Overview of the Bharat Hotels
(i) They are one of the leading privately-owned domestic hotel brands in India, according to the CRISIL Report, engaged in the business of operating and managing hotels, palaces, and resorts, with a focus on the luxury segment. As at March 31, 2018, they operated 12 luxury hotels, palaces and resorts under The Lalit brand and two mid-market segment hotels under The Lalit Traveller brand across India‘s key business and leisure travel destinations, offering 2,261 rooms.
(ii) In addition, they hold the exclusive rights to provide management consultancy services in connection with the operation and management of a hotel in London, The Lalit London, which offered 70 rooms as of March 31, 2018.
(iii) The luxury hotels operating across India under The Lalit brand are grouped into the following three categories:
a) City hotels: The LaLiT New Delhi, The LaLiT Mumbai, The LaLiT Ashok Bangalore, The LaLiT Great Eastern Kolkata, The LaLiT Jaipur, and The LaLiT Chandigarh.
b) Palaces: The Lalit Laxmi Vilas Palace Udaipur and The LaLiT Grand Palace Srinagar.
c) Resorts: The LaLiT Golf & Spa Resort Goa, The LaLiT Resort & Spa Bekal (Kerala), The LaLiT Mangar, and The LaLiT Temple View Khajuraho.
Future Plans of Bharat Hotels
(i) Going forward, they intend to develop three new hotels under The LaLiT brand in Ahmedabad, Mangalore, and Dehradun which will, in aggregate, offer 290 rooms and 115 cottages, when completed.
(ii) They also intend to develop 50 additional rooms at The LaLiT Laxmi Vilas Palace Udaipur.
(iii) They also operate two hotels in the mid-market segment under The LaLiT Traveller brand, which are The LaLiT Traveller Jaipur and The LaLiT Traveller Khajuraho. They intend to develop four new hotels under The LaLiT Traveller brand in Ahmedabad, Pune, Amritsar, and Chitrakoot which will, in the aggregate, offer 308 rooms, when completed.
(iv) Further, in the F&B segment, they operate 45 restaurants, bars, and bakery outlets as of March 31, 2018, across our hotels in India. They have developed their own brands, such as 24/7, Baluchi, OKO, The LaLiT Boulangerie, Kitty Su, and The LaLiT Food Truck Company.
Business Performance Bharat Hotel FY19-20
1. The Lalit Suri Hospitality Group was recording a steady growth in its revenues in the last financial year until the set-back in the last quarter from January 2020 onwards due to the COVID-19 pandemic. Because of almost negligible business from January onwards, Bharat Hotel came in the loss in FY19-20.
2. Due to COVID-19, the hospitality sector was affected quite badly. With social distancing, quarantine measures, travel bans, etc., it is expected that hospitality will take a longer time to revive. Plus the fixed cost is the same as before and with revenue declining, Bharat Hotel has faced liquidity issues in the business.
3. In order to increase the revenue during the lockdown, some of the hotels have accommodated doctors on COVID 19 duty at hospitals at fixed rates to be paid by the Government. Apart from this, Bharat Hotel has also started home delivery of bakery, confectionery, and gourmet hampers. The Company is also exploring possibilities of digital channels to make more products and services available to guests like Ayurveda doctor consultancy, wellness packages, chef at home, bartender at home, Kitty comes home, industrial catering.
Business and Operation performance of Bharat Hotel in FY20-21
1. Bharat Hotel Unlisted Share has recorded unprecedented decline in revenue and losses on both standalone and consolidated basis during the last financial year amid the COVID-19 crisis. The business operations of the Company were severely disrupted during the first-half of last year due to lockdown, travel restrictions and other control measures implemented by the Government to contain the spread of the pandemic.
2. During this period some of the hotels were accommodating doctors on COVID-19 duty at fixed rates paid by the Government. The hotels pan-India could not fully operationalise even by the end of year 2020 and witnessed huge reduction in their operating cashflows that has put abrupt pressure on liquidity levels of the Company.
3. Bharat Hotel had put up a strong impetus on cost optimization by reviewing all expenses to ensure only the very critical expenses were incurred; the Company has been able to generate a positive EBIDTA despite substantial reduction in the revenue.
4. Several strategic initiatives have been taken to reinstate the business including consolidation of various units of the Company and discontinuation of unprofitable or onerous operations. To better manage its liquidity position, the Company has restructured its existing borrowings from various banks under the RBI guidelines on “Resolution Framework for COVID-19 related Stress”.
