As per the data, the overall picture of the business and financial progress of the tourism and hospitality sector is mixed. A handful of companies have been able to grow their profits and earnings attractively, while most companies are still going through losses.
Looking at the average status of the overall group, the average paid-up capital of the hotel and tourism companies has reached more than Rs 1.80 billion, while the EPS have been negative. During the review period, the average operating income of the companies in this sector was Rs 737.3 million, while the average net profit was also under pressure.
In the group, Soaltee Hotel has maintained its business dominance and has managed to earn the highest net profit during the quarter. Soaltee Hotels earned a net profit of Rs 761.1 million during the period, which is 13.48 percent growth compared to corresponding period of the previous FY. The total income of Soaltee has increased to Rs 3.14 billion. The company has EPS of Rs 6.48 per share and reserve fund of Rs 2.17 billion.
Similarly, Kalinchowk Darshan has achieved unprecedented progress in its financial indicators. The net profit of the company increased by 107.48 percent to Rs 57.6 million compared to Rs 27.8 million of the prevoius FY. Kalinchowk Darshan's EPS increased to Rs 9.16 per share, while its operating income increased by 12.56 percent.
However, the financial position of Chandragiri Hills has gone downhill. In the review period, the net profit of Chandragiri Company decreased by 60.89 percent to Rs 82.4 million. The company had posted a net profit of Rs 211 million in the previous FY. In the review period its total income from operations also declined by 13.84 percent to Rs 777.5 million. Chandragiri Hills' EPS stood at Rs 5.12.
Other listed hotels and tourism companies incurred losses in the quarter. Bandipur Cable Car and Tourism has incurred a net loss of Rs 13.6 million in the review period, although its operating income increased by 172.48 percent. Similarly, City Hotel has posted a net loss of Rs 173 million while Hotel Forest Inn has posted a loss of Rs 244.5 million in the last FY.
Moreover, Oriental Hotels also reported a net loss of Rs 47.4 million during the year compared to net profit of Rs 29.5 million in the previous FY. Taragaon Regency Hotel was the biggest loser in this group. Taragaon Regency posted a net loss of Rs 705.7 million in the last FY.
Overall, apart from Soaltee Hotel and Kalanchowk Darshan, other hotels and tourism business organizations have felt a lot of pressure in making a profit due to the challenging economic environment and high expenses. Fluctuations in tourist arrival and management of operating expenses have emerged as the main challenges.
