Royal Orchid Hotels Limited — Q3 FY26

Royal Orchid Hotels Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bn0G4G545U8 Published: 2 months ago

0:03 3 seconds Ladies and gentlemen, on behalf of Captify Consulting Investor relations team, I welcome you all to the Q3 and 9 0:10 10 seconds months post earnings conference call of Royal Orchid Hotels Limited. Today on the call from the management team, we have with us Mr. Chandra Balji, chairman 0:19 19 seconds and managing director, Mr. Arjun Balji, President, Mr. Kesha Bali, and Mr. Amit Jesal, chief financial 0:27 27 seconds officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. 0:36 36 seconds Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for 0:43 43 seconds the period ended December 2025, the growth perspective and vision for the coming year. Post which we will open the floor for Q&A. Over to the management team. 0:54 54 seconds Good evening. 0:57 57 seconds A very warm welcome to all our investors, partners and stakeholders. 1:02 1 minute, 2 seconds Thank you for joining us today as we present our Q3 and 9 months for year ended 26 performance highlights. 1:13 1 minute, 13 seconds This quarter marks another important milestone in our journey of discipline growth, operational excellence and strategic transformation. 1:25 1 minute, 25 seconds In Q3 FI 26, we have delivered a strong consolidated performance with income 1:32 1 minute, 32 seconds from operation growing 26.6% year on year 1:39 1 minute, 39 seconds and room revenue surging 45% year on year. AITA grew by 13.8% 8% reflecting 1:48 1 minute, 48 seconds our continued focus on cost efficiency and premium positioning. 1:54 1 minute, 54 seconds Our operational matrix remain robust overall. A special highlight this quarter has been exceptional performance 2:02 2 minutes, 2 seconds of Iconica Mumbai which generated 17.4 4 crores in income within its initial 2:10 2 minutes, 10 seconds months of operation and achieve the distinction of being ranked number one a 2:16 2 minutes, 16 seconds hotel on trip advisor in Mumbai within just 4 months. This is a testament of our execution capability and brands. 2:27 2 minutes, 27 seconds We have now crossed a significant milestone 10,700 keys across 168 plus 2:34 2 minutes, 34 seconds hotels including upcoming properties with 47 uh plus hotels in the pipeline. 2:41 2 minutes, 41 seconds Our expansion remains focused, scalable and 2:47 2 minutes, 47 seconds aligned with our asset light philosophy driving higher returns while maintaining captain discipline. 2:57 2 minutes, 57 seconds Over the past two decades, starting from a single property in Bangalore, Pocket Hotel Limited has evolved into a 3:05 3 minutes, 5 seconds diversified hospitality group with strong presence across business, leisure, wedding, and wildlife destination. 3:15 3 minutes, 15 seconds As we transition into the next phase of growth, we're building a technologydriven 3:22 3 minutes, 22 seconds asset light hospitality power aimed at maximum reach. 3:27 3 minutes, 27 seconds Enhancing operational efficiency, delivering superior shareholder value. 3:34 3 minutes, 34 seconds We have clearly defined brand architecture, Z place, Regenta, Ctori and Iconica. 3:43 3 minutes, 43 seconds Combined with smart execution and relentless focus on returns on invested capital, we are confident in shaping the future of Indian hospitality. 3:54 3 minutes, 54 seconds The company is on a growth path and we continue to follow asset life strategy for future growth. As we talk to you 4:04 4 minutes, 4 seconds through the detailed performance growth strategy and future, we remain guided by one core principle 4:13 4 minutes, 13 seconds delivering exceptional guest experience while creating sustainable long-term value for all the stakeholders. The performance 4:22 4 minutes, 22 seconds presentation have been uploaded in the stocks exchanges. 4:26 4 minutes, 26 seconds We have been uh we have given a detailed presentation covering most aspects of our business. I hope you had gone through the same. 4:37 4 minutes, 37 seconds Thank you once again for your continued support and trust. Thank you sir. 4:46 4 minutes, 46 seconds Arjun and Kesha would you like to add something? 4:55 4 minutes, 55 seconds you've got a question being asked. But uh thank you uh investors. Uh you all have been patient. You all have shown uh 5:02 5 minutes, 2 seconds your confidence in the company over the last uh you know since we've listed and we are eternally grateful. Um as you can 5:10 5 minutes, 10 seconds see over the last one year uh so we've pivoted and we've uh we now have clarity 5:18 5 minutes, 18 seconds in the brands. Each one of them is on a growth path. We've demonstrated that with Iconica and uh the best is still ahead. 5:31 5 minutes, 31 seconds Thank you Arjun Kesha. Would you like to say something? 5:35 5 minutes, 35 seconds No, I think uh we have a good pipeline of hotels coming up. I think we're quite proud of that and we look forward to executing well on our vision 2030. Uh happy to take questions going forward. 5:47 5 minutes, 47 seconds Sure. Thank you. Thank you. 5:51 5 minutes, 51 seconds All those who wish to ask a question may use the option of raise hand. We'll take the first question from Yash Dante. Yes, you can go ahead. 