Chalet Hotels' Q2 FY25 financials show mixed performance with concerns over profitability

Chalet Hotels, a midcap company in the hotel, resort, and restaurant industry, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Chalet Hotels has shown a flat performance in the quarter, with a score of -2 compared to 13 in the previous three months. However, there are some positive aspects to the company’s financials.

One of the highlights is the company’s strong operating cash flow, which has been consistently growing over the past three years and is currently at Rs 689.44 crore annually. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the net sales, which have grown at a rate of 20.05% year on year, reaching Rs 1,156.32 crore in the last nine months. This shows a positive trend in the company’s sales performance in the near term.

However, there are also some areas of concern in Chalet Hotels’ financials. The company’s profit after tax (PAT) for the quarter has fallen to Rs -138.49 crore, a decline of -321.4% compared to the average PAT of the previous four quarters. This indicates a very negative trend in the company’s near term PAT.

Additionally, the earnings per share (EPS) for the quarter is at its lowest in the last five quarters, at Rs -6.35. This shows a decline in profitability and lower earnings for shareholders.

Overall, Chalet Hotels has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects such as strong operating cash flow and growing net sales, there are also concerns regarding declining profitability and negative PAT trend. Investors should carefully consider these factors before making any investment decisions.