Kamat Hotels India Ltd — Q4 FY26

Kamat Hotels India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=77iJKw0eWYI Published: 15 hours ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FI26 conference call of Kamat Hotels India Limited. As a 0:09 9 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:17 17 seconds during the conference call, please signal an operator by pressing star followed by Zo on your touchstone phone. 0:23 23 seconds Please note that this conference is being recorded. At this time I would like to hand over the conference to Miss Purwangi Chen from Valerim Advisers. 0:32 32 seconds Thank you and over to you ma'am. 0:36 36 seconds Thank you. Good afternoon everyone and a warm welcome to you all. My name is Purvangi Jen from Valerim Advisers. 0:42 42 seconds We represent the investor relations of Kamat Hotels India Limited. On behalf of the company, I would like to thank you all for participating in the company's 0:50 50 seconds earnings conference call for the fourth quarter and financial year 2026. 0:55 55 seconds Before we begin, let me mention a caut short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such 1:04 1 minute, 4 seconds forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:12 1 minute, 12 seconds Such statements are based on management's belief as well as assumptions made by and information currently available to the management. 1:19 1 minute, 19 seconds Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's 1:27 1 minute, 27 seconds earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. I would now like 1:36 1 minute, 36 seconds to introduce you to the management team joining us on today's call. We have with us Mr. Vishal Vital Kaman, executive 1:43 1 minute, 43 seconds director and Mr. Nikl Singh, company secretary and compliance officer. 1:48 1 minute, 48 seconds Without any delay, I request Mr. Vishal Kamat to start with his opening jams. Thank you and over to you sir. 1:56 1 minute, 56 seconds Thank you very much. Namaskar everyone. 1:58 1 minute, 58 seconds Uh I'd like to welcome you all on the uh earnings call that we have for the year ending 2026. 2:06 2 minutes, 6 seconds So with that uh let me just briefly go through that overall. Let me give an overall outlook that the while the 2:13 2 minutes, 13 seconds global challenges have been immense for multiple industries. uh I think at the same time we find ourselves in a very 2:20 2 minutes, 20 seconds strange situation where supply is a challenge and demand is still there. So many companies are having orders but 2:28 2 minutes, 28 seconds they are not able to execute due to supply issues and when they are supplying there is a cost escalation. So there is a benefit also uh indirectly. 2:37 2 minutes, 37 seconds So but that kind of like evens out but so hence you find that we are in a very unique uh position where there is still 2:45 2 minutes, 45 seconds growth you still have the performance but expenses and other things are going up and we need to keep that in mind. I 2:53 2 minutes, 53 seconds think what Mr. Modi has said our prime minister has said along with even when you look at Singapore prime minister's 3:01 3 minutes, 1 second viral video and Mr. Kota it's not about being pessimistic it's about being 3:08 3 minutes, 8 seconds cautious and keeping our eye on the ball as to what is happening and preparing for that and touchwood I'm very happy 3:15 3 minutes, 15 seconds that you know hospitality in our case the sector that we are in I'll talk in more detail uh about it in more but 3:22 3 minutes, 22 seconds broadly we find ourselves in a position where our existing hotels will continue to have as per what we see a good run or 3:30 3 minutes, 30 seconds at least what we have been doing okay I know about the growth but I definitely know that even if we maintain what we are maintaining and focus on our 3:38 3 minutes, 38 seconds tightening belt that itself will still give a good result like we have seen in the last one year and at the same time 3:45 3 minutes, 45 seconds new project executions would be challenging because of material supply availability today because of LPG it's 3:53 3 minutes, 53 seconds not only hospitality but real estate and even simple office renovation home renovation any kind of utility for 4:00 4 minutes materials because of the tiles being a big challenge because LPG is required for tile manufacturing. So you find that there is a lot of um different different 4:09 4 minutes, 9 seconds push and pulls happening but the good part is we are aware of it and we are ready to weather it. That said there has still been a good demand a very good 4:18 4 minutes, 18 seconds demand for weddings. There has still been a very good movement of domestic mice and because Kamat is a Indian 4:26 4 minutes, 26 seconds brand, homegrown brand, a strong domestic brand having majority domestic clients, we particularly have not been 4:33 4 minutes, 33 seconds affected which the results show from the foreign disruptions, foreign travel and Mumbai as a city being the primary 4:41 4 minutes, 41 seconds gateway of India has had that advantage and Navi Mumbai airport opening also is 4:48 4 minutes, 48 seconds a further boost on this whole uh scene you know whether it is from hospitality or business. So Na'vi Mumbai and the way 4:55 4 minutes, 55 seconds Na'vi Mumbai airports are adding the additional international flights at least Mumbai as a sector Punea as a 5:02 5 minutes, 2 seconds sector seems to have a robust future with the increasing business. With this backdrop, we also know that overall we 5:11 5 minutes, 11 seconds have some upcoming projects which have got delayed whether it is the orchid deradun, orchid gualier, uh the Ira 5:19 5 minutes, 19 seconds orchid bhauagar. But the good news is that by Orchid Bhnagar should open by June though it was and misaged to be 5:25 5 minutes, 25 seconds much later uh thanks to the owners again orchid Nashik got delayed. So Bhnagar 5:32 5 minutes, 32 seconds owners they were able to do things much more expeditiously and fast. So when we are depend on the owner that time these 5:39 5 minutes, 39 seconds certain delays happen. So Bhavnagar will open by June and with that let me just read a formal um which our CFO who has 5:48 5 minutes, 48 seconds moved on. So based on that a new CFO will come which when you can discuss on that later on. I'll just read one of the main um passages was basically on a 5:56 5 minutes, 56 seconds consolidated basis revenue for the fourth quarter stood at 110 crores representing an increase of 6:03 6 minutes, 3 seconds approximately 19% yearonear. Abita for the quarter also was at 32 crores 6:09 6 minutes, 9 seconds improving uh the AITA margins to 28.9 29% reflecting an expansion of 213 basis 6:17 6 minutes, 17 seconds points year on year. Profit after tax for the quarter stood at 18 crores representing a 59% yearonear while PAT 6:26 6 minutes, 26 seconds margins stood at 15.89 16%. For the full year FY26, the 6:33 6 minutes, 33 seconds consolidated revenue stood at 386 crores reflecting a 8% growth. The AITA for the year stood at 97 crores with IITA 6:42 6 minutes, 42 seconds margins of 25.1% while the profit after tax stood at 39 crores translating into a pack margin of 10.1%. 