Lemon Tree reports sharp rebound in revenues; margins also expand

News: Lemon Tree Hotels reports revenue growth of 110% YoY, 48% QoQ to Rs.143.7 crore. EBITDA improves sharply to Rs.63.3 crore with operating margin of 44.1%. Net losses narrowed down to Rs.5.2 crore vs loss of Rs.45.7 crore last year and loss of Rs.33.2 crore last quarter.

Views: While revenues reached 72% of pre-Covid levels, stringent cost controls helped the company to reach EBITDA at 78% of pre-Covid levels. With better EBITDA margins at 44%, the operational performance remained ahead of our estimates.

Impact: Positive