How has been the historical performance of Samhi Hotels?

Revenue and Profitability Trends

Samhi Hotels’ net sales have shown a consistent upward trajectory, rising from ₹738.57 crores in March 2023 to ₹1,120.54 crores by March 2025. This growth reflects a robust recovery and expansion in the company’s operating activities. Despite no other operating income reported, total operating income mirrors net sales, indicating a focused revenue stream.

Operating profit before depreciation and interest (PBDIT) excluding other income improved significantly, reaching ₹407.11 crores in March 2025 from ₹237.75 crores in March 2023. Including other income, operating profit rose to ₹425.14 crores in the latest fiscal year. This improvement is accompanied by a healthy operating profit margin of 36.33% in March 2025, up from 32.19% two years prior.

Interest expenses have declined markedly from ₹522.06 crores in March 2023 to ₹222.28 crores in March 2025, easing the financial burden. Exceptional items, which were negative in the previous years, also improved, contributing to a positive gross profit before depreciation and tax (PBDT) of ₹183.42 crores in March 2025, a stark contrast to losses in earlier years.

Most notably, the company swung to a profit before tax of ₹67.74 crores in March 2025 from losses exceeding ₹338 crores in March 2023. After accounting for tax and other adjustments, consolidated net profit stood at ₹85.50 crores in March 2025, reversing the negative trend of the preceding years. Earnings per share (EPS) also reflected this turnaround, improving from a loss per share of ₹39.69 in March 2023 to a positive ₹3.87 in March 2025.

Balance Sheet and Asset Position

Samhi Hotels’ balance sheet has strengthened considerably. Shareholder’s funds turned positive at ₹1,142.05 crores in March 2025, a significant recovery from negative equity of ₹807.65 crores in March 2023. This improvement is largely driven by a substantial increase in reserves, which rose from a negative ₹816.18 crores in March 2023 to a positive ₹1,119.93 crores in March 2025.

The company’s total liabilities increased moderately to ₹3,643.13 crores in March 2025 from ₹2,263 crores in March 2023, reflecting ongoing investments and financing activities. Long-term borrowings remain substantial but have decreased from their peak in March 2023, indicating some deleveraging. The net block of fixed assets expanded to ₹2,906.02 crores in March 2025, up from ₹1,807.26 crores two years earlier, signalling capital expenditure and asset growth.

Current assets stood at ₹205.39 crores in March 2025, down from ₹281.22 crores the previous year, while net current assets remained negative, though the deficit narrowed compared to prior years. The book value per share improved dramatically to ₹51.63 in March 2025 from a negative ₹94.65 in March 2023, reflecting the company’s enhanced net worth and financial stability.

Cash Flow and Liquidity

Cash flow from operating activities has shown a steady increase, reaching ₹357 crores in March 2025 compared to ₹217 crores in March 2023. This improvement underscores better operational efficiency and cash generation capability. However, cash flow from investing activities was negative at ₹243 crores in March 2025, indicating ongoing investments in the business.

Financing activities also resulted in a cash outflow of ₹182 crores in March 2025, consistent with efforts to reduce debt and manage capital structure. The net cash outflow for the year was ₹68 crores, a reversal from a positive inflow in the previous year. Closing cash and cash equivalents stood at ₹63 crores in March 2025, down from ₹132 crores the year before, but still providing a reasonable liquidity buffer.

Summary

Overall, Samhi Hotels has experienced a significant financial turnaround over the past two years. The company has moved from deep losses to profitability, supported by rising revenues, improved operating margins, and reduced interest expenses. Its balance sheet has strengthened with positive shareholder equity and increased reserves, while capital investments have expanded its asset base.

Cash flow trends indicate robust operational cash generation, although investment and financing outflows have moderated liquidity. Investors should note the company’s improved earnings per share and book value per share as indicators of enhanced financial health. While challenges remain, particularly in managing liabilities and liquidity, the historical performance suggests a positive trajectory for Samhi Hotels.

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