Lemon Tree's Q4 cash profit crashes by 80 pc on Covid-19 lockdown
May 30, 2020
New Delhi [India], May 30 : Lemon Tree Hotels, the country's largest mid-priced hotel sector chain, has reported 80 per cent drop in its cash profit to Rs 9.5 crore in the January to March quarter as compared to Rs 48 crore in Q4 FY19.
Revenue from operations went up 17 per cent to Rs 176 crore in Q4 FY20 from Rs 150 crore in the same quarter of previous fiscal but total expenses too increased by over 10 per cent to Rs 112 crore from Rs 102 crore.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 31 per cent to Rs 64 crore in Q4 FY20 from Rs 49 crore in Q4 FY19.
The company said almost 66 per cent of its owned and leased rooms were operational in April following the directives regarding the Covid-led lockdown released by various state governments.
Nearly 33.4 per cent occupancy in the operational owned and leased hotels was mostly from quarantine guests, doctors, nurses, healthcare workers and corporate guests for business continuity planning.
In May, due to partial lifting of lockdown in some states, 78 per cent of its rooms were operational. The occupancy in hotels was close to 40 per cent.
But all food and beverage outlets along with banquets remained shut. However, in-room dining was operational. Hotel operations were impacted due to restrictions on movement of employees and supply of raw material and room amenities.
"While we are currently operating at sub-optimal levels, in the near-term there should be a gradual bounce back as travel restrictions and consumer sentiments are restored," said Chairman and Managing Director Patanjali Keswani.
"We are confident that our fundamentally strong business model, significant liquidity, our asset-light approach, and our established brand in the hospitality industry will help us successfully weather these challenging times," he said in a statement.
Lemon Tree operates 8,000 rooms in 80 hotels across 48 cities under various brands like Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, Keys Prima, Keys Select and Keys Lite.
