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Topic: Kamat Hotels

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shivkumar
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Joined: 02/Oct/2007
Location: India
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Posts: 2037

Posted: 23/Apr/2008 at 3:39pm

The scion of Kamat Hotels has plans to expand in Maharashtra and Gujarat. Considering that these are the two states that are seeing a boom in business, it seems to be a great idea.

"Our primary target with 'VITS' is to foray into the much untapped regions of Maharashtra, Karnataka and Gujarat. In Maharashtra alone, we are aiming to develop 36 properties in the next five years," informs Kamat.

The group launched its first 'VITS' property in Mumbai (in Andheri) by upgrading its already existing property 'Lotus Suits'. It recently opened another 'VITS' in Belgaum under the watchful eyes of Kamat junior. Moreover, it has zeroed in on Kolhapur, Nagpur, Nashik, Navi Mumbai, Pune, Solapur, Surat, Thane and Aurangabad and Chinchwar. Besides these cities in Maharashtra, it is also looking at cities in Gujarat (Baroda, Ahmedabad and Surat), Karnataka (Hubli) and South India. "We are looking for fresh acquisitions to market VITS in other parts of the country now," he adds. The group, according to Kamat, is looking at an investment of Rs 500 crore in the next four years to develop its 'VITS' brand of hotels."

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Mr. V
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Joined: 01/Mar/2007
Location: United States
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Posts: 903

Posted: 03/Jun/2008 at 11:44pm

Kamat Hotel's Q4 results were a surprise (on the -ve side).

While Q4 Revenues were stable (QoQ) at 44.3 crores, both Operating profits and net profits were sharply lower at 19.25 cr (Q3 was 22.88 cr) and 5.18 cr (Q3 was 10.78).

Depreciation was also higher by 1.5 cr

The Notes to results mentions the following 2 points :

6. a) Extra-ordinary items for the year represent Luxury tax assessment dues of Rs 17.161 million for the period from May 2004 to March 2005 paid on disposal of Luxury Tax appeal vide appallate order dated December 12, 2007.

b) Prior Periods expenses include direct expenses of Rs 75.304 million incurred in earlier years for marketing timeshare membership, which have been charged to revenue during the period net of equivalent amount transferred from advance timeshare membership fees received in earlier years as per modified method of accounting time share income as advised.

6(a) I believe explains the higher effective tax rate of 50%

I am not too sure by how much 6(b) impacts the bottomline.

Any estimates/conclusions ?

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stocktin
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Joined: 14/Jan/2008
Location: India
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Posts: 208

Posted: 03/Jun/2008 at 2:29am

Originally posted by Mr. V

Kamat Hotel's Q4 results were a surprise (on the -ve side).

While Q4 Revenues were stable (QoQ) at 44.3 crores, both Operating profits and net profits were sharply lower at 19.25 cr (Q3 was 22.88 cr) and 5.18 cr (Q3 was 10.78).

Depreciation was also higher by 1.5 cr

The Notes to results mentions the following 2 points :

6. a) Extra-ordinary items for the year represent Luxury tax assessment dues of Rs 17.161 million for the period from May 2004 to March 2005 paid on disposal of Luxury Tax appeal vide appallate order dated December 12, 2007.b) Prior Periods expenses include direct expenses of Rs 75.304 million incurred in earlier years for marketing timeshare membership, which have been charged to revenue during the period net of equivalent amount transferred from advance timeshare membership fees received in earlier years as per modified method of accounting time share income as advised.

6(a) I believe explains the higher effective tax rate of 50%

I am not too sure by how much 6(b) impacts the bottomline.

Any estimates/conclusions ?

They also have an additional Rs 5Cr. expense this quarter. I think that makes the difference.

taggy

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ashokpatil
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Joined: 27/Aug/2008
Location: India
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Posts: 38

Posted: 29/Oct/2008 at 5:57pm

kamat hotels is good commpany. I am holding it from long time. But only problem is that promoters Vthal kamat and sons hold their own familly resturents under own familly companies here in india and in usa and canada. If we see the annual reports Mr vithal kamat andhis sons are directors of other clubs and familly resturent business.SO it is confusing which resturents are owned by Kamat hotel as company and which is owned by mr vithal kamat familly.

In poona Mr vithal kamat started few veg resturents by named Sol kadhi about which no mention is made about annual reports or company statements.So it is confusing situation.

ashokpatil

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ashokpatil
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Joined: 27/Aug/2008
Location: India
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Posts: 38

Posted: 29/Aug/2009 at 10:20am

Kamat hotels published thier annual report profits are declining. They own nearlly 60 resturents in cities and on highways. There is no mention about
restaurent division in annual report. All information is about hotel division.
Management have failed to see importance of resturents.Its a highly profitable business, where return on capital is high. But big hotels require huge capital so huge loans and low return on capital. Hotel business is like airline business where huge capital is required to buy planes,and to run them. The management of kamat hotels should have laid more emphasies on restaurent business, which would have improved profitability.

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shivkumar
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Joined: 02/Oct/2007
Location: India
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Posts: 2037

Posted: 02/Mar/2010 at 6:00pm

Hotel business is looking good again and the next few quarterly results will reflect the benefits of the upswing in the economy. ARRs are improving and the company's results last quarter were much better. Benefits of expansion will also kick in the coming months.

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ashokpatil
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Joined: 27/Aug/2008
Location: India
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Posts: 38

Posted: 13/May/2010 at 9:29pm

kamat hotel stock rose 55% in april 2010 on back of FII investment its a good company in hotel and resturent sector

Edited by ashokpatil - 13/May/2010 at 9:34pm

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basant
Admin Group

Joined: 01/Jan/2006
Location: India
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Posts: 18403

Posted: 13/May/2010 at 10:14pm

Is it good after the rise or was good before it. Somehow Hotels is intensively capital intensive and almost all gains accrue from pricing.

'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

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