Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q2 FY2020/21 Earnings Presentation
47 slides from Indian Hotels's earnings presentation, Nov 4, 2020
Slide 1: Cover letter to BSE and NSE
November 4, 2020 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 s t Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001 Symbol: INDHOTEL Scrip Code: 50085
Slide 2: Global Conference Call Q2 FY 2020/21 Results
Global Conference Call Q2 FY 2020/21 Results | 4th November, 2020
Slide 3: Taj Mahal Hotel, New Delhi: Now open, Machan re-imagined
Taj Mahal Hotel, New Delhi: Now open, Machan re-imagined 2
Slide 4: COVID-19: Worst recession since the Great Depression
COVID-19: Worst recession since the Great Depression -4.4% $5.5 tn 197 mn Contraction in Loss to travel & Loss of jobs in growth of global hospitality travel & hospitality economy sector’s GDP sector (Upward revision of (Estimated by the end of (121 mn jobs impacted as 0.8% since June) 2020) of Sept
Slide 5: COVID-19: India was locked down for months
COVID-19: India was locked down for months Maharashtra Mumbai & Domestic Visas Hotels Open Hotels open Delhi Flights cancelled with 33% in Delhi restaurants Resume Restrictions open 25-Mar 08-Jun 17-Jul September 11-Mar 25-May 08-Jul August October UNLOCK 1: International Maharashtra National Hotels
Slide 6: Unprecedented downturn for the Indian hospitality sector
Unprecedented downturn for the Indian hospitality sector Branded Unbranded Revenue Loss ₹ 31,217 Cr ₹ 1,11,738 Cr • Hotel occupancies fell from ~75% in April 2019 to 7% in April 2020 • 55 - 60% drop in Average Daily Rates expected in calendar year 2020 • Estimated loss in Hotel revenues from Jan-Dec
Slide 7: Clear shift in travel patterns and guest behaviours
Clear shift in travel patterns and guest behaviours Consumers gravitating towards trusted brands as safety is the highest priority Increase in domestic and regional travel Shorter booking windows and willingness to pay premium for flexibility Shift in purpose of travel – Business to bleisure/leisure
Slide 8: R.E.S.E.T 2020: A 5-prong strategy
R.E.S.E.T 2020: A 5-prong strategy 7
Slide 9: R.E.S.E.T 2020: Revenue Initiatives
R.E.S.E.T 2020: Revenue Initiatives 8
Slide 10: IHCL's F&B innovations are yielding results
IHCL’s F&B innovations are yielding results Qmin 1st Qmin Shop Qmin Food Truck Hospitality@Home 2.0 7Rivers Brewpub 34,000+ orders till date launched at President – To launch in 3 cities in ₹ 14 cr enterprise revenues ₹ 60L+ in revenue since launch ₹ 10 cr enterprise revenues in H1 IHCL SeleQtions X
Slide 11: 4D – Unlocking the potential of domestic business
4D – Unlocking the potential of domestic business 4D – Dream, Drive, Discover, Delight Contributed over ₹ 27 cr to H1 enterprise revenues 10
Slide 12: Growth continues with 8 new hotels signed in H1
Growth continues with 8 new hotels signed in H1 Locations # Hotels # Rooms Puri, Odisha 2 240 Shiroda, Maharashtra Tadoba, Maharashtra 1 35 Lucknow, Uttar Pradesh 1 200 Guwahati, Assam Zirakpur, Chandigarh 4 265 TCS – BKC, Mumbai* Tata Steel – Jamshedpur* Total 8 740 *Ginger Guest Houses 11
Slide 13: A Few Upcoming Openings
A Few Upcoming Openings Taj Vivanta Wellington Taj TajThiruvananthapuram Chia Skyline, Kutir, Mews, Ahmedabad Darjeeling Chennai 12
Slide 14: R.E.S.E.T 2020: Excellence Initiatives
R.E.S.E.T 2020: Excellence Initiatives 13
Slide 15: No Compromise On Tajness: NPS scores on the rise
No Compromise On Tajness: NPS scores on the rise Net Promoter Score 72 71 67 Previous 12 Previous 6 Previous 3 months months months 14
Slide 16: Winning hearts and accolades
Winning hearts and accolades Global Condé Nast Traveler Readers’ Choice Awards 2020 The Pierre, New York Taj Exotica Resort & Spa, Taj Coral Reef Resort & Spa, Rambagh Palace, Jaipur Maldives Maldives #1 in the Top Hotels in India and #15 in the Best Hotels in the World The Taj Mahal Palace, Mumbai
