Highlights of the call

• For the quarter ended December 2006, Viceroy reported 38% growth in revenues to Rs 13.11 crore. Room sales were Rs 8.78 crore and F&B revenues stood at Rs 4.32 crore. OPM dipped by 310bps to 37.6%. The dip in OPM was mainly on account of 1600bps increase in staff cost to 37% negated to some extent by 600bps decrease in raw material consumption and dip in forex loss. The operating profits grew by 19% to Rs 4.93 crore. Other Income was up to Rs 29 lakh, interest cost down by 15% to Rs 1.45 crore and depreciation cost up by 2% to Rs 1.82 crore. Tax provision was up by 203% to Rs 88 lakh resulting in PAT growth of 143% to Rs 1.07 crore.

• For the nine months ended December 2006, Viceroy reported growth of 38% in net sales to Rs 34.49 crore. OPM improved by 40bps to 40.6% with operating profits up by 39% to Rs 14 crore. Net profit grew by 127% to Rs 2.72 crore.

• During the quarter, the company paid Rs 41 lakh as incentive to Marriott.

• For the quarter the company added 130 rooms taking the total to 297 rooms. The occupancies for the quarter were 52% with ARR of RS 6178. For FY08 the company estimates an ARR of Rs 7500.

• The company has three projects on the anvil. The Bangalore property is a 150-room hotel under the Renaissance brand. The capex is Rs 160 crore which would be funded through 70% debt and 30% equity. The property would be operational by Q4FY09.

• The Chennai property would be 350 rooms and 200 service apartments with a total capex of Rs 462 crore. The financing would be against 70% debt and 30% equity. The property would be operational by Q1FY10.

• The Hyderabad property would be a Courtyard property with 185 rooms with a capex of Rs 101 crore. The property would be operational by October 2008.

• In the second phase the company would develop a property in Visakhapatnam with a capex of Rs 80 crore.

• The peak debt for the company would be Rs 580 crore in 2009.

• The company is awaiting approval for merger of 9 companies, which are into various hospitality businesses. Once merged the company would de-merge the restaurant business and Hotel business into 2 separate companies.

• Currently the company has 4 outlets Minerva Coffee and 4 outlets of Blue restaurant. The company would 3 outlets each from Fy08 onwards.

• The company currently has 2 outlets of "Breadtalk" brand. The company plans to add 5 more in Mumbai, Thane and Navi Mumbai with others across the country totaling to 40 outlets.