Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — 9M FY2016-17 Earnings Presentation
40 slides from Indian Hotels's earnings presentation, Feb 3, 2017
Slide 1: Analyst Meet: Results for the Nine Months ended December 31, 2016
The Indian Hotels Company Limited Analyst Meet Results for the Nine Months ended December 31, 2016 1 February 3, 2017
Slide 2: Disclaimer
Disclaimer These presentations may 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 gu
Slide 3: Presenter Panel
Presenter Panel Rakesh Sarna - Managing Director & CEO Chinmai Sharma - Chief Revenue Officer Rajeev Newar – Vice President Finance 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends New Inventory – Taj Group Sales & Marketing Initiatives Financial Results - Standalone & Consolidated Treasury Other Update 4
Slide 5: Industry Trends: Global outlook
Industry Trends Global outlook International travel and tourism arrivals grew by 3.9% to reach a total of 1,235 million in 2016 (Jan to Dec), 46 million more than 2015 in the same period. Growth accelerated in Asia Pacific by (+8%) Europe by (+2%), America (+4%), and limited data available for Afric
Slide 6: Industry Trends: India Market Overview
Industry Trends Industry Trends India Market Overview 2016-17 (Apr to Dec) saw a supply growth of 3.0%, where demand increased by 7.1% over the previous year. (Source: STR Global) Most key cities witnessed an increase in supply in the range of 1% to 6% Healthy demand growth in Kochi, Chandigarh, Ahm
Slide 7: All India Hospitality Overview: Apr to Dec 2016 v/s 2015
All India Hospitality Overview: Apr to Dec 2016 v/s 2015 Market Dynamics All India Hotels’ Key Markets Performance • Growing Markets: • Supply Growth • Occupancy Kochi, Ahmedabad, +3.0% 62% (+3.9%) Jaipur, Hyderabad, Gurgaon, Chandigarh, Goa, • Demand • Avg. Room Rate Pune, Kolkata, Growth +7.1% ` 5
Slide 8: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India In Lakhs 26.82 25.08 24.12 22.81 23.19 22.04 21.54 20.48 20.21 20.11 19.69 17.62 16.78 16.54 15.64 15.02 14.46 13.19 13.43 12.55 Jan-Mar Apr- Jun Jul- Sep Oct- Dec 2012 2013 2014 2015 2016 Foreign tourist arrivals in India have shown growth in each quarter for past
Slide 9: India Hotel Performance – Key cities Apr to Dec 2016-17 vs 2015-16
India Hotel Performance – Key cities Apr to Dec 2016-17 vs 2015-16 14% 12.7% 12% 10.1% 10% 8.3% 7.8% 8% 7.1% 7.1% 6.6% 5.7% 6% 5.2% 5.2% 4.3% 4% 3.6% 3.4% 3.0% 2.7%2.7% 2.6% 2.4% 2.0% 2.2% 1.4% 1.7% 2% 0% Supply % Change Demand % Change • There has been overall a 3% increase in Supply in April – Dec
Slide 10: Taj Group New Inventory in the pipeline
Taj Group New Inventory in the pipeline 10
Slide 11: Taj Group Inventory
Taj Group Inventory 62 66 76 82 88 99 103 107 112 118 125 136 135 11
Slide 12: Taj Group Inventory Brand Distribution
Taj Group Inventory Brand Distribution Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 19 3,419 10 1850 29 5,269 35 4,954 5 575 40 5,529 30 2,499 1 208 31 2,707 35 3315 - - 35 3315 Total 119 14,187 16 2,633 135 16,820 12
Slide 13: Hotels Opened/Opening In 2016/17
Hotels Opened/Opening In 2016/17 Hotel Company Rooms Opened Taj Swarna, Amritsar PIEM Hotels 157 Gateway Hotel, Corbett Management Contract 52 Ginger – Vapi Roots Corporation 90 Ginger- Noida Roots Corporation 96 4 Hotels 395 To be opened Ginger – Ahmedabad- Whiteleaf Management Contract 45 Ginger -
Slide 14: Upcoming Development in 2017/18
