Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — FY2009 Earnings Presentation
57 slides from Indian Hotels's earnings presentation, Jun 12, 2009
Slide 1: Analyst Meet: Results for the Year ended March 31, 2009
The Indian Hotels Company Limited Analyst Meet Results for the Year ended March 31, 2009 June 12, 2009 1
Slide 2: Disclaimer
Disclaimer These presentations contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements Forward-looking statements are not guaran
Slide 3: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director Anil P Goel – Executive Director – Finance Ajoy Misra - Senior Vice President, Sales & Marketing 3
Slide 4: Outline of Presentation
Outline of Presentation Industry trends New Hotels in 2008/09 Expansion Plans – 2009/10 Controlling Stake in ELEL Overview of Taj Group Financial Performance – Standalone - 2008/09 Consolidated Financial Performance (Unaudited) – 2008/09 4
Slide 5: Industry Trends
Hotels Resorts and Palaces Industry Trends
Slide 6: Industry Trends
Industry Trends Concerns facing Global Tourism industry – GDP growth for Travel industry to be negative 3.5% in 2009 (WTTC) – RevPAR expected to be lower by 10-15 % over previous year – Reduced new supply due to liquidity crunch and shortage of funds Opportunities For Indian Tourism – Despite global
Slide 7: Industry Trends: Opportunities for Taj
Industry Trends Opportunities For Taj – Taj will contribute 15% of the anticipated new supply in key Indian cities in the next three years. – Taj added 1,300 rooms to its portfolio in 2008/09 – 15 hotels to be commissioned / launched in 2009/10 – A specific campaign for Vivanta by Taj brand – A full
Slide 8: Foreign Tourist Arrival – 2008/09
Foreign Tourist Arrival – 2008/09 Foreign Tourist Arrivals 5.3m -3% 5.1m 13% 4.7m 2006/07 2007/08 2008/09 Period: April – March, Source: Ministry of Tourism • Foreign Tourist arrivals at 5.13 million in 2008/09 8
Slide 9: Occupancies – 2008/09
Occupancies -2008/09 76 75 73 70 71 71 68 69 69 65 65 62 59 59 59 60 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY09 FY08 Source: Internal Survey Aggregate supply grew by 3% to 18,447 rooms per day Aggregate demand was lower by 12% at 11,352 rooms per day 9
Slide 10: ARRs – 2008/09
ARRs – 2008/09 12474 12774 12236 12572 11950 12023 11535 11506 8507 8229 7655 7585 7341 7553 7558 6754 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY09 FY08 Source: Internal Survey ARR was lower in all metro cities, barring Chennai and Kolkata 10
Slide 11: Rev PARs – 2008/09
Rev PARs – 2008/09 9086 9209 8679 8368 7494 7632 7322 6751 5498 5836 5313 5225 5474 5330 4567 3972 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY09 FY08 Source: Internal Survey Rev PARs were lower in all cities due to a combination of rates and occupancy decrease 11
Slide 12: New Hotels in 2008/09
Hotels Resorts and Palaces New Hotels in 2008/09
Slide 13: Hotels Launched in 2008/09
Hotels Launched in 2008/09 IHCL VIVANTA by Taj , Bangalore 199 rooms (Dec 08) Taj Group Taj Mount Road, Chennai Taj GVK Ltd 220 rooms (Dec 08) Pashan Garh, Panna Taj Safaris Ltd 12 rooms (Dec 08) Banjaar Tola, Kanha Taj Safaris Ltd 18 rooms (Feb 08) Nadesar Palace, Varanasi Benaras Hotels Ltd. 10 ro
Slide 14: VIVANTA by Taj, Bangalore
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Slide 15: Taj Mount Road, Chennai
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Slide 16: Pashan Garh - Panna
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Slide 17: Banjaar Tola - Kanha
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Slide 18: Nadesar Palace, Varanasi
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Slide 19: Taj Residency, Trivandrum
