Bharat Hotels Limited Unlisted Shares

Bharat Hotels Ltd.

Bharat Hotels Ltd. was incorporated in the year -1981. Its today’s share price is 28.85. Its current market capitalisation stands at Rs 219.23 Cr. In the latest quarter, company has reported Gross Sales of Rs. 0 Cr and Total Income of Rs.0 Cr. The company’s management includes Shovana Narayan, Himanshu Pandey, Ranjan Mathai, Dhruv Prakash, Vivek Mehra, Mohmmad Yousuf Khan, Ramesh Suri, Keshav Suri, Deeksha Suri, Divya Suri Singh, Jyotsna Suri, Jyotsna Suri. It is listed on the BSE with a BSE Code of 508984, NSE with an NSE Symbol of and ISIN of INE466A01015. It’s Registered office is at Barakhamba Lane, New Delhi-110001, Delhi. Their Registrars are ACC Ltd. It’s auditors are SR Batliboi & Associates, SR Batliboi & Associates LLP, SR Batliboi & Co LLP, Walker Chandiok & Co LLP.

Bharat Hotels has received markets regulator Securities and Exchange Board of India’s (SEBI) approval to raise funds through an initial public offering (IPO). The IPO comprises sale of fresh equity shares to the tune of Rs 1,200 crore. The company, which filed the draft red herring prospectus with the SEBI in June, got the regulator’s approval.

Financials of Bharat Hotels Unlisted Shares:

Key Parameters in Hotel Industry

Sr.no	2018	2017	2016	2015	2014
Number of available rooms	2261	2206	2207	2207	2046
Number of hotels	14	13	13	13	12
ARR (₹)	6388	6306	6320	6613	7346
Average Occupancy Rate (%)	62	55	51	45	38
Average RevPAR (₹)	3974	3494	3200	2973	2813
Average TRevPAR (₹)	9143	8256	7679	6949	6461
Average expense per room (₹ million)	2.35	2.13	2.01	1.86	1.77
Average staff per room ratio	1.69	1.68	1.66	1.57	1.69
EBITDA (₹ million)	2242	1954	1777	1227	781
EBITDA margin (%)	29.71%	29.42%	28.66%	23.04%	17.78%

Financials Performance (Fig. in Crores)

Year	Revenue	EBITDA	OPM	PAT	NPM	Shares	F.V.	EPS
2016	586	163	28%	-40	-7%	7.60	10	-5.37
2017	629	191	30%	-16	-3%	7.60	10	-2.15
2018	754	224	30%	83	11%	7.60	10	11.04
2019	811	250	31%	28	4%	7.60	10	3.74
2020	729	221	30%	-73	-10%	7.60	10	-9

Year	Debt	NW	D/E	CR	CFO	Capex	FCF
2016	1116	963	1.16	0.58	140	60	79
2017	1247	940	1.33	0.78	188	72	116
2018	1365	962	1.42	0.41	218	115	102
2019	1333	983	1.36	0.38	237	75	162
2020	1348	869	0.64	0.60	245	40	205

Comparison With Peers:

Particulars (Cr)	Lemon Tree	Bharat Hotel
Revenue (2020)	669	729
Revenue growth in 5 years	16%	5.61%
EBITDA (2020)	236	221
PAT (2020)	-10	-73
Share Price	45	250
MCAP	3500	1900
EV	5305	3198
EV/EBITDA	22.48	14.47

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Bharat Hotels Limited Delisted Shares – Company Overview

BHARAT HOTELS LIMITED is headquartered in New Delhi. The first hotel of the company was opened in 1988. The company was founded by Mr. Lalit Suri. He had also served as a Member of Parliament representing Uttar Pradesh in the Rajya Sabha. After Mr. Lalit Suri, the leadership went into the hands of Dr. Jyotsna Suri in 2006. All the hotels under the group were operated under the brand ‘The Grand – Hotels, Palaces & Resorts, but in 2008, it was rebranded as ‘The Lalit.

