Royal Orchid Hotels’ Standalone Net Profit for Q3FY19 Increases by 6.4% yoy
This is on account of likely stable revenue per available room and new management contracts.
ROYAL ORCHID Hotels Limited, hotel chain operating 5 and 4-star hotels for business and leisure travellers, reported its financial results for the quarter and nine months ended 31st December 2018.
The standalone revenue for the quarter came in at INR 30.55 cr, up 7.6 percent yoy. This is on account of likely stable revenue per available room and new management contracts. However, the EBITDA remained flat at INR 6.84 cr in Q3FY19. The adjusted net profit after tax for Q3FY19 came in at INR 4.49cr as against INR 4.22cr in Q3FY18.
The marginal increase in net profit is on account of rising in rental and power expenses higher than the top-line growth coupled with an increase in the effective tax rate. The rental and power expenses have increased by 13.2 percent and 26.7 percent yoy to INR 3.47cr and INR 2.89cr respectively during the quarter. The effective tax rate of the company for the quarter stood at 23 percent yoy vs. 26 percent in Q3FY18. The finance cost declined by 13.6 percent yoy to INR 1.11cr in Q3FY19.
The management feels that their strategy of expanding through management contracts is paying off dividends. "We are looking to further expand our footprint in the country through management contracts," says Chander K Baljee, Managing Director, Royal Orchid Hotels.
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