6:51 6 minutes, 51 seconds So looking ahead, we are like I mentioned cautiously optimistic. uh we have to be very pragmatic in terms of 6:59 6 minutes, 59 seconds the volume that we are looking at in terms of business focusing more on our domestic line after president after sorry after prime minister Modi G's call 7:08 7 minutes, 8 seconds on travel in India I don't think many of the people in India have a choice because foreign airlines are anyways cancelling and reducing the number of 7:16 7 minutes, 16 seconds flights due to the higher fuel prices including domestic uh aviation companies also have reduced their foreign travel 7:24 7 minutes, 24 seconds like Air India has canled. So while it will affect incoming but post corona again let me remind everyone Indian 7:32 7 minutes, 32 seconds tourism influx of foreigners post corona was not very robust. It did not reach 7:39 7 minutes, 39 seconds the precorona levels and hence a lot of our boom has been because of the robust 7:46 7 minutes, 46 seconds internal economy. So again this year this holiday season we find a lot of movement from within India and that's how many of our resorts are doing well 7:54 7 minutes, 54 seconds even after the 31st of March. So I think that boost many of the Indian operators the Indian hotel years the Indian tour 8:02 8 minutes, 2 seconds operators many of them will have this advantage. With that I leave the floor open to the question and answers. I have 8:09 8 minutes, 9 seconds with me Mr. Nikil Singh our company secretary also they have done a very good job uh in um basically I must appreciate you and your 8:18 8 minutes, 18 seconds team Nikl for handling the things in the absence of various things and still getting everything done on time. So thank you um everyone and with that I ask the moderator to open the floor. 8:28 8 minutes, 28 seconds Thank you. Namaskar. 8:31 8 minutes, 31 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 8:39 8 minutes, 39 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a 8:48 8 minutes, 48 seconds question. Ladies and gentlemen, we will read for a moment while the question Q is end. 9:08 9 minutes, 8 seconds The first question is from the line of Urs Sha from Money Visor. Please go ahead. Yeah, I hope I'm audible. 9:16 9 minutes, 16 seconds Yes, Namaskar. Mr. Sha, you are audible. 9:19 9 minutes, 19 seconds Yeah. So my first question is on the ARR I mean uh if I see the YI numbers for the quarter then and for Jadavagar both 9:27 9 minutes, 27 seconds have seen a decline. if you could throw some light on that and also on the occupancy rate for both these uh properties. 9:35 9 minutes, 35 seconds Yeah, so as you can see we have had a dip in Jadu or last year there were certain 9:43 9 minutes, 43 seconds things but this year we will definitely see much better figures for for Jada uh in general there were certain challenges which were there in the middle of the 9:52 9 minutes, 52 seconds year because of which we did face and that's why the second half was better than the first half but uh we did not um 9:58 9 minutes, 58 seconds uh but yeah there was a dip overall so this year we have changed certain strategies since in certain things and based on which there will be a much much 10:07 10 minutes, 7 seconds more better performance in terms of the ADR and the occupancy and the overall business there especially in Jadavagar 10:14 10 minutes, 14 seconds we when we do uh weddings we do in terms of yield so the this year there has been a different change in strategy and 10:22 10 minutes, 22 seconds that's how basically we will find that results so for the coming sorry could you elaborate a bit more on the 10:30 10 minutes, 30 seconds strategy because for I mean I can understand had a 5% dip if I see the numbers but Jada had 5%. 10:39 10 minutes, 39 seconds Yeah. So's dip is different and for Jadar's dip is different. Ira's dip is because so basically what happens is 10:46 10 minutes, 46 seconds when we add new hotels and this is also a very good question you asked. Let me take it on the broader sense of the occupancy also drop which holistically 10:54 10 minutes, 54 seconds as a company we have seen that's because what happens is when you add new hotels and since they have been under either 11:02 11 minutes, 2 seconds orchid brand or under era brand the overall matrix becomes wider the base becomes wider for example we've added 45 11:10 11 minutes, 10 seconds room uh hotel era by orchid pouring now in the first few months it took time for it to start stabilize you know it takes 11:19 11 minutes, 19 seconds a lot of time for the SEO which is the search engine optimization to get the algorithm and then the hotel to start popping up on the top then people when 11:28 11 minutes, 28 seconds they start booking that time on the OTAA bookings also the algorithm starts playing today if orchid hotel comes in the top page it's not because of only 11:36 11 minutes, 36 seconds the money that you spend on ad of or banner and all that doesn't help a lot what actually helps a lot is when you are popular due to clicks the algorithm 11:45 11 minutes, 45 seconds at the back end says hey this is a popular hotel people are liking this hotel. Let me promote this hotel because ultimately what does the agent want? The 11:52 11 minutes, 52 seconds OTAA want the make mytradebooking.com they want more clicks through them. So if they show popular hotels first the probability of the clicks and the 12:01 12 minutes, 1 second conversion is very high because of which the algorithm is set that way. So when you start a new hotel it takes time even if you are a good brand it does not 12:09 12 minutes, 9 seconds matter you takes time for the algorithm to recognize you to be popular in that area and then your thing come up. So today touchwood era by orchid poor 12:18 12 minutes, 18 seconds volume is doing exceedingly well but when it started off the first few months the first 3 months similarly orchid rishi our orchid rishi one that also 12:27 12 minutes, 27 seconds suffered the same challenge that for the first few months it struggled because the OTAA even though orchid is popular everywhere else in rishies it did not 12:35 12 minutes, 35 seconds know that yeah orchid popular but now you find the traction happening through the OTAA you find the traction happening through the web page so basically this 12:44 12 minutes, 44 seconds is where your overall ADR and overall occupancy falls because it takes time for the because the base has 12:52 12 minutes, 52 seconds changed. So that's why basically so when we talk about Orchid Mumbai as a standalone there is a ADR 12:58 12 minutes, 58 seconds minor ADR up based on the market circumstances there is no drop in fact the occupancy also has a couple of percentages gone up but when you talk or 13:07 13 minutes, 7 seconds as a brand it show that it has dropped because of the new additions of hotels. 