Royal Orchid Hotels Net Income dropped on 58.9% and Revenue increased slightly on 0.59%14-09-2020
• About Royal Orchid Hotels ($ROHLTD
) • By InTwits
Royal Orchid Hotels reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Royal Orchid Hotels has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 6.8%
- CAPEX is quite volatile: ₹617m in FY2020, ₹1,262m in FY2019, ₹317m in FY2018, ₹389m in FY2017, ₹227m in FY2016
- The company has potentially unprofitable business model: ROIC is 3.4%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Royal Orchid Hotels's Revenue increased slightly on 0.59%. During FY2016-FY2020 Revenue growth topped in FY2017 at 10.3% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 16.5% to 14.9% in FY2020.
Net Income margin decreased on 3.5 pp from 5.9% to 2.4% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 2.4%. The company showed decline in CAPEX/Revenue of 2.1 pp from 4.5% in FY2017 to 2.4% in FY2020. Average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at low ROIC (3.4%) and ROE (2.8%). ROIC decreased on 2.7 pp from 6.1% to 3.4% in FY2020. ROE decreased on 4.1 pp from 6.9% to 2.8% in FY2020.
Debt level is 3.6x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from 1.5x to 3.6x in FY2020. Debt surged on 66.0% while cash decreased on 3.5%.
Royal Orchid Hotels has no short term refinancing risk: cash is higher than short term debt (249.0%).
Financial and operational results
FY ended 31-03-2020
Royal Orchid Hotels ($ROHLTD) key annual financial indicators
Royal Orchid Hotels ($ROHLTD) key quoterly financial indicators
|Short Term Debt||102||33||33||27||161||500.9%|
|Long Term Debt||595||1,009||961||887||1,356||52.9%|
|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%|
|mln. INR||FY20Q1||FY20Q2||FY20Q3||FY20Q4|| ||YoY change|
|Net Income||8||-4||57||-9|| ||-||-||-||-|
|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.