Royal Orchid Hotels Announces Q1 FY25 Financial Results: Mixed Performance with Positive and Concerning Factors

Royal Orchid Hotels, a microcap company in the hotel industry, has recently announced its financial results for the quarter ending March 2024. The results, declared on August 14, 2024, have received a ‘Strong Sell’ rating from MarketsMOJO.

According to the financials, Royal Orchid Hotels has shown a flat performance in the quarter, with a score of -2 compared to 2 in the previous quarter. However, there are some positive aspects to the company’s performance. The Debtors Turnover Ratio, which measures how quickly a company collects payments from its customers, has been consistently growing in the last five half-yearly periods, with the latest ratio at 8.92 times. This indicates that the company has been able to settle its debts faster.

On the other hand, there are some concerning factors in the financials as well. The Profit Before Tax (PBT) less Other Income has fallen by 19.06% year on year, and the Operating Profit Margin is at its lowest in the last five quarters. This suggests a decline in the company’s efficiency. The Profit After Tax (PAT) has also decreased by 9.2% year on year, and the Non-Operating Income is 39.74% of the PBT, indicating a high reliance on non-business activities for income.

Overall, the financial results for the quarter ending March 2024 for Royal Orchid Hotels show a mixed performance. While there are some positive aspects, there are also some concerning factors that investors should consider before making any decisions.