Royal Orchid Hotels Reports Mixed Financial Results for Q2 2024

Royal Orchid Hotels, a microcap company in the hotel, resort, and restaurant industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Royal Orchid Hotels is currently 'Strong Sell'.

The company has seen a negative financial performance in the second quarter of the fiscal year 2024-25, with its score falling from -2 to -8 in the last three months. However, there are some positive aspects to the company's financials based on the September 2024 results.

One of the strengths of Royal Orchid Hotels is its operating cash flow, which has been consistently growing each year for the past three years and is currently at its highest at Rs 47.16 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

On the other hand, there are some areas of concern for the company based on its September 2024 financials. The profit before tax less other income (PBT) for the quarter has fallen by 68.48% year on year, and the near-term trend for PBT is negative. The operating profit to interest ratio is also at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments.

The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, and the operating profit margin has also decreased to its lowest at 16.26%. This suggests a decline in the company's efficiency. Additionally, the non-operating income for the quarter is 80.55% of the PBT, which is a cause for concern as it indicates a high reliance on non-business activities for income.

Furthermore, the company's cash and cash equivalents have decreased to its lowest in the last six half-yearly periods, indicating a deterioration in short-term liquidity. The non-operating income for the quarter is also at its highest in the last five quarters, which may not be sustainable in the long run.

Overall, the financial results for the quarter ending September 2024 for Royal Orchid Hotels show a mix of positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.