13:12 13 minutes, 12 seconds So this is a continuing thing which will happen as new hotels will come and as our orchid as our era as our brand base 13:19 13 minutes, 19 seconds becomes bigger these uh new additions will not affect it to so much it will affect it in minor so that's how basically then the this thing so even 13:27 13 minutes, 27 seconds jumps will not seem extreme and even the drops will not be seen in a extreme or in a higher case 13:34 13 minutes, 34 seconds okay so so uh should we assume that uh our aid and pat also will I won't say 13:40 13 minutes, 40 seconds suffer but we on a lower range if this uh effect happens 13:48 13 minutes, 48 seconds I now this has already happened so whatever pad and whatever IA you see now is based on already what I've explained 13:56 13 minutes, 56 seconds so next year onwards you will actually find the gain in the iita and the gain in the pat or not pat but let's say iita 14:04 14 minutes, 4 seconds let's pat being something else but there's a gain in the iita because the iita will now improve as the hotels 14:12 14 minutes, 12 seconds start performing. So, Orchid Rishi one in the first few months didn't have the kind of traction, it did not have the 14:19 14 minutes, 19 seconds kind of sale. Why? Because it takes time for a new hotel to get the weddings, get other things, get its BOB up, get the 14:27 14 minutes, 27 seconds things done. And because of which basically we took time but after that now weddings are coming now corporate movement are coming now fit from various 14:36 14 minutes, 36 seconds OTAA channels are coming even our direct member base our oid reward program people are going then word of mouth 14:43 14 minutes, 43 seconds spreads local agents are there so this is how basically now rishiwan is on track similarly porvarim when it started 14:51 14 minutes, 51 seconds off today in porvoreim we have some airlines also today in oid is a preferred uh 14:58 14 minutes, 58 seconds group for Indigo and for the Accasa. We were for Air India. Now we get in Sporadic. But these are the airlines who 15:08 15 minutes, 8 seconds support us across India. You know we have a tie up with them across wherever there is the airport and we are near to it. We are a preferred choice because of 15:15 15 minutes, 15 seconds our you know the way we handle the aerostesses the girls you know they feel happy they feel taken care of. They feel a home away from home and that's how 15:23 15 minutes, 23 seconds basically whether it's Bumneshwar or whether it's Mumbai. So coming back to the main point is that we basically will have a better IITA because now these 15:32 15 minutes, 32 seconds hotels will perform since they opened last year. Some have opened 4 months back from the 31st of March. Some have opened 3 months back, four months back, 15:40 15 minutes, 40 seconds 6 months back. So they take time to perform like Chandigar you know Chandigar last year did not perform to 15:47 15 minutes, 47 seconds its per expected because it opened in April and in May we had operations in correct. So 4 months Chandigar suffered 15:55 15 minutes, 55 seconds because that airport was you know in a hot zone unlike Mumbai and Delhi where at least there were some flights happening there was attraction happening 16:03 16 minutes, 3 seconds but in Chundigard and that entire belt it was absolutely no aviation happening you know so people were stuck they were 16:10 16 minutes, 10 seconds going to other places and taking their flights so this is basically the difference which we will see this year in the additional improvement of ITA by 16:19 16 minutes, 19 seconds these hotels performing right so one question more before I joined back uh on our upcoming projects uh especially the projects which were 16:27 16 minutes, 27 seconds due to open in June and September and because of this LPG crisis and as you explained in your opening remarks as well because geopolitical uncertainties 16:36 16 minutes, 36 seconds we can't uh you know do much so you know are these on track or you know how do you see the landscape evolving 16:44 16 minutes, 44 seconds so I definitely see that not only ours anybody's projects will have some hiccups and they will have to manage 16:51 16 minutes, 51 seconds those hiccups because your your availability of imported goods your availability of um uh within India also 16:59 16 minutes, 59 seconds manufacturing there are challenges there are you know various issues happening at a you see when you make a renovation you 17:08 17 minutes, 8 seconds might have the cement not a problem it's in India it's available you might have other m materials but one odd material 17:15 17 minutes, 15 seconds might be there which is coming from abroad which as much as you need is not there suddenly you needed say 10,000 ft or 8,000 square feet mahal milra char 17:24 17 minutes, 24 seconds now the architect has to go back think what can be the alternative these are practical problems we faced I'm sharing with you that these have been challenges 17:32 17 minutes, 32 seconds we have faced that you know suddenly the availability the timelines all are going for a toss because you you earlier were 17:39 17 minutes, 39 seconds doing just in time method say about a year back when everything was hunky dory and literally it was like order and mal you know but now there is a there is a 17:48 17 minutes, 48 seconds gap so we have to manage it now the it is the the Plus point is that it is the owner's headache. The negative point is 17:56 17 minutes, 56 seconds that we are in a we are also bound with them and we want it that we are losing opportunity. Today our rishiki our 18:03 18 minutes, 3 seconds deradun if it was ready which should have been ready at least a year and a half back based on certain things that to be done. If this hotel was ready it 18:11 18 minutes, 11 seconds would have been doing exceedingly well because the deradun market was very buo extremely buoyant. 