Yes. So a couple of questions there. First is, if you can just talk about the economics of the -- on a per unit basis. Are we talking about you recognizing revenue on a gross basis like an ODM, it seems like it's a manufacturing relationship. So you'll probably recognize revenues on the value addition only. And if you can confirm that? And the second one is, how does Amber develop the expertise for this? Is this -- as you mentioned, you can sublease the facility from Oppo. Are you going to use their expertise, their people and pay for the opex? I think those are the first 2 questions.
Questions across 16 calls
Sameet Sinha
Macquarie
Amber Enterprises India Limited
Yes, thank you very much. So 2 questions. First one on the inventory side. So from my understanding, you're talking about inventory that's built up, that's basically the components and the parts, not the finished products because you said the demand was strong. So on that front, by front loading this, what sort of benefit do you think you've got in terms of if you could quantify how much savings would that be in current component prices, that would be appreciated? And my second question is Jasbir, in just in terms of -- whenever we've spoken, you always mentioned how we've seen the progression about going towards higher-margin businesses. Does that still stand? Or would you think at this point, you'd be open to going towards high volume, low margin, but high ROCE business, if you can talk about that? Thank you.
Got it. Thank you.
Sticking to the Power -One question, what's the expectation for revenue contribution this year from Power-One? And what sort of growth? If I remember correctly, I think you were indicating 35% to 40% growth in that business for the next few years? And my second question is Unitronics, what was the price per share that you paid over there? And also will you be recognizing revenue from it or is it just the mark-to-market on the balance sheet?
Chalet Hotels Limited
So, I had a couple of questions kind of going deeper into the previous one. Clearly, domestic travel has picked up and hopefully, it will continue to gain momentum, especially over the summer. Can you talk about sort of what initial trends you are seeing in terms of spend, especially in the context of the statement that you made earlier where foreign travellers tend to travel with other people, especially domestic executives and that? So, there's a multiplier effect there. So that is one question. My second is in terms of commercial leasing, you're saying that it will be totally leased out by fiscal '28. Any reason it could take that long or what's the hold up? I know in the past that you've spoken about that you're very careful about the quality of the counterparty there. Is that the reason or is the Bangalore market seeing any sort of different sort of macro impact?
Can you talk about the leasing business? I mean it seems like the incremental leasing activity was kind of weak. What are the dynamics there? And secondly, talking about the new brand, Athiva, wishing you all the success with this. And if it becomes successful, do you think there's an opportunity to have a management fee sort of strategy? I think I heard the word asset -light being mentioned. Is that what was being referred to?
Sanjay, congratulations. I enjoyed working with you, short, but still enjoyed it. All the best for your next endeavour. Welcome, Shwetank, I look forward to working with you. A couple of questions. I guess, as you talk about the 5,000 total keys, how are you thinking about business versus leisure? And the reason I ask is because the leisure as it increases as part of the portfolio, I'm trying to understand how it changes the P&L. I mean the staff -to-room ratio is obviously higher there. You have higher percentage of F&B, which is a low-margin business. So, if you can think about it the next 5 years, how could the P&L change? And then I have a follow-up.
Got it. One second question. So, in terms of the residential revenue recognition, Nitin, can you talk about -- it seems like EBITDA margins tracking at about 37%. Is that how we should assume as the other apartments recognized as well, that's a good margin structure to go with?
The Indian Hotels Company Limited
So first, I wanted to stress test that 12% to 14%. I can imagine it's not a science, but just trying to see how you arrived at that number. Did you just take the weakness in April and kind of calibrate the rest of the year based on that? Or are you making some assumption about the extent or the duration of this conflict? That's my first question. I guess I'll have follow-ups after that.
Got it. Okay. Then in terms of your fiscal '27 number of openings, if I'm seeing it correctly, did you reduce the number of rooms by 500 for this year?
Thank you. So renovations, obviously is a big part of the commentary this quarter. Can you give us a sense of once the rooms are renovated, put back into the market , what sort of ARR and occupancy uplift do you see in those properties. Second question is around amã and Tree of Life, if you look at your portfolio, these are the ones which look, in theory, look subscale. Can you talk about the structure around them? I am trying to figure out what the margins can get to your standalone obviously, very nice at 40%. But these two, do they need to become much bigger to get to those sort of margin levels because of pricing power? Or do you have shared resources, so you can get those margins also up to the similar levels? And then I will have a third question later.
Sure. My first question was about renovation. Can you talk about that? How much is the ADR…?