6:02 6 minutes, 2 seconds Hello. Uh am I audible? Yes. 6:06 6 minutes, 6 seconds Yes. Hi. So I saw your list of upcoming hotels. Uh you have four under revenue sharing. Uh two in Goa, one in Lucknau 6:14 6 minutes, 14 seconds and one in Kura. So by when can we see all of these four getting executed? What are the timelines for the revenue share 6:22 6 minutes, 22 seconds hotels uh to get executed all four of them and what kind of topline can we expect from uh topline and uh AITA can we expect from these four in particular? 6:32 6 minutes, 32 seconds Because obviously revenue sharing should be more profitable than management uh than just hotel management, right? 6:45 6 minutes, 45 seconds Yeah. 6:46 6 minutes, 46 seconds Can I just take that one? Uh please m uh yes, thanks so much for your question. Yeah. 6:53 6 minutes, 53 seconds Uh the notion that revenue sharing is more profitable than management actually needs just a little introspection on 7:02 7 minutes, 2 seconds because there is an inherent risk to revenue sharing but when it comes to management right it is pure cash flow. 7:08 7 minutes, 8 seconds So while the numbers may not be uh as large as a revenue share hotel right uh it 7:15 7 minutes, 15 seconds you get into an asset light model predominantly to you know to speed up the J curve right and uh so so now we'll 7:23 7 minutes, 23 seconds we'll get to your second bit of the question which was when the four hotels are coming up and uh what we'll add so 7:30 7 minutes, 30 seconds uh Mr. JS or would you like to just a small just a small question in between sorry 7:37 7 minutes, 37 seconds to interrupt you but revenue sharing and profit profit sharing is risky inherently but revenue sharing is basically you get a percentage of sales 7:45 7 minutes, 45 seconds I'm assuming no no we don't no it's the other way around so revenue sharing we give the hotel owner a share 7:53 7 minutes, 53 seconds of the topline revenue right for uh and you know so in a management contract so 8:00 8 minutes think about it in two ways, right? One is you own the P&L and one you don't own the P&L. In a revenue share situation, 8:07 8 minutes, 7 seconds you own the P&L and you pay the owner out. And in a management contract, the owner owns a P&L and you are paid a 8:16 8 minutes, 16 seconds management fee. That's the distinction between the two. Okay. 8:23 8 minutes, 23 seconds So the see the four hotels which you said out of which uh you know two hotels 8:30 8 minutes, 30 seconds uh is bound to come very shortly the south Goa one and uh one in North Goa. 8:37 8 minutes, 37 seconds These two will come very shortly maybe in you know four to 5 months from now. 8:43 8 minutes, 43 seconds Then the Gura one will come by maybe end of September or October and the Laknau 8:50 8 minutes, 50 seconds one will take at least a years because the work is going on interior so it'll take at least one year from now 8:58 8 minutes, 58 seconds right uh could you share some numbers what are you expecting see numbers if you see the from luck one 9:06 9 minutes, 6 seconds the top line I can uh give some guidance like the top line from luck will be somewhere around 40 crores And the Gura 9:13 9 minutes, 13 seconds one will be around 25 crores. And uh both the uh you know North Goa one Duramark one will come roughly around 20 9:22 9 minutes, 22 seconds you know first year it will be around 12 to 15 crores. Second year it should reach 18 crores and south Goa one that 9:31 9 minutes, 31 seconds that one will be around 6 to 6 crores roughly. 9:34 9 minutes, 34 seconds So from both the Goa properties I can expect a ballpark figure of 25 crores in the first year. Right. 9:41 9 minutes, 41 seconds 20. Yeah. 20 20 22 crores from both the Goa property and the the Gura 125 and Lacno 40. 9:51 9 minutes, 51 seconds Right. And uh u uh just a question on Iconica. 9:57 9 minutes, 57 seconds Um, Iconica I think has been sold out for most of January uh because I keep uh checking uh the kind of bookings that 10:05 10 minutes, 5 seconds you're getting and I think Feb also I think you're sold out tomorrow uh today and tomorrow from what I can see 10:12 10 minutes, 12 seconds uh and I think Feb and Mars also seems quite busy right so because the prices are on the higher end uh that might be a 10:20 10 minutes, 20 seconds seasonal impact but I think the traffic in the hotel also is picking up at a much slower than anticipated pace right 10:28 10 minutes, 28 seconds because um you did 17 quarters in this particular 17 crores in this particular quarter so in the upcoming quarter which 10:37 10 minutes, 37 seconds is the current quarter I think you're um sort of uh under um uh underguiding I 10:46 10 minutes, 46 seconds think uh I think you should easily be able to do 20 25 uh sorry not 20 25 sorry 25 to 30 crores uh uh from iconic 10:55 10 minutes, 55 seconds in this particular quarter. Am I getting anything wrong or are we on track? 11:00 11 minutes Roughly roughly 24 crores 23 24 crores in this quarter we should get from my company. 11:07 11 minutes, 7 seconds Yeah. So are we expecting the hotel to be profitable? Because I think this quarter it wasn't profitable. Right. 