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4 hours ago
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Lemon Tree Hotels Ltd (BOM:541233) Q4 2025 Earnings Call Highlights: Record Revenue and ...
Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lemon Tree Hotels Ltd (BOM:541233) recorded its highest ever fourth-quarter revenue at INR 379.4 crores, marking a 15% year-on-year growth. The company's net EBITDA grew by 17% year-on-year to INR 205 crores, translating into a net EBITDA margin of 54%, an increase of 109 basis points. The total revenue for the year stood at INR 1,288 crores, a 20% increase over the previous fiscal year. The company's profit after tax increased by 29% year-on-year to INR 108.1 crores in Q4. The debt of the company decreased by about INR 190 crores during the year, improving the debt-to-EBITDA ratio by 25%. The retail average room rate (ARR) in some locations, like Oria Mumbai, remains below expectations, impacting potential revenue growth. Renovation expenses increased to 2.7% of revenue, which is expected to continue into the next year, affecting short-term profitability. The occupancy rate, while improved, still requires strategic pricing adjustments to maximize revenue, especially in high-demand periods. The expansion of managed and franchise contracts is slower than anticipated, with delays attributed to third-party owners. Geopolitical developments and COVID-19 impacts have led to a significant revenue growth slowdown in certain regions, such as Northern India. Warning! GuruFocus has detected 2 Warning Sign with BOM:524332. Q: Can you provide an update on the developments at Oria Mumbai, particularly regarding the ARR and future pricing expectations? A: The retail pricing at Oria Mumbai varies significantly, and while current spot checks show lower rates, we expect the ARR to increase significantly during the high season. The focus has been on filling the hotel, and with occupancy now over 80%, we are confident that the ARR will reach the 11,000 to 12,000 range in the upcoming winter season. (Respondent: Chairman and Managing Director) Q: What steps are being taken to increase the retail share from 45% to 65%, and how will this impact the income statement? A: The increase in retail share is expected due to rising demand from individual travelers. We are enhancing our loyalty program and website to capture more direct bookings, which will reduce costs and increase margins. We anticipate achieving the 65% retail target within three years. (Respondent: Chairman and Managing Director) Q: With renovation costs expected to decrease by FY28, what is the projected EBITDA margin for that year? A: We expect the EBITDA margin to reach at least 55% by FY28, up from the current 50%. This is due to reduced renovation expenses and increased revenue growth. (Respondent: Chairman and Managing Director) Q: Can you explain the strategy behind the limited expansion in the upscale Lemon Tree Premier segment? A: Our strategy focuses on expanding into tier 2 and tier 3 cities, which typically support mid-market hotels rather than upscale ones. This network expansion aims to increase brand presence and drive demand across our portfolio. (Respondent: Chairman and Managing Director) Q: What is the status of the renovation projects, and how many rooms are expected to be renovated in the coming years? A: We have completed about 70% of the renovations, focusing on high-value hotels and Keys properties. We plan to renovate another 30% this year, with the remaining minor refurbishments continuing into the next year. (Respondent: Chairman and Managing Director) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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4 hours ago
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Campus Activewear Ltd (BOM:543523) Q4 2025 Earnings Call Highlights: Strong Revenue Growth ...
Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Campus Activewear Ltd (BOM:543523) achieved a 10% year-over-year revenue growth, reaching INR 1,593 crores, driven by higher volumes and strategic distribution expansion. The company launched over 250 new styles for men, women, and children, enhancing its product offerings and catering to diverse consumer needs. Gross margin improved by 20 basis points to 52.3%, attributed to procurement and production efficiencies. The sneaker portfolio experienced a significant growth of 150% compared to the previous year, indicating strong consumer demand. Campus Activewear Ltd expanded its retail footprint with 30 new stores, increasing the total EPO count to 296 across India. Despite the premiumization of products, the average selling price (ASP) declined due to a higher mix of open footwear and accessories. The company faced challenges in liquidating non-BIS inventory, which is expected to impact margins by 20 to 40 basis points in the coming year. There was a slight decrease in PAT margin from 8.9% to 8.5% due to higher depreciation from impairment of DIP lines. The online sales volume growth was modest at 6-7%, indicating potential challenges in accelerating this channel. The company anticipates continued margin pressure due to the liquidation of slow-moving inventory and non-BIS stock. Warning! GuruFocus has detected 2 Warning Signs with BOM:543523. Q: Despite an increase in premiumization, why has the average selling price (ASP) declined? A: Unidentified_3 (CFO): The ASP decline is driven by a higher mix of open footwear and accessory sales, such as socks, which have a lower ASP. However, margins have improved by 20 basis points, indicating that the product mix is not diluting overall profitability. Q: Is the slower growth in online volumes a strategic decision by the company? A: Unidentified_2 (CEO): No, the growth in online volumes is aligned with demand. The company operates each channel strategically to contribute meaningfully to overall revenue. The online channel saw a higher proportion of outright sales, which contributed to ASP increases. Q: How is the demand scenario and competitive landscape, especially with the BIS inventory cleanup? A: Unidentified_2 (CEO): The non-BIS inventory liquidation has been slower than expected but is under control. Demand has been positive in the north, east, and west regions, with some softness in metros and tier-one cities. The sneaker segment has shown strong growth, contributing to higher ASPs. Q: What is the impact of the new facility on depreciation, and when will it start affecting financials? A: Unidentified_3 (CFO): The new facility's depreciation started in March for one month and will be fully reflected next year. The investment of around 21 crores will be amortized over 15 years. Q: How does the company plan to achieve its margin aspirations of 17-19%? A: Unidentified_2 (CEO): The company is trending towards its margin goals through strategic initiatives and cost control. The focus is on maintaining product margins and managing overheads. The impact of non-BIS inventory liquidation is factored into the margin outlook. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
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14 hours ago
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Dell execs sound alarm with consumer comments
Dell execs sound alarm with consumer comments originally appeared on TheStreet. Jeff Clarke was feeling the love. Clarke, vice chairman and chief operating officer of Dell Technologies () , was giving analysts the rundown on the tech company's first-quarter report. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The report included a backlog of orders for confirmed artificial intelligence systems valued at $14.4 billion. "We love where the backlog is," Clarke said during the Round Rock, Texas, computer maker's earnings call. "It's healthy." He said Dell was off to a good start "but we have much in front of us.""The customer deployments that we have in front of us are large, they're complex, they have very detailed scheduled deliveries," Clarke said. "There's lots of dependencies on this. We've talked about this business being lumpy and nonlinear." While AI momentum remained strong, he said, "given the scale of these opportunities, variability and timing and choices around technology, the inherent nonlinear nature of demand and associated shipments is likely to persist." Dell's fiscal-first-quarter earnings missed Wall Street expectations, but the revenue number beat estimates and the forecast for the current quarter was stronger than Wall Street expected. Clarke told analysts that Dell executed very well in the quarter, "achieving growth across our core markets." Demand for AI-optimized servers was "exceptionally strong," he said. More Tech Stocks: Palantir gets great news from the Pentagon Analyst has blunt words on Trump's iPhone tariff plans OpenAI teams up with legendary Apple exec Dell built "on the momentum discussed in February and further [demonstrated] that our differentiation is winning in the marketplace," he said, referring to the company's previous quarterly report. "We had over $12 billion in AI orders this quarter alone, which will drive significant revenue growth and EPS," he said. Still, Clarke said "the consumer market remains challenged." "Consumer revenue declined 19% and the industry pricing remained competitive," he said. Yvonne McGill, Dell's chief financial officer, said the company was expecting "subseasonal performance in traditional server and storage, our larger profit pools that provide scale, as customers evaluate their IT [spending] for the year given the dynamic [macroeconomic] environment." "We saw strong performance across small and medium business and large enterprise," she said. "In consumer, the demand environment remains soft and profitability remains challenged." McGill said Dell was focused on executing within the Client Solutions Group to capture the Microsoft () Windows PC refresh. Clarke said that while the PC refresh remains behind prior cycles, "we are seeing indicators that the installed base is upgrading to new Windows 11 PCs, many of them AI PCs." Dell is one of AI-chip maker Nvidia's () primary vendors, and the U.S. Department of Energy said its Doudna computer, due in 2026, will use technology from the two tech companies. The computer, named for the Nobel Prize-winning scientist Jennifer Doudna, who made key Crispr gene-editing discoveries, will be housed at Lawrence Berkeley National Laboratory in Berkeley, Calif., Reuters reported. Dell shares are down nearly 35% from a year ago and off 3.4% this year. Several investment firms issued research reports after the company reported its results. Bank of America Securities raised its price target on Dell to $155 from $150 and affirmed a buy rating on the shares. Earnings came in at the low end of guidance due to modest tariff impacts to margins at Client Solutions and slightly weaker growth from Intelligent Security Systems, the company's video-management and -analytics software solutions, the investment firm "the highest level," B of A said Dell could deliver significantly higher AI server revenue over the next two years of greater than $30 billion with strong upside to EPS with momentum in AI servers picking up. JP Morgan raised its target on Dell to $125 from $111 and maintained an overweight rating, according to The Fly. AI-server demand and orders in Q1 as well as greater than typical deployment expectations for Q2 "were the bright spot in an otherwise subdued outlook," JP Morgan wrote. Dell's traditional Enterprise demand drivers are softer and driving incremental caution into the back half of the year, the firm said. TD Cowen analyst Krish Sankar boosted the firm's price target on Dell Technologies to $125 from $120 and reiterated a hold rating. He called the $12 billon of April-quarter AI-server orders and expected July-quarter AI shipments of roughly $7 billion key positives. The macroeconomic environment might present a modest headwind for traditional server and consumer demand while tariffs and commodity costs are inflationary execs sound alarm with consumer comments first appeared on TheStreet on Jun 1, 2025 This story was originally reported by TheStreet on Jun 1, 2025, where it first appeared.
