loss Statement – FY21 Rs. Cr FY21 FY20 FY19 Revenue from operations 251.7 669.4 549.5 Other income 13.3 5.8 9.9 Total Income 265.0 675.2 559.4 Total expenses 190.5 426.0 380.7 EBITDA 74.5 249.2 178.7 EBITDA w/o Other Income 61.3 243.4 168.8 EBITDA margin (%) 28.1% 36.9% 31.9% F
Slide 51: Consolidated Balance Sheet Snapshot – FY21
Consolidated Balance Sheet Snapshot – FY21 Rs. Cr FY21 FY20 FY19 Shareholder's Funds 917.6 988.9 875.0 Non-controlling interests 617.4 555.9 432.2 Total Shareholder’s equity 1,535.0 1,544.8 1,307.2 Total Debt 1,685.0 1,577.5 1,204.2 Other Non-current liabilities 470.0 464.3 38.0 Other Current liabil
Slide 52: 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 (New - less than 1 hotels years) 1-3 years old) year old) FY20 24 6 11 Hotels1 2 FY21 28 13 0 Operating Rooms FY20 2,8
Slide 53: 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 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 96 50 16 Hotel RoCE 32% 17% 5%
Slide 54: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q2 FY22 Earnings Conference Call Time • 3:00 PM IST on Thursday, October 25, 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 Kon
Slide 55: About Lemon Tree Hotels
About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest hotel chain in the mid-priced hotel sector, 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. We operate in the upscale segment and