Samhi Hotels Reports Outstanding Financial Performance in Q2 FY25

Samhi Hotels, a smallcap company in the hotel, resort, and restaurant industry, has recently announced its financial results for the quarter ending September 2024. The company has shown an outstanding performance in this quarter, with a significant improvement in its financial score from 21 to 32 in the last three months.

One of the key highlights of the financial results is the growth in Profit Before Tax (PBT) by 126.1% to Rs 7.19 crore, compared to the average PBT of the previous four quarters which was at Rs -27.58 crore. This shows a very positive trend in the near term for the company. Similarly, the Profit After Tax (PAT) has also shown a growth of 168.5% to Rs 12.62 crore, compared to the average PAT of the previous four quarters which was at Rs -18.42 crore.

The company has also generated a high operating cash flow of Rs 274.69 crore annually, which has been growing each year in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations. Additionally, the company’s ability to manage interest payments has improved, with the Operating Profit to Interest ratio being the highest at 1.64 times in the last five quarters.

In terms of sales, Samhi Hotels has shown a positive trend with a growth of 25.59% Year on Year (YoY) in its net sales, which stood at Rs 515.43 crore in the first half of the year. The company’s operating profit (PBDIT) has also been the highest at Rs 92.17 crore in the last five quarters, with a positive trend in the near term. The company’s efficiency has also improved, with the Operating Profit Margin being the highest at 34.71% in the last five quarters.

On the downside, the company’s non-operating income is 41.07% of its PBT, which indicates a high reliance on non-business activities for income. This may not be a sustainable business model in the long run.

Overall, Samhi Hotels has shown a strong financial performance in the quarter ending September 2024, with positive trends in key financial indicators. The company’s profitability has increased, and it has been able to generate higher earnings for its shareholders. However, the company’s reliance on non-business activities for income is a concern that needs to be addressed.