18:16 18 minutes, 16 seconds Yes. By the time it actually comes, I do not know. We estimate it to come in September. Okay. By the time if it comes 18:24 18 minutes, 24 seconds actually, what will be the scenario? We don't know. So all our also internal planning go for a toss. The only plus 18:30 18 minutes, 30 seconds point is that unnecessary interest. 18:41 18 minutes, 41 seconds But the real reason we got into this marriage is for opportunity not for you know saving a fictitious 18:49 18 minutes, 49 seconds interest of my money which is not the fact you know that way. 18:54 18 minutes, 54 seconds Sure sir. Thank you for the elaborate answer. Thank you. Thank you. 18:59 18 minutes, 59 seconds Thank you. The next question is from the line of Pangage from Access Capital. Please go ahead. 19:04 19 minutes, 4 seconds Uh so good afternoon. Uh a couple of questions on business and couple of on uh financial side. one is uh the Mumbai 19:11 19 minutes, 11 seconds facility uh I'm given to understand uh it's it has discontinued since April 1st. So uh question is that what 19:19 19 minutes, 19 seconds contribution it played both on top line and bottom line uh in FY26 and how are we going to kind of how are we planning 19:26 19 minutes, 26 seconds to recover this loss on on both the parameters. The second question you did explain uh the occupancy uh challenges 19:34 19 minutes, 34 seconds you you facing right now and you also mentioned that in Fort Jada you actually had some more issues can you just put 19:42 19 minutes, 42 seconds more color on that and at 29% occupancy is it really breaking even or are we making losses and whatever the strategy 19:50 19 minutes, 50 seconds is uh uh you're planning to kind of uh counter on that my last question the financial side is we have seen a a 19:57 19 minutes, 57 seconds compression of almost like 4% on aa from FI25 to FI26. So if you can just put us or help us with more color on that and 20:06 20 minutes, 6 seconds are these costs the increase in costs because of uh the the Middle East crisis? If yes, then are they sustainable or uh are we going to see the impact in FI27 also? 20:18 20 minutes, 18 seconds So let me uh uh start off with the easy one for Jadug. Okay, in short answer for Jadog basically we have we had some 20:28 20 minutes, 28 seconds leadership change we had some things over there done and there was basically some sort of strategy change which we have now this year um we have a tie up 20:36 20 minutes, 36 seconds with more vendors in terms of the weddings and all where earlier we had a tie up with some limited vendors and that was not performing okay so it's 20:45 20 minutes, 45 seconds it's actually jad is a emotionally very high um product for us it is we have a 20:52 20 minutes, 52 seconds great affinity being uh very proud of what we have created over there having a lot of emotional but in terms of the financial context definitely it is 21:00 21 minutes making money and it has done very well in the past and this year in fact it'll do exceedingly well more than uh previous year also but the thing is that 21:08 21 minutes, 8 seconds it's not a loss or that kind of what you mentioned and all that and overall it is it is there in terms of this thing and 21:15 21 minutes, 15 seconds what basically we had to make some more changes in terms of how we are selling it so basically That is a major thing. 21:23 21 minutes, 23 seconds We had done some improvements which did not go in the comp. See what happens is you have to keep tinkering. If you keep doing the same thing, you'll get the same result. So if you want an 21:31 21 minutes, 31 seconds improvement, you have to do something new. So each time like example when we changed our I'll give you an practical example. When we changed our orchid 21:38 21 minutes, 38 seconds hotel website because our ochre hotel website was um while it was very good uh and it but it was very functional looking. It was not aspirational 21:46 21 minutes, 46 seconds looking. It was doing the job of what we were but considering where we are going the way Puna oid has been renovated. We have four jadav. We have orchid 21:55 21 minutes, 55 seconds rishiwan. We have already o orchid mumbai. We have beautiful more orchid pasaros. Our orchid pasaros were you 22:02 22 minutes, 2 seconds know initially did not do well for multiple months because it was a childhare resort. It was a you know we 22:10 22 minutes, 10 seconds taking people under the age of 15. uh and what was happening was that there was a resistance in the market and ultimately what happened once people 22:18 22 minutes, 18 seconds realized that no these guys are dead serious they are sticking to their ethos their value that no if I go with my wife 22:25 22 minutes, 25 seconds or if I go alone whether a single man single lady as a single traveler or if I'm not going to be disturbed by children not that I have anything 22:34 22 minutes, 34 seconds against them but I don't want to go to a resort where I it's like if you are vegetarian sir you may not want to go to a non-veg restaurant it is your choice It is your desire. 22:44 22 minutes, 44 seconds So accordingly when market realized it has done exceedingly well after that. So this year we are getting a lot of advanced queries from such groups who 22:52 22 minutes, 52 seconds are like are positioning themselves in a much 23:04 23 minutes, 4 seconds different quadrant is basically the aspiration. So we changed our web page and what happened when we changed our web page our business dropped 23:11 23 minutes, 11 seconds drastically even though the website was beautiful. Why? Because the world doesn't work the way we think. The 23:17 23 minutes, 17 seconds algorithm in Google suddenly said page so we had to do lot of again spend 23:25 23 minutes, 25 seconds money bring SEO do the marketing again do the right linkages. It took us four months to bring our web page back to a 23:32 23 minutes, 32 seconds certain level and touchwood again the kind of volume that we're doing again is back on track. So we thought we doing very nice thing by changing the website 23:41 23 minutes, 41 seconds but yeah the business fell. So this these things happen in our thing but now long-term may we hotel web page will get 23:50 23 minutes, 50 seconds its long-term benefit which is already getting our last year business compared to this year has been more through our website. So these are the kind of 23:58 23 minutes, 58 seconds examples which are in not worth for to me to take for everyone's time for just one four jad. Let me tell you the more important broader issues about like 24:06 24 minutes, 6 seconds Mumbai. So Mumbai was contributing top line almost 50C cr 24:13 24 