Shares of Lemon Tree Hotels gained more than 3 percent on Wednesday after the hospitality company reported a record March quarter with all parameters at an all-time high.
The company also returned to profitability in the March quarter, reporting a net profit of Rs 59 crore, compared to a net loss of Rs 39 crore during the same period last year.
Revenue for the quarter more than doubled to Rs 252 crore, compared to Rs 119 crore in the base quarter, while operating profit, or EBITDA increased to Rs 140 crore from Rs 21 crore last year. The management had guided for revenue to double and operating profit to grow by more than 50 percent, which it has managed to surpass on both parameters.
EBITDA margin for the quarter rose to 55.4 percent from 18.1 percent during the year-ago quarter. Average revenue per user is now higher by 29 percent from pre-Covid levels to Rs 5,824. When compared with the December quarter, the ARPU increased by 2 percent.
Further, the occupancy rate was at 73.6 percent in the quarter under review as compared to 46.1 percent in the year-ago and 67.6 percent in the December quarter.
In-line with Lemon Tree's initial guidance, its revenue more than doubled to Rs 879 crore in financial year 2023, while EBITDA margin stood at 51.9 percent. It reported a net profit of Rs 140.5 crore for the year, compared to a loss of Rs 137.4 crore in financial year 2022.
Shares of Lemon Tree Hotels are trading 3.7 percent higher at Rs 99.10. The stock is close to its all-time high of Rs 103.40.