Slide 17: R.E.S.E.T 2020: Spend Optimization Initiatives
R.E.S.E.T 2020: Spend Optimization Initiatives 16
Slide 18: Continued cost optimization in Q2
Continued cost optimization in Q2 -51% -51% *All Numbers Include Fixed Lease Costs 17
Slide 19: H1: Cost optimization by expense head
H1: Cost optimization by expense head - 51 % Reduction in Total Expenditure - 82 % - 61 % - 50 % - 51 % - 40 % Raw Material Costs Admin Costs HLP Costs Fixed Lease Costs Manpower Costs 18
Slide 20: R.E.S.E.T 2020: Effective Asset Management
R.E.S.E.T 2020: Effective Asset Management 19
Slide 21: Secured significant lease rental waivers
Secured significant lease rental waivers ₹ 31 cr ₹ 37 cr ₹ 24 cr ₹ 92 cr IHCL Subsidiaries Group Companies TOTAL Benefit Received in H1 2020/21 for IHCL & Subsidiaries - ₹ 42 crores 20
Slide 22: R.E.S.E.T 2020: Thrift & Financial Prudence
R.E.S.E.T 2020: Thrift & Financial Prudence 21
Slide 23: Corporate overheads continue to decline
Corporate overheads continue to decline • Prudence in All Corporate Expenditure H1 ↓ 28 % • Redeployments & Re-structuring Savings of ₹ 43 Crores 22
Slide 24: IHCL has taken multiple steps to enhance liquidity
IHCL has taken multiple steps to enhance liquidity • Securing Debt Lines: • Draw down in IHCL: ₹ 750 crore of long-term debt from Apr. – Sept. 2020 • Additional Lines secured for any further requirement • Exploring Monetization Opportunities • Deferment of Non-Essential Capex & Renovations 23
Slide 25: R.E.S.E.T 2020: Revenue / Cost Impact – H1 2020/21
R.E.S.E.T 2020: Revenue / Cost Impact – H1 2020/21 ₹ 135 crores ₹ 149 crores ₹ 46 crores ₹ 43 crores 24
Slide 26: Performance Highlights
Performance Highlights 2s TAY SELEQTIONS VIVANTA GINGER ExPRESSINS TAF INCL
Slide 27: Early signs of RevPAR recovery
Early signs of RevPAR recovery IHCL Domestic Hotels - RevPAR (₹) 2,320 2,295 1,541 4X Growth from 1,228 1,147 1,340 1,052 Apr. to Sept. 2020 757 711 975 869 734 On total inventory 466 On operational inventory 339 Mar Apr May Jun Jul Aug Sept Source: STR Global, IHCL Analytics 26
Slide 28: IHCL outperformed the industry in RevPAR premium and recovery
IHCL outperformed the industry in RevPAR premium and recovery RevPAR in ₹ Q1 2020/21 Q2 2020/21 Q2 vs Q1 IHCL 513 1,061 2.1 X Industry 465 796 1.7 X IHCL’s RevPAR Premium 1.1 X 1.3 X Source: STR Global, IHCL Analytics 27
Slide 29: Ginger hotels delivers significant outperformance
Ginger hotels delivers significant outperformance Occupancy (%) RevPAR Index 69 1.48 1.36 1.38 1.28 51 45 44 40 1.04 34 24 13 0.67 0.69 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Mar YTD Apr May June Jul Aug Sep FY20 Ginger Midscale -Economy India Source: STR Global Total Revenue in H1
Slide 30: Encouraging performance trend: EBITDA +ve in September
Encouraging performance trend: EBITDA +ve in September ₹ /crores Revenue EBITDA 146 13 (36) (58) (60) 86 97 (76) 81 54 (100) 35 April May June July Aug Sept April May June July Aug Sept PBT PAT (37) (21) (43) (52) (94) (84) (116) (103) (141) (158) (136) (123) April May June July Aug Sept April May J
Slide 31: Q2 FY 2020/21 Performance (Consolidated)
Q2 FY 2020/21 Performance (Consolidated) ₹ /crores Particulars Q1 Q2 Variance Total Revenue 175 324 149 EBITDA (234) (83) 151 PBT (336) (263) 73 Profit After Tax (280) (230) 50 * (After Share of Profit of Associates and JV's) 30
Slide 32: IHCL Consolidated Financial Performance (Q2 and H1 2020/21)
IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q2 and H1 2020/21) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER 31
Slide 33: IHCL Consolidated - Reported P&L
