Royal Orchid Hotels reports strong Q2 Growth in FY 24-25

Royal Orchid Hotels Limited, has shown a growth in its financial performance for the second quarter (Q2) and the first half (H1) of FY 24-25. The results reflect the company’s successful strategies in capitalising on market demand and enhancing operational efficiency. 

Highlights
On a standalone basis, the company achieved a total income of Rs 51.94 crore in Q2 FY 24-25, an increase from Rs 49.09 crore in the previous quarter and Rs 45.50 crore in Q2 FY 23-24. The EBITDA rose to Rs 16.02 crore compared to Rs 13.62 crore in Q1 FY 24-25 and Rs 14.02 crore in the same quarter of the previous fiscal year. Meanwhile, PAT (Profit After Tax) climbed to Rs 6.20 crore, marking a significant growth from Rs 4.43 crore in Q1 FY 24-25 and Rs 4.93 crore in Q2 FY 23-24.

For H1 FY 24-25, standalone total income reached Rs 101.03 crore, a 10.93 per cent increase from Rs 91.07 crore in H1 FY 23-24. EBITDA for the half-year stood at Rs 29.64 crore, up from Rs 27.69 crore, while PAT rose to Rs 10.63 crore from Rs 9.60 crore.

On a consolidated level, Royal Orchid Hotels recorded total income of Rs 78.32 crore in Q2 FY 24-25, slightly up from Rs 77.66 crore in the preceding quarter and significantly higher than Rs 70.07 crore in Q2 FY 23-24. However, the EBITDA declined marginally to Rs 19.36 crore from Rs 21.29 crore in Q1 FY 24-25. PAT stood at Rs 7.52 crore compared to Rs 8.72 crore in Q1 FY 24-25. 

For H1 FY 24-25, consolidated income totaled Rs 155.98 crore, a rise from Rs 143.79 crore in H1 FY 23-24. EBITDA reached Rs 40.65 crore, while PAT amounted to Rs 16.24 crore. 

Operations
Royal Orchid Hotels continues to focus on optimising its portfolio to cater to a broad spectrum of travellers, offering upscale and affordable accommodations. The launch of a new upscale brand marks a significant milestone for the company, aimed at tapping into high-demand segments with occupancy levels projected to exceed 75 per cent.

Additionally, the revamped loyalty program, "Regenta Rewards," has shown strong performance, reinforcing customer trust and engagement. The program is part of the company’s strategy to deliver value-driven experiences for its clientele.

Strategic Outlook 
Adopting IND-AS 116 standards has led to a notional increase in depreciation and finance costs, impacting the PAT. However, the company’s diversified revenue streams and operational focus are well-positioned to offset these challenges.  

As Royal Orchid Hotels continues to expand its footprint, with a diverse portfolio of 110+ Hotels across 75+ locations the financial results for Q2 and H1 underscore its commitment to delivering sustainable growth and value for stakeholders.

Commenting on the results, Chander K Baljee, Chairman & Managing Director said, “We are pleased to report continued momentum in financial performance, led by robust growth across our diversified portfolio. Market sentiment and client preference for our brand remain positive. This financial Year is going to mark a significant milestone with the launch of our new upcoming upscale brand, poised to capitalise on the inherent demand in this segment. With potential average annual occupancies exceeding 75 per cent, our distinctive offerings and new hotel concept are well-positioned to tap into this growth environment.”

“At the heart of our strategy is creating lasting value for our stakeholders. We've reimagined our Loyalty program, 'Regenta Rewards' to better connect with our customers. The program's outstanding performance is a testament to our customer-first mindset and the strong trust our patrons have placed in us. We are ever thankful for the board's guidance, our clients' loyalty, and our team's unwavering passion.” He added.