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Lemon Tree Q4 Results Review - Another Strong Quarterly Performance: IDBI Capital

On a strong growth trajectory.

<div class="paragraphs"><p>Lemon Tree Hotel in Delhi. (Source: Company website)</p></div>
Lemon Tree Hotel in Delhi. (Source: Company website)

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IDBI Capital Report

Lemon Tree Hotels Ltd.’s Q4 FY23 result was broadly in-line with our estimates on key parameters. Robust growth in revenue per available room and prudent cost management led to impressive earnings growth in Q4 FY23.

Our interaction with the management suggests that demand dynamics to remain healthy in near term and demand-supply mismatch will favor the domestic hospitality industry.

Lemon Tree has lined up inventory addition on management contract which will support margin improvement. Net sales increased by 111% YoY to Rs 2,527 million, while Ebitda came in at Rs 1,399 million, a robust growth of 549% YoY.

The company reported net profit of Rs 440 million compared to net loss of Rs 247 million in Q4 FY22. We have broadly maintained our earnings estimates for FY24E/FY25E.

Click on the attachment to read the full report:

IDBI Capital Lemon Tree Hotesl Q4FY23 Results Review.pdf
Opinion
Lemon Tree Q4 Results Review - Occupancy Rate, ARR Continue To Inch Up; Outlook Remains Robust: Motilal Oswal

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