11:11 11 minutes, 11 seconds No, I tell you this quarter why it was not profitable. There were a lot of pre-operating expenses. See the hotel started operation sometime end of 11:19 11 minutes, 19 seconds September. Okay. and but the you know bar license had not come which came end of October. So hotel full-fledged it 11:27 11 minutes, 27 seconds started from November. Okay. So there were certain pre-operating expenses which as per the accounting standard cannot be capitalized. Okay. So those 11:35 11 minutes, 35 seconds pre-operating expenses had to be written off in this quarter because of uh all those issues of accounting. So that is 11:43 11 minutes, 43 seconds why you are seeing that there is a little minus but going forward it will become profitable 11:48 11 minutes, 48 seconds right and um why did the I mean uh the obviously uh you're the CFO uh and I am 11:56 11 minutes, 56 seconds not as smart in the whole accounting understanding as such but why did the profit like the EPS drop by so much uh I 12:05 12 minutes, 5 seconds think it dropped by 40% year on year even though your cash profits were on can you just explain the India's 12:12 12 minutes, 12 seconds impact it's primarily primarily because of iconica which is on a fixed lease for 25 years so Indian accounting strate 12:22 12 minutes, 22 seconds has created this so notional you know India's effect which has come almost 13 12:29 12 minutes, 29 seconds crores we have taken 12 crores we have taken the hit in this quarter that is why I have always published India's and without India's result and if you look 12:38 12 minutes, 38 seconds at the without India's result it's pretty Right. So that subsidiary sale uh so 12:46 12 minutes, 46 seconds I'll just come back in the queue post this uh but I'm pretty sure a lot of people will have this question. Could you just throw some light on the subsidiary sale when is the cash going 12:54 12 minutes, 54 seconds to reflect in our uh P&L or balance sheet. 12:57 12 minutes, 57 seconds See the subsidiary sale we have initiated we have signed the MOU and the you know the money has started coming in 13:06 13 minutes, 6 seconds into our account. two branches of money has already come almost 40 45% money has already come into our account balance 13:14 13 minutes, 14 seconds will come in March and April so that by April end the entire transaction will get closed so I think post this we are debt free 13:21 13 minutes, 21 seconds right it is debtree in the sense that we need to now decide how do we use these funds 13:29 13 minutes, 29 seconds whatever funds is there how do we should we clear the debt or should we use it for the growth of the company you 13:37 13 minutes, 37 seconds Now the since the debts have come down drastically the cost of the debt is is now almost around 7.75%. 13:45 13 minutes, 45 seconds So we have to take a business decision on that that how do we use this money to clear the debt or should we use it for further growth of the company. 13:53 13 minutes, 53 seconds I have a lot more questions regarding this but I'll just come back in queue out of respect to you. Sure. 13:58 13 minutes, 58 seconds Thank thank you. We'll take the next question from Rahul Bangardi. Rahul you can go ahead. 14:05 14 minutes, 5 seconds Yeah. Good afternoon sir. Uh thank you for taking my question. Uh first one is uh if you could just help us with the 14:13 14 minutes, 13 seconds occupancy numbers of iconica and if it is possible for the quarter but also probably how it has progressed month- wise. 14:20 14 minutes, 20 seconds See Rahul I'll tell you one thing. See I the hotel has started doing well. It has done very well in November. It dipped 14:28 14 minutes, 28 seconds little bit in December because post 15 December Indigo issue also had come up in December. January it has done good. 14:38 14 minutes, 38 seconds February March also looks good. But you know sharing the occupancy of offright it will be not right on my part because 14:45 14 minutes, 45 seconds you know competition also looks at uh the data and all. So but however let me tell you it's doing a good occupancy uh 14:53 14 minutes, 53 seconds you know above 70 around 70 plus percentage and it will grow in time to come. 15:01 15 minutes, 1 second Okay, I can understand the hesitation of not sharing the numbers sir but and competition does share it. In fact, they're doing on a property basis but I 15:09 15 minutes, 9 seconds I take your hesitation uh right now in that sense. Uh the other question I had sir is on the 15:17 15 minutes, 17 seconds now because you have disclosed the iconica noniconica the impact of iconic on the numbers we are also able to see what is happening on the non-iconica 15:26 15 minutes, 26 seconds side. So essentially there the topline growth has kind of been in single digits you know we from about last year there was no 15:32 15 minutes, 32 seconds iconica so from 90 crores roughly we have gone to probably about a 98 or some number like that just help us understand how so so the 15:41 15 minutes, 41 seconds way I'm looking at it please correct me if I'm wrong uh unless you grow that number at a healthy pace the operating level is not going to come through 15:50 15 minutes, 50 seconds because the management contracts are of that nature so and that growth at let's say a 25% or 30% kind of number will need you to add rooms also at that pace. 16:00 16 minutes How are you looking at the space because otherwise the profit numbers are not changing only? 16:04 16 minutes, 4 seconds You are right. Uh you are absolutely right. Without Iconica the numbers growth is in single digit. Okay. Now I 16:12 16 minutes, 12 seconds let me tell you organic growth will be that much only. Okay. The organic growth can see we are already at around 70% occupancy. Now it can go up by 2% or 3%. 16:23 16 minutes, 23 seconds It can't go beyond that. an ADR. 16:25 16 minutes, 25 seconds No sir, I was I was specifically specifically on the managed hotel site, not the uh the managed hotel site. See, we have signed lot of hotels in the pipeline. 