minutes, 13 seconds not going to be there because this is basically earlier a lease. So the revenue was captured by us. But now let 24:22 24 minutes, 22 seconds me come to the IITA side. There was a IITA neutral. In fact, I would say a marginal maybe a CR CR and a half IITA draining because of the admin cost when 24:30 24 minutes, 30 seconds you add because on a top line of 50 cr it was doing a 20 cr almost iita almost okay because of which the iita will go 24:39 24 minutes, 39 seconds up because of not being there so you can say technically it's iita positive by a cr and a half two crores at least yes 24:48 24 minutes, 48 seconds while emotionally we have lost our property which we had already sold so it's not that it's something new we already it was somebody else's Since we were now managing it and now that person 24:57 24 minutes, 57 seconds has decided and rightfully he's the owner. So he has said we have we are peacefully vacated the 25:06 25 minutes, 6 seconds basically the thing in terms of moving out from there in terms of giving our thing of 31st thing. So in the financial impact 50 cr future may will be down. 25:17 25 minutes, 17 seconds ITA will go up by anywhere between 1 to 2C cr at least at least. Okay. Secondly 25:23 25 minutes, 23 seconds coming to the financial side 4%. This is a very pertinent point. I'm glad you asked this because I was anyway going to take it up later on. One of the major 25:32 25 minutes, 32 seconds cost if you see sir has gone up is our labor cost. 25:36 25 minutes, 36 seconds Our labor cost has gone up considerably and for that there is a very good reason we have and I will break that reason and 25:44 25 minutes, 44 seconds that will solve your problem of the um issue on the um uh short-term and long-term or permanent or non-permanmanent. So one second. Yeah. 25:54 25 minutes, 54 seconds So basically what we see is there is an impact to our labor cost and one of the major reasons is basically the annual 26:02 26 minutes, 2 seconds salary revisions based on the new wage code. The new wage code impact which has happened which I'm sure you must have heard in many other investor calls also 26:10 26 minutes, 10 seconds that has basically played a significant impact. So first and foremostly the wage code impact has been about 4 cr rupes 26:18 26 minutes, 18 seconds which is a there to stay but what is not there to stay is approximately you can 26:24 26 minutes, 24 seconds say 2 cr r rupees of impact in terms of payout from the closure of 26:32 26 minutes, 32 seconds so 2 cr of iita approximately again uh 175 say 2 cr broadly there's a figure 26:39 26 minutes, 39 seconds which basically is a one month salary which we have paid to Those who have not wanted to continue with us, we had offered everybody relocation 26:48 26 minutes, 48 seconds opportunities based on where they are from. If they from Gwal, they could go to Rishi. If they are from north, they could go to you know NOA or whatever. We 26:56 26 minutes, 56 seconds are given opportunity to whomever wants to continue within the Kamat family as they are or Kamat Khadan members, we are given them first choice. Many of them 27:04 27 minutes, 4 seconds chose not to relocate because they Mumbai has its own charm and they did not want to. So there was a payout. Out 27:12 27 minutes, 12 seconds of this whosoever has continued in their service there has been no payout that has been regular but there has been a gratitude payment or I think 0 50 lakhs 27:20 27 minutes, 20 seconds 55 lakhs approximately between that has been the gratitude payment there have been various other settlements there have been other so that 2 ka broad 27:28 27 minutes, 28 seconds impact is a one-time impact which is there apart from this the new hotels have also increased our payroll cost 27:37 27 minutes, 37 seconds which in the coming year will get absorbed in their holistic performance For example, Chandigar, we have a almost 27:43 27 minutes, 43 seconds 6 cr impact of Chandigar salary. But the last year did not perform. It only performed 14 cr rupees. But this year we 27:51 27 minutes, 51 seconds expect it to do 20 cr north. So now the minute it does north of 20 22 cr this salary impact will become as per the 27:59 27 minutes, 59 seconds norms which is basically that it should be roughly around anywhere between 20 to 23%, 22%, we will target in that fashion 28:07 28 minutes, 7 seconds you know in that exam for example. So same way is Hyderabad the pre-opening expense and then the full year impact 28:14 28 minutes, 14 seconds not been same way Orchid Rishi Orchid Rishi also salary has added to our salary cost. So primarily this wage bill 28:21 28 minutes, 21 seconds of ours our target is to bring this down by performance and by rationalization wherever required as per you know we 28:31 28 minutes, 31 seconds don't fire anyone even in the case of if we find that any automation we've done and people are redundant as a company policy as a kamat policy family policy 28:39 28 minutes, 39 seconds we don't kick out anyone we don't retrench anyone we reute them into some 28:45 28 minutes, 45 seconds other role or we basically parallel will move them into another role. So this way basically we do. So these are the main 28:53 28 minutes, 53 seconds impacts of the financial. Some of these are here to stay but will get absorbed through performance. Some of them are here to stay because of the wage bill 29:01 29 minutes, 1 second which are not going to the thing it and then some are one-time impact. Thank you. 29:06 29 minutes, 6 seconds No no thank you sir. I think uh fairly detailed clarification. Big thanks for that. Uh on quick one follow up on a you 29:15 29 minutes, 15 seconds mentioned that there would be a drop by almost like 50 odd crores on topline. So are we expecting a degrowth at least in terms of topline you me you clarified 29:22 29 minutes, 22 seconds that on a beta it will have a minim min minimal impact but uh but uh we actually yes sir 50 cr you take that this year we 29:31 29 minutes, 31 seconds almost did 400 crores we were we were down by only 20 lakh rupees okay on a total company level that top line 50 29:40 29 minutes, 40 seconds minus and effectively 29:47 29 minutes, 47 seconds we might see even a degrowth at least in terms of top line if not in terms of bottom line. 29:53 29 minutes, 53 seconds Absolutely sir we will have but then other properties will fill into this gap. Okay. Whatever expansions we are doing whatever the current hotels which 30:02 30 minutes, 2 seconds have not performed fully last year will perform this year. So we will find accordingly a replacement in that sense. 