Royal Orchid Hotels Limited · NSE:ROHLTD
Royal Orchid Hotels — FY2018 Earnings Presentation
26 slides from Royal Orchid Hotels's earnings presentation, May 29, 2018
Slide 1: Outcome of Conference Call – Exchange Letter
Date: May 29, 2018 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 Limited, Floor 25, P. J. Towers, Exchange Plaza, Plot no. C/1, G Block Dalal Street, Bandra K
Slide 2: Royal Orchid Hotels Ltd FY18 Results Presentation
Royal Orchid Hotels Ltd FY18 Results Presentation Expect more from Royal Orchid Hotels
Slide 3: 1 in every 11 people employed by tourism sector
1 in every 11 people worldwide are employed by TOURISM SECTOR High Employment Potential Sector Rs 10 Lakhs of Investment creates 90 Jobs
Slide 4: Hospitality & Tourism largest contributor to GDP in service sector
HOSPITALITY & TOURISM is the largest contributor to GDP in service sector
Slide 5: Royal Orchid Hotels Ltd FY18 Results
ROYAL ORCHID HOTELS LTD Investor Presentation FY18 Results
Slide 6: Discussion Outline
Discussion Outline 1 THE TOURISM & HOSPITALITY • Size, Opportunity, INDUSTRY • Challenges 2 ROHL BUSINESS CARD • Background, Management • Competitive Advantages 3 BUSINESS MODEL • Asset Light Model, • Generate FCF, High Growth 4 FINANCIAL NUMBERS • FY18 Standalone Results • FY18 Consolidated Results
Slide 7: Indian Tourism Sector
Indian Tourism Sector According to the World Travel & Tourism Council report “Travel & Tourism Economic Impact 2018 – India”, the direct contribution of Travel & Tourism to GDP in 2017 was Rs. 5,943.3bn or USD91.3bn (3.7% of total GDP). By the year 2028, direct contribution of Travel & Tourism to GD
Slide 8: Huge Opportunity for Branded Hotels
Huge Opportunity for Branded Hotels 35000 31852 30000 Current Inventory – 1,19,219 rooms Expected Inventory – 47,067 new rooms (Branded Hotels) 25000 ROHL has properties in Ahmedabad, Chennai, Gurugram, Noida, Goa, Jaipur, Kolkata, Mumbai and Pune 21,042 20000 14,296 13,494 15000 11,995 10000 8,332
Slide 9: Supply Exceeded Demand
Supply Exceeded Demand PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES Top 15 Busiest Airports in India by Passenger ROHL has properties in, Ahmedabad, Bengaluru, Chennai, Gurugram, Goa and Jaipur Traffic (2015/16 -2016/17) 18000 (Rs in Lakh) 2015/16 2016/17 % Change 16000 15,198 15,364 Delhi (DIAL
Slide 10: Hotel Industry – Overview
Hotel Industry –Overview Major Policy Initiative impacting the Industry Type of Restaurant GST Rate (%) All restaurants 5% no Input Tax Credit Restaurants within hotels (room tariff <7,500) 5% no Input Tax Credit Restaurants within hotels (room tariff >7,500) 18% with Input Tax Credit Outdoor Cateri
Slide 11: Hotel Industry – Scalability Issues
Hotel Industry – Scalability Issues Brand drives Loyal customers membership which is key to profits BRAND Strong brand spends, need scale to justify. Scale needs a strong brand Quality of management at the hotel also a brand differentiator High Capital intensive business CAPITAL A typical
Slide 12: Discussion Outline
Discussion Outline 1 THE TOURISM & HOSPITALITY • Size, Opportunity, INDUSTRY • Challenges 2 ROHL BUSINESS CARD • Background, Management • Competitive Advantages 3 BUSINESS MODEL • Asset Light Model, • Generate FCF, High Growth 4 FINANCIAL NUMBERS • FY18 Standalone Results • FY18 Consolidated Results
Slide 13: ROHL – Business Card
ROHL – Business Card • Royal Orchid Hotel Ltd was incorporated in 1986 under the As on May 29, 2018 Units name of Universal Resorts Ltd. CMP (Rs) 195.30 • Promoted by Mr. Chander Baljee, Managing Director Market Cap (Rs cr) 532.92 • Engaged in business of Managing Hotels with an annual MCap Free Flo
Slide 14: Journey so far…
Journey so far… Royal Orchid Central Listed on 6th February Royal Orchid Central, Pune Bangalore Royal Orchid Resort & Royal Orchid Beach Resort & Spa, Convention Centre, Bangalore GOA 2001 2004 2007 2009 2003 2006 2008 Hotel Royal Royal Orchid Royal Orchid Golden Suites, Pune Royal Orchid Suites, B
