Royal Orchid Hotels Net Income dropped on 58.9% and Revenue increased slightly on 0.59%
14-09-2020 • About Royal Orchid Hotels (
$ROHLTD) • By InTwits
Royal Orchid Hotels reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Royal Orchid Hotels has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 6.8%
- CAPEX is quite volatile: ₹617m in FY2020, ₹1,262m in FY2019, ₹317m in FY2018, ₹389m in FY2017, ₹227m in FY2016
- The company has potentially unprofitable business model: ROIC is 3.4%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Royal Orchid Hotels's Revenue increased slightly on 0.59%. During FY2016-FY2020 Revenue growth topped in FY2017 at 10.3% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 16.5% to 14.9% in FY2020.
Net Income margin decreased on 3.5 pp from 5.9% to 2.4% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 2.4%. The company showed decline in CAPEX/Revenue of 2.1 pp from 4.5% in FY2017 to 2.4% in FY2020. Average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at low ROIC (3.4%) and ROE (2.8%). ROIC decreased on 2.7 pp from 6.1% to 3.4% in FY2020. ROE decreased on 4.1 pp from 6.9% to 2.8% in FY2020.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from 1.5x to 3.6x in FY2020. Debt surged on 66.0% while cash decreased on 3.5%.
Royal Orchid Hotels has no short term refinancing risk: cash is higher than short term debt (249.0%).
Financial and operational results
FY ended 31-03-2020
Royal Orchid Hotels ($ROHLTD) key annual financial indicatorsmln. INR | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
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P&L
|
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Revenue | 1,585 | 1,749 | 1,895 | 2,038 | 2,050 | 0.6% |
EBITDA | 206 | 206 | 295 | 336 | 306 | -8.9% |
Net Income | -13 | -35 | 34 | 119 | 49 | -58.9% |
Balance Sheet
|
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Cash | 136 | 225 | 264 | 415 | 400 | -3.5% |
Short Term Debt | 102 | 33 | 33 | 27 | 161 | 500.9% |
Long Term Debt | 595 | 1,009 | 961 | 887 | 1,356 | 52.9% |
Cash flow
|
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Capex | 68 | 79 | 35 | 43 | 50 | 16.2% |
Ratios
|
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Revenue growth | 7.3% | 10.3% | 8.3% | 7.6% | 0.6% | |
EBITDA growth | 3.6% | 0.0% | 43.1% | 13.9% | -8.9% | |
|
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EBITDA Margin | 13.0% | 11.8% | 15.6% | 16.5% | 14.9% | -1.6% |
Net Income Margin | -0.8% | -2.0% | 1.8% | 5.9% | 2.4% | -3.5% |
CAPEX, % of revenue | 4.3% | 4.5% | 1.8% | 2.1% | 2.4% | 0.3% |
|
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ROIC | 2.5% | 1.5% | 4.3% | 6.1% | 3.4% | -2.7% |
ROE | -0.8% | -2.1% | 2.0% | 6.9% | 2.8% | -4.1% |
Net Debt/EBITDA | 2.7x | 4.0x | 2.5x | 1.5x | 3.6x | 2.2x |
Royal Orchid Hotels ($ROHLTD) key quoterly financial indicators
mln. INR | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
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P&L
|
---|
Revenue | 485 | 469 | 613 | 483 | | - | - | - | - |
EBITDA | 66 | 46 | 148 | 40 | | - | - | - | - |
Net Income | 8 | -4 | 57 | -9 | | - | - | - | - |
Balance Sheet
|
---|
Ratios
|
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EBITDA Margin | 13.6% | 9.8% | 24.1% | 8.3% | | - | - | - | - |
Net Income Margin | 1.6% | -0.9% | 9.2% | -1.9% | | - | - | - | - |
Peers in Hotels
Below you can find Royal Orchid Hotels benchmarking vs. other companies in Hotels industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.