Royal Orchid Hotels Limited · NSE:ROHLTD
Royal Orchid Hotels — Q1 FY20 Earnings Presentation
36 slides from Royal Orchid Hotels's earnings presentation, Aug 9, 2019
Slide 1: Cover letter to stock exchanges
Date: August 09, 2019 To, To, The Manager, The Manager, Listing Compliance, Listing Compliance, Department of Corporate Services, Department of Corporate Services, BSE Limited, National Stock Exchange of India Floor 25, P. J. Towers, Limited, Dalal Street, Exchange Plaza, Plot no. C/1, G Block Mumba
Slide 2: Q1 FY20 Results Presentation
Royal Orchid Hotels Ltd Q1 FY20 Results Presentation
Slide 3: Disclaimer
Disclaimer Statements made in this Presentation describing the Company’s objectives, projections, estimates, predictions and expectations may be ‘forward-looking statements’, within the meaning of applicable securities laws and regulations. As ‘forward-looking statements’ are based on certain assump
Slide 4: Table of Contents
Table of Contents Industry Overview Company Overview Business Overview Financial Overview
Slide 5: Industry Overview
Industry Overview Industry Outlook Growth Drivers Key Challenges
Slide 6: Industry Outlook - Current Trend
Industry Outlook - Current Trend 1. Disposable income on the rise PER CAPITA NATIONAL INCOME (at Current Price) PRIVATE CONSUMPTION ON RESTAURANT & HOTELS (at 140000 126406 12.00% Current Price) 120000 114958 250000 103870 10% 10.00% 94731 9.00% 201499 100000 86647 200000 180220 79118 9.60% 8.60% 8.
Slide 7: Industry Outlook
Industry Outlook 2. PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES ROHL has properties in Ahmedabad, Top 10 Busiest Airports in India by Passenger Bengaluru, Chennai, Gurugram, Goa, and Jaipur Traffic (2017/18 -2018/19) 18000 17093 16025 15922 16000 (Rs in Lakh) 2017/18 2018/19 % Change 14724 1372
Slide 8: Key Growth Drivers
Key Growth Divers • International tourist arrivals in India •Diverse portfolio of with focus on niche expected to reach 30.5 million by 2028. tourism products – cruises, adventure Medical tourism to touch $9 billion by 2020 medical, wellness, sports, MICE, eco- (Source: IBEF) tourism, films, rural &
Slide 9: Key Industry Challenges
Key Industry Challenges INFRASTRUCTURE FUNDING REGULATORY COMPETITION • Limited land • Increasing cost of debt • Delays in getting • Entry of Travel availability at the approvals and licenses aggregators intensifies • Medium to small size leading to increasing competitive landscape desired location
Slide 10: Company Overview
Company Overview Who we are? Our Journey Management Our Presence Team
Slide 11: Who we are?
Who we are? • Royal Orchid Hotel Ltd (ROHL) was incorporated in 1986 under the name of Universal Resorts Ltd. • Promoted by Mr. Chander K Baljee • ROHL is engaged in business of managing hotels under flagship brands – Royal Orchid, Royal Orchid Central, Present in 35 locations Royal Orchid Suites, R
Slide 12: Our Journey
Our Journey 2007 2004 2006 RO Golden Suites, Pune 2001 2003 Listed on 6th February Hotel Royal Royal Orchid RO Central, Jaipur Royal Orchid Central Bangalore Royal Orchid Resort & Convention Orchid Bangalore Metropole, Mysore RO Brindavan, Mysore Centre, Bangalore Nationwide Sales Offices 2008 2008
Slide 13: Key Management
Key Management Mr. Chander Baljee, Managing Director Royal Orchid Hotels is promoted by Mr. Chander K Baljee, a P.G Graduate from Indian Institute of Management (Ahmedabad) with over 4 decades of experience in the hospitality industry Mr. Amit Jaiswal, Chief Financial Officer Mr. Amit Jaiswal is a C
Slide 14: Royal Orchid & Regenta Hotels Across India
Royal Orchid & Regenta Hotels Across India 50+ 3600+ 35+ Hotels & Resorts Cities Across Luxury Rooms India
Slide 15: Business Overview
Business Overview Our Business Our Business Structure Model Competitive Our Offerings Advantage
Slide 16: Our Business Structure
Our Business Structure Royal Orchid Hotels Limited (ROHL) By Business Portfolio By Legal Entity Managed & Owned Leased Subsidiaries Franchised hotels Hotels Companies Hotels
Slide 17: Our Business Model - Asset Light Model
Our Business Model -Asset Light Model Steadily gaining strong foothold through focus on Management contracts which will lead to high growth Key factors Break even of No upfront Maintenance Capex Operating profit in requirement of capex required – Nil just 1 year Facilitates expansion Creates brand p
Slide 18: Portfolio and Revenue Model