IHCL Consolidated - Reported P&L ₹ /crores Q2 H1 Particulars 2020/21 2019/20 Var % 2020/21 2019/20 Var % Revenue from Operations 257 1,007 -75% 400 2,027 -80% Non Operating Revenue 67 21 217% 99 58 69% Total Revenue 324 1,029 -69% 499 2,086 -76% Raw Material Cost 22 85 -74% 31 170 -82% Employee Bene
Slide 34: Q2, H1 2020/21 – IHCL Consolidated Exceptional Items
Q2, H1 2020/21 – IHCL Consolidated Exceptional Items ₹ /crores Q2 H1 Particulars 2020/21 2019/20 2020/21 2019/20 Var. Var. Actual Actual Actual Actual Change in fair value of derivative contracts 13 (2) 15 17 - 17 Exchange gain/loss - IHMS SA 8 - 8 8 - 8 Profit on acquisition of Taj Capetown, South
Slide 35: IHCL Standalone - Reported P&L
IHCL Standalone - Reported P&L ₹ /crores Q2 H1 Particulars 2020/21 2019/20 Var % 2020/21 2019/20 Var % Revenue from Operations 165 599 -72% 260 1,170 -78% Non Operating Revenue 50 27 86% 72 63 14% Total Revenue 215 625 -66% 332 1,233 -73% Raw Material Cost 15 54 -73% 21 105 -80% Employee Benefits 12
Slide 36: Q2, H1 2020/21 – IHCL Standalone Exceptional Items
Q2, H1 2020/21 – IHCL Standalone Exceptional Items ₹ /crores Q2 H1 Particulars 2020/21 2019/20 2020/21 2019/20 Var. Var. Actual Actual Actual Actual Change in fair value of derivative contracts 13 (2) 15 17 - 17 Provision for Pierre cash loss funding (29) (27) (2) (70) (26) (44) Profit on sale of TM
Slide 37: Q2 2020/21 – IHCL Standalone Revenue Metrics
Q2 2020/21 – IHCL Standalone Revenue Metrics Particulars July Aug Sep Q2 Q1 Occupancy % 31.5 30.9 34.5 32.3 20.5 ARR in ₹ 4,568 5,087 6,544 5,424 4,848 RevPAR in ₹ 1,439 1,572 2,258 1,751 992 (₹/ crores) Room Revenue 20 22 30 71 40 F & B Revenue 11 17 20 48 20 Other Revenue 23 25 47 96 57 Total Reve
Slide 38: Q2 2020/21 – Domestic Network Revenue Metrics
Q2 2020/21 – Domestic Network Revenue Metrics Particulars July Aug Sep Q2 Q1 Occupancy % 26.0 26.8 32.4 28.4 15.3 ARR in ₹ 3,344 3,645 4,140 3,741 3,357 RevPAR in ₹ 869 975 1,340 1,061 513 (₹/ crores) Room Revenue 41 48 64 154 75 F & B Revenue 25 37 43 106 39 Other Revenue 16 19 19 52 46 Total Reven
Slide 39: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars Sep 30, 2020 March 31, 2020 Sep 30, 2020 March 31, 2020 Gross Debt 2,499 1,943 3,462 2,602 Liquidity (389) (540) (520) (687) Net Debt 2,110 1,403 2,942 1,915 Weighted cost of Debt (%) 7.8 8.1 6.7 7.0 Net Debt to Equity 0.50 0.31 0.68 0.37 N
Slide 40: Looking Forward – Emerging Trends Relevant for IHCL
Looking Forward – Emerging Trends Relevant for IHCL 1. COVID-19 cases going down: 30% drop in new infections in October vs September 2020 EXTERNAL & 2. Domestic air traffic going up – 40% improvement in September vs August 2020 MACRO 3. Surge in domestic tourism and witnessing revenge travel FACTORS
Slide 41: Q&A
Q&A wo TAS SELEQTIONS VIVANTA GINGER ExPRESSINS TAF INCL
Slide 42: 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 g
Slide 43: Brandscape
Brandscape LUXURY SELECT HOTELS UPSCALE LEAN LUXE 25,000+ KEYS 207 HOTELS 12,800 KEYS 1400 KEYS 4,200 KEYS 6,800 KEYS 86 HOTELS 16 HOTELS 31 HOTELS 74 HOTELS *Portfolio figures include hotels under various stages of development 42
Slide 44: Operating Portfolio
Operating Portfolio Inventory by Geography Inventory by Contract Type Intl, Holding 2654 Management Company, Contracts, 4423 5861 Dom, 16389 Group Companies, 8759 Dom Intl Holding Company Group Companies Management Contracts As of 31st Oct 2020, IHCL has 161 hotels with 19,043 Rooms 43
Slide 45: Shareholding Pattern
Shareholding Pattern 17% Retail 11% 41% Tata Group FII 31% DII * As on 30th Sep 2020 44
Slide 46: Awards and Accolades continue to reinforce our direction
Awards and Accolades continue to reinforce our direction 45
Slide 47: Global Conference Call Q2 FY 2020/21 Results
Global Conference Call Q2 FY 2020/21 Results | 4th November, 2020
The Indian Hotels Company — Q2 FY2020/21 Earnings Presentation on 6ix