Upcoming Development in 2017/18 Hotel Company Rooms Andamans IHCL 75 Rishikesh Management Contract 80 Shimla Management Contract 95 Udaipur Management Contract 125 Kakkanad, Kochi Management Contract 126 Vashi Management Contract 150 Wayanad Management Contract 63 Tirupati Management Contract 125 Gi
Slide 15: Sales & Marketing Initiatives
Sales & Marketing Initiatives 15
Slide 16: Sales & Marketing Initiatives
Sales & Marketing Initiatives Loyalty Update New property Launches Esteemed Guests PR Campaigns Awards & Accolades 16
Slide 17: Shangri-La Alliance
Shangri-La Alliance www.warmerwelcomes.com 17
Slide 18: New Launch in 2016-17 The Gateway Resort Corbett
New Launch in 2016-17 The Gateway Resort Corbett 18
Slide 19: New Launch in Q3 2016-17 Taj Swarna Amritsar
New Launch in Q3 2016-17 Taj Swarna Amritsar 19
Slide 20: Unveiling Tajness
UNVEILING TAJNESS The Telegraph Travel + Leisure Forbes Blackbook DNA 20 20
Slide 21: Announcement of Warmer Welcomes – Taj and Shangri-La Hotels Alliance
ANNOUNCEMENT OF WARMER WELCOMES – TAJ AND SHANGRI-LA HOTELS ALLIANCE Eye for Mint Travel Hospitality Biz Wall Street Journal The Telegraph UK New York Times Skift 21
Slide 22: Awards and Accolades
AWARDS AND ACCOLADES Travel + Leisure India – Taj named Best Hotel Group in India; – Taj Falaknuma Palace, Hyderabad Voted Best Heritage Hotel Conde Nast Traveller Readers’ Travel Awards UK – Taj Lake Palace, Udaipur ranked 6th in the World’s Top 20 and named Best Hotel in Asia / Indian Sub-Continen
Slide 23: Standalone Financial Performance for the Nine Months ended December 31, 2016
Standalone Financial Performance for the Nine Months ended December 31, 2016 23
Slide 24: IND-AS – Effective April 1, 2016
IND-AS – Effective April 1, 2016 Effective April 1, 2016, IHCL has migrated to the new Accounting Standards – IND-AS. Transition to IND-AS has resulted in key change in presentation of accounts, inter alia, in the following areas Head Impact Areas Revenue recognition Loyalty Income Fair Value Invest
Slide 25: IHCL Standalone Key Indicators for Nine Months
IHCL Standalone Key Indicators for Nine Months ended December 31, 2016 `/crores `/crores Turnover 3% 10 1,760 EBITDA % 1,720 380 1,720 360 359 1,680 1,666 340 325 1,640 320 1,600 300 2015/16 2016/17 2015/16 2016/17 `/crores Profit After Tax 693% 120 111 90 60 30 16 - 2015/16 2016/17 25
Slide 26: Profit and Loss Account for Period ended December 31, 2016
Profit and Loss Account for Period ended December 31, 2016 Quarter III Nine Months `/ crores 2016/17 2015/16 % Change 2016/17 2015/16 % Change Sales/Income from Operations 695.63 663.40 5% 1684.22 1581.97 6% Other Income 8.18 19.05 (57%) 35.58 83.67 (57%) Total Income 703.81 682.45 3% 1719.80 1665.6
Slide 27: Income Details
Income Details For period ending December 31, 2016 ` / Crores 2016/17 2015/16 % Change Room Income 726.66 670.10 8 Food , Restaurants & Banquet Income 666.94 650.15 3 Management & Operating fees 111.26 106.10 5 Other Operating Income 179.36 155.62 15 Income from Operations 1684.22 1581.97 6 Non Oper
Slide 28: Exceptional Items
Exceptional Items For period ending December 31 , 2016 ` / Crores Particulars 2016/17 2015/16 Exchange Gain on restatement of Borrowings and Assets 13.12 31.53 MTM Gain/(Loss) on Cross Currency Swap Derivative Contracts 17.13 (25.28) Expenditure on a project written off - (9.83) Recovery of Cost on
