The company's unique ‘asset-light' business model allows it to leverage high profitability from a low capital base. This model has helped the company to register significant growth even during a downturn in the hospitality sector.

The business can be broadly classified into two segments: Owned & Leased (O&L) and Room Chartering (RC)

Owned & Leased Model

Under this business the company owns the hotel or takes them on long term lease.

Room Chartering Model

The company started its room chartering business in 2010-11. Under this model, it buys room nights of mid-budget hotels in bulk across leisure tourist and religious destinations during off-peak seasons. In the peak seasons it sells those room nights. This model has helped it strengthen its pan-India presence through chartering rooms across over 50 cities in India. It capitalises on diverse peak seasons to maximise revenue.

March 2016 2015 quarter results

For the quarter ended March 2016, sales grew 19% to Rs 68.01 crore. OPM jumped 180 bps to 23.8% which took OP up 29% to Rs 16.16 crore.

Hotel revenue grew 18.5% to Rs 37.91 crore and Chartering revenues grew 21%to Rs 30.10 crore.

Other income fell from Rs 10 lakh to Rs 3 lakh and interest cost fell 19% to Rs 36 lakh.

After providing for depreciation (up 52% to Rs 4.61 crore), PBT grew 23% to Rs 11.22 crore.

Taxation jumped 100% to Rs 3.86 crore as tax incidence grew from 21.1% to 34.4%. Thus finally net profit grew 2% to Rs 7.36 crore.

FY 2016 results

For FY 2016, sales grew 28% to Rs 231.52 crore. OPM jumped 220 bps to 22.7% which took OP up 41% to Rs 52.62 crore.

For the FY Hotel revenue grew 25% to Rs 114.29 crore and Chartering revenues grew 31% to Rs 117.23 crore.

Other income grew from Rs 11 lakh to Rs 14 lakh and interest cost fell 17% to Rs 1.50 crore.

After providing for depreciation (up 14% to Rs 11.60 crore), PBT jumped 56% to Rs 39.66 crore.

Taxation jumped 157% to Rs 13.73 crore as tax incidence grew from 21.0% to 34.6%. Thus finally net profit grew 29% to Rs 25.94 crore.

Valuation

The share price trades at Rs 167.