Revenue Model Category FY 2018 FY2019 (%) Category FY 2018 FY2019 (%) 5 Star 334 334 0% Owned 195 195 0% 4 Star 1,840 1,861 1% Leased 386 433 12% Service Apartment 159 159 0% JV 396 396 0% Resort/Heritage/MICE 961 1,031 7% Managed 2,317 2,361 2% Total Keys 3,294 3,385 3% Total Keys 3,294 3,385 3% Ca
Slide 19: Growth in rooms and loyalty members
Growth in rooms and loyalty members No of 20 23 26 34 42 47 49 51 Properties Steady growth in rooms Beginning of the year Additions 314 135 91 546 389 281 88 298 3,294 3,385 3,159 2,224 2,613 1,557 1,645 1,943 F Y1 3 F Y1 4 F Y1 5 F Y1 6 F Y1 7 F Y1 8 F Y1 9 F Y2 0 Loyalty members 2,46,320 2,23,694
Slide 20: Property breakup with rooms
Property breakup with rooms No of Keys FY19 FY20 Management Contracts 2,317 2,361 JV 396 396 Owned (Domestic) 195 195 Owned (Overseas) - - Leased 386 433 Total KEYS 3,294 3,385 Average Occupancy rate (JLO) 74% 70% Average Room Rate (JLO) (Rs) 3,937 4,061 Average Occupancy rate (Managed) 66% 68% Aver
Slide 21: Business Destinations
Business Destinations Current Locations • Bangalore • Bharuch • Kolkata • Mysore • Ahmedabad • Kanpur • Jaipur • Rajkot • Ludhiana • Shimoga • Chennai • Vadodara • Pune • Chandigarh • Vapi
Slide 22: Leisure Destinations
Leisure Destinations Current Locations • Goa • Mussoorie • Pushkar • Mysore • Bangalore • Hampi • Ranthambore • Jaipur • Mahabaleshwar • Jim Corbett • Bhuj
Slide 23: Wedding Destinations
Wedding Destinations Current Locations • Bangalore • Jaipur • Bhuj • Mysore • Dehradun • Mahabaleshwar • Goa • Amritsar • Ludhiana • Mussoorie • Ranthambore • Nagpur
Slide 24: Religious Destinations
Religious Destinations Current Locations • Amritsar • Ajmer • Haridwar • Rishikesh* *Opening Soon
Slide 25: Wildlife Destinations
Wildlife Destinations Current Locations • Ranthambore • Jim Corbett • Haridwar • Pench National Park* *Opening Soon
Slide 26: Competitive Advantage
Competitive Advantage Balanced portfolio having presence in over 35 locations and 11 states Strong sales presence across major source markets in India Affordable luxury having plethora of options for modern travellers
Slide 27: Financial Overview
Financial Overview Quarterly & Full Year Highlights and Margins Financial results Consolidated Income Statement Shareholding & Balance Sheet snapshot
Slide 28: Consolidated Quarter and Full Year highlights
Consolidated Quarter and Full Year highlights 70.00 59.41 60.00 52.56 49.80 50.00 40.00 Quarterly 30.00 20.00 10.65 12.03 10.71 10.00 5.66 2.95 3.76 1.89 2.36 0.80 - Q1FY20 Q4FY19 Q1FY19 Total revenues EBITDA PBT PAT 250.00 219.05 198.38 200.00 150.00 Full Year 100.00 48.82 50.00 38.28 21.29 13.12 7
Slide 29: Margins
Margins Quarterly Margins Full Year Margins 25% 22% 22% 25% 22% 20% 20% 20% 20% 15% 15% 13% 15% 11% 10% 10% 10% 10% 8% 5% 5% 5% 4% 4% 2% 0% 0% FY 2019 FY 2018 Q1FY20 EBITDA Q4FY19 PBT PAT Q1FY19 EBITDA PBT PAT
Slide 30: Standalone Q1 FY20 Financial results
Standalone Q1 FY20 Financial results Particulars (Rs in Crs) Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y Income from Operations 27.44 29.53 25.50 -7% 8% Other Income 2.15 3.60 1.26 -40% 71% Total Income 29.59 33.13 26.76 -11% 11% Cost of Material Consumed 3.31 3.32 2.51 0% 32% Employee Benefits Expense 6.67 6.
Slide 31: Sustainable Growth – Yearly Consolidated numbers
Sustainable Growth – Yearly Consolidated numbers Rs. In crore
Slide 32: Consolidated FY20 Q1 Statement - Snapshot
Consolidated FY20 Q1 Statement - Snapshot Particulars (Rs in Crs) Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y Income from Operations 48.52 54.02 46.70 -10% 4% Other Income 4.04 5.39 3.10 -25% 30% Total Income 52.56 59.41 49.80 -12% 6% Cost of Material Consumed 5.56 5.92 4.76 -6% 17% Employee Benefits Expense 1
Slide 33: IND-AS 116 Impact
IND-AS 116 Impact • Effective April 01, 2019, the Company adopted Ind-AS116 "Leases” to all lease contracts existing on April 01, 2019 using the modified retrospective approach with cumulative effect at the date of initial application. Accordingly, comparatives for the year ended March 31, 2019 have
Slide 34: Shareholding
Shareholding Key Investors Holding (%) National Westminster Bank PLC as trustees of the 4.36% Jupiter India Fund Jupiter South Asia Investment Company Limited - 1.00% South Asia Access Fund
Slide 35: Vision 2022
Vision 2022 Our Vision for 2022 is to operate 100+ profitable and responsible hotels where guests love to stay, dine and celebrate. We wish to create hotels which have a soul, a reflection of our distinctly warm Indian Hospitality. In this journey towards 100 hotels, we will also empower the youth o
Slide 36: Thank You
Thank You