GuruFocus -
- Standalone Revenue: Rs 51.94 crores for Q2 FY2425, up 14% from Rs 45.50 crores in Q2 FY2324.
- Standalone EBITDA: Rs 16.02 crores for Q2 FY2425, up 14% from Rs 14.02 crores in Q2 FY2324.
- Standalone PAT (before exceptional items): Rs 6.2 crores for Q2 FY2425, up 26% from Rs 4.94 crores in Q2 FY2324.
- Consolidated Revenue: Rs 78.32 crores for Q2 FY2425, up 12% from Rs 70.07 crores in Q2 FY2324.
- Consolidated EBITDA: Rs 19.36 crores for Q2 FY2425, up 2% from Rs 18.94 crores in Q2 FY2324.
- Consolidated PAT: Rs 7.26 crores for Q2 FY2425, nearly flat compared to Rs 7.21 crores in Q2 FY2324.
- Earnings Per Share (EPS): Rs 2.73 per share for the quarter, up from Rs 2.49 per share in the same quarter last year.
- New Hotels Added: Two hotels with 91 keys added in the quarter.
- Additional Costs: Rs 2.656 crore increase in workforce costs and Rs 1.28 crore increase in repair and maintenance costs.
- One-time Expense: Rs 57 lakhs for a new loyalty program.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Royal Orchid Hotels Ltd (BOM:532699) reported a 14% growth in standalone income for Q2 2025 compared to the previous year.
- The company added two new hotels with 91 keys, indicating expansion and growth.
- EPS remained strong at ?2.73 per share for the quarter, up from ?2.49 in the same quarter last year.
- The company is on track to complete a 300-room hotel in Mumbai, expected to start operations by the end of the financial year.
- Royal Orchid Hotels Ltd (BOM:532699) has launched a new loyalty program, which is expected to enhance customer retention and reduce customer acquisition costs.
- Consolidated EBITDA growth was only 2%, and PAT remained flat, primarily due to accounting adjustments under Ind AS.
- The company faced increased costs due to workforce expansion and refurbishment, impacting margins.
- Heavy rains caused business disruptions, affecting occupancy rates and revenue.
- Managed hotels saw a drop in ARR due to new openings taking time to stabilize.
- Renovation expenses are expected to continue, with an additional ?3-4 crores anticipated in the second half of the year.
A: The Mumbai project is progressing well with 300 rooms and multiple F&B offerings. We expect to have most of the hotel ready by December, with licenses in place by February. This upscale lifestyle offering will be the first of many in our portfolio. - Arjun Baljee, President
Q: Why is the consolidated EBITDA growth only 2% despite a 12% increase in consolidated income?
A: The lower EBITDA growth is due to increased costs, including workforce expansion and refurbishment expenses, as well as accounting adjustments under Ind AS. However, we are on track to achieve our 2026 targets. - Amit Jaiswal, CFO
Q: What are the reasons for the softer average occupancy rates?
A: We are transitioning from a volume-led strategy to a rate-driven approach, which involves refurbishing and repositioning our properties. Additionally, adverse weather affected occupancy in North Goa. - Philip Logan, COO
Q: Can you explain the recent SEBI case and its impact on the company?
A: The SEBI allegations against the promoter have been dropped, but there is a penalty related to accounting treatment. We have appealed and obtained a stay on the penalty. - Amit Jaiswal, CFO
Q: What is the status of the Surat project and its expected completion?
A: The Surat project is progressing with phased openings. We currently have 188 rooms operational and expect to complete the full 288 keys within 12 months. The property is strategically located near upcoming infrastructure developments. - Philip Logan, COO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.