Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Q2 2021/22 Earnings Presentation

54 slides from Indian Hotels's earnings presentation, Oct 21, 2021

  1. Slide 1: Analyst Presentation cover letter to exchanges

    October 21, 2021 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001. Scrip Code: INDHOTEL Scrip Code: 50

  2. Slide 2: Global Conference Call Q2, H1 2021/22 Results

    GLOBAL CONFERENCE CALL Q2, H1 2021/22 RESULTS | 21st OCTOBER, 2021

  3. Slide 3: 50 Years of Taj Lake Palace, Udaipur

    50 YEARS OF TAJ LAKE PALACE, UDAIPUR 2

  4. Slide 4: Visible Green Shoots of Economic Recovery

    VISIBLE GREEN SHOOTS OF ECONOMIC RECOVERY GDP GROWTH ESTIMATES – IMF OUTLOOK (OCT 2021) 9.5% 8.5% 8.0% 5.9% 6.0% 5.6% 4.9% 5.2% 5.0% 4.3% 2.3% WORLD UNITED STATES EURO AREA CHINA INDIA -3.1% -3.4% -6.3% -7.3% Source: IMF World Economic Outlook, October 2021 2020 2021F 2022F 3

  5. Slide 5: Recovery Visible in Indian Hospitality: Drivers

    RECOVERY VISIBLE IN INDIAN HOSPITALITY: DRIVERS 100 CR. VACCINATIONS ADMINISTERED 90% DROP IN ACTIVE CASES SINCE MAY < 1.5% TEST POSITIVITY RATE 70% GROWTH IN Q2 DOM. AIR TRAFFIC EASE IN TRAVEL RESTRICTIONS 70% LEISURE OCCUPANCY (= PRE-COVID) Sources: MyGov.in – COVID Statistics, Directorate General

  6. Slide 6: IHCL Performance Key Highlights

    IHCL PERFORMANCE KEY HIGHLIGHTS 5

  7. Slide 7: V-Shaped Rebound in Revenues Continued

    V-SHAPED REBOUND IN REVENUES CONTINUED Highest Pandemic Time Revenues Recorded in September 2021 Enterprise Revenues Consol. Revenues Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct* *Estimated 6

  8. Slide 8: Strong Revenue Recovery in Q2 2021/22

    STRONG REVENUE RECOVERY IN Q2 2021/22 ₹ Crores Consolidated Revenues - IHCL  +ve Consumer Sentiment for Travel  Leisure Travel Driving Recovery  The Rise of Right Here Right Now 752  Resumption of Business Travel 370 324  +ve Outlook: Weddings, MICE 175  Trusted Brands Benefit More Q1 Q2 7

  9. Slide 9: Outperformance in RevPAR Recovery (Q2 vs Pre-COVID)

    OUTPERFORMANCE IN REVPAR RECOVERY (Q2 V/S PRE-COVID) *Data for Domestic Hotels Incl. Ginger IHCL Domestic Hotels – Q2 RevPAR (% of Pre-COVID Levels) 160% Industry IHCL 140% 135%133% 120% 100% 89% 86% 82% 82% 78% 80% 73% 73% 64% 63% 64% 65% 63% 64% 60% 60% 55% 50% 46% 40% 36% 20% ALL INDIA Rajasthan

  10. Slide 10: Sustained Spend Optimization

    SUSTAINED SPEND OPTIMIZATION Q2 2021/22 v/s Q2 2019/20 (PRE-COVID) ↓ 23% ↓ 19% ↓ 16% Total Expenditure Total Fixed Costs Corporate Overheads *All Numbers Include Fixed Lease Costs 9

  11. Slide 11: Manpower Optimization Continues Across Brands

    MANPOWER OPTIMIZATION CONTINUES ACROSS BRANDS STAFF TO ROOM RATIO SUBSTANTIALLY REDUCED ACROSS BRANDS 2.17 1.95 1.62 1.60 1.53 1.48 1.33 1.30 1.14 1.10 0.92 0.91 0.48 0.39 0.36 Taj SeleQtions Vivanta Ginger IHCL Mar-20 Mar-21 Sep-21 10

  12. Slide 12: Continuous Employee Engagement, Recognitions & Support

    CONTINOUS EMPLOYEE ENGAGEMENT, RECOGNITIONS & SUPPORT VACCINATION DRIVE 99% 82% Partially Vaccinated Fully Vaccinated 11

  13. Slide 13: Unlocking Value in New Brands and Businesses

    UNLOCKING VALUE IN NEW BRANDS AND BUSINESSES Presence Across 4 L+ app downloads, 75% Orders from ~ ₹ 50 Crores 19 Cities Today 16 L+ orders five metro cities Revenue in H1 21/22 * H1 Revenues include MealsToSmiles 12

  14. Slide 14: Unlocking Value in New Brands and Businesses

    UNLOCKING VALUE IN NEW BRANDS AND BUSINESSES 59 Property ~30 Locations 21 amãs Signed 15 amãs Opened Portfolio Across India till date this FY till date this FY 13

  15. Slide 15: Unlocking Value in New Brands and Businesses

    UNLOCKING VALUE IN NEW BRANDS AND BUSINESSES 80+ Q2 @ 84% +ve EBITDA Q2 Margin Hotel Portfolio of Pre-COVID In Q2 and H1 Higher than Today Revenues 2021/22 Pre-COVID 14

  16. Slide 16: Roots Corporation to Become a 100% Subsidiary of IHCL

    ROOTS CORPORATION TO BECOME A 100% SUBSIDIARY OF IHCL Simplification & Consolidation • IHCL presently holds 60.2% of RCL • To buy out remaining 39.8% to make RCL a W-O-S • Ginger at a pivotal juncture of Lean Luxe Journey • Potential to unlock strong synergy benefits within IHCL • Tremendous growth

