FabHotels' Net Losses Increase by 23% in FY24 Due to Rising Employee Expenses
Click to start listening
Synopsis
FabHotels, operated by Casa2 Stays, has reported a 23% increase in its net losses for FY24, reaching Rs 114 crore. The rise is attributed mainly to escalating employee costs, despite a gross revenue growth of 34% to Rs 552 crore.
Key Takeaways
- Net losses rose to Rs 114 crore in FY24.
- Gross revenue increased by 34% to Rs 552 crore.
- Employee costs doubled to Rs 92 crore.
- Accommodation expenses were Rs 435 crore.
- The company has raised $70 million in total funding.
Mumbai, Jan 25 (NationPress) The budget hotel chain FabHotels, managed by Casa2 Stays, has disclosed a 23 per cent increase in its net losses for the fiscal year concluding in March 2024 (FY24).
The net losses expanded to Rs 114 crore, rising from Rs 93 crore in FY23, largely due to a significant surge in employee benefit liabilities, according to its filings.
Despite this, the firm’s gross revenue surged by 34 per cent to Rs 552 crore in FY24, compared to Rs 412 crore the previous year.
Almost all its revenue, amounting to Rs 549 crore, was generated from lodging bookings under its FabHotel and TravelPlus brands.
Furthermore, an additional Rs 3.3 crore was accrued from various other channels, while non-operating income—comprising interests and written-off liabilities—contributed Rs 11 crore, bringing the total revenue to Rs 563.6 crore for the year, as mentioned in the filing.
The overall expenses of the company surged by 38.5 per cent to Rs 588 crore in FY24, up from Rs 424.7 crore in FY23, according to a report by Entrackr.
Accommodation costs, which represent 74 per cent of total expenditures, increased by 32 per cent to Rs 435 crore. Employee expenses also doubled to Rs 92 crore, which included Rs 15 crore related to non-cash ESOP charges, as reported.
Commission expenses saw a modest rise of 8 per cent to Rs 27 crore, while other expenditures summed up to Rs 34 crore. In spite of the revenue growth, the significant escalation in costs resulted in a net loss of Rs 114 crore, compared to Rs 93 crore in FY23.
FabHotels achieved an EBITDA margin of -19.52 per cent and a return on capital employed (ROCE) of -84.09 per cent.
For each rupee earned, the company expended Rs 1.06. As of March 2024, its current assets amounted to Rs 172 crore, which included Rs 94 crore in cash and bank reserves.
The business has successfully raised $70 million so far, with $15.6 million in funding spearheaded by Panthera Growth Partners in October 2023, valuing the company at $141 million.
FabHotels stands in competition with Treebo and Bloom Hotels within the budget hospitality arena.