47 16:34 16 minutes, 34 seconds hotels are in pipeline. The only thing is that all those hotels when it starts operation, we start getting our fees. So there will be a robust growth in uh in 16:42 16 minutes, 42 seconds the coming financial year once the all these hotels opens up and we start getting our fees. 16:50 16 minutes, 50 seconds Okay. Because otherwise s the math as it as you also admitted the the maths isn't adding up because otherwise how do we reach you know Arjun has talked about an 16:59 16 minutes, 59 seconds aspirational 100 150 cr kind of part number how do we reach that math is what I'm trying to understand without growth being fast enough 17:06 17 minutes, 6 seconds you are right see once this 4750 hotel opens up so our management fees will grow in a big way second all these four 17:14 17 minutes, 14 seconds revenue share hotel when it comes up so that will give me an additional around 100 crores of topline and you know 17:21 17 minutes, 21 seconds around that kind of aa and that is how we have projected and plus we are on the verge of signing almost every week hotels 17:29 17 minutes, 29 seconds enough sir uh just one final question before I go back in the queue it's actually the the way you give the guest numbers in the presentation are those 17:37 17 minutes, 37 seconds only for the own properties or are those only for the lease how is the ma what is the guest number there uh where where are we calculating that 17:45 17 minutes, 45 seconds we are calculating the all the all the portfolio but then That answer looks a very I'm assuming it doesn't include the managed uh portfolios. 17:54 17 minutes, 54 seconds No. No. 17:55 17 minutes, 55 seconds Okay. So the owned, lease and the JV ones, those are three are included there. Yes. Yes. Sure. Okay. Thank you. 18:04 18 minutes, 4 seconds Thank you. We'll take the next question from Chira. Chag you can go ahead. 18:09 18 minutes, 9 seconds Yeah. Uh thanks for the opportunity. Uh uh first question on the uh depreciation and finance cost. So you have mentioned 18:17 18 minutes, 17 seconds in the PPT that for the quarter depreciation and finance cost has increased notionally by 19 crores. Uh 18:25 18 minutes, 25 seconds this is for the single quarter. Now when I take a 10% odd discount rate uh just to get an idea that what will be the 18:33 18 minutes, 33 seconds incremental interest in depreciation uh uh on account of indexes from iconica uh 18:40 18 minutes, 40 seconds with your 36 cr uh lease rental. I think the difference comes to 17 18 Ks per 18:46 18 minutes, 46 seconds year which means if my actual outflow is 36 odd KS my reported interest in depreciation in 18:53 18 minutes, 53 seconds P&L will be 53 54 odd KS you are right sir right so that is on an annual basis the 19:00 19 minutes notional increase is 19 kes in a single quarter so no no see what happens is if you really 19:07 19 minutes, 7 seconds look at it you know proriter we have to calculate what we do 25 years rent divide divided it by this thing and the 19:14 19 minutes, 14 seconds actual rent also will come. No, if you really look at it, so not only the India's factor will come, the actual rent also will come. Every so 19 cr is notional. 19:24 19 minutes, 24 seconds No, no, it is not. Out of that 12 is not 12 cr is notional and actual rent also 19:32 19 minutes, 32 seconds we are paying no 3 crores a month, right? So 19.5 cr is the total increase because the words that are used is 19:39 19 minutes, 39 seconds increased nationally by 19.48 48 KES and hence I was a bit confused. So 19.48 out of that uh uh 12 is notional which is 19:48 19 minutes, 48 seconds the index effect and seven is uh uh the actual yes uh actual for the 2 months or or whatever the time period is? 19:56 19 minutes, 56 seconds Yes 3 months. Okay. 19:58 19 minutes, 58 seconds So going forward what will be the so if you take Q3 as the base how much interest and depreciation will increase 20:05 20 minutes, 5 seconds from Q4 onwards since this is going to be fully operational. As you rightly said 36 plus you know we have to add in 20:15 20 minutes, 15 seconds that around 18. So around 53 54 that one quarter divide by four you know so around that that much will come. 20:27 20 minutes, 27 seconds Okay. And uh um so you mentioned that uh in Q4 you know for iconica we can expect 23 24 20:36 20 minutes, 36 seconds odd codes of revenues uh in in Q4. 20:40 20 minutes, 40 seconds So uh uh since all the uh you know the uh uh pre-opening costs and all those things are captured in Q3. Yes. 20:48 20 minutes, 48 seconds Uh uh is it fair to assume 2 to three KS bottom line in the Yes, we are also Yes, you are right sir. 20:56 20 minutes, 56 seconds So we have done 1.6 6 K loss in Q3 but 2 to three K profit is profit doable in Q4. Yes. Yes. 21:04 21 minutes, 4 seconds Okay. And just to uh you know so you mentioned the breakup uh for those four revenue sharing hotels. Uh so 21:12 21 minutes, 12 seconds cumulatively that adds roughly 100 odd ks to the revenue. 100 odds. Yes. 21:17 21 minutes, 17 seconds 100 odd kot. Okay. And this should uh uh should we expect this to come in by FI28 like full fully operational? 21:25 21 minutes, 25 seconds Yes. next year, next year, April onwards, I feel the entire thing will come. 21:30 21 minutes, 30 seconds So all the four hotels should be up and running in the coming year. Uh luck now we are expecting by you know February March 1 month here and there it 21:39 21 minutes, 39 seconds should open February March and what about the between you know our country how it is you know Iconiga was ready to open in 21:47 21 minutes, 47 seconds the month of June July but we got delayed by almost 3 months due to license issues and all the stuff. 