A couple of questions. First is, Puneet and Ankur, you can talk about the margins. How do you see that -- how do you see the cadence throughout the year? Because this particular quarter was -- has been impacted by, of course, you had TajSATS, you've probably had some revenue shortfall. You had the pull forward of the salary increases and you mentioned the digital spend. Can you talk about -- obviously, understanding the fact that the wage hike, you've explained that. Can you talk about the digital spend? Is that going to continue throughout the year? Or is that going to end at some point and we could see margins start to go back up? And I just wanted to double-click because you mentioned sustained EBITDA growth -- sustained EBITDA margin and double-digit EBITDA growth. So I just wanted to get more clarity around how you see that working through the year? And then I have a couple of follow-ups?
Got it. Okay. The second question is in terms of this wage hike that you have to pull forward. I mean, there have been media reports talking about how there's a shortfall in the industry of qualified people, especially as we see growth in all these properties. So can you just elaborate on that? What are some of the steps that you are taking to kind of offset some of these increases and HR needs?
Yes. Thank you very much. A couple of questions here. First was in one of your slides where you show demand supply by city, it showed Delhi going into negative. Now did that happen at the beginning of the year? Or is that something a new development?
Supply.
Lemon Tree Hotels Limited
A couple of questions here. If I remember, when you did that call in January, you spoke about the GST impact at 3% -3.5%. It seems that tha t it has come down. Is that kind of a re-evaluation of how you are planning to increase ARR and the repricing after renovations? That is question number 1. Secondly, you spoke about what happened in Gurgaon. Can you point us to what we should be looking out for the next couple of quarters, maybe if you have visibility into some of these odd things that happened and which may or may not reoccur, that will help us in kind of thinking about the quarter or the year. Last question is in terms of Aurika, Nehru Place, did you increase the number of rooms by about 50? And does that change the CAPEX number that you had originally given?
The Aurika, Nehru Place, it seems like the number of rooms increased by 50?
Yes. Thank you very much. Couple of questions here. Mr. Patanjali, you said by the end of 3-4 years, 30,000 to 40,000 rooms, are we talking these 30,000 to 40,000 rooms would be operational or they will be operational plus pipeline?
Got it. Okay. Perfect. Second question is what is with this transfer of these rooms from Lemon Tree to Fleur, I think it was 1,565 rooms or so. What was the implied valuation that you used to get at to issue those 5 crore odd shares?
Thank you very much. So, in terms of renovation spend, if I am doing the math correctly, it seems like you are 66% above last year, same time first half last year. Can you tell us how many rooms are done? What are you thinking about second half and how much will be left over for FY27? Second question was around the GST rate cuts. Obviously, you get a double benefit, right, lower room rates as well as higher disposable income for people to spend. Can you talk about that? Have you seen any sort of discernible change in the last few days since September 21? And if there is any way to kind of isolate that specific change?
No, that was good. Just one final kind of follow-on to that is. For this year, looking at your aggressive renovation schedule and obviously take the hit now for gains later, do you expect EBITDA margins to be up year -over-year, flat, down? Any commentary there?
Thank you. First question about Aurika Mumbai. Can you talk about the developments there? Seems like the ARR, at least the retail ARR or retail pricing continues to stay below about Rs. 7,000 as you have seen in our spot check. So where do we stand there? What gives you confidence that you will be able to bring it back up to Rs. 11,000 – Rs. 12,000 range and do we need to wait for seasonally strong period of the year? And if you can talk about within the same context, what's the gating factor and a couple of other examples of maybe other brands that have succeeded in that kind of price range. Thank you and then I will come back for a follow up.
Got it, thank you. Second, if you can talk about the retail share that you have spoken about, what gets you from 45% to 65%, what all do you need to do along the way apart from the program that you just spoke about, additional steps from here on to get it there and what sort of efficiencies, how does it reflect in your income statement if that were to happen?
Syrma SGS Technology Limited
A couple of questions here. So we're just talking about revenue increase sequentially, but gross margin declined. So my guess is some sort of a mix issue or something did not -- one of the high-margin verticals did not go as per plan. If you can address that? Then also talk about kind of EBITDA margin increased sequentially. Is there -- you obviously saw some operating leverage. Was there anything onetime there? Or is that sustainable? And then I have a couple of follow-up questions.
Got it. The second question is regarding these long-term contracts that you're signing. Do you have to provide some sort of incentives for these customers to get into these long-term contracts, maybe heavier discounting? I mean it's obviously important to have long-term visibility, which is at least we would love. But I just wanted to kind of get a thought -- your thoughts there. Secondly, you mentioned some sort of deferments because of tariffs. If you can clarify that as well.
Kaynes Technology India Limited
So I just wanted to put a near-term get a near-term perspective, you're talking about INR4,500 crores in revenue for the year. Can you talk about the interplay between the different verticals? It seems like autos were probably a little lower than what we had expected. How do you think about railway? Where does that play? We saw some new storie s yesterday about some rollout of Indian Railway, Vande Bharat trains being slowed potentially. And then if you can also, in that same context, talk about smart meters and aerospace, which is supposed to be a big second half driver?