Red tape is not now only footwear company but it’s now becoming fashion company, just wisit it’s store and you understand

Royal Orchid Hotels –

Q1 Concall and results highlights –

Revenues – 78 vs 73 cr
EBITDA – 21 vs 23 cr
PAT – 9 vs 11 cr

Breakup of revenues –

Room rentals – 41 vs 40 cr
F&B – 27 vs 27 cr
Other services – 2.5 vs 2.6 cr
Management fee ( received from management contracts ) – 8.6 vs 6.8 cr

Property wise breakup of revenues –

Owned – 26 vs 20 cr
Leased – 30 vs 28 cr
JV / Associates – 13 vs 21 cr
Managed – 8.6 vs 6.8 cr

Segment wise distribution of rooms ( owned, leased, managed, in JV with Royal Orchid ) –

Owned – 268 + 130 ( 5 star + 4 star ) = 398

Leased – 396 + 67 + 142 + 83 ( 4 star + service apartment + Resort + 3 star ) = 688

JV – 139 + 54 ( 5 star + Heritage ) = 193

Managed / Franchise – 2547 + 71 + 803 + 1715 ( 4 Star + service apartments + heritage / resort + 3 star ) = 5116

Grand total = 6395 rooms / keys

Upcoming hotels – 24 + with 1900 + rooms / keys. Out of these, 02 hotels in Gurugram and Mumbai are leased. All others are managed. The Gurugram hotel is going to be a 124 room hotel with 02 Banquet halls

Q1 was a difficult Qtr as the business got affected due to heat waves and elections across India

Company’s 300 room Mumbai hotel ( leased ) is expected to open by Q1 FY 26 ( currently under construction ). Company expects the ADRR @ 9.5-10.5k for this property

Company is seeing a descent pick up in business in Q2 after a subdued Q1.( aprox a 6-8 pc increase in ARRs across the board )

Guiding for a topline of 378-380 cr, 500 cr for FY 25, 26 with a PAT of aprox 55 cr and 70 cr respectively

Company expects the Mumbai hotel to do revenues of aprox 100 cr for its first year of operation ( ie FY 26 ). This hotel is near T-2, has 300 rooms, 02 Banquet halls, multiple F&B outlets. This should also improve the brand visibility of the company because of its prominent location

Company expects to derive revenues of > 100 cr alone from managed properties in next 3-4 yrs. EBITDA margins in managed properties are around 45 pc

The upcoming Gurugram hotel has a revenue potential of 25-30 cr

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

It’s strange that this thread was inactive from past 4-5 months, don’t know the reason but I am assuming ” No earning surprise” in the last 8-10 quarters, was maybe the reason.
Q1FY25 brings some hope in terms of growth, where all other QSR players are facing demand headwinds, the Jubilant Foodworks has shown some sign of growth, in this challenging environment. The 45%YoY and 23% QoQ growth in revenue along with stable 20% margins and LFL growth came of 3.0% driven by Delivery LFL growth of 12.1%, shows some sign of revival in the business operation.

Key Takeaway from the Q1FY25 Concall:

Financial Performance

• Consolidated Revenue came in at INR 1933 Crores, up by 44.8% YoY
• EBITDA margins stood at 19.8%, INR 380 Crores against INR 277 Crores in Q1FY24.
• PAT stood at INR 61 Crores, upward QoQ: +56.9% YoY: +110.3%.
• Gross Margin of 73% at consolidated level.

India Segment

• In India, the revenue at INR 14.4 billion was up by 9.9% YoY. EBITDA margins at 19.3%
• Domino’s growth came in at 8.5% led by record high orders, registering 16% growth YoY.
• Domino’s India LFL growth came in at 3.0% driven by Delivery LFL growth of 12.1%
• Domino’s Mature Store ADS for 1,644 stores at ~INR 80,000 was also the highest in last five quarters.
• Launched ‘best value’ that a QSR chain offers a Lunch Thalia four-course meal at INR 99.
• Launched the globally acclaimed Domino’s Cheese Volcano pizza range meant for cheese lovers.

Turkey Segment

• Domino’s Turkey system sales came in at INR 7 billion and LFL was 10.3%. COFFY system sales came in at INR 656 million and LFL was 8.7%.

DP Eurasia

• The Revenue from DPEU came in at INR 4.6 billion, higher by 15.4% YoY at current currency rate. EBITDA margin came in at 25%
• PAT margin was strong and accretive to Indian business, at 9.2%.

Other Countries

Store Composition

• Reached the milestone of 3000 stores across 5 brands and 6 countries. India’s contribution to Domino’s network at 10%.
• Crossed 100 COFFY stores in Turkey and 50 Popeyes stores in India.