30:08 30 minutes, 8 seconds But yes that 50 or whatever calculation what you can take. Last last question sir four is there a target occupancy you 30:17 30 minutes, 17 seconds are planning for this FI27 sir I think let us give us um let give 30:25 30 minutes, 25 seconds other chance please I been uh let's come back sir if you don't mind G thank you thanks a lot thank you 30:34 30 minutes, 34 seconds thank you the next question is from the line of gonit Singh from counter cyclical PMS please go ahead hi sir thank you for this opport 30:42 30 minutes, 42 seconds opportunity. So firstly I would like to understand uh the f uh other income of 10 crores in the P&L and also why have 30:51 30 minutes, 51 seconds our finance costs increased to 10 cr whereas uh our total borrowings have gone down to I think above 107 crater. 31:02 31 minutes, 2 seconds So uh one is the other incomes are basically we have a lot of miscellaneous incomes also. We have rental income. We 31:09 31 minutes, 9 seconds have other income from cross basically interest from our companies given to each other. Then there are um very 31:18 31 minutes, 18 seconds miscellaneous incomes which don't fall in the bracket of our core operational income. That is basically it. This may 31:25 31 minutes, 25 seconds see like example in our corporate office kill house we have office space which is given on rent a few crores come from 31:34 31 minutes, 34 seconds that uh then we have various other locations also which we have as part of the company from where you get miscellaneous income rental income other 31:42 31 minutes, 42 seconds things. So it's basically that sir it's mainly and then there is a fair amount of portion on that which is interest uh which basically if the company has given 31:50 31 minutes, 50 seconds for example one of the loans which was given at that time was to a company which is a sister concern 31:58 31 minutes, 58 seconds is having a loan of 5 cr but I has done exceedingly well it has paid off that loan to kill and it has paid interest 32:06 32 minutes, 6 seconds also so the interest portion would have come in other income and that 5 cr loan which has taken that it has paid back to kil is going to utilize that in FD for 32:16 32 minutes, 16 seconds future contingency for future that's why basically our kamat hotel's cash balance has been very robust and uh gone up you 32:24 32 minutes, 24 seconds know so we have a good uh cash in very good cash in hand particularly for cons contingencies such as corona or Ukraine 32:32 32 minutes, 32 seconds war or Iran war or all these kind of things that keep happening every six months 32:41 32 minutes, 41 seconds can give a breakdown of the other income because 10 CR is highest 5CR the one time loan we I will do one thing 32:50 32 minutes, 50 seconds sir note and we will send I'll send you the detailed breakdown of that okay in that fashion huh 32:58 32 minutes, 58 seconds and what about the finance cost the 10CR seems to be a bit high finance cost 33:09 33 minutes, 9 seconds for the Let's go for the quarter. 33:16 33 minutes, 16 seconds Let me get back to you on this in the meantime. One second. Just one second. 33:25 33 minutes, 25 seconds We'll come when you come back to the round of question, we'll give you the answer. Let me just get back to you on this sir. Huh? Please go ahead. 33:31 33 minutes, 31 seconds So, uh my next question is regarding the uh outlook for the coming year. So if we look at the arr that has been falling 33:39 33 minutes, 39 seconds across all our uh verticals whether it's orchard or tomium or I already answered this question sorry 33:47 33 minutes, 47 seconds sir I answered this question before I just repeat in very short because new hotels have come and the base has become bigger has fallen. 33:56 33 minutes, 56 seconds Ah I'll just continue my question. So my question is that uh since new hotels are coming up that you mentioned so what 34:05 34 minutes, 5 seconds what uh which all properties uh do you think which did not mature in FY26 and you expect significant growth in FY27 if 34:14 34 minutes, 14 seconds you can uh mention the properties all of them sir all the propert will mature this year all whether it's 34:22 34 minutes, 22 seconds Punjani whether it's rishi whether it is all all of them because we require a stabilization time That pain has been 34:29 34 minutes, 29 seconds taken last year. So this year will be the gain. It is for all. Sambaji Nagar when it opened it was in loss. Today 34:37 34 minutes, 37 seconds Sambaji Nagar is in profit. Sambaji Nagar has now stabilized because it is the second year running. Whatever pain 34:44 34 minutes, 44 seconds had to happen in its first year and that's why it is now doing exceedingly well. So it happens for all the hotels. 34:52 34 minutes, 52 seconds So you take it for all the hotels that this year will be better where they will be Iita contributing rather than being negative in terms of their pre-opening 35:01 35 minutes, 1 second cost and others becoming ITA negative. 35:06 35 minutes, 6 seconds Got it. So so basically our uh this Mumbai is going out of uh the picture. 35:12 35 minutes, 12 seconds So for even if we exclude the revenue of Mumbai from our top line uh it comes to 35:18 35 minutes, 18 seconds about 330 340 CR currently. So what kind of growth do we expect in FY27 if you 35:26 35 minutes, 26 seconds would like to give a number in terms of topline and what I would not like to speculate anything right now okay we considering various 35:33 35 minutes, 33 seconds things I would not like to speculate on any or give any guidance or give any kind of input on that point let's just give someone else a point now 35:43 35 minutes, 43 seconds thank you thank you the next question is from the line of saga from Alchemy ventures please go ahead Hi Vishad, can you quantify? 35:55 35 minutes, 55 seconds All thank you. Can you quantify how many keys did we open in FI26? 36:01 36 minutes, 1 second Yeah, one second. Huh? So we opened approximately uh one me just take out that. 36:13 36 minutes, 13 seconds Okay. What is the next question sir? 36:14 36 minutes, 14 seconds While I get the details on this one. If you can quantify how much was the AIDA drag from the newer properties. 