Sinclairs Hotels Limited , a well-established brand in the Indian hospitality sector, has reported a decline in profits for the quarter ended June 30, primarily due to the impact of Operation Sindoor. Despite the challenges, the company maintained strong profit margins and announced the launch of a new property in Udaipur.

Financial Performance

For the first quarter, Sinclairs Hotels posted the following financial results:

All figures in Rs. lakh

The company's revenue from operations stood at Rs. 1,569.31 lakh for the quarter, compared to Rs. 1,654.50 lakh in the same period last year.

Impact of Operation Sindoor

Sinclairs Hotels reported that Operation Sindoor significantly affected bookings in May, which is typically a peak season month for the company. The operation led to major cancellations across all properties, resulting in an estimated revenue loss of approximately Rs 2 crore.

Strong Profit Margins

Despite the challenges, Sinclairs Hotels maintained robust profit margins:

• EBITDA Margin: 50%
• Net Profit Margin: 32%

These figures demonstrate the company's ability to maintain profitability even in challenging circumstances.

Launch of Sinclairs Palace Retreat Udaipur

Sinclairs Hotels announced the commencement of operations at 'Sinclairs Palace Retreat Udaipur' from August 1. Key features of the new property include:

• Location: Outskirts of Udaipur on Haldighati Road
• Area: Spread over five acres of landscaped land
• Accommodation: 90 rooms & suites, plus five villas
• Facilities: 7,000 sq ft banquet hall, swimming pool, and multi-cuisine vegetarian restaurant

The company is positioning this property as an ideal venue for weddings, social functions, large conferences, events, and family holidays.

Expansion and Recognition

Sinclairs Hotels currently operates a chain of ten hotels and resorts across various locations in India. The company's expansion plans include increasing its room inventory from the current 581 keys to around 700 rooms by FY 2026-27.

Six of the company's properties have won TripAdvisor's Travellers' Choice Award, highlighting the quality of service provided by Sinclairs Hotels.

Financial Stability

The company remains debt-free with strong fundamentals. As of March 31, Sinclairs Hotels' Other Equity (excluding Revaluation Reserves) stood at Rs. 10,234.72 lakh.

In conclusion, while Sinclairs Hotels faced challenges due to Operation Sindoor in the first quarter, the company's strong financial position, expansion plans, and the launch of its new Udaipur property demonstrate its resilience and growth potential in the Indian hospitality sector.

Sinclairs Hotels has reported a decrease in its financial performance for the first quarter, as per the company's latest unaudited financial results.

Revenue and Profitability

The hospitality company's revenue from operations stood at ₹156.93 crore, marking a 5.15% decrease from ₹165.45 crore reported in the same quarter of the previous fiscal year. This decline in revenue has impacted the company's profitability metrics.

Net profit for the quarter under review decreased by 9.68% to ₹61.85 crore, compared to ₹68.48 crore in the corresponding quarter of the previous year. This reduction in profit can be attributed to the lower revenue and increased expenses during the quarter.

EBITDA and Margin Compression

Sinclairs Hotels experienced a more significant decline in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The EBITDA fell to ₹59.43 crore from ₹74.41 crore in the corresponding quarter of the previous year, representing a 20.13% decrease.

The EBITDA margin also compressed, dropping to 37.87% from 45.00% year-over-year, indicating pressure on the company's operational efficiency.

Expense Analysis

The company's total expenses for the quarter increased to ₹116.44 crore, up from ₹103.91 crore in the same quarter of the previous year. Notable changes in expenses include:

Other Income and Total Income

Despite the decline in operational revenue, Sinclairs Hotels saw an increase in other income, which rose to ₹37.95 crore from ₹28.87 crore in the same quarter last year. This boost in other income helped mitigate the impact of reduced operational revenue on the company's total income, which stood at ₹194.88 crore compared to ₹194.32 crore in the corresponding quarter of the previous year.

Conclusion

The financial results suggest that Sinclairs Hotels is facing challenges in maintaining its growth trajectory and operational efficiency. Investors and stakeholders will be keenly watching the company's performance in the coming quarters to see if it can reverse the trend of declining revenues and profitability.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting. The Statutory Auditors have carried out a limited review of the financial results for the quarter.