Taj Residency, Trivandrum Overview of Taj Group
Slide 20: Expansion Plans – 2009/10
Expansion Plans – 2009/10 20 20
Slide 21: New hotels in 2009/10
New hotels in 2009/10 IHCL Taj Falaknuma Palace, Hyderabad 60 room (Dec 09) Yeshwantpur 331 room (Feb 10) Taj Lands End Expansion, Mumbai 120 rooms (Sept 09) Taj Group Pierre renovation IHMS Inc. 184 rooms (Jun 09) Taj Palace, Cape Town Taj International SA 172 rooms (Dec 09) Fishcove Expansion, Che
Slide 22: Falaknuma Palace, Hyderabad
Falaknuma Palace, Hyderabad
Slide 23: Vivanta by Taj, Yeshwantpur
Vivanta by Taj, Yeshwantpur
Slide 24: Taj Lands End
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Slide 25: The Pierre
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Slide 26: Taj Palace, Capetown
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Slide 27: Fishcove Expansion, Chennai
Fishcove Expansion, Chennai
Slide 28: Panjim
Panjim
Slide 29: Vivanta by Taj, Bekal
Vivanta by Taj, Bekal
Slide 30: Controlling Stake in ELEL
Controlling Stake in ELEL 30 30
Slide 31: The Transaction
The Transaction IHCL has agreed to acquire from ELEL Hotels and Investments Ltd a Controlling Stake in the latter company for a value of Rs 680 crores. ELEL Hotels and Investments Ltd is the owner of the Sea Rock Hotel IHCL had in the past entered into a Technical & Management Arrangement with ELEL
Slide 32: The Site: Existing Hotel Building
The Site Existing Hotel Building 32
Slide 33: The Site: Aerial view of proximity to Taj Lands End
The Site: Aerial view of proximity to Taj Lands End 33
Slide 34: The Site in the context of the Sea Link
The Site in the context of the Sea Link 34
Slide 35: Development Proposal
Development Proposal An Integrated Hospitality Development – High end Luxury Hotel, Convention Centre, Retail & Commercial Operations Site benefits from Commanding Location on Arabian Sea, proximity to Bandra-Worli Sea Link Designers and Architects are being commissioned Giving Mumbai a World-Class
Slide 36: Taj Group: An Overview
Taj Group An Overview 36 36
Slide 37: Taj Group – Inventory
Taj Group – Inventory Luxury Hotel (Room) Nos. Luxury Premium Gateway Ginger Total International IHCL 9 (2,210) 8 (1,009) 8 (414) - - 25 (3,633) Subsidiaries - 2 (188) - 5 (1,011) 17 (1,709) 24 (2,908) Associate Companies 1 (213) 8 (1,315) 8 (585) - - 17 (2,113) Joint Venture 1 (260) 6 (732) 7 (221)
Slide 38: Taj Group Inventory
Taj Group Inventory 11,546 9,182 9,931 10,464 7,942 8,219 97 88 82 76 66 62 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 38 38
Slide 39: Overview of Taj Group
Overview of Taj Group Particulars 2008/09 2007/08 2006/07 2005/06 No. Of Hotels 97 88 82 76 Inventory 11,546 10,464 9,931 9,182 Total Income – Rs / crores 3918 4332 3836 3042 • Total revenues in 2008/09 were lower by 9% vs. previous year 39
Slide 40: Financial Performance Standalone 2008/09
Financial Performance Standalone 2008/09 40 40
Slide 41: Highlights – 2008/09
Highlights – 2008/09 Turnover of Rs.1707 crores - lower by 6% PBIT of Rs.453 crores - lower by 33% PBT of Rs.362 crores – lower by 38% PAT of Rs.234 crores EPS at Rs. 3.28 CY vs Rs. 5.77 PY 41
Slide 42: Turnover Trend
Turnover Trend 1806.0 1706.5 Rs. Crores 1540.7 Revenue FY07 FY08 FY09 2008/09 Turnover lower by 6% vs. last year 42
Slide 43: PBIT Trend
PBIT Trend 674.8 537.2 Rs. Crores 452.7 Full Year FY07 FY08 FY09 2008/09 PBIT lower by 33% vs. last year 43
Slide 44: Profit and Loss–2008/09
Profit and Loss–2008/09 Rs. Crores 2008/09 2007/08 % Change Net Sales/Income from Operations 1352.18 1564.03 (14) Other Operating Income 267.39 200.48 33 Total Income 1619.57 1764.51 (8) a. Consumption of Raw Materials 114.54 128.24 (11) b. Staff Costs 386.78 309.84 25 c. License Fees 94.76 103.73 (