5. The revenue of Bharat Hotel declined from 729 Crores in FY20 to 172 Crores in FY21. 6. Bharat Hotel has incurred a loss of ~90 Crores in FY20-21.
Business and Operational Performance of Bharat Hotel in Fy22-23
Bharat Hotels Limited (BHL), a prominent player in the Indian hospitality sector, has recently released its annual financial report for the fiscal year 2022-23. The report reveals a compelling narrative of remarkable financial recovery and growth, following a challenging period due to the COVID-19 pandemic. In this blog, we will dissect the key highlights from the annual report and what they signify for investors evaluating BHL's prospects.
Financial Performance Highlights A Surge in Revenue
The first thing that stands out from the report is the phenomenal revenue growth. BHL recorded a 117% increase in its revenue from operations, climbing to Rs. 800 crore in FY 2022-23 from Rs. 369 crore in FY 2021-22. This surge can be attributed to the successful vaccination drive, reopening of international borders, and the overall economic growth in the country.
A Closer Look at Expenses and Profits
While total expenses also increased by 88% to Rs. 444 crore, the rise is considerably less than the revenue growth, indicating improved operational efficiency. More impressively, BHL's EBITDA soared by 162% to Rs. 364 crore, showcasing an enhanced ability to generate income from its operations. Profit Before Tax (PBT) and Net Profit also displayed significant improvements. PBT registered a 230% increase, reaching Rs. 134 crore, turning around from a loss of Rs. (103) crore in the previous fiscal. Net Profit rose to Rs. 50 crore, marking a 129% increase and recovering from a loss of Rs. (59) crore in FY 2021-22.
Cash Flow Insights
Strong cash flow management is crucial for any business, and BHL appears to have excelled in this area. The company generated robust net cash from operating activities, reaching Rs. 317 crore, an increase from Rs. 136 crore in the previous year. BHL also showed positive trends in cash flow from investing activities and improved cash flow from financial activities.
Strategic Financial Moves
During FY 2022-23, BHL issued 1,10,000 Non-Convertible Debentures to repay existing debt. This move not only helped the company clear its loans but also signaled strong financial management to potential investors.
The Bigger Picture
Founded in 1981 by Lalit Suri, BHL has been a leader in the Indian hospitality industry. Its portfolio includes premium properties such as The Lalit New Delhi, The Lalit Mumbai, and The Lalit Jaipur. The financials for FY 2022-23 indicate that the company has not only weathered the storm of the COVID-19 pandemic but is also well-positioned for future growth.
Conclusion
Bharat Hotels Limited's financial performance for FY 2022-23 reveals a success story of resilience and strategic financial management. The company has managed to turn the tide with impressive revenue growth, profitability, and cash flow management. For those looking to invest in the hospitality sector, BHL's recent financial performance offers compelling evidence of a company on the rise, making it a candidate worthy of consideration.
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Find answers to common questions that you may have in your mind.
Please find below the procedure for buying Bharat Hotels Unlisted Shares at UnlistedZone.
Please find below the procedure for selling Bharat Hotels Unlisted Shares at UnlistedZone.
The lock-in period for Bharat Hotels Unlisted Shares varies depending on the category of investors:
This regulation was introduced by SEBI in August 2021. The rule change, which reduced the lock-in period from one year to six months, was aimed at encouraging more investments in startups that are preparing for public offerings or IPOs. This reduction in the lock-in period is seen as a significant step forward, and since its introduction, many Portfolio Management Services (PMS) have been advising their clients to invest in Pre-IPO shares to capitalize on the benefits of early-stage investments.
DIS, or Delivery Instruction Slip, is a tool used by investors to sell or transfer Bharat Hotels Unlisted Shares from their demat account to another. There are two types of DIS Methods:
1. Offline-DIS: This is a traditional, paper-based method for transferring shares. When using Offline-DIS, investors are required to fill out a DIS form and submit it to their broker. The necessary fields in the form include:
a. ISIN number of Bharat Hotels Unlisted Shares.
b. Name of Bharat Hotels Unlisted Shares.
c. Quantity of Bharat Hotels Unlisted Shares.
d. Consideration Amount.
e. Target DP ID and Client ID.
f. Annexure.
2. Online DIS: Some brokers offer the facility to transfer Bharat Hotels Unlisted Shares through an online DIS system. It's advisable to check with your broker if such a facility is available.
