Viceroy Hotels Limited — Results, 17-12-2024: Reply to Clarification- Financial results

Revenue for Viceroy Hotels Limited reached ₹32.31 crore for the quarter ended September 30, 2024, reflecting a significant year-over-year growth of 18% compared to ₹27.38 crore in the same quarter last year. This increase is primarily driven by improved demand in the hospitality sector and the company’s strategic initiatives to enhance service offerings.

The net profit for the period stood at ₹59.66 crore, a turnaround from the previous year's loss of ₹1.58 crore. This notable improvement in profitability is attributable to reduced operational costs, effective cost management strategies, and better revenue generation practices. The Earnings Per Share (EPS) was reported at ₹9.45 compared to a loss of ₹0.38 in the corresponding quarter last year.

Operational costs experienced an uptick of approximately 9% year-over-year, rising to ₹28.61 crore. This can be attributed to higher employee benefits expenses and increased marketing expenses, reflecting the company's focus on growth initiatives. Despite these rising costs, the overall efficiency appears solid, given the significant revenue growth.

The balance sheet indicates a healthy growth in total assets, which amounted to ₹262.67 crore, up from ₹237.14 crore as of March 31, 2024. This enhancement in assets is mirrored by a strengthening of the equity position, now at ₹160.30 crore.

In summary, Viceroy Hotels is positioned effectively in the hospitality sector with strong revenue growth and a clear path towards profitability. Given the upward trends and operational improvements, the insight is to consider a buy position for investments.