Slide 45: Financial Results – 2008/09
Financial Results – 2008/09 Rs. Crores 2008/09 2007/08 % Change Room sales 843.19 978.71 (14) F&B Sales 508.99 585.32 (13) Other operating income 267.39 200.48 34 Non Operating Income 86.95 41.53 109 Sales & Other Operating Income 1706.52 1806.04 (6) Operating Income includes “Loss of Profit” claim
Slide 46: ARR & Occupancy
ARR & Occupancy Occupancy (%) ARR (Rs) RevPAR (Rs) 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 % Change Q1 66 69 10049 8505 6634 5882 13 Q2 64 66 9657 8641 6179 5744 8 Q3 69 76 11898 12279 8185 9325 (12) Q4 64 82 10374 12660 6662 10430 (36) Full Year 66 73 10504 10674 6905 7842 (12) 46
Slide 47: Expenditure
Expenditure Staff Cost – Rs 386.8 Crores Includes incremental provisioning of Rs 22 crores towards the retirement funds liability on account of decline in GSec yields. Exchange Gain / (Loss) – Rs (22.2) Crores Impact of mark to market of Liabilities on account of depreciation of Rupee in the current
Slide 48: Balance Sheet
Balance Sheet Rs. Crores As on March 31, 2009 As on March 31, 2008 Sources of Funds Capital 72.34 60.29 Reserves and Surplus 3076.85 1976.26 Loan Funds 1766.47 1134.18 Trade Deposits 23.53 23.63 Deferred Tax Liability 146.94 137.86 Total 5086.13 3332.22 Application of Funds Fixed Assets 1800.50 1637
Slide 49: Dividends
Dividends The Board of Directors have recommended a final dividend of 120% for 2008/09. (PY 190%) 49
Slide 50: Consolidated Financial Performance (Unaudited) 2008/09
Consolidated Financial Performance (Unaudited) 2008/09 50 50
Slide 51: Major Taj Group companies forming part of Consolidated accounts
Major Taj Group companies forming part of Consolidated accounts Subsidiaries Associates Piem Hotels Ltd Taj SATS Air Catering Ltd Oriental Hotels Ltd Tifco Holdings Ltd Benares Hotels Ltd United Hotels Ltd Inditravel Pvt Ltd Taj Air Ltd Roots Corporation Ltd Bjets Pte Ltd Innovative Foods Ltd Taj La
Slide 52: Consolidated Financial (Unaudited) Highlights – 2008/09
Consolidated Financial (Unaudited) Highlights – 2008/09 Turnover of Rs. 2712 crores – lower by 9% PBIT of Rs.414 crores – lower by 50% PBT of Rs.184 crores – lower by 71% PAT of Rs.12 crores EPS at Rs.0.17 CY vs Rs.5.43 PY 52
Slide 53: Consolidated Financials (Unaudited)–2008/09
Consolidated Financials (Unaudited)–2008/09 Rs. Crores 2008/09 2007/08 % Change Net Sales/Income from Operations 2686.36 2920.03 (8) Share of Profit in Associates 25.49 64.18 (60) Total Income 2711.85 2984.21 (9) a. Consumption of Raw Materials 276.84 266.07 4 b. Staff Costs 849.2 781.18 9 c. Licens
Slide 54: Consolidated (Unaudited) Snapshot
Consolidated (Unaudited) Snapshot Rs/Crores Revenue Profit after tax 2008/09 2007/08 2008/09 2007/08 IHCL Standalone 1,707 1,823 234 378 Subsidiaries 997 1,104 (210) (102) Joint Ventures 128 146 19 34 Associates 25 62 25 62 Total 2,857 3,135 68 373 Less: Inter Company 75 58 56 17 Eliminations Consol
Slide 55: Consolidated Balance Sheet
Consolidated Balance Sheet As on As on March March Rs. Crores 31, 2009 31, 2008 Sources of Funds Capital 72.34 60.29 Preference shares issued by subsidiary 120 Reserves and Surplus 3207.1 2208.8 Minority Interest 274.11 282.01 Loan Funds 4646.88 3466.83 Trade Deposits 23.8 23.63 Deferred Tax Liabili
Slide 56: International Operations
International Operations The Pierre soft launched on June 1, 2009 and full formal reopening by end August,2009. Taj Coral Reef, Maldives to reopen in July, 2009 Investment in OEH – An additional equity of 2.25 million shares in April , 2009 at $ 5.75 per share. – Taj Group’s holding maintained at 9.
Slide 57: Thank you
TAJ Thank you
The Indian Hotels Company — FY2009 Earnings Presentation on 6ix