21:54 21 minutes, 54 seconds Got it. Uh uh Arjun my next question is for you. Uh so given that you know the kind of success we had with iconica uh 22:03 22 minutes, 3 seconds in the upcoming hotels I can see that we are coming up with a new iconica under a managed uh uh contract model. So since 22:11 22 minutes, 11 seconds you know we don't have if we manage contract right in the upcoming hotels there is one iconica which is coming under managed uh contract model in in Jpur. 22:23 22 minutes, 23 seconds So, so my question is that uh um you know since we don't have a lot of long-term debt, I mean if you exclude 22:31 22 minutes, 31 seconds lease liability, I don't believe that we have a lot of net debt on the books and we are having healthy cash flows coming in every year. 22:40 22 minutes, 40 seconds How many like what do you think in 27 and 28 more iconic you are expecting under the revenue sharing or lease model? 22:51 22 minutes, 51 seconds So you know that's really tough to say but our target for uh uh 2030 was to do eight and we announced that in June. Now 23:01 23 minutes, 1 second uh after that we opened you know the iconica number one. Now post this there are a number of discussions on but at the end of the day these hotels have to 23:09 23 minutes, 9 seconds be to a certain standard to a certain size to a certain you know we we've we're setting uh brand standard with 23:17 23 minutes, 17 seconds Iconica. So um um we've said we do 8 by 2030 and I think that's the target. So uh you know if we can do it quicker 23:25 23 minutes, 25 seconds great but that's the that's kind of the guidance that I want to stick with for right now. Uh we don't really want to be uh you know overpromising today. 23:35 23 minutes, 35 seconds So out of it how many will be under managed because managed does not add any significant chunk to your top line. No. 23:41 23 minutes, 41 seconds So that's that's again it's a discussion point that we're having with a number of hotel owners and partners because there is an exacting brand standard that we'd 23:48 23 minutes, 48 seconds like to do and uh you know depends on their investment capability they want. So there's a there are 23:56 23 minutes, 56 seconds discussions on I think you know in time we uh uh we'd get to the eight right that's that's our target and that's my 24:04 24 minutes, 4 seconds uh commitment to you. So we'll we'll get there. We'll get to the eight, right? Uh within a combination of uh flex and uh manage your assets. 24:15 24 minutes, 15 seconds Okay. Uh got it. I'll I'll come back in the Thanks. 24:20 24 minutes, 20 seconds Thank you. We'll take the next question from Pawan. You can go ahead. 24:26 24 minutes, 26 seconds Thanks for the opportunity. So my first question is what is the timeline for the 47 hotel sign to come into play? 24:35 24 minutes, 35 seconds Come again Pawan. 24:37 24 minutes, 37 seconds What is the uh timeline for the 47 hotels that were signed? Uh that's very difficult to say. We are 24:44 24 minutes, 44 seconds expecting a rough estimate is next one year but you know hotels how some green field may take little more time. Some 24:52 24 minutes, 52 seconds green field project also we have signed that may take little more time but it's very difficult to really say that what should be that exact timeline for all these hotels. 25:03 25 minutes, 3 seconds But we are expecting next one to one and a half year between that all hotels should come up. 25:07 25 minutes, 7 seconds If some of them come up then there are a lot of hotels in the uh you know the discussion stage which 25:14 25 minutes, 14 seconds are conversion hotels. So where we may take over and so if some of these 47 25:21 25 minutes, 21 seconds don't come up uh then there will be some hotels which are you know which will be conversion hotels which will come up. So 25:30 25 minutes, 30 seconds I feel that our target of in one and a half years getting to about what another 45 hotels should not be very difficult to achieve. 25:41 25 minutes, 41 seconds Okay, got it. Good. My another question is that can we expect the current registrate of IDA keep getting better for Icona? 25:53 25 minutes, 53 seconds Come again. 25:55 25 minutes, 55 seconds Uh sir I was rambling about it the trajectory of IIDA which which gets getting better for iconica. 26:02 26 minutes, 2 seconds Uh definitely it will get better. This quarter we expect a better results. 26:10 26 minutes, 10 seconds Q4 we will we are expecting better result because Q3 we had to write up lot of pre-operating expenses 26:18 26 minutes, 18 seconds which which can't be capitalized. So those expenses were written off. So that is why you are seeing a minus figure but Q4 will be in profit. 26:27 26 minutes, 27 seconds Okay. And regarding that also with the delayed start uh do you think that we can land up anywhere between uh 420 450 CR revenue this year? 26:35 26 minutes, 35 seconds 424 around like 420 to 450 CR revenue. 