Slide 29: Consolidated Financial Performance for the Nine Months Ended December 31, 2016
Consolidated Financial Performance for the Nine Months Ended December 31, 2016 29
Slide 30: Taj Group Major Companies
Taj Group Major Companies Company Name Effective Company Name Effective Holding Holding % % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj SATS Air Catering Ltd 51.00 TIFCO Holdings Ltd [Investment Company] 100.00 Taj GVK Hotels & Resorts Ltd 25.52 Benares Hotels Ltd 51.68 Taj Madras Flight K
Slide 31: IHCL Consolidated - Profit and Loss Account
IHCL Consolidated -Profit and Loss Account for Period ended December 31, 2016 Quarter III Nine Months `/ crores 2016/17 2015/16 % Change 2016/17 2015/16 % Change Sales/Income from Operations 1129.29 1162.19 (3%) 2960.87 2952.94 - Other Income 13.45 22.90 (41%) 37.93 81.70 (54%) Total Income 1142.74
Slide 32: IHCL Consolidated Key Indicators
IHCL Consolidated Key Indicators for Period ended December 31, 2016 `/crores `/crores Total Income EBITDA 4000 1% 490 2% 3035 2,999 3000 480 480 2000 470 470 1000 460 2015/16 2016/17 2015/16 2016/17 `/crores Profit After Tax Total Income for Current period includes 0 ` 76 crores for Boston and ` 38
Slide 33: Exceptional Items
Exceptional Items For period ending December 31 , 2016 ` / Crores Particulars 2016/17 2015/16 Exchange Gain/(Loss) on restatement of Borrowings and Assets 10.11 (28.78) MTM Gain/(loss)on Cross Currency Swap Derivative Contracts 17.13 (25.28) Recovery of Cost on a surrendered project and Interest awa
Slide 34: Overview of Taj Group
Overview of Taj Group For the Nine Months ended December 31, 2016 Particulars 2016/17 2015/16 2014/15 2013/14 135 136 130 125 Number of Hotels 16,820 16,459 15,708 15,391 Rooms Inventory 5,178 4,851 4,383 4,087 Total Revenue (`/crores) Total Revenue denotes the arithmetical aggregate of the turnover
Slide 35: Treasury: Debt Position
Treasury Debt Position `/crores Particulars Standalone Consolidated December 31, March 31, December 31, March 31, 2016 2016 2016 2016 Gross Debt 2,204 2,158 3,594 4,526 Less : Liquidity (265) (165) (527) (353) Net Debt 1,939 1,993 3,067 4,173 Net Debt/ Equity 0.83 0.88 1.37 1.71 Weighted cost of Deb
Slide 36: Scheme(s) of Arrangement – Closure Update
Scheme(s) of Arrangement – Closure Update 36
Slide 37: Amalgamation – Closure
Amalgamation – Closure The Board of Directors at its meeting held on October 19, 2015 have approved the amalgamation of International Hotel Management Services LLC (IHMS LLC) and Lands End Properties Private Limited (LEPPL), two wholly owned subsidiaries into the Company, by way of two separate Sche
Slide 38: Amalgamation – Impact
Amalgamation – Impact The net amount adjusted in the Securities Premium Account of the Company as per Court approved Schemes of Arrangement is summarised below: `/crores Particulars Amount LEPPL- Scheme of Arrangement 324 IHMS- Scheme of Arrangement * 1,697 Total Amount adjusted in Securities Premiu
Slide 39: Stock Price Movement April 2016 – January 2017
Stock Price Movement April 2016 – January 2017 IHCL v/s BSE Sensex 30,000.00 160.00 29,000.00 140.00 28,000.00 120.00 27,000.00 100.00 26,000.00 80.00 25,000.00 60.00 24,000.00 40.00 23,000.00 20.00 22,000.00 - 01-Apr-16 01-May-16 01-Jun-16 01-Jul-16 01-Aug-16 01-Sep-16 01-Oct-16 01-Nov-16 01-Dec-16
Slide 40: Thank you
Hotels Res: and Palaces Thank you
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