Slide 15: Management Team
Management Team Mr. Chander Baljee, Managing Director Royal Orchid Hotels is promoted by Mr. Chander 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 16: Discussion Outline
Discussion Outline 1 ROHL BUSINESS CARD • Background, Management • Competitive Advantages 2 THE TOURISM & HOSPITALITY • Size, Opportunity, INDUSTRY • Challenges 3 BUSINESS MODEL • Asset Light Model, • Generate FCF, High Growth 4 FINANCIAL NUMBERS • FY18 Standalone Results • FY18 Consolidated Results
Slide 17: Asset Light Model – Generate FCF
Asset Light Model – Generate FCF Business Model MC JV Owned Leased Total PAN INDIA PRESENCE 5-Star Royal Orchid - 139 195 - 334 4-Star Central 1,512 130 - 198 1,840 Resort/ Heritage 646 73 - 188 907 Convention /MICE - 54 - - 54 Serviced Apartments 159 - - - 159 Total Keys 2,317 396 195 386 3,294 ROY
Slide 18: Details of Properties
Details of Properties Category Owned JV Leased Managed Properties Total Keys Location Keys Location Keys Location Keys Location Keys 5-Star Bangalore 195 Jaipur (50%) 139 334 Hotel Royal Orchid 4-Star Bangalore (51%) 130 Pune 115 Vashi 67 1,840 Royal Orchid Central Bangalore 83 Shimoga 108 Regenta C
Slide 19: Growth – Rooms & Members
Growth – Rooms & Members 18 20 23 26 34 42 47 No of Properties 4,000 3,000 135 546 389 2,000 281 88 298 3,159 131 2,613 1,000 1,943 2,224 1,426 1,557 1,645 - FY12 FY13 FY14 FY15 FY16 FY17 FY18 Beginning of the year Additions Loyalty members 2,00,000 1,74,086 1,50,000 1,33,055 98,874 1,00,000 66,881
Slide 20: High Growth – Focusing on Management Contracts
High Growth – Focusing on Management Contracts Adding No of Keys FY17 FY18 Management Contracts 2,112 2,317 JV 396 396 Owned (Domestic) 195 195 Owned (Overseas) - - Leased 456 386 Total KEYS 3,159 3,294 Average Occupancy rate (JLO) 70% 78% Average Room Rate (JLO) (Rs) 3,763 3,853 Average Occupancy r
Slide 21: Discussion Outline
Discussion Outline 1 ROHL BUSINESS CARD • Background, Management • Competitive Advantages 2 THE TOURISM & HOSPITALITY • Size, Opportunity, INDUSTRY • Challenges 3 BUSINESS MODEL • Asset Light Model, • Generate FCF, High Growth 4 FINANCIAL NUMBERS • FY18 Standalone Results • FY18 Consolidated Results
Slide 22: Standalone Results – FY18
Standalone Results – FY18 Ind-AS compliant Particulars (Rs in Crs) FY18 FY17 Y-o-Y % Income from Operations 103.59 92.73 12% Other Income 5.99 9.10 -34% Total Income 109.58 101.82 8% Cost of Material Consumed 10.56 11.78 -10% Employee Benefits Expense 21.16 19.38 9% Power and fuel Expense 10.02 9.97
Slide 23: Consolidated Results – FY18
Consolidated Results – FY18 Ind-AS compliant Particulars (Rs in Crs) FY18 FY17 Y-o-Y % Income from Operations 190.90 174.87 9% Other Income 8.93 12.76 -30% Total Income 199.84 187.63 7% Cost of Material Consumed 20.27 21.48 -6% Employee Benefits Expense 46.68 44.34 5% Rent Expense 13.64 14.98 -9% Po
Slide 24: Standalone Balance Sheet
Standalone Balance Sheet Ind-AS compliant Particulars (Rs in Crs) FY 2018 FY 2017 Assets Property, plant and equipment 34.26 38.12 Capital work-in-progress 0.29 - Investments 165.58 171.23 Other non-current assets 60.72 44.38 Total Non-current assets 260.85 253.73 Current assets 31.90 28.79 Total As
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Ind-AS compliant Particulars (Rs in Crs) FY 2018 FY 2017 Assets Property, plant and equipment 254.69 268.49 Capital work-in-progress 21.49 21.69 Goodwill 17.74 17.74 Other non-current assets 45.88 47.16 Total Non-current assets 339.80 355.08 Current Assets 62.30 52.76 Tota
Slide 26: Thank You
Thank You For further information, please contact: Company: Investor Relations Advisors: Royal Orchid Hotels Ltd Adfactors PR Mr. Amit Jaiswal Mr. Sanjay Punjabi cfo@royalorchidhotels.com Sanjay.punjabi@adfactorspr.com +91 9821080048