Bengaluru-based Royal Orchid Hotels Ltd saw its net profits drop 6.9 per cent to ₹10.73 crore for the June quarter of FY24, compared with ₹11.53 crore in the same quarter of the previous financial year.

The hotel chain posted total income of ₹73.72 crore (₹63.44 crore), up 16.20 per cent. The EBIDTA dropped 4.6 per cent to ₹22.92 crore (₹24.03 crore).

“As a company, we are steadfast in our commitment to expand our presence in various regions and strengthen our nationwide reach. During this quarter, we successfully launched 13 properties across the country, strategically positioned to cater to both business and leisure travellers,” said Chander K Baljee, Chairman and Managing Director.

The company plans to launch eight more propertiesin Gangtok, MacLeod Ganj, Varanasi, Shogi, Raipur, Gulbarga, and Nellore. Furthermore, its growth trajectory is in sync with the expansion strategy, and anticipates increased revenues driven by the new ventures.

According to the company, IND-AS 116 adoption led to an increase in depreciation and finance costs of ₹5.28 crore, leading to a reduction in PAT of ₹1.26 crore at standalone level (SA) during the June quarter.

Royal Orchid shares closed 2.02 per higher at ₹310.45 on Tuesday on the National Stock Exchange.