Kamat Hotels hits new high

Kamat Hotels has been hitting new highs for the past few days and today was no different – it hit another new high at Rs.101.10.

Looks like the market had prior inkling about the company’s Q1FY18 performance. Thanks to the one-time settlement (OTS) with Canara Bank, the company’s interest outgo for the quarter reduced from Rs.10 crore to Rs.2 crore in previous Q1 and this alone helped it post a turnaround.

It ended the quarter with a net profit at Rs.10.5 crore v/s loss of Rs.3 crore (YoY); revenue was actually down 1% at Rs.35 crore.

The company opted for OTS was the cash flow mismatch due to which the debt had become a Non- Performing Asset. Entire repayment under OTS will be completed in two instalments which shall be paid latest by the first week of October 2017.