Royal Orchid Hotels Limited · NSE:ROHLTD
Royal Orchid Hotels — Q4 FY19 Earnings Presentation
38 slides from Royal Orchid Hotels's earnings presentation, May 29, 2019
Slide 1: Cover letter to stock exchanges
Date: May 29, 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 Limited, Floor 25, P. J. Towers, Exchange Plaza, Plot no. C/1, G Block Dalal Street, Bandra K
Slide 2: Q4 FY19 & FY19 Results Presentation
Royal Orchid Hotels Ltd Q4 FY19 & FY19 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 Current Price) 120000 112764 12.00% 103870 200000 177807 100000 94731 10.00% 163307 86647 149064 79118 8.56% 138559 80000 70983 9.60% 8.00% 1
Slide 7: Industry Outlook
Industry Outlook 2. PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES ROHL has properties in Ahmedabad, Bengaluru, Top 10 Busiest Airports in India by Passenger Chennai, Gurugram, Goa, and Jaipur Traffic (2016/17 -2017/18) 18000 17093 16025 15922 16000 (Rs in Lakh) 2016/17 2017/18 % 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 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, Royal Orchid Suites, Regenta Central, Regenta
Slide 12: Our Journey
Our Journey 2006 2001 2004 2003 Listed on 6th February Hotel Royal Royal Orchid Royal Orchid Central Bangalore Royal Orchid Resort & Convention Orchid Bangalore Metropole, Mysore Centre, Bangalore 2007 2010 2008 RO Golden Suites, Pune 2008 Royal Orchid Central, Grazia, Navi Royal Orchid Central, Pun
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: Our Geographical footprints
Royal Orchid & Regenta Hotels Across India Our Geographical footprints
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 Maintenance Capex Break even of No upfront required – Rs 1.5 cr Operating profit in requirement of capex to 2 cr (approx) just 1 year Facilitates ex
Slide 18: Portfolio
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 Steady growth in rooms No of Properties 18 20 23 26 34 42 47 49 4,000 546 135 91 3,000 389 298 281 2,000 131 88 3,159 3,294 2,224 2,613 1,000 1,426 1,557 1,645 1,943 - FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Beginning of the year Additions Loyalty members 3,00,000
Slide 20: Property breakup with rooms
Property breakup with rooms Adding No of Keys FY18 FY19 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) 78% 74% Average Room Rate (JLO) (Rs) 3,853 4,204 Average Occupancy rate (Managed) 67% 6
Slide 21: Business Hotels
Business Hotels Current Locations • Bangalore • Bharuch • Chandigarh • Mysore • Ahmedabad • Kolkata • Jaipur • Rajkot • Kanpur • Shimoga • Chennai • Ludhiana • Pune • Nagpur • Vadodara
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 • Nashik • Jim Corbett
Slide 24: Religious Destinations
Religious Destinations Current Locations • Amritsar • Dwarka • Ajmer • Pushkar • Haridwar
Slide 25: Wild-life Tourism
Wild-life Tourism Currently Located: Opening Shortly • Ranthambore • Pench National Park • Jim Corbett • Haridwar
Slide 26: Competitive Advantage
Competitive Advantage Balanced portfolio having presence in over 33 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: Quarter and Full Year highlights
Quarter and Full Year highlights 40.00 33.13 31.68 30.00 26.92 20.00 Quarterly 7.97 10.00 6.55 4.49 5.02 2.46 3.05 - Q4FY19 Q3FY19 Q4FY18 Total revenues EBITDA PAT 150.00 120.04 108.13 100.00 Full Year 50.00 26.77 23.66 12.63 10.97 - FY 2019 FY 2018 Revenue from operations EBITDA PAT Rs. In crore
Slide 29: Margins
Margins Quarterly Margins Full Year Margins 30% 25% 22% 22% 25% 25% 20% 20% 20% 18% 19% 15% 15% 13% 15% 14% 14% 11% 10% 11% 10% 10% 9% 9% 5% 5% 0% 0% Q4FY19 Q3FY18 Q4FY18 FY 2019 FY 2018 EBITDA PBT PAT EBITDA PBT PAT
Slide 30: Quarter ended Financial results
Quarter ended Financial results Particulars (Rs in Crs) Q4FY19 Q3FY19 Q4FY18 Q-o-Q Y-o-Y Income from Operations 29.53 30.55 26.27 -3% 12% Other Income 3.60 1.13 0.65 219% 454% Total Income 33.13 31.68 26.92 5% 23% Cost of Material Consumed 3.32 3.40 2.69 -2% 23% Employee Benefits Expense 6.23 5.70 5
Slide 31: FY19 Financial results
FY19 Financial results Particulars (Rs in Crs) FY19 FY18 Y-o-Y Income from Operations 112.60 102.14 10% Other Income 7.44 5.99 24% Total Income 120.04 108.13 11% Cost of Material Consumed 11.89 10.56 13% Employee Benefits Expense 22.80 21.16 8% Power and fuel Expense 11.55 10.02 15% Rent Expense 13.
Slide 32: Balance Sheet - Snapshot
Balance Sheet - Snapshot Particulars (Rs in Crs) FY 2019 FY 2018 Assets Property, plant and equipment 32.77 34.26 Capital work-in-progress - 0.29 Other non-current assets 226.45 226.30 Total Non-current assets 259.22 260.85 Current Assets 39.87 31.89 Total assets 299.09 292.74 Equity and liabilities
Slide 33: Sustainable Growth – Consolidated numbers
Sustainable Growth – Consolidated numbers Total revenues EBITDA and EBITDA Margins 250.00 219.04 60.00 22% 25% 199.83 20% 187.63 50.00 17% 20% 200.00 15% 162.89 40.00 48.81 15% 150.00 30.00 39.73 31.70 10% 20.00 24.70 100.00 5% 10.00 50.00 - 0% FY16 FY17 FY18 FY19 - FY16 FY17 FY18 FY19 EBITDA EBITDA
Slide 34: Consolidated Income Statement - Snapshot
Consolidated Income Statement - Snapshot Particulars (Rs in Crs) FY19 FY18 Total revenues 219.04 199.83 Total operating expenses 170.23 160.10 EBITDA 48.81 39.73 EBITDA Margin (%) 22% 20% Finance Cost 13.21 14.69 Depreciation 14.32 15.82 PBT 21.28 9.22 PBT Margins (%) 10% 5% Tax 8.17 6.81 PAT 13.11
Slide 35: Consolidated Balance Sheet - Snapshot
Consolidated Balance Sheet - Snapshot Particulars (Rs in Crs) FY 2019 FY 2018 Assets Property, plant and equipment 246.35 254.69 Capital work-in-progress 20.93 21.49 Goodwill 17.75 17.75 Other Non-current assets 45.77 45.87 Total Non-current assets 330.80 339.80 Current Assets 72.72 62.30 Total asse
Slide 36: Shareholding
Shareholding Promoters Mutual Funds Foreign Portfolio Investors Others 24.43 Key Investors Holding (%) 5.86 National Westminster Bank PLC as trustees of the 4.36% Jupiter India Fund 69.29 0.42 Jupiter South Asia Investment Company Limited - 1.00% South Asia Access Fund
Slide 37: 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 38: Thank You
Thank You