Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — 9M FY2009/10 Earnings Presentation
41 slides from Indian Hotels's earnings presentation, Jan 27, 2010
Slide 1: Analyst Meet: Results for Nine months ended December 31, 2009
The Indian Hotels Company Limited Analyst Meet Results for Nine months ended December 31, 2009 January 27, 2010 1 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 Anil P Goel - Executive Director, Finance Ajoy Misra - Senior Vice President, Sales & Marketing 3 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends Key Business Highlights Treasury Financial Results Focus Areas – Going Forward 4 4
Slide 5: Industry Trends
Hotels Reso and Palar Industry Trends
Slide 6: Foreign Tourist Arrivals January to December 2009
Foreign Tourist Arrivals January to December 2009 In Millions 700 600 500 400 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 Source: Ministry of Tourism 6
Slide 7: Occupancies - Quarter on Quarter Trend
Occupancies - Quarter on Quarter Trend 80 71 67 65 71 66 57 61 57 61 55 56 53 56 53 53 51 49 48 57 47 Mumbai Delhi Bangalore Chennai Hyderabad Kolkata Goa Q1 2009/10 Q2 2009/10 Q3 2009/10 Q3 2007/08 Source: Internal Survey 7
Slide 8: ARRs - Quarter on Quarter Trend
ARRs – Quarter on Quarter Trend 11445 9107 9218 8982 8782 8500 8418 7902 7711 8061 7704 6875 6573 6843 6687 6756 6199 5929 5685 5168 4627 Mumbai Delhi Bangalore Chennai Hyderabad Kolkata Goa Q1 2009/10 Q2 2009/10 Q3 2009/10 Q3 2007/08 Source: Internal Survey 8
Slide 9: Rev PARs - Quarter on Quarter Trend
Rev PARs – Quarter on Quarter Trend 9210 6503 5858 5050 4810 5065 5504 4884 4374 3932 4017 4110 3879 3766 3779 3354 3654 2829 3021 3396 2474 Mumbai Delhi Bangalore Chennai Hyderabad Kolkata Goa Q1 2009/10 Q2 2009/10 Q3 2009/10 Q3 2007/08 Source: Internal Survey 9
Slide 10: Key Business Highlights
Hotels Reso and Palar Key Business Highlights
Slide 11: Key Highlights
Key Highlights • Re Launch of Golden Dragon, Wasabi, and Harbour Bar at Taj Mahal, Mumbai and Golden Dragon at Taj Coromandel, Chennai • The Gateway Hotel - Jodhpur launched in November 2009 under Management Contract • Brand Ginger expanded further – 2 more added in Surat and Pune 11
Slide 12: Wasabi, Taj Mahal Mumbai
Wasabi, Taj Mahal Mumbai
Slide 13: Golden Dragon, Taj Mahal Mumbai
Golden Dragon, Taj Mahal Mumbai
Slide 14: Harbour Bar, Taj Mahal Mumbai
Harbour Bar, Taj Mahal Mumbai
Slide 15: Opening of The Gateway - Jodhpur under Management Contract
Opening of The Gateway – Jodhpur under Management Contract
Slide 16: Venturing into a New Geography
Venturing into a New Geography Discover Modern Luxurious Living at one of Cape Town’s Oldest Landmarks Opening Feb , 2010 16
Slide 17: Taj Capetown, South Africa
Taj Capetown, South Africa Situated partially on St. George’s Mall, a vibrant pedestrian precinct with wonderful pavement cafés and bars, the hotel is surrounded by significant historic buildings. Taj has retained the original architecture of the Temple Chambers or Board of Executors building, built
Slide 18: Thrust For Coming Months
Thrust For Coming Months Drive Business Via Growth and Sunrise Industries Government and Diplomatic Businesses Aggressive Focus on MICE Leverage E Distribution Robust Revenue Management Leverage Trade and Alliance Partnerships Garner High Visibility Business Feet on Street Brand Sustainability 18
Slide 19: Strengths
Strengths Brand and Domestic Dominance Wide Global Sales and Marketing Network Cutting Edge Distribution & Reach Loyalty Program, Alliances / Partnerships 19
Slide 20: Focus Areas
Focus Areas SECTOR FOCUS SEGMENT FOCUS • Defence • Meetings , Incentives , • Aviation Conferences and Events ( MICE ) • Infrastructure • IT / ITES • Weddings • Consultancy • Banking & Finance • Domestic Leisure • Sports Related • Parliamentary Visits and Govt. Bodies • Pharmaceutical Industry • FMCG
Slide 21: Multi Segment / Multi Channel Approach
Multi Segment / Multi Channel Approach Addressing Needs of All Customers Segments Across Various Distribution Platforms CORP. NEG. INDIVIDUAL TRAVEL BOOKER COMPANY GUEST AGENCY TRANSIENT LONGSTAY CONFERENCE EVENTS VALUE PROPOSITION LEISURE LEISURE GRPS VOICE WEB DIRECT GLOBAL DIST. ALT. DIST. CREW 2
Slide 22: Awards And Recognition
Awards And Recognition The Taj Mahal Palace & Tower, Mumbai Jan '10 - 6th Annual Conde Nast Traveller, Appears in UK Gold List Dec '09 - Winner in the Best Hotel category of the Fourth Annual DestinAsian Readers' Choice Awards 2009 Umaid Bhawan Palace, Jodhpur Jan '10 - “Hotel of the Year” by The Ga
Slide 23: Awards And Recognition
