Royal Orchid Hotels Limited · NSE:ROHLTD
Royal Orchid Hotels — Q2 FY20 Earnings Presentation
36 slides from Royal Orchid Hotels's earnings presentation, Nov 11, 2019
Slide 1: Cover letter to exchanges: Investors Presentation
Date: November 11, 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 Mum
Slide 2: Q2 FY20 Results Presentation
Royal Orchid Hotels Ltd Q2 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 103870 9.00% 10% 10.00% 250000 100000 94731 201499 86647 9.60% 8.60% 8.00% 79118 200000 180
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 18000 17093 Chennai, Gurugram, Goa, and Jaipur Traffic (2017/18 -2018/19) 16025 15922 16000 14724 13726 (Rs in Lakh) 2017/18 2018/19 % Chang
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 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 55+ 3750+ 37 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
Revenue Model Category FY 2019 H1FY20 (%) Owned 195 195 0% Leased 433 433 0% JV 396 396 0% Managed / Franchise 2,361 2758 17% Total Keys 3,385 3783 12% Category Owned Leased JV Managed Total 5 Star 195 - 212 - 407 Portfolio Asset 4 Star - 198 130 1,954 2,282 Service Apartment - - - 159 159 Resort/He
Slide 19: Growth in rooms and loyalty members
Growth in rooms and loyalty members No of 20 23 26 34 42 47 49 55 Properties Steady growth in rooms 4,000 3,500 398 135 91 3,000 546 2,500 389 2,000 281 298 3,385 88 3,159 3,294 1,500 2,613 1,000 2,224 1,943 1,557 1,645 500 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Beginning of the year Additions Lo
Slide 20: Property breakup with rooms
Property breakup with rooms No of Keys FY19 FY20* Management / Franchisee Contracts 2,317 2,759 JV 396 396 Owned (Domestic) 195 195 Owned (Overseas) - - Leased 386 433 Total KEYS 3,294 3,783 Average Occupancy (JLO) 75% 69% Average Room Rate (JLO) (Rs) 3,854 3,945 Average Occupancy rate (Managed) 62%
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 • Belagavi
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
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 60.00 52.55 50.65 50.56 50.00 40.00 30.00 Quarterly 20.00 10.64 10.24 8.34 10.00 1.03 0.78 - (10.00) Q2FY20 (0.44) Q1FY20 Q2FY19 Total revenues EBITDA PAT 120.00 103.20 100.31 100.00 80.00 60.00 40.00 Half Year 18.98 20.91 20.00 0.34 2.91 - H1 FY 20 H1 F
Slide 29: Margins
Margins Quarterly Margins Half Year Margins EBITDA PBT PAT 10.64 EBITDA PBT PAT 10.24 20.91 8.34 18.98 3.09 6.84 2.34 1.03 0.78 2.91 2.41 0.07 0.34 Q 2 F Y2 0 Q 1 F Y2 0 Q 2 F Y1 9 (0.44) H1 FY 20 H1 FY 19
Slide 30: Standalone Q2 FY20 Financial results
Standalone Q2 FY20 Financial results Particulars (Rs in Crs) Q2FY20 Q1FY20 Q2FY19 Q-o-Q Y-o-Y Income from Operations 26.36 27.43 26.96 -4% -2% Other Income 1.94 2.15 1.83 -10% 6% Total Income 28.30 29.58 28.79 -4% -2% Cost of Material Consumed 2.95 3.31 2.67 -11% 10% Employee Benefits Expense 6.57 6
Slide 31: Sustainable Growth – Yearly Consolidated numbers
Sustainable Growth – Yearly Consolidated numbers Rs. In crore
Slide 32: Consolidated FY20 Q2 Statement - Snapshot
Consolidated FY20 Q2 Statement - Snapshot Particulars (Rs in Crs) Q2FY20 Q1FY20 Q2FY19 Q-o-Q Y-o-Y Income from Operations 46.93 48.52 47.17 -3% -1% Other Income 3.72 4.03 3.39 -8% 10% Total Income 50.65 52.55 50.56 -4% 0% Cost of Material Consumed 5.57 5.56 5.12 0% 9% Employee Benefits Expense 13.82
Slide 33: Consolidated FY20 Q2 Assets & Liabilities - Snapshot
Consolidated FY20 Q2 Assets & Liablities - Snapshot Particulars (Rs in Crs) FY 2020 FY 2019 Assets Property, plant and equipment 267.83 246.35 Capital work-in-progress 21.13 20.93 Goodwill 17.74 17.75 Other non-current assets 47.99 45.77 Total Non-current assets 354.69 330.79 Current Assets 81.92 72
Slide 34: Shareholding
Shareholding Ratios 0% 6% Mutual Funds 25% Foreign Portfolio Investors 69% Others Promoters Key Investors Holding(%) 4.36% Jupiter India 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