26:41 26 minutes, 41 seconds Yeah. Yeah. Yeah. Yeah. Yeah. We are expecting that only around 420 uh you know top line we are expecting from this year. 26:52 26 minutes, 52 seconds Okay sir, that's it from my side. Thank you. 26:57 26 minutes, 57 seconds Thank you. We'll take a followup of question from Rahul. Rahul, you can go ahead 27:05 27 minutes, 5 seconds for taking my question again. Uh there's a question for uh Arjun. uh and as actually a complement uh this in addition to the previous question that I 27:13 27 minutes, 13 seconds asked you know to reach our targets to let's say your stated target is to go to 22,000 rooms by FY30 that's a 4year 27:22 27 minutes, 22 seconds thing we need to go let's say at 100 of 3 to 4,000 rooms for anon to kind of reach that uh target how you looking at 27:30 27 minutes, 30 seconds this because we have never done this it's a very very uh steep thing even the 3,000 room uh you know sign up that we 27:37 27 minutes, 37 seconds have right now you know we need we need to kind of keep creating visibility of let's say 4,000 or 5,000 rooms to keep 27:44 27 minutes, 44 seconds running that 3 year to 4,000 rooms. How are you looking at this and do you see there is enough uh enough juice in the market to kind of keep doing this year on year? 27:54 27 minutes, 54 seconds Well, listen, thanks. I do think that there is enough juice in the market. uh if you look at uh the fact that we've got this five brand architecture going 28:02 28 minutes, 2 seconds on um you know each market or most markets can do all five hotels brands 28:09 28 minutes, 9 seconds and multiple hotels uh let's say with zed you can do multiple hotels in a particular market so uh it's you know 28:17 28 minutes, 17 seconds there are new markets opening up every day um I do think that uh you know India still has a a really long way to go in 28:25 28 minutes, 25 seconds terms of tourism development or destination development. So um this there there is there is an immense 28:32 28 minutes, 32 seconds amount of scope going forward and uh just a question for Jal what is the peak revenue potential quarterly 28:41 28 minutes, 41 seconds number for iconica we are looking at sir this quarter you said we may touch 23 24 are we looking at maybe a 2830 peak number or in in in your internal 28:50 28 minutes, 50 seconds assessments yeah so next year we will peak next year definitely we will peak because any hotel to come to a certain state it 28:58 28 minutes, 58 seconds takes at least 6 months to one year time. So next year we will definitely be peing in the third and fourth quarter and that will be very good and I think 29:07 29 minutes, 7 seconds we will be doing much better than 23 24 crores. We should be somewhere around 28 crores. Uh we should be able to do 29:15 29 minutes, 15 seconds you should be able to do 28 30 crores that kind of range. Sure sir. Thank you. 29:22 29 minutes, 22 seconds Thank you. We'll take the next question from Majid. Majid you can go ahead. 29:27 29 minutes, 27 seconds I'm article sir. Oh yes yes yes you are yes sir uh sir uh my 29:35 29 minutes, 35 seconds first question is especially regarding the FNB revenue like earlier we were talking to maintain around 40% and now I 29:42 29 minutes, 42 seconds think the FNB revenue is around 32 to 33%. So how are we no no Mr. Maj we have never said that we 29:49 29 minutes, 49 seconds will maintaining 40%. Historically it is around 30% only of the total revenue the FnB revenue will be because you know 29:58 29 minutes, 58 seconds most of our hotel don't have huge banquetss to make 40% revenue you need lot of banqueting okay with alone 30:06 30 minutes, 6 seconds restaurants can't do so we maintain that figure of around 30 32% only which we have done in the last quarter 30:15 30 minutes, 15 seconds sir out of the iconica 17 cr this quarter how much did we uh from the uh room nights and FNB s can give the break 30:23 30 minutes, 23 seconds up almost more than 80% is from rooms only more than 80% from room so going forward 30:30 30 minutes, 30 seconds as we are in targeting 8200 crores FI27 of which how much could be from FNP sir 30:37 30 minutes, 37 seconds so again there see this hotel the maximum rooms are there there are restaurants are there but you know 30:44 30 minutes, 44 seconds contribution of restaurant will be lesser than room so around 20 25% only will come from the FNB and balance will come from rooms. 30:54 30 minutes, 54 seconds Okay sir. And sir, finally for Q4, how much manage hotels are we adding sir? 31:02 31 minutes, 2 seconds Yeah Q4 we've got hotels opening in Ambala, Rishies, Bourj Badi. Uh these 31:10 31 minutes, 10 seconds are the confirmed ones. We have two or three which may open additionally but all get pushed into Q1 next year. 31:18 31 minutes, 18 seconds is roughly around 220 keys roughly around 220 of which how much is getting pushed to Q1 or or does this include 31:27 31 minutes, 27 seconds there are addition the ones that may get pushed to Q1 I'm not uh not mentioning those there we have at least uh quite a bit opening in Q1 uh these are the ones 31:35 31 minutes, 35 seconds which are confirmed opening right now got it that's all from my session and 31:42 31 minutes, 42 seconds thank you we'll take a followup question from Yesh. Yes, you can go ahead. 31:54 31 minutes, 54 seconds Yeah. Am I audible? Yes. Yes. 31:58 31 minutes, 58 seconds Yes. Uh so I think uh in the Bangalore central property you have some renovations going on, right? Uh and uh the MG road property. 32:09 32 minutes, 9 seconds No, we have planned renovation there. 32:11 32 minutes, 11 seconds Right now it is not uh we have not yet started there. 32:15 32 minutes, 15 seconds No. So are we expecting some uptick in the repaire there in that particular hotel post the renovations and how much are we looking to invest? 