What Caused Waterways Leisure Tourism to Report a Rs 120 Crore Loss in FY24?
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Synopsis
Waterways Leisure Tourism, the operator of Cordelia Cruises, faces a significant financial setback by reporting a net loss of Rs 119.9 crore for FY24, a sharp contrast to the profit made in the previous year. With an IPO on the horizon, this downturn raises questions about the company's future performance and investor confidence.
Key Takeaways
- Waterways Leisure Tourism reported a Rs 120 crore loss in FY24.
- The revenue decreased by approximately 8.26% compared to FY23.
- Expenses surged nearly 29% year-on-year.
- The company plans an IPO to raise Rs 727 crore.
- The IPO will not include an offer-for-sale (OFS) component.
Mumbai, June 16 (NationPress) The IPO-bound operator of Cordelia Cruises, Waterways Leisure Tourism, has encountered a significant downturn in its financial results for the fiscal year ending March 31, 2024 (FY24), reporting a net loss of Rs 119.9 crore. This stands in stark contrast to a profit of Rs 55.3 crore recorded in the previous fiscal year (FY23).
This notable drop occurs just before its anticipated Initial Public Offering (IPO) of Rs 727 crore.
As per its Draft Red Herring Prospectus (DRHP) submitted to the Securities and Exchange Board of India (SEBI), revenue from operations has decreased to Rs 442.1 crore in FY24 from Rs 481.9 crore in FY23, reflecting a decline of approximately 8.26 percent.
Total income also experienced a reduction of around 7.41 percent, totaling Rs 450.2 crore during this timeframe.
Expenses surged nearly 29 percent, reaching Rs 555.6 crore in FY24 compared to Rs 430.9 crore the prior year.
Nevertheless, the Mumbai-based luxury cruise operator reported a commendable performance for the nine months ending December 31, 2024. During this period, it achieved a profit after tax of Rs 139.25 crore on a revenue of Rs 409.45 crore, with total expenses standing at Rs 351.9 crore.
The company plans to raise Rs 727 crore through a new share issue, with no offer-for-sale (OFS) component included in the IPO.
The funds will primarily serve lease payments to its subsidiary, Baycruise Shipping and Leasing (IFSC) Private Limited, and for general corporate needs.
The IPO will follow a book-building process, designating 75 percent of shares for qualified institutional buyers, 15 percent for non-institutional investors, and 10 percent for retail investors.
Centrum Capital Limited, Intensive Fiscal Services Private Limited, and Motilal Oswal Investment Advisors Limited are serving as the lead managers for the book-building process, while MUFG Intime India Private Limited will act as the registrar.
The shares are slated to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), according to the DRHP.
Point of View
The steep loss reported highlights the volatile nature of the tourism sector post-pandemic. With the impending IPO, stakeholders will be keenly analyzing the company's recovery strategies and market positioning. It's imperative for investors to remain cautious yet optimistic, balancing potential with the evident risk.
NationPress
16/06/2025
Frequently Asked Questions
What caused Waterways Leisure Tourism's loss in FY24?
The company reported a net loss due to a significant drop in revenue and a sharp increase in expenses, leading to a challenging financial year.
What is the planned IPO amount for Waterways Leisure Tourism?
The company aims to raise Rs 727 crore through its upcoming IPO.
How did the company's performance in the previous year compare?
In FY23, Waterways Leisure Tourism reported a profit of Rs 55.3 crore, contrasting sharply with the loss in FY24.
What will the IPO funds be used for?
The proceeds from the IPO will primarily be allocated for lease payments to its subsidiary and general corporate purposes.
Where will the shares be listed?
The shares are proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
