Lemon Tree Hotels Reports Mixed Financial Results for Q1 FY25

Lemon Tree Hotels, a midcap hotel chain, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Lemon Tree Hotels has seen a flat performance in the quarter, with a score of 4 compared to 23 in the previous 3 months. However, there are some positive aspects to the company’s financials.

The net sales for the half-yearly period have shown a growth of 24.83% year on year, reaching Rs 595.33 crore. The company has also managed to reduce its debt-equity ratio to 2.42 times, indicating a decrease in borrowing compared to equity capital.

On the other hand, there are some areas of concern for Lemon Tree Hotels. The profit before tax less other income (PBT) for the quarter has fallen by 19.50% year on year, and the profit after tax (PAT) has also seen a decline of 15.6% year on year. The PBT for the quarter is at its lowest in the last five quarters, and the earnings per share (EPS) have also decreased to Rs 0.25, indicating a decline in profitability.

Despite these challenges, Lemon Tree Hotels remains a strong player in the midcap hotel industry. The company has shown positive sales trends and has been reducing its debt, which could lead to better financial performance in the future. Investors should keep a close eye on the company’s progress in the coming quarters.