The company owns 12 luxury hotels, Palaces & Resorts, and 2 mid-segment hotels under The LaLiT Traveller brand. The company in total has 2261 rooms to offer. Moreover, they also have exclusive management rights to operate the hotel in London with 70 rooms.

During the current COVID-19 pandemic, some of the hotels of company are accommodating doctors at a fixed rate to be paid by the Government.

The company has 5 subsidiary companies and 1 joint venture. Apart from that, Bharat Hotels Limited also runs ‘The Lalit Suri Educational and Charitable Trust’

In the future, they are planning to develop 3 new hotels in Ahmedabad, Mangalore, and Dehradun, which will in consolidate and offer 290 rooms and 115 cottages. They are also developing 50 additional rooms at the ‘The Lalit Laxmi Vilas Palace Udaipur’. Bharat Hotels Limited has developed its own brands like Baluchi, OKO, 24/7, The LaLiTBoulangerie, the Lalit food truck company, and the Kitty Su. In the COVID-19 pandemic, they started home delivery of bakery, confectionery, and gourmet hampers. The Company is also exploring possibilities of digital channels to

make more products and services available to guests like Ayurveda doctor consultancy, wellness packages, chef at home, bartender at home, Kitty comes home, and industrial catering.

Bharat Hotels Delisted Share Details As of March 31, 2023

Outstanding Shares of Bharat Hotels Limited:	75991199
Face Value of Bharat Hotels Limited:	Rs. 10 Per Equity Shares
ISIN of Bharat Hotels Limited:	INE466A01015
PAN No of Bharat Hotels Limited:	AAACB1298E
Lot Size of Bharat Hotels Limited:	100
Share last Traded Price	Best in Industry
Date of Delisting of Bharat Hotels Limited:	11-Jun-03
Rate of Delisting of Bharat Hotels Limited:	Rs. 28.91
Reason For Delisting of Bharat Hotels Limited:	Non-compliance with clause 21(3)(a) of the SEBI(SAST) Regulations 1997

Incorporation Details of Bharat Hotels Limited

CIN of Bharat Hotels	U74899DL1981PLC011274
Registration Date of Bharat Hotels	22 January 1981
Bharat Hotels Registered office address and contact details	Barakhamba Lane, New Delhi-110001 Tel.: 011-44447777, Fax: 011-44441234, Email Address: corporate@thelalit.com
Bharat Hotels Registrar and Transfer Agent address and contact details	K Fin Technologies Private Limited 305 New Delhi House, 27, Barakhamba Road, New Delhi-110001

Principal Business Activities of Bharat Hotels Limited

Name and Description of main products / services	NIC Code of the product/service	% to total turnover of the Company
Hotel & Restaurant Operations	99631110 & 99633101	98.78%

Board of Directors of Bharat Hotels Limited

Dr. Jyotsna Suri (Chairperson And Managing Director)

Ms. Divya Suri Singh (Executive Director)

Ms. Deeksha Suri (Executive Director)

Mr. Keshav Suri (Executive Director)

Mr. Ramesh Suri (Non-Executive Director)

Dr. M.Y. Khan (Independent Director)

Mr. Dhruv Prakash (Independent Director)

Mr. Vivek Mehra (Independent Director)

Mr. Ranjan Mathai (Independent Director)

Ms. Shovana Narayan (Independent Director)

Particulars of Subsidiaries and Associate Companies of Bharat Hotel

Name of the Company	Subsidiary/Associate	% of shares held
Jyoti Limited	Subsidiary	99.99%
Lalit Great Eastern Kolkata Hotel Limited	Subsidiary	90.00%
PCL Hotels Limited	Subsidiary	99.83%
Prima Hospitality Private Limited	Subsidiary	100%
Kujjal Hotels Private Limited	Subsidiary	50.00%

Shareholding Pattern of Bharat Hotels Limited (As of 31-03-2023)

S. No.	Shareholder’s Name	No. of Shares	% of total Shares of the company
1	Promoter	37973236	49.97057093
2	Public Shareholding	38017963	50.02942907
	Total	75991199	100.00

Hotel Industry Outlook

The Hotel industry is a part of the Travel and Tourism industry in India. Average Room Rate (ARR) and Revenue per Available Room (RevPAR) are the key performance indicators for the Hotel industry to measure business expansion and manage hotels.

