Future growth expectations in earnings/operating earnings/profits/EPS?

FY '24 revenue target: INR400 crores, up from INR263 crores in FY '23. FY '24 EBITDA target: INR120 crores, up from INR98 crores in FY '23. EBITDA margin expected to be slightly lower due to increased revenue from lower-margin revenue share models. PAT before exceptional items for Q4 FY '23 rose 159% YoY to INR12.98 crores; annual PAT nearly doubled at INR50 crores. Dividend payouts expected to increase next year with higher profits. Strong expected ARR growth: 10-15% uplift forecast for the current financial year. Occupancy levels likely to be stable around 77%, not expected to gr

Any current/future new fundraising through debt or equity?

The company plans to utilize internal accruals primarily for renovations and growth initiatives rather than raising new capital. There is no mention of any immediate or planned new fundraising through debt or equity in the current discussions. Cash generated will be used for buying out partners in some subsidiaries and for hotel renovations. Dividend payouts are planned to increase next year, indicating available cash flow but no clear indication of raising new funds. The company is focusing on management contracts and revenue-sharing models, which require lower capex and reduce the need for l

Any current/future capex/capital investment/strategic investment?

The company plans to use internal accruals of around INR 10-15 crores for renovating 2-3 existing hotels in the current financial year, as no major capex has been done in the last 4-5 years. New hotel additions under the revenue share model involve capex of approximately INR 5-6 crores per hotel (typically 70-80 rooms) in the first year. Management contracts require no capex. The company targets adding about 40-50 new hotels in the next year, with about 10-15 on revenue sharing. Plans include buying out partners in some subsidiaries/hotels to develop properties independently. Expansion

Future growth expectations in sales/revenue/volumes?

Targeted revenue for the current financial year is INR 400 crores, up from INR 263 crores reported for the previous year, indicating substantial growth. EBITDA is expected to increase to INR 120 crores from INR 98.3 crores in FY '23. Expansion plan includes increasing the number of hotels from about 90 currently to 140-150 by the end of the financial year. Room capacity expected to grow from approximately 5,400 rooms to between 7,500 and 8,000 rooms by FY '24. About 24 signed hotels in the pipeline adding around 1,100 rooms, with further plans for 20-25 more hotels adding 1,500 rooms.

Royal Orchid Hotels LtdQ4 FY23Leisure Services

Royal Orchid Hotels Ltd Q4 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹277P/E: 28.4Market Cap: ₹758 CrSector: Leisure Services

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

Targeted revenue for the current financial year is INR 400 crores, up from INR 263 crores reported for the previous year, indicating substantial growth.
EBITDA is expected to increase to INR 120 crores from INR 98.3 crores in FY '23.
Expansion plan includes increasing the number of hotels from about 90 currently to 140-150 by the end of the financial year.
Room capacity expected to grow from approximately 5,400 rooms to between 7,500 and 8,000 rooms by FY '24.
About 24 signed hotels in the pipeline adding around 1,100 rooms, with further plans for 20-25 more hotels adding 1,500 rooms.
Expected average room rate (ARR) growth of around 15% in the current financial year.
Occupancy is already high at about 77%, with limited scope for further increases.
Majority (~80-85%) of new hotels will be on management contracts, minimizing capex and encouraging asset-light growth.

Margin guidance

Category 3

FY '24 revenue target: INR400 crores, up from INR263 crores in FY '23.
FY '24 EBITDA target: INR120 crores, up from INR98 crores in FY '23.
EBITDA margin expected to be slightly lower due to increased revenue from lower-margin revenue share models.
PAT before exceptional items for Q4 FY '23 rose 159% YoY to INR12.98 crores; annual PAT nearly doubled at INR50 crores.
Dividend payouts expected to increase next year with higher profits.
Strong expected ARR growth: 10-15% uplift forecast for the current financial year.
Occupancy levels likely to be stable around 77%, not expected to grow significantly further.
Expansion plans include over 60 new hotels (~3000 rooms) in pipeline, focusing mostly (80%) on asset-light management contracts to improve margins and returns.
ROCE and ROE expected to improve with growing share of management contracts and revenue share models.

See what Royal Orchid Hotels Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

The company plans to utilize internal accruals primarily for renovations and growth initiatives rather than raising new capital.
There is no mention of any immediate or planned new fundraising through debt or equity in the current discussions.
Cash generated will be used for buying out partners in some subsidiaries and for hotel renovations.
Dividend payouts are planned to increase next year, indicating available cash flow but no clear indication of raising new funds.
The company is focusing on management contracts and revenue-sharing models, which require lower capex and reduce the need for large external funding.
No explicit plans or announcements regarding new debt or equity fundraising were made in the provided transcript.

Order book

Yes

- Royal Orchid Hotels currently has around 24 hotels signed in the pipeline, which will add approximately 1,100 rooms. - This addition will bring the total rooms to about 6,500 soon. - The company is targeting an additional 1,500 rooms through another 20-25 hotels, aiming to reach between 7,500 and 8,000 rooms. - There is ongoing work on both brownfield and greenfield projects for further conversions and new capacity additions, but exact bifurcation is not finalized. - The development teams are in discussion to decide on these projects, ensuring a steady pipeline for future years. - The company plans to expand hotel count to 140-150 hotels by the end of FY '24, up from 90 hotels currently operating. Overall, the orderbook shows a robust pipeline with signed hotels and active projects aimed at significant growth in rooms and hotel count.

See what Royal Orchid Hotels Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

The company plans to use internal accruals of around INR 10-15 crores for renovating 2-3 existing hotels in the current financial year, as no major capex has been done in the last 4-5 years.
New hotel additions under the revenue share model involve capex of approximately INR 5-6 crores per hotel (typically 70-80 rooms) in the first year. Management contracts require no capex.
The company targets adding about 40-50 new hotels in the next year, with about 10-15 on revenue sharing.
Plans include buying out partners in some subsidiaries/hotels to develop properties independently.
Expansion into international markets (Sri Lanka, Thailand, Nepal) is exploratory with a recently appointed VP leading the effort; no specific capex details mentioned yet.

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