Chalet Hotels Ltd (BOM:542399) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic ...

GuruFocus News

Wed, May 14, 2025, 10:00 AM 3 min read

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Chalet Hotels Ltd (BOM:542399) reported its strongest year-to-date show successful FY25, with grounds gross and profitability driven by robust concern fundamentals and strategical acquisitions.

• The institution achieved the highest ever mean country complaint (ARR) of INR 14,345 astatine the portfolio level, marking a 21% year-on-year increase.

• Hospitality conception gross grew by 20% to INR 4.6 cardinal for the quarter, with country gross rising 27% year-on-year.

• Chalet Hotels Ltd (BOM:542399) has a beardown absorption connected outgo control, achieving an EBITDA borderline of 48.5% successful the hospitality division, up 60 ground points year-on-year.

• The institution is expanding its portfolio with caller projects, including a 170-room luxury edifice successful Goa and further rooms astatine the Bangalore Marriott Hotel Whitefield, aligning with its strategy of moving with scale.

• The geopolitical concern successful the subcontinent poses imaginable risks to concern operations, with the institution intimately monitoring and implementing contingency plans.

• There has been an unexpected hold successful immoderate projects owed to changes successful NGT regulations, impacting respective projects wrong a 5-kilometer radius of the nationalist park.

• Despite beardown performance, the institution is 9% beneath its interior gross targets for May owed to caller geopolitical developments.

• The institution has a important nett indebtedness of INR 19.9 cardinal arsenic of March 31, 2025, which whitethorn interaction aboriginal fiscal flexibility.

• There are concerns astir imaginable occupancy dilution successful immoderate properties, though the institution expects affirmative maturation successful occupancy rates.

• Warning! GuruFocus has detected 2 Warning Sign with BOM:542399.

Q: With galore planetary players entering the market, however does Chalet Hotels program to support its competitory edge, particularly with rising existent property and labour costs? Additionally, however volition imaginable involvement complaint cuts impact your fiscal strategy? A: (Unidentified_2, MD and CEO) Chalet Hotels focuses connected plus ownership, with businesslike outgo absorption successful gathering and operating hotels. Our strategical plan and outgo power let america to support a competitory edge. (Unidentified_3, CFO) Our existent outgo of superior is 8.4%, and we expect further reductions arsenic involvement rates are reset, perchance lowering our concern costs.

Q: How person caller geopolitical developments affected your occupancy rates and revenue, peculiarly successful the leisure and concern segments? A: (Unidentified_2, MD and CEO) The geopolitical concern has caused volatility, but we are inactive experiencing a 12% year-on-year maturation successful May, contempt being 9% beneath our interior targets. We person seen immoderate cancellations successful the MICE segment, but the wide maturation trajectory remains positive.