The year 2019 marks the end of a decade. Over the past 10 years our economy grew fromstrength to strength and helped increase consumer purchasing power which in turn fuelledrecord growth in the hospitality industry. On the back drop of this healthy growth RoyalOrchid Hotels Ltd. (ROHL) continued to post positive growth in revenue and profitabilitythrough the years.
Our consolidate revenue in the financial year 2019 20 was 205 Cr while the same was203.83 in 2019. The EBIDTA for 2019 - 20 is 45.32 Cr the same was 48.82 Cr in 2018 -19.Relating to this the profit after tax (PAT) stands at 5.08 Cr in 2019 - 20 vs. 13.11 Cr in2018 - 19. The earnings per share (EPS) in 2019 -20 is 2.04 Vs 4.83 in 2018 - 19.
As the year and the decade came to a close COVID-19 struck and the pandemic caught usall of us off guard and so far it has had an overwhelming impact on all countries andeconomies around the world. Though the pandemic has not yet ended it continues to affecteconomic activities and people's lives. I would like to extend my deepest sympathy notonly to our employees and their families but also to all people who have been affected byit.
FY 2020 has been a challenging year for us as the entire country witnessed a sharpdeceleration in growth with Hospitality being amongst the worst-hit industries. We havefaced unprecedented demand slowdown and revenue challenges due to the strategies adoptedto flatten the COVID-19 curve such as country and city lockdowns social distancingstay-at-home orders travel and mobility restrictions.
In view of these developments we had taken substantial steps to preserve liquidity andmitigate the impact of extremely low levels of demand. In addition to reducing ouroperating expenses dramatically we revised our organisation strategy to become moreagile. We also started several initiatives such as the management development & multiskilling program through which we succeeded at rationalising costs improving efficiency& customer experience and to help upskill managers for our forthcoming properties.Our priority during the lockdown was also to implement safety SOP's at the hotels tominimise the impact of the COVID 19 viruses.
The influx of international arrivals is traditionally the globally accepted barometerof any tourism economy's success. In India foreign tourists represent less than 1% oftourism activity. The lion's share of tourism activity being domestic India's travel andtourism sector will largely be insulated from the immediate aftermath of the pandemic.
The silver lining here is that domestic tourism is expected to steadily rise again overthe year as domestic flights have resumed and interstate travel restrictions have beenrolled back.
A KPMG India tourism report on Indian domestic travel and tourism estimates thattourism activity will touch 2.8 billion by 2022. The drivers of growth could be two-fold.First Peoples pent up need to travel after coming out of a long and painful lockdown.Second 40 million Indians who would have otherwise planned to vacation overseas arelargely restricted to domestic travel. With 60 + hotels totalling 4000+ keys across 38cities in India Royal Orchid Hotels is poised to seize these opportunities and grow.
We have always endeavoured to offer an exceptional experience to guests strengthen ourmarket position and achieve transformative growth and we have made significant inroads inmeeting these objectives. In line with our goals to remain asset-light we have beenadding management contracts to our portfolio aggressively. As of August 2020 The RoyalOrchid Hotels' network has been diversified among 11 owned/leased hotels and 49 managedand franchise hotels. Through this strategy we continue to create value by operating abest-in-class portfolio of hotels across India.
As an organisation rooted in Indian values our priority during the lockdown was alsoto help our fellow citizens in any way we could. We offered free meals to migrant workersthrough the lockdown. Some of our hotels were even converted to quarantine centres. Theseactivities undertaken are over and above the existing CSR initiatives. In the year2019-20 the company has contributed to 23.99 Lacs towards CSR expenditure including skilldevelopment program which has enabled the youth to get jobs across the industry.
2020 might have started on a challenging note but I continue to remain bullish on thefuture of the industry the economy and our group as we possess all the underlying driversrequired to grow and achieve all our milestones.
I am thankful to our guests and shareholder for the support they have extended and theconfidence they have placed in us. We are on a mission to build the best-in-classportfolio of hotels and I'm optimistic about the prospects the future holds for us.
Chander K Baljee
Chairman & Managing Director
Royal Orchid & Regenta Hotels