32:26 32 minutes, 26 seconds So that hotel I'll take that we're in the middle of evaluating exactly what standard that hotel needs to be at 32:35 32 minutes, 35 seconds in order to compete with the micro market over there right and what is the gap in the micro market. So, uh, you 32:43 32 minutes, 43 seconds know, we're just in the middle and of course, you know, if you put in any capital, you do expect a return on that capital. So, we're just going to, um, you know, we will definitely come back 32:52 32 minutes, 52 seconds to you guys with exactly the plan that we've got, uh, the moment it's firmed up and we have a renovation plan in place. 33:00 33 minutes But rest assured, money is going in. 33:02 33 minutes, 2 seconds We'll ensure that they are uh, uh, you know, there is an uptick. 33:09 33 minutes, 9 seconds Yeah. And and now coming back to uh the previous uh sort of conversation where you guys were uh basically saying that you guys are going to figure out what 33:17 33 minutes, 17 seconds you're going to do with the the 30 35 crores or 30 32 crores that are going to come in from the multi hotel sale. Just 33:24 33 minutes, 24 seconds wondering are we looking at uh organic acquisitions if any uh yes or no. Uh 33:30 33 minutes, 30 seconds secondly, if not uh are we looking to uh do something like another iconica where 33:37 33 minutes, 37 seconds we will also have some sort of capital outgo uh sizable capital outgo uh uh not 33:46 33 minutes, 46 seconds in terms of uh obviously not in terms of u uh expenditure like direct expenditure but indirect expenditure like the 33:54 33 minutes, 54 seconds advance that you gave for iconica for example. So what are we looking because I think currently we have a pretty strong balance sheet. So I think a lot 34:01 34 minutes, 1 second of stakeholders and shareholders uh are kind of looking forward to what you're going to do with this extra capital that's coming through. 34:09 34 minutes, 9 seconds Yes, it will be a very forwardlooking statement. The transaction is in the midway. The transaction is yet to close 34:17 34 minutes, 17 seconds and uh you know internal discussion has to happen. So it will be very difficult for all of us any rather any one of us 34:25 34 minutes, 25 seconds to straight away answer this probably you can ask this question in the next call in May that time there will be some clarity 34:33 34 minutes, 33 seconds right uh that that's completely okay I I'll come back next quarter but can you give a revenue and a top line and a bottom line guidance for next financial 34:41 34 minutes, 41 seconds year if that is not too early because I think iconica has settled you might understand how the flow of things are but that that guideline will decline a 34:51 34 minutes, 51 seconds bit a bit not much because Iconica got delayed by a quarter. 34:57 34 minutes, 57 seconds No guidance for next financial year. Uh sir, next 2728 what the the guidance we have given 500 crores uh we should be able to do it. 35:06 35 minutes, 6 seconds Uh that is top line and bottom line uh cash profit or uh or net profit whatever you want to give back. It's very 35:14 35 minutes, 14 seconds difficult to tell now but once we are in the process of making our budgets and all once that get frozen by March and then probably we'll in a better position 35:22 35 minutes, 22 seconds to give you that guideline but till now there's no large capital expenditure planned for next year right no no no we we we are maintaining cash 35:31 35 minutes, 31 seconds uh you know asset light strategy we continue to do that right and uh from your 500 cr can you 35:39 35 minutes, 39 seconds share the amount of money you will get paid by managing hotels and how much of that flows to the bottom line because 35:46 35 minutes, 46 seconds that's a number I've been trying to kind of gauge but I've not been able to no no see I'll tell you see like you 35:54 35 minutes, 54 seconds know current financial we are looking at a top line from managed business of roughly around 45 crores out of which almost 47 48% flows down to the bottom 36:04 36 minutes, 4 seconds line right and uh out uh next year what is that 45 cr going the growth of growth of almost 20% uh 36:12 36 minutes, 12 seconds will be there once these 47 hotels comes up then definitely there will be a substantial growth. No. So is it going to double the 45? 36:22 36 minutes, 22 seconds No no no no no it will not double. See 47 hotel will not come up in you know next financial year. It will come towards the end of the financial year. 36:30 36 minutes, 30 seconds So next year projection roughly around 55 58 crores of top line in the manage business and around 48% 47 48% of the 36:40 36 minutes, 40 seconds bottom line right and when you mean bottom line you mean aa you mean part eeta right 36:48 36 minutes, 48 seconds yeah yeah perfect okay I'll just come back in thank you we'll take another follow-up 36:56 36 minutes, 56 seconds question from Cher you can go ahead yeah uh sorry I just need some more clarity on this uh you know interest and 37:03 37 minutes, 3 seconds depreciation. So coming back to the uh you know previous uh uh question that I asked about interest and depreciation uh 37:12 37 minutes, 12 seconds which you have mentioned that a total increase is 19.48 KES for the quarter. 