Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — 9M FY2018-19 Earnings Presentation
35 slides from Indian Hotels's earnings presentation, Feb 12, 2019
Slide 1: Cover letter to stock exchanges, February 12, 2019
111CI~ February 12, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai - 400 001. Svmbol: INDHO TE l Scrip o
Slide 2: Analyst Meet: Results for the Nine Months Ended December 31, 2018
Analyst Meet Results for the Nine Months Ended December 31, 2018
Slide 3: Agenda
AGENDA • Industry Trends • Key Highlights • Financial Performance • Q&A 2
Slide 4: What we had said for 2018
What we had said for 2018 • Demand growth will continue to outpace supply growth • We will continue to see increases in occupancies resulting in rising RevPARs • The hotel sector is turning and it’s the right time for growth & consolidation • The time to drive rate increases is now 3 TAj sELE~10Ns V
Slide 5: Supply & Demand Scenario – January to December 2018
Supply & Demand Scenario – January to December 2018 --- ---------- Luxury ........ ........ -.. ,, ..;·..· Supply growth 3.2% ••.f ,...I .·· Demand growth 5.0% ••• I •• I ...·· I ••• ••••• I Industry* .....•• \ \ Upper Upscale ... •• ....····························· •• \ \ Supply growth 3.6% ' ~···
Slide 6: Outperforming the competition in calendar year 2018
Outperforming the competition in calendar year 2018 [ Industry ] [ IHCL ] Occupancy Growth 0.2 pp 2.3 pp ARR Growth 1.8% 2.8% RevPAR Growth 2.0% 6.6% Source : Horwath India Hotel Market Review 2018 report ** Data is for Domestic Hotels excluding Ginger 5 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TA
Slide 7: Performance of International Hotels (Q3 2018/19)
Performance of International Hotels (Q3 2018/19) City RevPAR ARR Occupancy , ------- ... , '' ,, '' I I , USA '' \ \ ↑ ↑ ↑ I I I I I I I / \ I ↑ ↑ ↑ \ I '' '' London , , ,, Superior turnaround , ' - ', ... ____ ... Dubai ↓ ↓ ↑ • RevPAR up 9.4% to $ 208 Maldives ↑ ↑ ↑ • Occupancy up 4.9 pp to 72.8% •
Slide 8: Agenda
AGENDA • Industry Trends • Key Highlights • Financial Performance • Q&A 7
Slide 9: Consolidated Results – Q3 2018/19
Consolidated Results – Q3 2018 / 19 Revenue EBITDA EBITDA Margin PAT 148 10% 17% 50% bps 8 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 10: Consolidated Results – 9 months FY 2018/19
Consolidated Results – 9 months FY 2018 / 19 Revenue EBITDA EBITDA Margin PAT 230 10% 27% 588% bps 9 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 11: Sustained Positive Performance (Q-o-Q)
Sustained Positive Performance (Q-o-Q) Revenue (₹ Cr) – Up 9% EBITDA (₹ Cr) – Up 23% 1500 1338 400 350 1164 1217 1069 300 920 995 864 981 300 265 1000 195 200 II 11 126 116 500 99 67 • 100 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ■ PY ■ CY ■ PY ■ CY PAT (₹ Cr) – Up 74% EBITDA Margin – Up 290 bps 200 30.0% 25% 26
Slide 12: Scaling up the inventory – Signings
Scaling up the inventory – Signings SELE~IONS VIVANTA G I NGE R Pawna Dam, Lonavla (145) Connaught Hotel, New Delhi (85) Katra (80) Vizag (56) Makkah (340) Cidade de Goa (207) Vadodara Expansion (60) Jhansi, (76) Taj Bangalore Expansion (220) Heathrow Airport (108) Noida (119) Deira Water Front, Dub
Slide 13: Scaling up the inventory – Openings
TAJ TAJARAVALI THEOG VIVANTA RESORT RESORT&&SPA SPA Scaling up the inventory – Openings KATHMANDU UDAIPUR SHIMLA Taj Aravali Resort & Spa, Udaipur Taj Theog Resort & Spa, Shimla 3 Hotels 301 Keys Vivanta Kathmandu 12
Slide 14: Launch of Ginger Goa – December, 2018
Launch of Ginger Goa – December, 2018 13
Slide 15: Agenda
AGENDA • Industry Trends • Key Highlights • Financial Performance • Q&A 14
Slide 16: Consolidated Key Indicators – Q3 2018/19
Consolidated Key Indicators – Q3 2018/19 ₹ /crores Total Revenue EBITDA 1,338 1,217 10% 17% 350 300 Margin Exp 150 bps ■ Q3 2017/18 ■ Q3 2018/19 ■ Q3 2017/18 ■ Q3 2018/19 15 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 17: Consolidated Key Indicators – Q3 2018/19
Consolidated Key Indicators – Q3 2018/19 ₹ /crores Profit before Exceptional Items Profit after Tax & Tax 218 162 45% 50% 150 108 ■ Q3 2017/18 ■ Q3 2018/19 ■ Q3 2017/18 ■ Q3 2018/19 16 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 18: Consolidated Key Indicators – 9 Months Ended FY 2018/19
Consolidated Key Indicators – 9 Months Ended FY 2018/19 ₹ /crores Total Revenue EBITDA 3,314 3,001 10% 27% 592 Margin Exp 230 bps 467 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 17 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 19: Consolidated Key Indicators – 9 Months Ended FY 2018/19
