Royal Orchid Hotels Limited · NSE:ROHLTD
Royal Orchid Hotels — Q3 FY2020 Earnings Presentation
40 slides from Royal Orchid Hotels's earnings presentation, Feb 13, 2020
Slide 1: Investors Presentation - Revised cover letter to exchanges
Date: February 13, 2020 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 Mum
Slide 2: Royal Orchid Hotels Ltd Q3 FY20 Results Presentation
Royal Orchid Hotels Ltd Q3 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 160000 Price) 12.00% PRIVATE CONSUMPTION ON RESTAURANT & HOTELS (at 135050 Current Price) 140000 126406 10.00% 120000 114958 250000 103870 201499 94731 8.00% 100000 86647 9.00% 10% 200000 180220
Slide 7: Industry Outlook - Proposed Branded Hotel Rooms
Industry Outlook 2. PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES ROHL has properties in Ahmedabad, Bengaluru, 18000 17093 Chennai, Gurugram, Goa, and Jaipur 16025 15922 16000 14724 13726 14000 12659 12000 10086 10000 9211 8471 8000 7373 7651 7124 6741 6772 6314 5920 6330 6000 5426 5229 4346 3860
Slide 8: Key Growth Drivers
Key Growth Drivers • 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 desired location • Medium to small size leading to increasing competitive landscape
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 37 locations Royal Orchid Suites, R
Slide 12: Our Journey
Our Journey 2007 2004 2006 2001 RO Golden Suites, Pune 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+ 3920 37 Hotels & Resorts Locations Luxury Rooms Across 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: Growth in rooms and loyalty members
Growth in rooms and loyalty members No of 20 23 26 34 42 47 49 58 Properties Steady growth in rooms Beginning of the year Additions 360 430 135 546 389 281 3906 88 298 3,159 3,294 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 Q 3 F Y2 0 Loyalty members 2,46,002 2,23,
Slide 19: Holiday Destinations
Holiday Destinations Goa + Bangalore - Mysore - Hampi Belagavi - Nashik - Bharatpur - Bhuj Jaipur - Mahabaleshwar - Mussoorie Manali » Pushkar - Ranthambore Jim Corbett + Srinagar + Rishikesh Haridwar
Slide 20: Wedding Destinations
Wedding Destinations Goa + Bangalore Ranthambore : Jim Corbett Dehradun + Jaipur + Mussoorie Mahabaleshwar - Nagpur Pushkar - Bharatpur - Bhuj
Slide 21: Business Destinations
Business Destinations Ahmedabad « Bangalore - Bharuch Chandigarh - Chennai - Dehradun Dahej - Indore - Jaipur - Kolkata Kanpur » Ludhiana + Mysore « Nashik Navi Mumbai » Nagpur - Pune Rajkot - Shimoga + Vadodara « Vapi
Slide 22: Wildlife Destinations
Wildlife Destinations Ranthambore - Jim Corbett Pench National Park
Slide 23: Hotel Royal Orchid, Bangalore
Hotel Royal Orchid, Bangalore
Slide 24: Royal Orchid Brindavan Garden Palace & Spa, Mysore
Royal Orchid Brindavan Garden Palace & Spa, Mysore
Slide 25: Royal Orchid Resort & Convention Centre, Bangalore
Royal Orchid Resort & Convention Centre, Bangalore
Slide 26: Hotel Royal Orchid, Jaipur
Hotel Royal Orchid, Jaipur
Slide 27: Royal Orchid Central, Hampi, Hospet
Royal Orchid Central, Hampi, Hos
Slide 28: Regenta Resort, Belagavi
Regenta Resort, Belagavi
Slide 29: Competitive Advantage
Competitive Advantage Balanced portfolio having presence in over 37 locations and 11 states Strong sales presence across major source markets in India Affordable luxury having plethora of options for modern travellers
Slide 30: Sustainable Growth – Yearly Consolidated numbers
Sustainable Growth – Yearly Consolidated numbers Rs. In crore
Slide 31: Portfolio and Revenue Model
Revenue Model Category FY2019 9MFY20 (%) Category FY 2019 9MFY20 (%) Owned 195 195 5 Star 334 334 Leased 517 517 4 Star 1,861 1,927 Service Apartment 159 159 JV 313 313 Resort / Heritage / MICE 935 1017 Managed 1928 2084 Budget Hotels 389 469 Franchised 761 801 Total Keys 3,714 3906 Total Keys 3714
Slide 32: Property breakup with rooms
Property breakup with rooms No of Keys FY19 FY20* Management / Franchise 2689 2881 JV 313 313 Owned (Domestic) 195 195 Owned (Overseas) - - Leased 517 517 Total KEYS 3,714 3906 Average Occupancy rate (JLO) 77% 78% Average Room Rate (JLO) (Rs) 4,513 4,618 Average Occupancy rate (Managed) 68% 71% Aver
Slide 33: Financial Overview
Financial Overview Quarterly & Nine Month Highlights and Margins Financial results Consolidated Income Statement Shareholding & Balance Sheet snapshot
Slide 34: Consolidated Quarter and Nine Month highlights
Consolidated Quarter and Nine Month highlights 70.00 60.00 50.00 40.00 Total Revenue Quarterly EBIDTA 30.00 PBT 20.00 PAT 10.00 0.00 Q3FY20 Q2FY20 Q3FY19 -10.00 180.00 160.00 140.00 120.00 Nine 100.00 Total Revenue Month EBIDTA 80.00 PBT 60.00 PAT 40.00 20.00 0.00 Q3FY20 Q3FY19 Rs. In crore
Slide 35: Margins
Margins Quarterly Margins Nine Month Margins 30.00% 20.00% 18.00% 25.00% 16.00% 20.00% 14.00% 12.00% EBITDA Margin 15.00% EBITDA Margin PBT Margins 10.00% Net Profit Margin PBT Margins Net Profit Margin 8.00% 10.00% 6.00% 5.00% 4.00% 2.00% 0.00% Q3FY20 Q2FY20 Q3FY19 0.00% Q3FY20 Q3FY19
Slide 36: Standalone Q3 & 9MFY20 Financial results
Standalone Q3 &9MFY20 Financial results Particulars (Rs in Crs) Q3FY20 Q2FY20 Q3FY19 Q-o-Q (%) Y-o-Y (%) 9MFY20 9MFY19 % Change Income from Operations 34.11 26.37 30.55 29.37% 11.66% 87.91 83.01 5.90% Total Income 34.11 26.37 30.55 29.37% 11.66% 87.91 83.01 5.90% Cost of Material Consumed 4.54 2.95
Slide 37: Consolidated Q3FY20 Statement - Snapshot
Consolidated Q3FY20 Statement - Snapshot Particulars (Rs in Crs) Q3FY20 Q2FY20 Q3FY19 Q-o-Q (%) Y-o-Y (%) 9MFY20 9MFY19 % Change Income from Operations 61.33 46.93 56.44 30.68% 8.66% 156.78 150.30 4.31% Total Income 61.33 46.93 56.44 30.68% 8.66% 156.78 150.30 4.31% Cost of Material Consumed 7.74 5.
Slide 38: Shareholding
Shareholding Promoters Foreign Portfolio Invesors Others KEY INVESTORS Holding % 25.12 JUPITER INDIA FUND 4.36 GEOSPHERE INDIA FUND 0.34 JUPITER SOUTH ASIA INVESTMENT COMPANY LIMITED - SOUTH ASIA ACCESS FUND 0.89 5.59 Total 5.59 69.29
Slide 39: 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 40: Thank You
Thank You
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