36:22 36 minutes, 22 seconds Uh, okay. One second. I'll tell you. 36:26 36 minutes, 26 seconds 50 50 100 170 36:35 36 minutes, 35 seconds 170 100 170 100 210 210 36:42 36 minutes, 42 seconds 2 approximately 250 keys were added to 260 keys. This is my 36:51 36 minutes, 51 seconds dressing in case if I missed out any hotel but 260 keys we added that is what we added and what is the IITA drag. The 36:58 36 minutes, 58 seconds IITA drag actually would be if see now there are two ways to look at it. One is basically that these are the sunk cost 37:07 37 minutes, 7 seconds and one is the operating cost. Broadly if I have to say that I would say that you can take 37:14 37 minutes, 14 seconds 10 cr broadly as the drag in terms of if I was to say this is the labor cost this is the deployment cost this is the various other expenses but out of this 6 37:24 37 minutes, 24 seconds crores will motor come back into circulation through the routine operations so they will get absorbed as part of our GOP that's the thumb rule 37:32 37 minutes, 32 seconds which we say that if a hotel is doing 100 rupees then the thumb rule is that it will do a GOP of 35% suppose So those expenses will come in next year in that 35%. 37:43 37 minutes, 43 seconds In that sorry in that 65%. 37:46 37 minutes, 46 seconds So pre-opening cost was a bo burden before but then it becomes part of your um operations. So that's how the IITA will improve. 37:55 37 minutes, 55 seconds Got it. And uh how many keys do we think we will be able to operationalize in FI27? 38:01 38 minutes, 1 second This year we should be looking at operating additionally opening at least 150 to 200 keys. 38:12 38 minutes, 12 seconds Got it. Thank you. And all the but I'm being very modest based on the what I see right now in hand not for the full year. 38:21 38 minutes, 21 seconds Sure. 38:21 38 minutes, 21 seconds I'm assuming based on only what I have in hand. So the entire year is left for us to look at our signups. the entire uh 38:29 38 minutes, 29 seconds this thing uh I further is basically there. So this is only what we see as of now. 38:36 38 minutes, 36 seconds Sure. Thank you and all the best. Thank you sir. Thank you. 38:40 38 minutes, 40 seconds Thank you. Before we take the next question, reminder to participants. 38:44 38 minutes, 44 seconds Anyone who wishes to ask a question may please press star and one. Yes ma'am. 38:50 38 minutes, 50 seconds The next question is from the line of Reanit Kapoor from Investor Investments. Please go ahead. 38:57 38 minutes, 57 seconds Uh yeah uh hi thanks for the opportunity. So I want I wanted to know that uh you since you said that uh you 39:04 39 minutes, 4 seconds have retained your employees for era occ Mumbai. So what will be the additional burden due to this employee cost for that? 39:13 39 minutes, 13 seconds Sir there is no additional burden because what wherever the vacancies were there we opened those vacancies for 39:20 39 minutes, 20 seconds first come first serve basis to our employees of era. So they have been absorbed in the hotels where there was a 39:29 39 minutes, 29 seconds vacancy. So they it is not been a forced um employment. It has been voluntary where 39:38 39 minutes, 38 seconds they have said that these are the opportunities who would like to take it where and based on that they have either taken the opportunities or they have 39:46 39 minutes, 46 seconds moved on. So the impact the people who have moved to our various hotels is that they are absorbed in that payroll. the 39:54 39 minutes, 54 seconds impact of those who have moved out of our system by taking another job by resigning they we have paid them their 40:01 40 minutes, 1 second existing salary and a month's pay. So when it closed on 31st of March, they obviously got their salary of 31st of 40:09 40 minutes, 9 seconds March and then they have been paid 1 month notice period and whatever additional as per government norms the 40:17 40 minutes, 17 seconds dues are there gratuty PF their salary any other additional whatever is there and the matters have been because see we 40:26 40 minutes, 26 seconds want these people back it's not their fault that era is to close so we want their goodwill and we want that whenever needed some of them join us back. In 40:34 40 minutes, 34 seconds fact, some who left us have rejoined us when the vacancies have opened in our various hotels. One has gone to 40:42 40 minutes, 42 seconds Punchani, one has joined Orchid Mumbai, one has joined. So basically the point is that they have the affection. It's 40:50 40 minutes, 50 seconds just that since we don't have the space, they've gone somewhere else and then they'll join back to Kamat whenever the opportunity arises. So there has been no 40:58 40 minutes, 58 seconds financial impact beyond our routine payments which are supposed to be done as per the law and as per what is right 41:05 41 minutes, 5 seconds to them and there is nothing as a extra burden on our payroll currently. 41:10 41 minutes, 10 seconds Okay. And secondly so are we looking at any large hotel to overcome this loss of revenue like 41:18 41 minutes, 18 seconds 100%. We are definitely looking at one is that the current new openings and the old the first year let me take the old 41:26 41 minutes, 26 seconds hotels we have partially opened this year will give their full performance. 41:30 41 minutes, 30 seconds So they will fill this hole. Apart from that some new hotel openings which are going to happen they should also fill this hole and then some tires which are 41:39 41 minutes, 39 seconds going to happen which at the appropriate time will be announced will add to take it up further beyond that. 41:46 41 minutes, 46 seconds Yeah. Okay. Okay. And my last question is regarding this uh elect developers. I think I think the company has only around the 41:54 41 minutes, 54 seconds 32% stake in this. So are we planning to convert it into the 100% stake because balance is by the promoters only? 42:02 42 minutes, 2 seconds Correct. As of now sir currently there is no plans as and when if there is we will inform everybody. 42:11 42 minutes, 11 seconds Okay. Thank you. That's it all for myself. Thank you sir. 42:15 42 minutes, 15 seconds Thank you. Participants who wishes to ask a question, please press star and one now. 42:27 42 minutes, 27 seconds The next question is from the line of Sanjay Panda from Lannx Inf. Please go ahead. 42:34 42 minutes, 34 seconds Uh so you you talked about uh you know income from your surplus assets which seems to be rather a large number about 42:41 42 minutes, 41 seconds 10 crores. So on the one hand uh you seem to be exercised about the excess assets that we are holding. Now from a 42:48 42 minutes, 48 seconds debt reduction perspective we know that a general rule in the market especially for a company coming out of restructuring 42:55 42 minutes, 55 seconds uh is that for every rupee of debt that you pay you can it translates into two to three rupees of market cap that you get as the risk perception on the 43:03 43 minutes, 3 seconds company starts to go down. So you I also heard you say that you're now carrying excess cash. So what would be the the 43:11 43 minutes, 11 seconds the return on that excess cash given that you are already you know your interest rate uh is a a little higher than than average. 