For instance, platforms like Angel Broking provide an Online-DIS feature. In this method, an investor simply needs to add a beneficiary and transfer Bharat Hotels Unlisted Shares by filling in details similar to those required in the Offline-DIS.
For a more comprehensive understanding of this process, you can refer to our detailed article: https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/
In recent years, the unlisted share market has expanded significantly, leading to a reduction in the minimum investment amount. Previously, the typical investment ticket size ranged from 5-10 Lakhs, but in the current market scenario, it has decreased to between 35-50k. Therefore, through our UnlistedZone platform, if someone wishes to invest in Bharat Hotels Unlisted Shares, the minimum investment required would now be in the range of 35-50k
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates:
Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favorable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period:
The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance.
When you purchase Bharat Hotels Unlisted Shares through UnlistedZone, it's important to note that, as per SEBI regulations, these shares can only be transferred to a demat account.
There are two primary ways to check the credit of Bharat Hotels Unlisted Shares in your account:
1. Using NSDL or CDSL Applications:
Download the NSDL or CDSL application from the Google Play Store.
To determine whether your stock broker is registered with NSDL or CDSL, you can examine the format of your Demat Account number. The Demat Account number consists of 16 characters, combining the DP ID and Client ID.
DP ID is the unique identification number of the Broker, assigned by CDSL or NSDL.
Client ID is the unique identification number of the Client, representing their portfolio.
In CDSL, the Demat Account number is entirely numeric (e.g., 12345678 for DP ID and 91234567 for Client ID).
In NSDL, the first two characters are alphabetic, representing the country (e.g., 'IN' for India), followed by a 6-digit unique number for the Broker (DP ID) and an 8-digit Client ID (e.g., IN123456 for DP ID and 78912345 for Client ID).
2. Checking in Broker's Application:
The credit of Bharat Hotels Unlisted Shares can also be checked in your broker's application. However, it's important to note that it may take T+2 days for the shares to show up in the application after the transaction.
The Bharat Hotels Unlisted Shares are credited in the demat account on the same day as the transfer of funds into our company's bank account.
"The price of Bharat Hotels Unlisted Shares can be checked in two ways. First, you can join our Telegram channel, where we share the latest prices of all unlisted shares daily in the morning. Secondly, you can check price on our UnlistedZone platform to view historical graphs and prices of all shares in one place."
Investing in Bharat Hotels Unlisted Shares, like any investment, carries certain risks that should be carefully considered:
1. Liquidity Risk: Unlisted shares, by their nature, are not traded on public stock exchanges. This can result in lower liquidity compared to listed shares, meaning it might be more challenging to find buyers when you wish to sell your shares.
2. Price Volatility: The price of Bharat Hotels Unlisted Shares can be more volatile compared to listed shares. This is partly due to the lack of regular public trading and potentially limited information available about the company's financial health and performance.
3. Regulatory Risk: Unlisted shares are subject to different regulatory frameworks than listed shares. Any changes in regulations or compliance requirements can impact the value and tradeability of these shares.
4. Limited Information: There may be less publicly available information about unlisted companies. This can make it more difficult to assess the company's true value and potential for growth, increasing the risk of investment.
5. No Guarantee of Future Listing: Investing in Bharat Hotels Unlisted Shares with the expectation of future listing on a public exchange carries the risk that the listing may not occur. This can affect both the liquidity and potential value appreciation of the shares.
6. Company-Specific Risks: Each company has its own set of risks based on its industry, management, financial health, and market position. These risks can significantly impact the performance of your investment in Bharat Hotels Unlisted Shares.
UnlistedZone: Pioneering Excellence in India's Unlisted Share Market
UnlistedZone stands as India's fastest-growing and leading marketplace for buying and selling unlisted shares. Over the past 5 years, we have carved a niche in the financial market, website hit user inflows over a 2 million users on our platform since inception. This remarkable journey is underscored by the sheer volume of transactions facilitated through UnlistedZone, which has already surpassed the 300 Crore mark.
At the helm of our success are our esteemed co-founders, Mr. Umesh Paliwal and Dinesh Gupta. Their insights and expertise are regularly sought after by leading financial publications such as MoneyControl, Business Standard, and The Economic Times, particularly for their authoritative views on IPOs and the unlisted market. Our journey over these 5 years has not just been about numbers; it's been about building trust and reliability.
UnlistedZone has established a formidable reputation in the industry, earning the trust and confidence of our users. This trust is our cornerstone, ensuring that new investors can engage with us without the apprehensions of fraud that are often associated with unknown brokers in the market.
