Lemon Tree Hotels Q2 Results | Net profit surges 33% to ₹35 crore, revenue rises 24% to ₹284 crore
In the corresponding quarter of the previous fiscal, Lemon Tree Hotels posted a net profit of ₹26.4 crore, the company said in a regulatory filing. The company’s revenue from operations increased 24% to ₹284.4 crore as against ₹ 229.4 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA rises 25.6% to ₹130.8 crore in the second quarter of this fiscal over ₹104 crore in the corresponding period in the previous fiscal.
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EBITDA margin stood at 46% in the reporting quarter as compared to 45.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
In Q2 FY25, Lemon Tree Hotels reported a Gross Average Room Rate (ARR) of ₹5,902, reflecting a 3.8% increase from ₹5,686 in Q1 FY25 and a 12.2% rise from ₹5,262 in Q2 FY24. Occupancy stood at 68.4%, up by 174 basis points from 66.6% in Q1 FY25 but down by 328 basis points from 71.7% in Q2 FY24.
Total expenses for the quarter reached Rs 153.6 crore, showing a slight increase of 0.4% from ₹153.0 crore in Q1 FY25 and a 22.6% rise from ₹125.3 crore in Q2 FY24. Cash Profit for Q2 FY25 amounted to ₹69.8 crore, marking a 27.7% growth from ₹54.7 crore in Q1 FY25 and a 42.5% increase from ₹49.0 crore in Q2 FY24.
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Patanjali Keswani, Chairman and Managing Director of Lemon Tree Hotels, said, “Fees from management & franchised contracts for 3rd party owned hotels stood at ₹13.4 crore in Q2 FY25 which increased by 28% year-on-year. Fees from Fleur Hotels stood at ₹18.4 crore in Q2 FY25 which increased by 35% year-on-year.
Total management fees for Lemon Tree stood at ₹31.8 crore in Q2 FY25 which increased by 32% year-on-year. Our debt decreased by ₹90 crore from ₹1,912.6 crore as of September 30, 2023, to ₹1,822.6 crore as of September 30, 2024. Cash profit for the company stood at ₹ 69.8 crore in Q2 FY25 which increased by 43% year-on-year.
During the quarter, we signed 19 new management & franchise contracts which added 1,373 new rooms to our pipeline and operationalised 5 hotels which added 193 rooms to our portfolio. As of September 30, 2024 the inventory for the group stands at 112 operational hotels with 10,318 rooms, and a pipeline of 75 hotels with 5,220 rooms.”
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The results came after the close of the market hours. Shares of Lemon Tree Hotels Ltd ended at ₹121.50, up by ₹3.20, or 2.70% on the BSE.