The Hotel industry can be segmented into branded or traditional hotels, independent/unbranded hotels, new-age hotel chains, and alternate accommodations. The independent/unbranded segment accounts for around 70% of the total available hotel rooms. And the second largest segment is alternate accommodations.

It is expected that the hotel industry will expand at a good rate since India will be hosting the ICC Men’s World Cup in 2023. It has been assumed that this event would increase foreign tourists’ footfall in the country. The Hotel industry is highly dependent on the tourism sector for its business. Therefore, the Ministry of Tourism has undertaken several schemes like PRASHAD (Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive) and SWADESH DARSHAN (Integrated Development of Tourist Circuits around Specific Themes).

The COVID-19 pandemic resulted in subsequent travel restrictions and nationwide lockdowns. The domestic hospitality industry has been one of the worst-hit sectors by this pandemic. In a report, ICRA said it expects the industry to go down by 65% in the FY 2021, with massive operating and net losses, wiping out the cumulative profits of the past 4 years. However, a good demand recovery is possible in the second part of FY 2021-22. In 2021, it is expected that domestic business travel will pick up pace in the second quarter, as employees return to their workplaces and companies soften their travel advisories. In the interim, domestic leisure, weddings, and F&B demand is expected to drive the sector’s recovery.

Some signs of positivity emerged in the hospitality sector. Leisure demand drives the growth, with holiday destinations in close proximity to major cities witnessing a surge in weekend getaway demand. The industry also witnessed a recovery in the F&B segment as people started dining out.

Balance Sheet of Bharat Hotels Limited (In Rs. Crores)

Particulars	As at 31 March 2023	As at 31 March 2022
ASSETS
Non-current assets
Property, plant and equipment	1,623.77	1,277.01
Right-of-use assets	152.00	154.16
Capital work-in-progress	285.80	302.21
Goodwill	84.25	84.25
Intangible assets	0.46	0.38
Financial assets
a) Investments	0.03	0.03
b) Other financial assets	29.44	28.03
Deferred tax assets (net)	44.94	97.33
Income tax assets (net)	13.48	23.14
Other non-current assets	15.37	9.91
Total non-current assets	2,249.54	1,976.44
Current assets
Inventories	18.25	16.88
Financial assets
a) Trade receivables	37.50	20.83
b) Cash and cash equivalents	50.03	68.95
c) Other bank balances	52.40	42.47
d) Other financial assets	4.71	9.14
Other current assets	21.12	19.90
Total current assets	184.00	178.18
Assets classified as held for sale	40.29	410.41
TOTAL ASSETS	2,473.83	2,565.03
EQUITY AND LIABILITIES
EQUITY
Equity share capital	75.99	75.99
Other equity	784.32	725.77
Equity attributable to owners of Group	860.31	801.76
Non-controlling interest	-85.30	-75.63
Total equity	775.01	726.13
LIABILITIES
Non-current liabilities
Financial Liabilities
a) Borrowings	1,318.49	1,499.57
b) Lease liabilities	89.21	88.36
c) Other financial liabilities	50.42	17.67
Provisions	8.45	8.44
Other non-current liabilities	28.72	30.14
Total non-current liabilities	1,495.28	1,644.18
Current liabilities
Financial liabilities
a) Borrowings	28.57	38.73
b) Lease liabilities	2.28	4.80
c) Trade payables
(i) Total outstanding dues of micro and small enterprises	5.92	7.54
(ii) Total outstanding dues of creditors other than micro and small enterprises	75.80	69.91
d) Other financial liabilities	20.96	34.58
Other current liabilities	48.56	31.51
Provisions	8.16	7.66
Current tax liabilities (net)	0.80	–
Total current liabilities	191.04	194.72
Liabilities classified as held for sale	12.50	–
TOTAL EQUITY AND LIABILITIES	2,473.83	2,565.03

