EIH Limited’s shares dropped 10% following the release of its first-quarter earnings for the period ending June 30, 2024. As of 10:10 AM, the shares were trading 9.52% lower at ₹358.90.
Financial Highlights
- Net Income: Fell to ₹921.9 million from ₹1,037.6 million in the same quarter last year, marking a decline in profitability.
- Revenue: Increased to ₹5,599.1 million from ₹5,226 million year-on-year.
- Sales: Rose to ₹5,265.4 million from ₹4,981 million a year ago.
- Basic EPS: Decreased to ₹1.47 from ₹1.66 in the previous year.
- Diluted EPS: Also fell to ₹1.47 from ₹1.66.
Margin Analysis
- EBITDA Margin: Reported a decrease of 560 basis points year-on-year, reflecting weaker operating performance.
| Metric | Q1 FY25 | Q1 FY24 | Change |
|---|---|---|---|
| Net Income | ₹921.9 million | ₹1,037.6 million | -11.1% |
| Revenue | ₹5,599.1 million | ₹5,226 million | 7.1% |
| Sales | ₹5,265.4 million | ₹4,981 million | 5.7% |
| Basic EPS | ₹1.47 | ₹1.66 | -11.4% |
| Diluted EPS | ₹1.47 | ₹1.66 | -11.4% |
EIH’s decline in net income and earnings per share, coupled with the drop in margins, has led to a significant fall in its share price. The results reflect challenges in maintaining profitability despite higher revenues.