Awards And Recognition Trip Advisor Travelers’ Choice Awards TripAdvisor Travelers’ Choice Awards 2010, USA – Luxury Hotels Rambagh Palace is the winner with Taj Lake Palace, Udaipur at No. 3 and Taj Green Cove Resort, Kovalam at No.5 TripAdvisor Travelers’ Choice Awards 2010, USA – Services in Indi
Slide 24: Treasury
Hotels Resorts and Palares Treasury
Slide 25: Treasury - Objectives
Treasury - Objectives Objectives: Company’s key Treasury related Objectives are: – Reduce the Company’s Consolidated leverage – Ensure liquidity in the system – Migrate short term debt into long term debt – Reduce interest charge to Profit and Loss account – Fund current Capital Commitments and On –
Slide 26: Treasury - Liquidity raised
Treasury – Liquidity raised Incremental low coupon debt Company has raised Rs 400 crores of unsecured debt at an average yield of 9.5% per annum Further Rs 300 crores of secured debt to be raised at similar yield in March 2010 Restructuring of Portfolio Company has restructured shareholding of Compa
Slide 27: Treasury - Use of funds
Treasury – Use of funds Use of funds raised Repayment of debt of US Properties – US$ 95 million Repayment of Samsara Properties Ltd – US$ 90 million Balance cash to be used for funding on-going green field expansion projects Projected liquidity & debt position as at March 31, 2010 Projected liquidit
Slide 28: Financial Results
Financial Results Nine months ended December 31, 2009 28 28
Slide 29: Highlights - Nine months year ended
Highlights – Nine months year ended 2009/10 Turnover of Rs.1030 crores PBIT of Rs. 196 crores PBT of Rs. 127 crores PAT of Rs. 93 crores EPS at Rs. 1.29 29 29
Slide 30: Turnover Trend
Turnover Trend 1206.6 1201.4 1030.0 Rs. Crores 520.6 456.6 437.9 Q3 9M 2007/08 2008/09 2009/10 30 30
Slide 31: Financial Results Nine months ended 2009/10
Financial Results Nine months ended 2009/10 Rs. Crores 2009/10 2008/09 % Change Net Sales/Income from Operations 970.59 1174.99 (17) Other Operating Income 59.36 26.36 125 Total Income 1029.95 1201.35 (14) a. Consumption of Raw Materials 79.90 89.42 (11) b. Staff Costs 260.86 274.61 (5) c. License F
Slide 32: Financial Results Nine months ended 2009/10
Financial Results Nine months ended 2009/10 Rs / Crores 2009/10 2008/09 % Change Room sales 473.74 644.74 (27) F&B Sales 372.67 393.67 (5) Other operating income 142.29 111.87 27 Non Operating Income 41.25 51.07 (17) Total Income 1029.95 1201.35 (14) Other Operating Income includes Rs 59.53 crores o
Slide 33: Quarterly Trends
Quarterly Trends 2009/10 2008/09 Rs. Crores Q2 Q3 Variance Q2 Q3 Variance Room Revenue 136.32 211.67 55% 193.63 245.39 27% F & B Revenue 111.86 161.60 44% 130.34 135.96 4% EBITDA 73.55 154.83 105% 112.11 187.52 55% Occupancy (%) 60 70 + 10 Pts 64 69 + 5 Pts ARR (Rs) 7372 9558 30% 9763 11898 23% Rev
Slide 34: Expenditure
Expenditure Raw Materials Cost – Rs 79.90 crores Raw Materials cost as a % of F&B revenues were lower at 21.4% ( PY 22.7%). Staff Cost – Rs 260.86 crores Lower by Rs 13.8 crores despite increased inventory (Vivanta, Bangalore and Taj Lands End, Mumbai) Depreciation – Rs 76.25 crores Higher depreciat
Slide 35: Other income and Exchange Gain / (Loss)
Other income – Rs 35.25 Crores Surplus funds in the previous year had earned exceptionally high dividend income which has reduced to normalcy in the current year Exchange Gain / (Loss) – Rs 3.23 Crores Gain on revaluation of foreign currency liabilities as compared to significant loss in the corresp
Slide 36: International Operations
International Operations With reopening of The Pierre, New York - Full Portfolio of US back in play. Post recession, Global recovery is widely perceived to remain slow and gradual, with receding but significant downside risk. Initiatives are underway to improve the profitability of our international
Slide 37: Overview of Taj Group
Overview of Taj Group Particulars Nine 2008/09 2007/08 2006/07 months 2009/10 No. Of Hotels 103 97 88 82 Inventory 12,243 11,546 10,464 9,931 Total Income (Rs/crores)* 2691 3918 4332 3836 * Turnover indicated above is the arithmetical aggregate of all properties including those under management Cont
Slide 38: Focus Areas - Going Forward
Focus Areas – Going Forward 38 38
Slide 39: Focus Areas - Going Forward
Focus Areas – Going Forward Key Focus areas: Turnaround of US Operations and Cash flows Manage leverage at Consolidated level Time bound completion of On-going Green field projects with no cost escalations. This will help in growing the Turnover and EBDITA going forward Restructuring of the sharehol
Slide 40: IHCL Stock vs Index Performance
IHCL Stock vs Index Performance Base Price Rs 45.05 IHCL SENSEX 40 40
Slide 41: Thank you
Hotels RK and Py Thank you
The Indian Hotels Company — 9M FY2009/10 Earnings Presentation on 6ix