Profit & Loss Statement of Bharat Hotels Limited (In Rs. Crores)

PARTICULARS	2023	2022
Income from Continuing Operations
Revenue from Operations	800.0506	368.5623
Other Income	8.2466	7.2039
Total Income	808.2972	375.7662
Expenses from Continuing Operations
Cost of Food and Beverages Consumed	76.8921	35.1532
Purchases of Traded Goods	0.0675	0.0085
Changes in Inventories of Traded Goods	0.2126	0.1196
Employee Benefits Expense	91.7385	58.0515
Other Expenses	275.0365	143.2996
Total Expenses	443.9472	236.6324
EBITDA	364.35	139.1338
Finance Income	9.0651	7.179
Finance Costs	184.5966	184.1427
Depreciation and Amortization Expense	67.8242	64.9402
Profit/(Loss) Before Exceptional Items and Tax from Continuing Operations	120.9943	-102.7701
Exceptional Items	13.1804	0
Profit/(Loss) Before Tax from Continuing Operations	134.1747	-102.7701
Tax Expense
Current Tax	31.8414	0.1213
Deferred Tax Credit	52.7644	-44.2189
Total Tax Expense	84.6058	-44.0976
Profit/(Loss) for the Year from Continuing Operations	49.5689	-58.6725
Loss Before Tax for the Year from Discontinued Operations	0	-0.4698
Tax Expense of Discontinued Operations	0	0.1641
Loss for the Year from Discontinued Operations	0	-0.3057
Profit/(Loss) for the Year	49.5689	-58.9782
Other Comprehensive Income for the Year
Re-measurement (Loss)/Gain on Defined Benefit Obligations	-0.8051	1.4623
Income Tax Effect on Above	0.2833	-0.5011
Other Comprehensive Income for the Year (Net of Tax)	-0.5218	0.9612
Total Comprehensive Income for the Year	49.0471	-58.017

Earnings per Share (Face Value of INR 10/- Each)
(a) Basic	6.52	-7.76
(b) Diluted	6.52	-7.76

Bharat Hotels Cash Flow Statement for the last three years (In Rs. Crores)

Particulars	31st March 2023	31 March 2022
A. Cash Flow from Operating Activities
Profit/(Loss) Before Tax from Continuing Operations	134.17	-102.77
Loss before tax from discontinuing operations		-0.47
Profit/(loss) before tax	134.17	-103.24
Adjustments for:
Depreciation and Amortization Expense	67.82	64.94
Reversal of expense of employee stock option scheme	-0.17	-0.18
Unrealised foreign exchange loss	0.02	0.00
Net loss on disposal of property, plant and equipment	0.34	1.78
Rent concession	0.00	-0.60
Finance costs	178.78	180.68
Interest income on bank deposits and others	-8.31	-5.95
Unwinding of interest on security deposits	-0.76	-0.54
Bad debts / advances written off	0.41	0.42
Amortisation of deferred lease rentals	-0.37	-0.13
Amortisation of deferred government grant	0.00	-0.65
Gain on fair valuation of financial liability	-18.51	0.00
Gain on sale of land classified as held for sale	-20.80	0.00
Provision for impairment loss on land	20.71	0.00
Provision for export obligations and other assets	5.42	0.00
Excess provision/ credit balances written back	-5.37	-2.73
Operating Profit Before Working Capital Changes	353.39	133.80
Changes in Working Capital:
(Increase)/Decrease in Inventories	-1.37	0.93
Loans and Other Assets	-6.27	-4.28
(Increase)/Decrease in Trade Receivables	-18.07	3.21
Increase/(Decrease) in Trade Payables	1.12	-7.58
Provisions and Other Liabilities	9.27	8.49
Cash Generated from Operations	338.07	134.57
Income taxes (paid)/refund (net)	-20.97	1.14
Net Cash from Operating Activities	317.10	135.71
B. Cash Flow from Investing Activities
Payments for purchase of property, plant and equipment and Intangibles	-18.46	-9.00
Proceeds from sale of property, plant and equipment	49.59	0.42
Investment in bank deposits (net)	-5.84	-24.38
Interest received	7.61	5.20
Net Cash Used in Investing Activities	32.90	-27.76
C. Cash Flow from Financing Activities
Proceeds from long term borrowings	1102.60	147.16
Repayment of long term borrowings	-1281.45	-64.09
Repayment of short term borrowings (net)	-3.04	-7.20
Payment of lease liabilities	-1.67	-11.73
Dividend paid	-0.02	-0.09
Finance cost paid	-185.32	-140.44
Net Cash Used in Financing Activities	-368.90	-76.39
D. Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C)	-18.90	31.56
E. Cash and Cash Equivalents at the Beginning of the Year	68.94	20.25
G. Cash flows from discontinued operation	0.00	17.13
Cash and Cash Equivalents at the End of the Year (D+E)	50.04	68.94
Cash and cash equivalents
Balances with banks
Current accounts	43.83	40.87
Exchange earners foreign currency account	0.00	0.03
Deposits with original maturity of less than three months	5.66	27.46
Cash on hand	0.52	0.56
Cheques/drafts on hand	0.03	0.02
Total	50.04	68.94

