Hotel Leela
Hotel Leela was painted a deep hue of red post its poor performance. The company, for Q4Fy13 posted a net loss at Rs.142 crore,, up from net loss of Rs.97 crore in Q3. It has ended the year with a consolidated net loss of Rs.433 crore v/s a net profit of Rs.19 crore in FY12. In Q4FY13, the company had a tax reversal of Rs.23 crore which means that but for this, the loss would have been much higher.
The company interest outgo remains huge – it was at Rs.123 crore for Q4 and at Rs.405 crore for FY13, which in itself ate away 62% of the net sales of Rs.654 crore. Operating expenses as such exceeded the topline at Rs.680 crore. Its average revenue per room was up 1.3% at Rs.11,570 for FY13 and occupancy rose only marginally from 61% in FY12 to 62% in FY13. Its total debt as at 31st March 2013 stood at Rs.4602 crore and this has gone up from Rs.4325 crore in FY12. Thus it is worrying to note that despite selling its IT park, and getting into the CDR, its debt has only increased. Promoters holding at end of FY13 stands at 59.77% of which 90.36% is pledged, down from 93.13% at end of Q3FY12. Clearly, the company cannot turnaround till it is able to bring down its debt.