Q4 PAT of Royal Orchid Hotels down 5.7%

Hospitality player Royal Orchid Hotels today reported a decline of 5.76 per cent in its profit after tax for the fourth quarter ended March 31, at Rs 2.78 crore.

The company had a profit after tax (PAT) of Rs 2.95 crore during the corresponding quarter of the previous fiscal, Royal Orchid Hotels Ltd said in a statement.

It, however, registered a growth of 18.57 per cent in its total consolidated revenue during the fourth quarter of the last fiscal at Rs 38.18 crore, against Rs 32.20 crore during the year-ago period.

Royal Orchid Hotels said that there was a hike in depreciation by Rs 1.28 crore and in financial charges by Rs 0.88 crore on account of expansion projects and renovation of the company's existing properties.

For the fiscal year 2009-10, the company reported a fall of 65.13 per cent in its PAT at Rs 6.79 crore, from Rs 19.99 crore during the previous fiscal.

It also reported a decrease of 14.97 per cent in its total consolidated revenue during the last fiscal at Rs 121.86 crore against Rs 143.32 crore in 2008-09, the statement said.

"We are looking at positive growth in the next few months as some of our hotels, which were under renovation in the last financial year, are now fully operational. Occupancies have improved across the group and we expect room rents to start improving shortly," Royal Orchid Hotels chairman and MD Chender Baljee said.

He said the company plans to open a hotel each in Jaipur and Hyderabad this fiscal.

Royal Orchid currently operates 13 hotels in the premium and luxury segments across the country.