How has been the historical performance of Howard Hotels?

Revenue Growth and Operating Performance

Over the past seven years, Howard Hotels’ net sales have shown a notable recovery from a low base, particularly after the significant downturn in fiscal year ending March 2021. Sales increased from ₹1.72 crores in March 2021 to ₹16.16 crores by March 2025, reflecting a robust rebound in business activity. This growth trajectory is especially significant given the dip experienced during the pandemic-affected years, where sales had fallen sharply from ₹10.65 crores in March 2019 to ₹1.72 crores in March 2021.

Operating profit margins, excluding other income, have also improved markedly. After a negative margin of -52.91% in March 2021, the company returned to positive territory with an 11.08% margin by March 2025. This indicates enhanced operational efficiency and cost management, despite the challenges faced in earlier years. The operating profit (PBDIT) rose to ₹1.79 crores in March 2025, up from a loss in the 2021 fiscal year, signalling a stabilisation of core business profitability.

Profitability and Earnings Trends

Profit after tax (PAT) has mirrored the recovery in sales and operating profit, moving from a loss of ₹1.51 crores in March 2021 to a positive ₹0.43 crores in March 2025. The PAT margin improved from a deeply negative -87.79% in 2021 to a modest 2.66% in 2025, reflecting the company’s return to profitability. Earnings per share (EPS) followed a similar pattern, rising from a negative ₹1.66 in 2021 to a positive ₹0.47 in 2025, indicating improved shareholder returns.

Despite the positive turnaround, the company’s profit before tax (PBT) remains relatively low at ₹0.57 crores in March 2025, down from ₹1.28 crores in the previous year, suggesting some volatility in earnings. Interest expenses have increased slightly over the years, reaching ₹0.44 crores in 2025, which may impact net profitability going forward.

Balance Sheet and Financial Position

Howard Hotels’ balance sheet reveals a stable equity base with share capital consistently at ₹9.11 crores and reserves growing from ₹0.89 crores in 2021 to ₹2.38 crores in 2025. Shareholders’ funds have increased steadily to ₹11.49 crores by March 2025, indicating a strengthening net worth. The company’s total liabilities have remained relatively stable around ₹19 crores, with long-term borrowings rising to ₹4.58 crores in 2025 from zero in 2021, reflecting increased leverage.

On the asset side, net block values have remained steady, around ₹15.82 crores in 2025, supported by consistent gross block investments and accumulated depreciation. Current assets have improved to ₹3.11 crores in 2025, with cash and bank balances increasing to ₹2 crores, enhancing liquidity. However, net current assets remain marginal at ₹0.25 crores, suggesting tight working capital management.

Cash Flow and Operational Efficiency

Cash flow from operating activities has shown improvement, reaching ₹2 crores in the fiscal year ending March 2025, doubling from ₹1 crore in 2023. This positive cash generation supports the company’s operational needs and investment activities. Investing cash flows have been negative in recent years, notably ₹-1 crore in 2025 and ₹-3 crores in 2024, indicating ongoing capital expenditure or asset acquisitions. Financing activities contributed ₹2 crores in 2024, likely reflecting debt or equity inflows to support growth.

Overall, Howard Hotels has navigated through a challenging period marked by losses and low sales, but recent years have seen a clear recovery in revenue, profitability, and financial stability. The company’s improving margins and positive cash flows suggest a cautious but optimistic outlook for future performance.

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