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Royal Orchid Hotels Ltd.

BSE: 532699 Sector: Services
NSE: ROHLTD ISIN Code: INE283H01019
BSE 11:28 | 11 Dec 66.00 1.25
(1.93%)
OPEN

65.60

HIGH

66.00

LOW

65.00

NSE 11:17 | 11 Dec 65.40 -0.05
(-0.08%)
OPEN

63.60

HIGH

66.55

LOW

63.60

OPEN 65.60
PREVIOUS CLOSE 64.75
VOLUME 1309
52-Week high 138.25
52-Week low 54.60
P/E 15.60
Mkt Cap.(Rs cr) 181
Buy Price 65.15
Buy Qty 58.00
Sell Price 66.45
Sell Qty 58.00
OPEN 65.60
CLOSE 64.75
VOLUME 1309
52-Week high 138.25
52-Week low 54.60
P/E 15.60
Mkt Cap.(Rs cr) 181
Buy Price 65.15
Buy Qty 58.00
Sell Price 66.45
Sell Qty 58.00

Royal Orchid Hotels Ltd. (ROHLTD) - Chairman Speech

Company chairman speech

Dear Shareholders

Over the last year the hospitality sector witnessed healthy growth and it has emergedas one of the key industries driving growth for the Indian economy. On the backdrop ofthis healthy growth Royal Orchid Hotels Ltd. (ROHL) has posted positive growth inrevenues and profitability for financial year ended 2019.

According to the CRISIL report the occupancy rate is expected to reach 71% by 2023from the current 66% levels. With 50+ hotels totaling 3385 keys across 35 cities inIndia Royal Orchid Hotels is poised for significant growth in the coming years.

The company has continuously paid dividend for the last 3 years. In the year 2016-17;the company had declared an interim dividend of 10% in the year 2017-18; the companydeclared a final dividend of 15% while for the year 2018-19; the company has proposed adividend of 20%.

Our consolidated revenue in financial year 2018 - 19 is Rs 203.83 Cr while the samewas Rs 189.45 Cr in 2018. The EBIDTA for 2019 is Rs 48.82 Cr the same was Rs 38.29 Cr in2018. Relating to this profit after tax (PAT) stands at Rs 13.11 Cr in 2019 vs. Rs 2.41Cr in 2018. The earning per share in 2019 is Rs 4.83 vs Rs 0.90 in 2018.

Delivering quality service with an emphasis on staff training and guest engagement hasresulted in higher than average occupancy rates and guest satisfaction. In the fiscal year2019 our owned and leased hotels had an average occupancy rate of 74% while the managedhotels' average occupancy rate was 69%. The inherent emphasis has been to better theexperience of our guests strengthen our market position and achieve transformativegrowth leading to greater profitability in each of our segments. The Royal Orchid Hotels'network has been diversified among 11 owned/leased hotels and 28 managed hotels. Weendeavor to create value by operating a best-in-class portfolio of hotels in India.

It has been five years since we adopted the asset light strategy and have been addingmanagement contracts to our portfolio aggressively since. This transformation has helpedus to overcome risks attached to owned hotels which gives us an edge over our peers. Ourendeavor has been to deliver operating cost structures which are economical and enable usto offer a value-for-money proposition to our guests.

Since the very beginning Royal Orchid Hotels Ltd. has contributed to CSR activities.In the year 2018-19 the company has contributed Rs 21.98 Lac towards CSR expenditure(skill development program) which has enabled youth to get jobs across the industry.Further the Baljee Foundation and Presidency College undertake a number of CSR activitiestowards skill development providing financial support towards education and medicalemergencies and contribution to various charitable trusts.

Our aim has always been to constantly enhance shareholder's value by striving forbetter growth efficiency in operations and better payouts. Over the past few years wehave been focusing on strengthening our balance sheet while maintaining operationalefficiencies. We assure you that we will achieve quicker timelines for ‘developmentto commencement of operations' for our hotels and maintain consistency in brand experienceat lower costs while delivering quality services to our customers.

I would like to thank all shareholders for believing in us and helping us to deliverand retain our brand promise which has resulted in outstanding deliveries and financialresults. We acknowledge your participation and contribution in every way as we begin yetanother year of making memories for both - customers and stakeholders.

Warm Regards

Chander K. Baljee

Managing Director