Royal Orchid Hotels posts 15.04% increase in revenue

Royal Orchid Hotels Limited (ROHL) has on a consolidated basis posted a 15.04 per cent increase in total income to Rs. 3571.13 lakh for the quarter ending December 31, 2007 as compared to Rs. 3104.18 lakh during the same period last year. Despite a quarter of hectic development and investment causing a drop in interest income by the company, there is a 4.87 per cent rise in net profit at Rs. 946.45 lakh for the quarter as compared to Rs. 902.49 lakh in the corresponding last quarter.

Consolidated Earnings Per Share (EPS) on basis and a diluted basis for the quarter stands at Rs. 3.48 in comparison to Rs. 3.31 for the corresponding quarter last financial year.

The consolidated financial statements include results of all the subsidiaries of Royal Orchid Hotels Limited.

Q3-07 saw a deluge of investment by ROHL in terms of both purchase and renovation activities. The company acquired its first international property in Dar Es Salaam, Tanzania, and also launched the 115-room Royal Orchid Central, Pune. Extensive renovations included revamping of Royal Orchid Harsha, Royal Orchid Central, Bangalore and also Doddi’s Resort. Total money deployed was Rs. 86.21 crore as on December 31, 2007 for the various expansion projects.

With the addition of its tenth hotel, Royal Orchid Central, Pune, and with plans for many upcoming hotels across India, Royal Orchid Hotels is looking aggressively at diversifying away from the Bangalore market. Having maintained margins despite heavy investment and also improving ARRs this quarter, Royal Orchid Hotels confidently looks at a promising performance in the next quarter.

Mr. Chender Baljee, Chairman & Managing Director, Royal Orchid Hotels Limited opined “The market looks good to us, especially in Pune and Jaipur, where our hotels are getting excellent response. Jaipur especially is doing exceedingly well. Though our interest  income has fallen by Rs. 135 lakh, we are pleased to announce that the majority of IPO proceeds have been deployed in new projects and that we are poised for a big growth in the future”.

Sourced From: Hanmer & Partners Communications Pvt. Ltd