Operational Performance

• The company acquired new customers at highest-ever rate, beating the industry trend.
• No price increase in the straight last 8 quarters also waived off the delivery fees.
• Across the world , delivery as a mix is growing. So there is also a consumer trend that Jubilant is also riding on. Delivery channel now contributes 69% in Q1FY25.
• Delivery channel revenue increased by 15.7% driven by Delivery LFL growth of 12.1% YoY, while Dine-in channel revenue declined by 5.7% YoY.
• Any store refurbish at least would see 10% to 12% growth in dine-in.
• Monthly active users has moved from 10.3 million to 12 million, which is almost 2 million customers we have added.
• Cheesy reward customers are now contributing 50% of business.
• In DP Eurasia (Turkey, Azerbaijan and Georgia), H2 is higher than H1.
• In Popeyes, the management has brought down the store size to fit it into the Indian kitchens.
• Domino’s India volume growth is about 16%, which is mainly on account of reduced threshold fees for delivery which is now only INR 150.
• Majority of the debt in DP Eurasia book is short term in nature.
• Management on any material change in the trend:
  “Despite rains, despite heat, whatever the weather conditions we are seeing an uptick in delivery, and that’s what we are banking on.”
• Bangladesh business turned profitable at the operating level. On the ongoing political unrest, management assures that staff is safe and company has not incurred any material loss.
• The company is looking to increase the ticket size by offering greater cheese and more indulgence to consumers.
• In Popeyes, the management is focusing on the chicken eating markets, that’s why more stores are in South India.
• In Popeyes, the company has high street locations to do deliveries. delivery share is lower and dine-in is higher at the moment.
• Dunkin is even more on track to kind of achieving high store-level profitability.

I started my journey in stock market around 2017-18 and at that time stock market is a liability for me and not an asset.

In the beginning, I did what most newbies do. Trading in the market based on the advice given by some group or by friends or suggested by TV anchors. Finally, my balance sheet was reflecting exactly what I deserved just by following the tips.

Curiosity: – I started getting curious to know how these experts know all the levels like how to select the stocks, when to enter, where to place the stop loss and when to book profit? so I joined some experts who try to explained technical things, who are called finfluencers today. I learned so many things with all of them and found it very fascinating.

By following their methods I started making profits in short term trading. But overall, I made no loss no profit when compared to the time I was devoting.

Realization: Very soon I realized that if I want to stay in the market for a long time, I should not depend on anyone because the specialty of most finfluencers is that they avoid giving any advice during losses.

I started learning about stock market by attending webinars and courses and with this knowledge invested in some good stocks.

Greed: Now I was slowly becoming greedy and I was still thinking market as a liability and not a wealth creator. And prove to myself smart, I started booking profit in my winners and loss in my losers. At the end same thing happened, when I compared it with my time then I was neither in profit nor in loss. If I compare my losers today, they are the biggest winners. Like;

Bajaj Finance 3000, Reliance 1000, HDFC Bank 800, Maruti 4000, ONGC 66, Ashok Leyland 60, Tech Mahindra 550, Indus Bank 365, Tata Elxsi 1000, Tata Power 90, Voltas 500, ATGL 150, KPIT 500, ABB 1800, CDSL 1300, BSE 500, Adani Green 350, Minda 150, HSCL 55 etc.

Realization part-2: I am very grateful to those who taught me technical things, but I wish someone had taught me to overcome greed and it would not be wrong to say that I did not understand the difference between greed and success properly.

One fine day I started comparing my mutual fund and stock portfolio, and I was surprised that my mutual fund portfolio was performing much better than stock and this was because I never tried to predict the performance of mutual funds.

Now I started thinking about how to stay invested for the long term, how to control greed, how to develop an investor mindset and I decided I will do what I am good at and being a bookworm, I started reading about finance, stock market, mindset etc.

As I started learning about the market, many of my doubts were cleared. I had quit social media long back to focus more on my business (which I started at the age of 25,) so it was a plus point for me that my entire focus was on my business and learning about the market and there was no scope for external noise. I had a basic knowledge to read balance sheet, so this was a bonus for me.

Three simple steps to become an investor, rather than a speculator

. focus less on forecasting

. ignore the short-term noise

. focus on the business, and not the stock price

0.001%: Now I realize that I started understanding stock market 0.001% so I created 3 portfolios. One is long-term, second is stock SIP and third is passive income portfolio.

Long term: I started investing in stocks that are suitable as per my fundamental study.

Stock SIP: I invest in growing companies (mid & small cap) that I don’t want to take too much risk on right now. I have covered this topic with some examples in Stock SIP boring yet powerful.

Passive income: In this portfolio, I invest in such stocks that meet my technical setup for positional investing.

Since I am not a SEBI registered or qualified advisor, I don’t find it appropriate to share my portfolio or setup.

Since I have learned only 0.001% about stock market in last 6 years and my constant endeavor is to learn more, I will try to share whatever technical and fundamental study I do.

Update: Screener Specter Version 1.2 || Aug 23, 2024

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