37:16 37 minutes, 16 seconds So uh that 5354 KES if we take for iconica that comes to 13 12 K increase 37:24 37 minutes, 24 seconds uh uh you know per quarter. So what is the balance 6 cr increase that we have seen? 37:30 37 minutes, 30 seconds So there is some India's effect of other hotels also. No we have certain other hotels also are there no on on 37:37 37 minutes, 37 seconds no so this is the increase in Q3 right only Q3. So which other hotels have come up in Q3 which would have contributed to 37:45 37 minutes, 45 seconds the six there is the India's impact of other hotels also like we have hotel in you know Puna we have a fixed rent we have so that breakup I'll give it to offline. 37:56 37 minutes, 56 seconds Okay. Okay. Okay, I'll take it offline. Okay, thanks. 38:01 38 minutes, 1 second Thank you. We'll take another follow-up question from Pawan. Pan, you can go ahead. 38:07 38 minutes, 7 seconds Just wanted to ask that as per the board meeting outcome Bali has been appointed as executive director. So, is he coming 38:15 38 minutes, 15 seconds into active role now? What part of the business would Queso be driving? 38:20 38 minutes, 20 seconds Yes, he's right now coming in full time and he's going to be uh actually right 38:29 38 minutes, 29 seconds now diagnosing the issues of the company and then he'll have a clarity 38:37 38 minutes, 37 seconds by another one or two months what all he's going to be actively right now main 38:44 38 minutes, 44 seconds role is to get the hotels which are in the pipeline to get them operational 38:51 38 minutes, 51 seconds ASAP also to look at the underperforming hotels how to make them perform better 38:59 38 minutes, 59 seconds than what they are doing right now. So that is the current role. 39:06 39 minutes, 6 seconds Okay. Got it. And my next question is sir that what next after Iconica Mumbai? 39:11 39 minutes, 11 seconds So is there any other similar size of property planned on these bases? 39:17 39 minutes, 17 seconds Well, you cannot really say because all this also uh in fact iconica discussion we had 39:25 39 minutes, 25 seconds about six years back and then they went to a cold store 39:30 39 minutes, 30 seconds then of course uh various factors like COVID and all that came and the deal 39:37 39 minutes, 37 seconds came back to us. So I cannot say predict very clearly whether such type 39:45 39 minutes, 45 seconds of deals uh are they readily available but we are we are on the lookout now 39:51 39 minutes, 51 seconds that the we have a comfort that iconica is stabilized we can take a risk and somebody asks us 39:59 39 minutes, 59 seconds the question of what we're going to do with the money that we are getting from multi hotel transaction and I want to 40:07 40 minutes, 7 seconds correct it it's not 40 roads. It is sub sub 30 cr after paying taxes. But we 40:14 40 minutes, 14 seconds will uh we are the process of seeing how to quickly deploy that in management uh 40:21 40 minutes, 21 seconds you know in revenue share properties upgrading of our existing properties and of course if something 40:29 40 minutes, 29 seconds uh like a big hotel comes up then we'll definitely bid for it and try to get that also. 40:38 40 minutes, 38 seconds Yeah, we got it sir. Thank you so much. 40:44 40 minutes, 44 seconds Thank you. We'll take the next question from Rahul. Rahul, you can go ahead. 40:52 40 minutes, 52 seconds Uh thank you once again. Just one final question sir. Already discussed on the depreciation interest element because of 116. Uh so what we see in this quarter 41:01 41 minutes, 1 second is the uh you know going to be the run rate for the future quarters as well. 41:06 41 minutes, 6 seconds And of course if you keep adding properties on the uh revenue or the lease side it'll have some impact but broadly this is the run rate. 41:13 41 minutes, 13 seconds This should be the run rate. Yes. 41:15 41 minutes, 15 seconds So roughly we are talking about a 24 25 cr kind of interest depth number uh overall because your interest cost on your lending will on your borrowing will 41:23 41 minutes, 23 seconds not be a big number. This should all be an impact of RO. Yes. Yes. RO asset. Yes. 41:29 41 minutes, 29 seconds Right. Right. Okay. Thank you very much sir. And uh also uh just a we've been given feedback on what kind of uh 41:37 41 minutes, 37 seconds disclosures we would want to have from the management and they have you have been very very receptive to all the feedback. So thank you for kind of giving us all those disclosures on the 41:46 41 minutes, 46 seconds on the PPT and we hope to have even more just like you know the the there's a greed for more more and more information. Thank you so much for receiving that. 41:55 41 minutes, 55 seconds Thanks R. 41:57 41 minutes, 57 seconds Pleasure Rahul. Thank you for your continued involvement. 42:03 42 minutes, 3 seconds Thank you. We'll take a follow-up question from Yesh. Yes, you can go ahead. 42:14 42 minutes, 14 seconds Yes. 42:24 42 minutes, 24 seconds Okay. Since there are uh no further questions uh so would you like to give any closing comments? 42:32 42 minutes, 32 seconds Thank you very much uh for all the questions which you have asked. It'll 42:39 42 minutes, 39 seconds make us uh strive for better results and I can assure you that we leaving no uh 42:46 42 minutes, 46 seconds stones unturned to give you better and better performance in the coming years. 42:53 42 minutes, 53 seconds So thank you very much. Okay. 42:57 42 minutes, 57 seconds Thank you to the management and all the participant for joining this call. This brings us to the end of this conference. Thank you. Thank you very much. Thanks. Thank you. 43:05 43 minutes, 5 seconds Thank you. Thank you.