Leading Mid-cap budget hotel stock went up by 5% after announcing its Q3FY25 results, with robust growth in its net profit and its best-ever Q3 results
Share Price Movement
With a market capitalization of ₹11,768 Crore, the stock of Lemon Tree Hotels opened at ₹152 up 3.07 % from yesterday’s closing price of 147.46, and later made a high of 4.92% and closed at 148.29.
Q3FY25 Results
The company reported a 22.39 % YoY increase in revenue from ₹290.18 Crore in Q3FY24 to ₹355.17 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 24.90 % in revenue from ₹284.36 Crore in the previous quarter.
Their Net profit saw an increase of 82.32 % YoY from ₹43.79 Crore to ₹79.84 Crore for the same period. On a QoQ basis, the company reported an impressive increase of 127.91 % in Net profit from ₹35.03 Crore in the previous quarter.
EBITDA Margin for Q3FY25 stood at 51.9 % compared to 48.8% for Q3FY24.
Operational Highlights
The average room rate was up 7% YoY from ₹6,302 in Q3FY24 to ₹6,763 in Q3FY25, and the Occupancy rate went up by 826bps from 65.9 in Q3FY24 to 74.2% in Q3FY25. Total management fees went up by 35% from 32.3 to 43.7 for the same period.
A new hotel with 38 rooms was opened in Bhutan, and two hotels are under development in Shimla and Shillong. With 766 rooms currently in the pipeline and 10,317 operational rooms, the Total number of hotels under the group is 200 with 16,385 rooms.
About the Company
Lemon Tree Hotels Limited is one of the largest hotel chains in India and owns/leases/operates/franchises hotels across the upscale, upper-midscale, midscale, and economy segments. It delivers differentiated yet superior service offerings, with a compelling value proposition. The group offers seven brands to meet guests’ needs across all levels, viz. Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels by Lemon Tree Hotels, Keys Prima by Lemon Tree Hotels, Keys Select by Lemon Tree Hotels, and Keys Lite by Lemon Tree Hotels.
Written By Abhishek Das
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