At UnlistedZone, we are committed to maintaining the highest standards of transparency and integrity, ensuring that your investment journey is not just profitable but also secure and trustworthy.
Valuation Methodology at UnlistedZone for Bharat Hotels Unlisted Shares
At UnlistedZone, we employ a meticulous and strategic approach to valuing Bharat Hotels Unlisted Shares, utilizing two primary methods: Benchmark Valuation Based on Latest Funding:
1. Our first step is to examine the most recent funding round for Bharat Hotels Unlisted Shares. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts. This method is particularly effective in capturing the latest market sentiment and financial health of the company.
2. Comparison with Listed Peers: In cases where there hasn't been recent funding for Bharat Hotels Unlisted Shares, we adopt a comparative approach. This involves identifying a business in the listed market that closely resembles Bharat Hotels Unlisted Shares in terms of industry, size, and business model. By comparing and contrasting the two, we can ascertain a fair valuation for Bharat Hotels Unlisted Shares, drawing on the market data and performance metrics of its listed counterpart.
Investor Advisory: As experts in the unlisted space, we at UnlistedZone emphasize the importance of thorough risk assessment to all our investors. It's crucial to evaluate all risk parameters carefully before investing in unlisted shares. This due diligence is key to making informed and strategic investment decisions in the dynamic and evolving unlisted market.
"At UnlistedZone, our approach to sourcing Bharat Hotels Unlisted Shares involves a strategic and direct method. Primarily, we acquire these shares from two key groups:
1. Employees of the Company: Often, employees of a company receive shares as part of their compensation or through employee stock option plans (ESOPs). Over time, some of these employees may decide to liquidate their holdings for various reasons, such as financial needs or portfolio diversification. We engage with these employees, providing them a platform to sell their shares.
2. Initial Investors: These are the early-stage investors or angel investors who provided capital to the company during its initial phases. As the company grows and evolves, these initial investors might look to sell part or all of their stake in the company. This could be for reasons like capitalizing on their investment, reallocating assets, or other strategic financial decisions.
By connecting with these groups, UnlistedZone ensures a reliable and consistent supply of Bharat Hotels Unlisted Shares for our clients. This method not only helps employees and initial investors in liquidating their assets but also provides our clients with access to shares that are not readily available in the public market. It's a win-win for both the sellers and buyers, facilitated efficiently through our platform."
"The Securities and Exchange Board of India (SEBI) does have a regulatory influence on the unlisted market, though it's not as comprehensive as its oversight of the listed markets.
Key aspects of SEBI's involvement in the unlisted space include:
1. Applicable Rules and Regulations: Certain SEBI regulations are indeed applicable to transactions in the unlisted market. This includes the mandatory lock-in period of 6 months, the requirement to pay stamp duty, and depository participant (DP) charges for every transaction. These measures are in place to ensure a certain level of standardization and protection in the unlisted market, similar to those in the listed markets.
2. Lack of Specific Regulation for Unlisted Brokers: As of now, SEBI does not have specific regulations for becoming an unlisted broker. This means that while certain SEBI rules apply to transactions within the unlisted market, the process of becoming a broker in this space is not directly regulated by SEBI. This lack of direct regulation highlights the importance of due diligence by investors when engaging with brokers in the unlisted market.
3. Investor Protection and Transparency: The regulations that do apply, such as the lock-in period and transaction charges, are designed to protect investors and add a layer of transparency to these transactions. They aim to mitigate some of the risks inherent in trading unlisted securities, which typically don't have the same level of public scrutiny and regulatory oversight as listed securities. In summary, while SEBI's regulatory framework does extend to certain aspects of the unlisted market, it does not comprehensively regulate all aspects of it, particularly concerning the accreditation of unlisted brokers. This underscores the need for investors to exercise caution and conduct thorough research when participating in the unlisted market."
"For comprehensive and up-to-date news and information about Bharat Hotels Unlisted Shares, we have several platforms to keep you informed. Our website is regularly updated with the latest insights and developments. For real-time updates and engaging discussions, you can join our Telegram channel. Additionally, follow us on Twitter for quick news bites and industry trends. And for more in-depth analysis and informative content, subscribe to our YouTube channel. These resources are designed to provide you with a well-rounded understanding of the unlisted market, ensuring you have access to all the information you need about Bharat Hotels Unlisted Shares."