Shares of this hospitality stock under the ‘small-cap’ category jumped around 5 percent in Monday’s trading session after the company announced the financial results for Q2FY23-24, i.e., for the quarter ended September 2023.
With a market capitalization of Rs 14,570.99 crores, the stocks of EIH Limited, an Oberoi group company, opened their trading hour on Monday at Rs 229.95 and currently trades at Rs 233, gaining around 5 percent compared to the previous close of Rs 222.30 apiece.
Such sharp movements in the stock prices were observed after the company, through a regulatory filing with the BSE, announced financial results for the quarter ended September 2023.
On a sequential basis, the company reported opposing movements as far as the operating revenues and net profits are concerned. The operating revenues, on one end, rose from Rs 498 crores during Q1FY23-24 to Rs 531 crores during Q2FY23-24, and, the net profits, on the other end, shifted down from Rs 106 crores to Rs 94 crores.
Furthermore, the company, yearly, improved its financial performance by increasing both the metrics mentioned above. The operating revenues increased from Rs 401 crores during Q2FY22-23 to Rs 531 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, moved up from Rs 22 crores to Rs 94 crores representing an increase of around 327 percent.
After some sluggish financial numbers during the past few years, the company reported positive numbers thereby affecting the profitability ratios of the company.
The return on equity (RoE) was reported at 10.60 percent during FY22-23, and, the return on capital employed (RoCE) was reported at 14.71 percent. Moreover, the company reduced its debt-to-equity ratio from 0.11 times during FY21-22 to 0.02 times during FY22-23.
The latest shareholding data, as per the September 2023 quarter, portrays the company’s Promoters holding a 32.85 percent stake, and the Foreign Institutional Investors (FIIs) holding a 4.38 percent stake in the company.
EIH Limited is a company based in India that is primarily engaged in the business of owning and managing premium luxury hotels as well as cruisers under the brand names ‘Oberoi’ and ‘Trident’. The company is also engaged in airport restaurants, corporate air charters, in-flight catering, etc.
Written by Amit Madnani
