Asian Hotels plans to add 500-525 rooms in FY13

1700 Investors following Asian Hotels. Share this News with them.

0

Like this story, share it with millions of investors on M3

Asian Hotels plans to add 500-525 rooms in FY13

Asian Hotels came out with its Q3 results. Q3 FY11 consolidated revenues were up by 45% at Rs 36.92 crore versus Rs 25.5 crore. Its net profit was up by 90% at 3.81 crore versus Rs 2 crore.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about Asian Hotels See previous management interviews See what other Experts & Brokerages are saying about Asian Hotels

Asian Hotels came out with its Q3 results. Q3 FY11 consolidated revenues were up by 45% at Rs 36.92 crore versus Rs 25.5 crore. Its net profit was up by 90% at 3.81 crore versus Rs 2 crore.

The company's EBIDTA margins was at 33.3% versus 22.5%.

In an interview with CNBC-TV18's Latha Venkatesh and Sonia Shenoy, Sushil Gupta, MD of the company, gave his perspective of the third quarter performance and divulged future plans.

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: Could you take us through the quarterly performance? It was very good as far as revenues and margins were concerned. What were the highlights? Do you expect to maintain this run-rate?

A: Q4 in the hotel industry is the best quarter from January to March. The results will be much better in Q4 than Q3.

Q: What about FY12 in that case? Are you having any more rooms come in? What did you do in terms of an average realisation in the current quarter? How much better was it compared to the year or quarter ago?

A: They are marginally better. The ARR has been Rs 9,000 in the last quarter. In the current quarter, we will do something between Rs 9,500 to Rs 10,000.

Q: You spoke about the ARR. Can you give us the figures of occupancy this time around? What kind of margins do you hope to see as this time your margins have improved quite a bit? They stand at more than 30% versus, an average of about 22%. Do you think, you can sustain these margins in the next couple of quarters or just because this is one of the better quarters, you won't be able to repeat this performance?

A: There is a lot of buoyancy in the arrivals. All the performance that you have seen in the last quarter will improve further in the average room rates as well as occupancies. There is a sustained growth in both the areas. The margins will not only maintain those, but there should be some upswing also. Our new project, which is coming in Delhi, is on schedule. So, in years to come, our company should do very well.

Q: Would you be adding rooms in FY12?

A: Not really.

Q: When will you be adding rooms?

A: In April, FY13. We hope to open the new hotel with soft opening. In FY13, we will be adding 500-525 rooms. We will have both the hotels operational. There is a scope to increase some inventory also, which we are working on, but that will come in subsequent years.