Summary of Cash Flow Statement for the year ending March 31, 2023

Operating Activities:

Net cash from operating activities increased significantly from ₹135.71 crores in 2022 to ₹317.10 crores in 2023, primarily due to improved operating profit and working capital adjustments.

Investing Activities:

Net cash used in investing activities changed from -₹27.76 crores in 2022 to ₹32.90 crores in 2023, indicating increased investment in property and equipment and a higher level of proceeds from asset sales.

Financing Activities:

Net cash used in financing activities saw a notable increase from -₹76.39 crores in 2022 to -₹368.90 crores in 2023, mainly driven by higher long-term borrowing and repayments.

Cash and Cash Equivalents:

Cash and cash equivalents at the end of 2023 stood at ₹50.04 crores, down from ₹68.94 crores in 2022.
The net decrease in cash and cash equivalents was ₹18.90 crores in 2023 compared to an increase of ₹31.56 crores in 2022, indicating a change in the company ‘s cash position.

Key Financial Ratios

Particulars	31-Mar-23	31-Mar-22
Current Ratio (in times)	1.24	1.1
Debt-Equity Ratio (in times)	1.46	1.76
Debt Service Coverage Ratio (in times)	2.43	1.26
Return on Equity Ratio (in %)	4.91	-16.21
Inventory Turnover Ratio (in times)	46.76	21.59
Trade Receivables Turnover Ratio (in times)	27.78	15.24
Trade Payable Turnover Ratio (in times)	0.92	0.39
Net Capital Turnover Ratio (in times)	31.53	-26.87
Net Profit Ratio (in %)	5.51	-42.64
Return on Capital Employed Ratio (in %)	10.84	-2.25

Dividend History of Bharat Hotels

Particulars	2023	2022
Dividend per Share	0	0
Retained Earnings (In Rs. Crores)	131.86	202.96

Performance of Bharat Hotels Limited

Revenue: The company reported total revenue from continuing operations of INR 800.05 crores, showing substantial growth compared to INR 368.56 crores in the previous year.
EBITDA: EBITDA for the year stood at INR 364.35 crores, a significant improvement from INR 139.13 crores in the previous year, indicating strong operational performance.
Finance Costs: Finance costs were INR 184.60 crores, while finance income was INR 9.07 crores. The company had a net finance cost during the year.
EPS: The basic and diluted EPS for the year was INR 6.52. This indicates the earnings attributable to each share of face value INR 10.

Overall, Bharat Hotels Limited showed significant improvement in its financial performance, with a turnaround from a loss to a profit, driven by increased revenue, controlled expenses, and improved EBITDA.

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