43:24 43 minutes, 24 seconds So sir, our current interest rate from Access Finance is at 9.75 43:31 43 minutes, 31 seconds and we have 86 CR as our total company loan 43:39 43 minutes, 39 seconds and we have cash in hand approximately uh exact if I have to don't know but 43:47 43 minutes, 47 seconds between 35 and 40 CR I think it's around 40 CR. 43:52 43 minutes, 52 seconds So and our IITA is what it is 110 and our IITA is 110. So we've come out of our 44:00 44 minutes problems sir thanks to our investors at that time thanks to people who funded us in 2022. So there is now particularly no 44:08 44 minutes, 8 seconds company stress and we don't intend to do anything which will unnecessarily create that repeat telecaster in the past. We have learned our lessons. We've done as 44:16 44 minutes, 16 seconds needful. So I think financially we are quite comfortable in terms of fulfilling our obligations to our lender and um we 44:25 44 minutes, 25 seconds are okay sir in that regard and still expanding and whatever by the way uh expansions we're doing we are doing from internal acral using our IITA. So the 44:34 44 minutes, 34 seconds cash which is there which is generated is helping us enhance our properties or do the expansion or whatever the things are there. 44:44 44 minutes, 44 seconds But it is not going to be used to prepay any debt. 44:48 44 minutes, 48 seconds Sir, there is no point in me prepaying uh 86 cr rupees the with this 40 cr and bring it down to 46 because I'd rather 44:58 44 minutes, 58 seconds have contingency in my hand which is basically the thing. Now one of the things sir I can like to explain because 45:06 45 minutes, 6 seconds you asked about this 10 cr which is there. Now one of the things also is that this also 10 cr has income tax 45:13 45 minutes, 13 seconds refunds which is approximately 3 cr worth of income tax refunds which is there rent is there. So like I said miscellaneous income sir which is there you know are in this which 10 cr. 45:26 45 minutes, 26 seconds Okay. Thank you sir. Thank you sir. 45:32 45 minutes, 32 seconds Thank you ladies and gentlemen to ask a question please press star and one. 45:41 45 minutes, 41 seconds Anyone who wishes to ask a question may press star and one. Now 45:51 45 minutes, 51 seconds I think um if there are no further questions we can end the conference. Um 45:57 45 minutes, 57 seconds um u madam uh you can bar ask last and if no one has then and if by the way if anybody still does have and does not 46:06 46 minutes, 6 seconds want to ask on this forum we have always been more than welcome to have you reach out to me or Mr. Nikil. Oh yes I one 46:13 46 minutes, 13 seconds thing I'd like to mention for everybody I'm very very glad to inform everyone as you may have read on the stock exchange or if you have not that we have Mr. 46:22 46 minutes, 22 seconds Milan Wareker joining us as our CFO. Mr. 46:25 46 minutes, 25 seconds Mr. Milan Variker is Mr. Milwarker is a very um seasoned industry professional. 46:30 46 minutes, 30 seconds He has been a part of chalet hotels for 15 years. He was the CFO of chalet from which after he moved to ventive chalet 46:39 46 minutes, 39 seconds being one of the largest listed companies. Ventive also is in the top if I'm mistake not top five top eight in terms of market cap. Uh and main 46:47 46 minutes, 47 seconds important thing is that we are getting a person who ethos matches his thoroughbred from the industry. He was 46:54 46 minutes, 54 seconds already the CFO of Leela also earlier before moving to Chalet. So he knows our industry and we are going to be having a 47:01 47 minutes, 1 second person who will be able to present Kamat better guide Kamat better. He's already a person who known in the market in his 47:10 47 minutes, 10 seconds thing to be costconscious. So this year particularly our EITA enhancement in terms of improved processes, improved 47:18 47 minutes, 18 seconds systems. So we are very lucky that we are getting a gentleman from such a staunch background a very stalart from 47:25 47 minutes, 25 seconds the industry joining Kamat and if he's joining Kamat at the stage at which we are is because he also sees that where 47:32 47 minutes, 32 seconds Kamat wishes to go and how he can be a integral part of this journey in the future. So I think this is something which I would definitely like to have 47:41 47 minutes, 41 seconds all our listeners um note and appreciate and if there is anything about this they can reach out to Mr. Nikl they can reach 47:48 47 minutes, 48 seconds out to me. So I look forward to uh to working extensively closely with Mr. 47:53 47 minutes, 53 seconds Milin and um I'm sure all of you will find him also um because he's already doing a lot of investor relations and 48:01 48 minutes, 1 second investor meets uh and outreach for ventive. So he will in fact wherever we lack he will guide us to improve and 48:08 48 minutes, 8 seconds become better. So we also will u you know I think that's something I look forward to. So this is something I did want to mention. I forgot to mention it before. Um, so thank you. 48:21 48 minutes, 21 seconds Thank you very much. Participants to ask a question please press star and one. 48:32 48 minutes, 32 seconds As there are no further questions. Yes, as there are no further questions from the participants, I now hand the conference over to management for their closing comments. 48:42 48 minutes, 42 seconds So, thank you everyone. I really appreciate the questions this time were much much more different. Uh they were more interesting in terms of a much 48:51 48 minutes, 51 seconds wider and the thing I think if there still I would like to repeat that if still anyone has any questions doubt queries please don't hesitate to reach 48:59 48 minutes, 59 seconds out to Mr. Nikil or to me we are more than welcome to answer many of you all do tend to come and meet us off and on 49:09 49 minutes, 9 seconds based on you know and it's not only about kamat we are here in general also we we know that if our sector thrives we thrive only we thriving will not be the 49:18 49 minutes, 18 seconds thing so if you have in general also any particular thing we are open to giving our perspective on whatever it would be so thank you everybody I appreciate the 49:26 49 minutes, 26 seconds high attendance that we regularly get and I appreciate all of you taking this 1 hour time out. Thank you. Namaskar. Thank you everyone. 49:34 49 minutes, 34 seconds Thank you ladies and gentlemen. On behalf of Kamat Hotels India Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.