ICRA revises Royal Orchid Hotels long-term rating outlook to Negative

The credit rating agency has changed the outlook on the subdued performance of the company in H1FY21. It also reaffirmed the ICRA BBB rating.

Jun 15, 2021 04:06 IST India Infoline News Service

ICRA Limited has reaffirmed ICRA BBB rating on credit facilities of Royal Orchid Hotels Limited and revised outlook on the long-term rating to Negative from Stable.

“The revision in the outlook on the long-term rating from stable to negative considers Royal Orchid Hotels Limited’s (ROHL) subdued performance in H1FY21, wherein the revenues declined to Rs17.9cr as against Rs95.5cr in H1FY20.

Further, ROHL reported operating losses of Rs16.3cr in H1FY21 as against operating profit of Rs11.3cr in H1FY20. The operating losses in H1FY21 led to a net loss of Rs4.8cr in H1FY21 (PY net profit Rs2.1cr in H1FY20). The sharp decline in performance followed the pandemic outbreak which lead to curbs on people mobility and corporate events,” company shared ICRA’s rationale in a filing on Monday.

Royal Orchid Hotels Ltd stock on Tuesday ended at Rs88.30 per piece up by Rs0.2 or 0.23% from its previous closing of Rs88.10 per piece on the BSE.

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