Shares of Chalet Hotels rallied over 7 percent in early trade on Tuesday after the company reported a threefold jump in its consolidated net profit to Rs 42.17 crore for the quarter ended March 31. The company’s net profit in the corresponding period of the previous financial year was Rs 13.30 crore.

Share Market Live

NSE

The stock gained 7.15 percent to hit an intraday high of Rs 172.95 per share. At 9:47 am, the stock traded 1.80 percent higher at Rs 164.30 on BSE.

The company’s consolidated income stood at Rs 237.62 crore in Q4FY20 as against Rs 277.07 crore, YoY.

Segment revenue for hospitality was Rs 201.1 crore as compared to Rs 256.7 crore, while the segment’s profit margin before interest, depreciation and tax was at 34.2 percent as compared to 41.7 percent in the same quarter of the previous year, the company said.

Average Daily Rate (ADR) for the quarter was steady at Rs 8,890 with occupancy at 61 percent a drop of 2,100 bps led by travel restrictions and lockdown due to COVID‐19.

“The year had started for Chalet on a good note, notwithstanding economic headwinds, the company continued to deliver on rate growth and implementing cost efficiencies,” Chalet Hotels MD and CEO Sanjay Sethi said.

“What we see today are unprecedented times, we started bracing for the impact of COVID‐19 from January 2020 onwards with certain business actions taken as early as February 2020. As part of the industry with the direct impact of the restrictions put by the Government for the control of the pandemic, we believe the actions taken by us today are key to our near to mid‐term revival,” Sethi added.

The company’s performance comes amid the cascading effect of the global coronavirus pandemic is crippling the country's tourism and hospitality industry at a shocking pace.

India's Foreign Tourist Arrivals (FTA) has come down by about 67 percent annually in the January-March quarter, while for domestic tourists, the figure is lower by nearly 40 percent, according to statistics published by the tourism ministry, the Indian Chamber of Commerce (ICC) had said in April.

The travel and tourism sector alone accounted for 9.2 percent of India's GDP in 2018, and generated 26.7 million jobs in that year, the ICC had said in a statement.

Catch all the latest updates from the stock market here.

First Published:Jun 9, 2020 10:13 AM IST