Byke hospitality - Truly asset light?


(Rushikesh Kanthamani) #184

It seems that Promoters have pledged their shares again, though its a very small qty, but whats the reason to pledge when they are cash surplus. They have stated the reason that this funds are required for Choice Finserv Pvt Ltd. Why they are pledging their shares and using the funds else ware, as it creates doubt in investor’s mind, that too at the wrong time when there is a hard time going-on with small and mid caps. Any views/ideas on this announcement? Will be looking for active discussion by fellow investors
Link-https://www.bseindia.com/corporates/ann.aspx?scrip=531373&dur=A&expandable=0


(ravish) #185

I am really surprised by the management that they are not taking any concrete steps to increase room numbers and not doing anything with Delotel borivali , which must be eating good amount of money. There is a very good traction in tourism in India and business activities benefiting hotels is on rise this can be seen in various communication made by other hotels stocks. After seeing the FII’s entry i though they are on right path but they are very slow and not improving as per the my expectation. I think i will wait for 2 more quarters and will take final decision to exit.
Disc: Holding shares.


(paresh.sarjani1) #186

Delotel BORIVALI is really opportunity cost…it should start operations soon…not sure why so much delay…

Disc: holding


(Vikas Kasturi) #187

Hi Rushikesh,
Has it been pledged or released?

Per the BSE filing it says that Hemlata Poddar and others have actually released the pledges as Choice International no longer needs working capital loans. And the pledge quantity has come down from 3.14% to 0.4%. Am I missing something?


(Vikas Kasturi) #188

Hi Jatin,
I am new comer too, so pardon my ignorance.

Mohnish Pabrai’s first 100 bagger was in a now infamous company- Satyam in 1996 to 2000, I think. Does that make Pabrai a bad role model?
Just because Anil Patodia was an independent director at some time in the past at Vakrangee, does it make him a bad promoter? Is there material evidence linking him to the Vakrangee’s mess of present day?


(Rushikesh Kanthamani) #189

Hello Vikas
It says that it has been pledged, I have posted the screenshot below and it seems that they have released the previous pledge and created a new one again.And bse is showing still 3.14% pledge.


(Vikas Kasturi) #190

You are right. Thanks!


(Rushikesh Kanthamani) #191

Byke results are out, Bad results, dont know why there is a great erosion of both topline as well as ebitda margins. Management has to give some good explanation on the same.


(vinay_new07) #192

Extremely bad results. No wonder the stock has taken a beating.


(Hrusikesh) #193

Anyone planning to attend the Byke AGM on 27th September in Mumbai?


(paresh.sarjani1) #194

I can attend (y) let me know if anything to ask


(paresh.sarjani1) #195

I am not convinced with the beating because it’s already beaten down from it’s long term support 160 and it hardly found support at 120.

Now it seems 100 is last hope…

Results were not that bad and doesn’t reflect in current price.

I am going to ask about BORIVALI hotel …when it will start


(Vikas Kasturi) #196

Hi Paresh,
It would be most helpful if you could ask the following:

  1. Earlier they used to have quarterly conference calls. Why has this been abruptly stopped? Are there plans to reinstate the conference calls?
  2. In one of the last calls, the management had said that they plan to go for leasing. Is there any update on this?
  3. On Tripadvisor, the ratings by guests have been very bad. How does the management plan to address these issues? Normally, hotel managers atleast acknowledge the reviews and promise to correct them. Byke seems to be doing no such damage control, which would only make it worse for them. How can they franchise, when the brand takes a beating every time a customer leaves negative ratings?
  4. What are the updates on the Delotel hotel?

Thanks Paresh!


(vinay_new07) #197

The margins have dropped, the profits are down almost 20% YoY (not considering the QoQ) and there is significant rise in finance costs, implying higher debt on books. All this points to deteriorating business in a seemingly very positive business environment (so many reports indicate the uptrend in Hotel/hospitality sector).

Also, the management is not willing to communicate with the shareholders, with no con-calls or meaningful presentations to understand the dynamics.

Yes the stock has corrected but the company has not helped the shareholders in any manner.

Disclosure: Invested


(Rushikesh Kanthamani) #198

Hi Paresh,
My questions-

  1. On Tripadvisor, the ratings by guests have been very bad. How does the management plan to address these issues? Normally, hotel managers atleast acknowledge the reviews and promise to correct them. Byke seems to be doing no such damage control, which would only make it worse for them. How can they franchise, when the brand takes a beating every time a customer leaves negative ratings?
    As Rightly said above by Mr Vikas
    The above question is very,very important pl ask this for sure and see what and how management answers it.
  2. Ask them the reason for not hosting concalls anymore, we as minority shareholders have many questions and need regular updates on qtrly basis. Please request them to host concalls
  3. There is both margin as well as revenue erosion in this qtr, whats the reason and why such a erosion seen. And any revenue and ebitda margin guidance going forward like for next 2 yrs.
  4. Why they are pledging shares though small qty,they have stated the reason that this funds are required for Choice Finserv Pvt Ltd. Why they are pledging their shares and using the funds else ware, as it creates doubt in investor’s mind, that too at the wrong time when there is a hard time going-on with small and mid caps. And when will they get it released.

These were the questions from my side, hope any one attending the AGM will convey them and get sensible answers.
Thanx a lot


(Shyam) #199

The revenue numbers from their investor presentation is different than the one reported by them

Investor presentation:

Quarterly report:

Am I missing something? :confused:


(vignesh) #200

In case anyone is going to AGM , Can you please ask is Sunil Agarwal of Vakrange anyway related to Anil Patodia ? Saw a report saying that Anil Patodia was on the board of Vakrange .


(vinay_new07) #201

The figure for FY18 matches (1774M)

The figure for FY17 does not match because the company revised its revenue recognition policy starting 2018 wherein only commission earned by the company was recognized as revenue (prior to this the whole amount charged to client in chartering business was charged). Therefore the decrease in revenue.


(vignesh) #202

Hope you are referring to the Annual results. They changed their accounting method in FY18 to net revenue recognition method. hence the difference in revenue.


(sachit) #203

It may be because they wanted to make figures comparable as they changed accounting for chartering revenue