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2 days ago
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BuildDirect.com Technologies Inc (BDCTF) Q1 2025 Earnings Call Highlights: Strategic Moves Amid ...
Revenue: $15.1 million for Q1 2025, down from $15.6 million in Q1 2024. Gross Margin: 41.3% in Q1 2025, up from 39.1% in Q1 2024. Gross Profit: $6.2 million in Q1 2025, up from $6.1 million in Q1 2024. Operating Expenses (OpEx): $6.4 million in Q1 2025, a slight decrease from Q1 2024. Adjusted EBITDA: Approximately $650,000 in Q1 2025, up from just over $500,000 in Q1 2024. Working Capital: $2.5 million as of March 31, 2025, down from $2.7 million in the prior year. Cash Position: $3.5 million as of March 31, 2025, $1.2 million higher than the prior quarter year-over-year. Cash from Operations: $768,000 for Q1 2025, down from $1.2 million in Q1 2024. Pro Center Revenue: $10.8 million in Q1 2025, down from $11.3 million in Q1 2024. E-Commerce Revenue: $4.2 million in Q1 2025, slightly down from $4.3 million in Q1 2024. Interest Expense: $349,000 in Q1 2025, up from $330,000 in Q1 2024. Restructuring Costs: Approximately $120,000 in Q1 2025, compared to nil in Q1 2024. Fulfillment Costs: Decreased by $102,000 to nearly $900,000 in Q1 2025. Selling and Marketing Costs: Approximately $1.4 million in Q1 2025, a slight increase of $53,000 from Q1 2024. Admin Costs: Increased nominally by 0.3% to $3.2 million in Q1 2025. Warning! GuruFocus has detected 3 Warning Signs with BDCTF. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Technologies Inc (BDCTF) reported a gross margin increase to 41.3% in Q1 2025, up from 39.1% in the same quarter last year. The company achieved a positive adjusted EBITDA of $650,000 in Q1 2025, reflecting strong operational efficiency. Technologies Inc (BDCTF) completed the acquisition of key assets from Anchor Yorkshire Flooring, expanding its footprint in the Southeast US. The company signed a supply agreement worth up to $200 million with a large North American customer in the sports, entertainment, and recreation sector. Technologies Inc (BDCTF) successfully transitioned from third-party logistics providers to its own facilities, reducing fulfillment costs and improving customer service. Revenue for Q1 2025 decreased to $15.1 million from $15.6 million in the same quarter last year, a decline of 3.2%. Sales were negatively impacted by adverse weather conditions in key markets, reducing customer traffic and delaying project timelines. The company incurred restructuring costs of approximately $120,000 in Q1 2025, related to severance from headcount reductions. Interest expense increased to $349,000 in Q1 2025, primarily due to higher accrued balances on insider loans and new credit facilities. Cash from operations decreased by $400,000 year-over-year, mainly due to changes in noncash working capital. Q: Could you provide more detail on the timeline for the planned new Pro Center openings in key US markets? A: Shawn Wilson, CEO: We have a couple of potential locations in mind. Ideally, we aim to acquire $15 million to $20 million in revenue this year, with integration in Q4. However, we won't force deals; they must make sense and be structured correctly. Q: Given your dual strategy of building new Pro Centers organically and acquiring existing firm retails, could you elaborate on why BuildDirect often prefers to acquire established locations? A: Shawn Wilson, CEO: Acquiring established locations offers faster payback and market entry with an existing team and relationships. This allows us to quickly integrate procurement and marketing synergies, as seen with the Anchor Yorkshire acquisition. Q: Can you discuss how you plan to integrate the recent acquisition in Florida operationally and commercially, and what synergies do you expect to realize? A: Shawn Wilson, CEO: The integration of Anchor Yorkshire was swift, and we are now focusing on expanding product offerings. We expect to see improvements in Q3 and Q4, with potential synergies in new segments like medical and hospitality. Q: How does the recent acquisition fit into your overall regional growth strategy in the Southeast US? A: Shawn Wilson, CEO: The Southeast is a growing market, and the acquisition provides substantial freight savings and opens up nearby states. It is our first location in Florida, and we plan to expand our Pro Center network in the region. Q: How is the transition from third-party warehouses to Pro Centers progressing, and what impact has it had on fulfillment costs and customer delivery times? A: Shawn Wilson, CEO: The transition is complete, and we no longer use third-party logistics. This has significantly reduced fulfillment costs and improved customer service, with lower claim rates and faster shipping. Q: Can you elaborate on the recent management loans secured by senior leadership and how they align with the company's incentive structure and shareholder interest? A: Shawn Wilson, CEO: The management team now owns more equity, aligning interests with shareholders. Kerry Biggs, CFO: The company has a loan payable to Lyra and a loan receivable from management, resulting in no incremental leverage for the company. Q: What are your plans to deepen penetration in the commercial segment, and how does this segment's margin profile compare with your residential business? A: Kerry Biggs, CFO: We focus on product fulfillment for large projects, which offers excellent margins. The commercial segment is a priority, and we have expertise in direct sourcing from factories to project sites. Q: Will you be releasing guidance for 2025, and can you speak to seasonality? A: Shawn Wilson, CEO: We don't provide guidance due to our M&A strategy. Seasonality affects us mainly in Q4 and Q1, with softer performance due to weather and macroeconomic factors, particularly in Michigan. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 days ago
