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Royal Orchid Hotels Ltd.

BSE: 532699 Sector: Services
NSE: ROHLTD ISIN Code: INE283H01019
BSE 16:01 | 07 Jul 146.45 9.00
(6.55%)
OPEN

138.00

HIGH

147.40

LOW

137.90

NSE 15:47 | 07 Jul 146.80 9.65
(7.04%)
OPEN

138.15

HIGH

148.00

LOW

138.05

OPEN 138.00
PREVIOUS CLOSE 137.45
VOLUME 12033
52-Week high 153.35
52-Week low 66.75
P/E
Mkt Cap.(Rs cr) 402
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 138.00
CLOSE 137.45
VOLUME 12033
52-Week high 153.35
52-Week low 66.75
P/E
Mkt Cap.(Rs cr) 402
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Royal Orchid Hotels Ltd. (ROHLTD) - Chairman Speech

Company chairman speech

2020 will forever be remembered as the Year-Of-The-Pandemic. It was a year oflockdowns curfews restrictions rising cases economic slowdowns and the new normal. Tomy recollection 2020 has been the most challenging and transformative year of my life.While we have faced a multitude of threats and challenges in the past dealing withsomething of this magnitude was simply unfathomable. Through strong crisis management weswiftly put all the necessary measures in place to keep our people safe continue to serveour customers and maintain business operations. I would like to take this opportunity toexpress my gratitude to our guests shareholders and our dynamic and agile workforce forthe relentless support that they have rendered to the group.

When the pandemic hit our shores last year we had two key priorities one was thesafety and wellbeing of our employees and guests and the other was unhindered businesscontinuity. It was exceptionally hard for us and the industry as our country witnessed asharp deceleration in growth. While we faced demand slowdown and revenue challenges due tothe strategies adopted to flatten the COVID-19 curve we were only able to meet thesechallenges as a result of the efforts that were taken in the past to become an agileresilient and future-ready organization.

Our consolidated revenue for the financial year 2020 21 is 80.85 Cr while the same was205.03 CR in 19- 20. The EBITA for 20-2021 is (3.11) Cr the same was 45.32 Cr in 2019-20.Relating to this the profit after tax (PAT) stands at Rs. (40.01) Cr in 20-21 Vs. 5.08 Crin 2019-20. The earnings per share (EPS) in 2020-21 is (11.84) Vs. Rs 1.79 in 2019-20.

The debt in the standalone which stood at 43 Cr as on 30.03.2021 was at 9.8% interestper annum. Through financial prudence we've managed the get the same debt refinanced at7.5% interest now.

2020 was marked not only by its challenges but by how we as a team met them. We knewthat the path forward is not going to be a straight one. None of us had ever experienced apandemic before so there was no past wisdom to fall back on. We had to think on our feetand our responses needed to be largely improvised. It was more than clear to us that theseunconventional problems require unconventional solutions.

In addition to reducing our operating expenses dramatically through costrationalization measures we revised our organization strategy to become more coherent andadopted various tactics to mitigate the impact of low levels of demand such as realigningour marketing and revenue management strategy hyper-local sale funnel approach safetystandards SOP launching Management Development Program and multi-skilling and directingour focus on ancillary revenue streams. To help manage the fall out of low revenueseverybody in the group including me volunteered to take pay cut of up to 50%. Had we notimplemented these strategies the group would have suffered.

Although the black swan event hit us hard we have made remarkable progress on our roadto recovery. 2021 so far has proven to be the year of ‘revenge travel'. As perBooking.com's Future of Travel research findings 49% of Indian travelers plan to explorea new destination within their home country. India used to receive 10 million foreigntourists and around 26 million Indians used to travel abroad each year spending anestimated US$25 billion. With international travel remaining largely inaccessible toleisure travelers domestic travel will continue to grow strong.

We as a group have started encashing on this opportunity and also have a robust plan inplace to ensure that we grab the lion's share of this segment.

Although the black swan event hit us hard we have made remarkable progress on our roadto recovery. 2021 so far has proven to be the year of revenge travel'. In line with ourgoals to remain asset-light we have been adding management contracts to our portfolioaggressively. As of August 2021 The Royal Orchid Hotels' network has been diversifiedamong 11 owned/leased hotels and 59 managed/franchise hotels. Through this strategy wecontinue to create value by operating a best-in-class portfolio of hotels across India.

The year gone by was a pivotal one for ROHL. The way everybody at the group faced thesetimes of adversity with grace and fortitude only goes to show that we remain undeterred inour mission to build the best-in-class portfolio of hotels.

I always remain grateful to our guests and shareholder for the support they haveextended and the confidence they have placed in us. 2021 will certainly be eventful andI feel fortunate we are on this journey together

Chander K Baljee

Chairman & Managing Director Royal Orchid & Regenta Hotels

.