Consolidated Key Indicators – 9 Months Ended FY 2018/19 ₹ /crores Profit before Exceptional Items Profit After Tax & Tax 206 506 588 172 % % 34 25 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 18 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 20: Consolidated – Reported Profit & Loss Statement
Consolidated – Reported Profit & Loss Statement ₹ /crores Q3 9 Months Ended FY 2018/19 Particulars Growth Growth 18/19 17/18 18/19 17/18 vs PY vs PY Revenue from Operations 1,323 1,197 11% 3,268 2,960 10% Non Operating Revenue 15 20 -27% 46 41 12% Total Revenue 1,338 1,217 10% 3,314 3,001 10% Total
Slide 21: IHCL- Consolidated Exceptional Items
IHCL- Consolidated Exceptional Items On a post tax basis, Currency MTMs fully offset ₹ /crores 9 Months Ended Q3 Particulars Var. FY 2018/19 Var. 2018/19 2017/18 2018/19 2017/18 Change in fair value of derivative contracts 41 17 24 (56) 37 (93) Boston lease modification income 1 - 1 48 - 48 Others (
Slide 22: Standalone Key Indicators – Q3 2018/19
Standalone Key Indicators – Q3 2018/19 ₹ /crores Total Revenue EBITDA 816 776 5% 11% 274 Margin Expansion 1.8 pp 247 ■ Q3 2017/18 ■ Q3 2018/19 ■ Q3 2017/18 ■ Q3 2018/19 21 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 23: Standalone Key Indicators – Q3 2018/19
Standalone Key Indicators – Q3 2018/19 ₹ /crores Profit before Exceptional Items & Tax Profit After Tax 191 27 48 % % 151 138 93 ■ Q3 2017/18 ■ Q3 2018/19 ■ Q3 2017/18 ■ Q3 2018/19 22 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 24: Standalone Key Indicators – 9 Months FY 2018/19
Standalone Key Indicators – 9 Months FY 2018/19 ₹ /crores Total Revenue EBITDA 1,996 1,835 9% 20% Margin Expansion 2.3 pp 494 411 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 23 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 25: Standalone Key Indicators – 9 Months FY 2018/19
Standalone Key Indicators – 9 Months FY 2018/19 ₹ /crores Profit before Exceptional Profit After Tax Items & Tax 250 68 21 % % 99 148 82 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 ■ YTD Dec 2017/18 ■ YTD Dec 2018/19 24 TAj sELE~10Ns VI VANTA GINGER EXPRESSll NS TAjsATS 11----1 C l__.,j
Slide 26: Standalone - Profit & Loss Statement
Standalone - Profit & Loss Statement ₹ /crores Q3 9 Months Ended FY 2018/19 Particulars Growth vs Growth vs 18/19 17/18 18/19 17/18 PY PY Revenue from Operations 803 760 6% 1937 1798 8% Non Operating Revenue 13 16 -18% 59 38 57% Total Revenue 816 776 5% 1996 1835 9% Total Operating Expenditure 542 5
Slide 27: IHCL- Standalone Exceptional Items
IHCL- Standalone Exceptional Items For Q3 & 9 Months Ended FY 2018/19 ₹ /crores 9 Months Ended Q3 Particulars Var. FY 2018/19 Var. 2018/19 2017/18 2018/19 2017/18 Change in fair value of derivative contracts 41 17 24 (56) 37 (93) Provision for impairment of investment in Pierre (32) (39) 7 that incu
Slide 28: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars December 31, March 31, 2018 December 31, March 31, 2018 2018 2018 Gross Debt 1,776 1,784 2,289 2,427 Liquidity (162) (423) (290) (538) Net Debt 1,613 1,361 1,999 1,889 Net Debt/ Equity # 0.37 0.31 0.47 0.45 Weighted cost of Debt 8.2 7.9 7.3
Slide 29: IHCL Network Revenue – 9 months FY 2018/19
IHCL Network Revenue – 9 months FY 2018 / 19 ₹ /crores Domestic International Particulars CY PY Growth over PY % CY PY Growth over PY % Room Revenue 1,570 1,476 6.4% 960 868 10.7% RevPAR 5,407 5,086 6.3% 13,331 12,013 11.0% F & B Revenue 1,534 1,406 9.1% 624 557 12.0% *Excluding Ginger brand 28 T.Aj
Slide 30: Agenda
AGENDA • Industry Trends • Key Highlights • Financial Performance • Q&A 29
Slide 31: 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 32: Annexure
ANNEXURE c, 31 TAJ SELEQ,IONS VI VANTA GINGER EXPRESSIONS C) TAJSATS 11-.JCI~
Slide 33: Our Operational Portfolio
Our Operational Portfolio Inventory by Geography Inventory by Contract Type International, Management Holding 2735 Contracts, Company, 4815 4357 Group Domestic, Companies, 15006 8569 ■ Holding Company ■ Group Companies ■ Domestic ■ International ■ Management Contracts As of February 2019, IHCL has 1
Slide 34: Awards – YTD FY 2018/19
Awards – YTD FY 2018 / 19 GALLUP G R EAT WORKPLACE AWARD cfi.co Traveler TR.A VEL+ LEISURE tripadvisor _ .. -·················:·~ .··············•.... BML MUNJAL ~ Hotelier ~ ) ·§ AWARD ) 7, · ... _ .;,; 2018 t .· ···....... ~ ....... :.~ ·.....•········/ · 33 T.Aj sELE~10Ns VIVANTA GINGER EXPRESSIO
Slide 35: Group Major Companies
Group Major Companies Effective Effective Company Name Company Name Holding % Holding % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj SATS Air Catering Ltd 51.00 Benares Hotels Ltd 51.68 Taj GVK Hotels & Resorts Ltd 25.52 United Hotels Ltd 55.00 Taj Madras Flight Kitchen Pvt Ltd 50.00 Roots
The Indian Hotels Company — 9M FY2018-19 Earnings Presentation on 6ix