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Lewis Group Ltd (JSE:LEW) Full Year 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased by 13.5% with merchandise sales growing by 9.2%. Operating profit expanded by 66.9%, with an operating profit margin increase of 790 basis points to 22.7%. EPS increased by more than 80%, and a final dividend of $0.50 was declared, bringing the total dividend for the year to $0.80. The debtor's book displayed strong growth of 14.5%, with a record high satisfactory paying percentage of 83.5%. The company successfully opened 33 new stores and revamped 170 stores, enhancing its retail footprint. Operating costs exceeded the target range set at the beginning of the year. The retail landscape remains challenging with no expected economic recovery or growth to support sales. There is increased competition from companies like Pepcore entering the furniture business. Borrowings increased by 279 million, although still within the board's risk appetite. The share price growth did not keep pace with the growth in net asset value per share. Warning! GuruFocus has detected 6 Warning Sign with JSE:LEW. Q: How sustainable are the current gross profit margins, and how sensitive are they to changes in shipping rates? A: The upper end of our gross profit target range was set at 42%, which we exceeded. This was supported by strategic decisions to bring merchandise lines in earlier, allowing us to price accordingly and pass some cost pressures onto consumers. Our target range for this year remains at 40-42%. We aim to protect the gains made and continue to grow profits, maintaining an ROE above 15%. It's about finding the right balance to gain market share profitably. (Respondent: Unidentified_1) Q: Which brands and provinces offer the biggest opportunities for store growth? A: At least 50% of our store growth will come from the specialty segment, specifically specialist bed set stores. We've increased our Real Bed store base from 16 to 26 stores. We are focused on finding quality retail space quickly to expand. The remainder of the stores will be opened under traditional brands, with opportunities across South Africa and BLNE countries. (Respondent: Unidentified_1) Q: How do you view the competitive landscape, especially with Pepcore entering the furniture business? A: We are closely monitoring Pepcore's integration of 400 Shoprite stores. We remain satisfied with our market positioning and believe the addition of specialist bed stores will attract more cash customers. We continue to monitor competitors closely but are confident in our strategy and market position. (Respondent: Unidentified_1) Q: Given your 2026 targets, do you expect to grow earnings this year? A: We are budgeting to grow earnings, albeit from a high base. Based on the first two months of this financial year, we believe we have the offering and business model to continue growing earnings, though not at the same rate as this year. We are not planning to go backwards. (Respondent: Unidentified_1) Q: What is your current market share in South Africa, and how do you plan to grow it? A: It's difficult to quantify market share due to limited public information. However, we are satisfied with our growth, particularly in credit customers. Our credit contribution has shown significant market share gains, and extending credit remains the backbone of our business. (Respondent: Unidentified_1) Q: Are you seeing any impact on paying customers due to weakening jobs data in Q1 2025? A: Currently, there is no strain in the debtor's book. We are satisfied with sales and collection performance for April and May. We are monitoring sectors like the motor and agricultural industries closely, but there is no additional strain on our customer base at this time. (Respondent: Unidentified_1) Q: Do you anticipate cash generation to remain subdued due to further investment in the debtor's book? A: No, we expect the book to generate strong cash flow going forward. We are comfortable that we will not exceed our borrowing ceiling next year. (Respondent: Unidentified_3) Q: What are your plans for store expansion and the impact on operating costs? A: We plan to open a minimum of 40 new stores, adding roughly 4% to the store base. We aim to open these stores early in the financial year. There will be some pressure on operating costs due to store expansion, but we are focused on maintaining expense controls. (Respondent: Unidentified_1) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
