Lemon Tree registers turnarounds in Q1FY19

Lemon Tree, a mid-sized hotel operator, reported its first quarter result for FY19. The company’s revenue stood at Rs. 128.1 crore in the quarter, up by almost 18 per cent as compared to Rs. 108.5 crore in corresponding quarter of last fiscal. The 3 per cent increase was on account of new inventory addition.

Occupancy during the quarter increased by 250 bps to 76.8 per cent from 74.3 per cent in Q1FY18. Fees from managed hotel stood at Rs. 4.8 crore (3.7 per cent of the total revenue) in Q1FY19 as compared to Rs. 2.7 million (2.4 per cent of the total revenue) in Q1FY18. 

EBITDA for the quarter surged almost 30 per cent from Rs. 26.9 crore in Q1FY18 to Rs. 35 crore in Q1FY19 with corresponding margins expansion of 250 bps from 24.8 per cent in Q1FY18 to 27.3 per cent in Q1FY19. 

The company managed to turnaround its bottom-line from loss of Rs. 3.1 crore in Q1FY18 to a net profit of Rs. 2.2 crore in Q1FY19.

Presently, Lemon Tree operates in 31 cities with 50 hotels having a total room strength of 4,998.

On Tuesday, the stock of Lemon Tree opened on a positive note at Rs. 80.6 per share as against the previous close of Rs. 78.8. At 11.56 hours, the stock was trading at Rs. 79.55, up by 1 per cent.