  17. Slide 17: Financial Performance – Q2 and H1 2021/22

    FINANCIAL PERFORMANCE – Q2 and H1 2021/22 16

  18. Slide 18: Revenue & EBITDA Snapshot: IHCL Consol. (Q2 2021/22)

    REVENUE & EBITDA SNAPSHOT: IHCL CONSOL. (Q2 2021/22) Revenue Improvement EBITDA Improvement Q2 2020/21 Q2 2021/22 Q2 2020/21 Q2 2021/22 ↑ ₹ 180 Cr 752 324 97 -83 ↑ 132% EBITDA Positive in all 3 months of Q2 2021/22 17

  19. Slide 19: Revenue & EBITDA Snapshot: IHCL Consol. (H1 2021/22)

    REVENUE & EBITDA SNAPSHOT: IHCL CONSOL. (H1 2021/22) Revenue Improvement EBITDA Improvement H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 ↑ ₹ 292 Cr 1,123 -26 499 -318 ↑ 125% 18

  20. Slide 20: Revenue & EBITDA Snapshot: IHCL Standalone (H1 2021/22)

    REVENUE & EBITDA SNAPSHOT: IHCL STANDALONE (H1 2021/22) Revenue Improvement EBITDA Improvement H1 2020/21 H1 2021/22 H1 2020/21 H1 2021/22 ↑ ₹ 180 Cr 707 2 332 -178 ↑ 113% EBITDA Positive in H1 2021/22 - IHCL Standalone 19

  21. Slide 21: Strengthening Balancesheet Is a Key Priority

    STRENGTHENING BALANCESHEET IS A KEY PRIORITY Increase in Consolidated Net Debt Mar-20 Mar-21 Jun-21 Sep-21 3,612 3,571 3,110 1,915 ↑ 86% from Pre-COVID Levels 20

  22. Slide 22: Equity Issuance to Build a Healthier Balancesheet

    EQUITY ISSUANCE TO BUILD A HEALTHIER BALANCESHEET Net Debt TODAY TOMORROW 3,571 ₹ 2,000 Cr ₹ 2,000 Cr 0 RIGHTS ISSUE QIP 21

  23. Slide 23: IHCL Consolidated Financial Performance (Q2 & H1 2021/22)

    IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q2 & H1 2021/22) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER 22

  24. Slide 24: Financial Snapshot – Q2 2021/22

    FINANCIAL SNAPSHOT – Q2 2021 / 22 IHCL Consolidated Q2 revenues was more than 2 x the previous year, with EBITDA being positive in all 3 months of Q2 ₹ /crores IHCL Standalone IHCL Consolidated Q2 2021 Q2 2020 Q2 2021 Q2 2020 Revenue 481 215 Revenue 752 324 % of 2019/20 77% 34% % of 2019/20 73% 31%

  25. Slide 25: Financial Snapshot – H1 2021/22

    FINANCIAL SNAPSHOT – H1 2021 / 22 IHCL Consolidated revenues was more than 2 x the previous year, with a significant reduction in EBITDA Loss vs previous year IHCL Standalone H1 was EBITDA positive ₹ /crores IHCL Standalone IHCL Consolidated H1 2021 H1 2020 H1 2021 H1 2020 Revenue 707 332 Revenue 1,

  26. Slide 26: Revenue and Revenue Recovery – Q1, Q2 2021/22

    REVENUE AND REVENUE RECOVERY – Q1, Q2 2021/22 Q2 2021/22 Revenue Recovery @79% vs 19/20, Better than Q1 - 38% ₹ /crores Domestic Hotels incl. Ginger - Enterprise Total Revenue as a % of 19/20 PY 86% CY 38% 88% 88% 950 28% 80% 28% 33% 15% 22% 415 293 82 323 104 334 126 312 161 Q1 Jul Aug Sep Q2 Inter

  27. Slide 27: Revenue and Revenue Recovery in Key Cities Q2 2021/22

    REVENUE AND REVENUE RECOVERY IN KEY CITIES Q2 2021/22 DOMESTIC HOTELS (INCL. GINGER) ₹ /crores 164 Q2 2021 Q2 2020 121 90 92 81 63 58 56 44 26 27 26 23 16 19 12 7 11 Mumbai Delhi & NCR Bengaluru Goa Chennai Rajasthan Hyderabad Kolkata Kerala Q2 21/22 vs 19/20 66% 64% 55% 121% 73% 152% 85% 73% 67% Q2

  28. Slide 28: Revenue and Revenue Recovery in Key Cities: International Hotels

    REVENUE AND REVENUE RECOVERY IN KEY CITIES Q2 2021/22 INTERNATIONAL HOTELS ₹ /crores 80 Q2 2021 Q2 2020 69 64 35 30 18 20 10 11 8 9 0 USA UK Maldives Dubai Africa Sri Lanka Q2 21/22 vs 56% 56% 108% 136% 40% 19% 19/20 Q2 20/21 vs 13% 16% 26% 64% 1% 25% 19/20 27

  29. Slide 29: IHCL Consolidated – Performance Trend

    IHCL CONSOLIDATED – PERFORMANCE TREND ₹ /crores CY PY CY PY 1123 97 TOTAL 752 EBITDA EBITDA REVENUE 499 (26) 370 324 (83) 175 (123) TOTAL (234) REVENUE (318) Q1 Q2 H1 Q1 Q2 H1 CY PY CY PY (130) (263) (121) PBT PBT (315) (336) PAT PAT (445) (230) (277) (280) (599) (398) TOTAL REVENUE (510) Q1 Q2 H1 Q

  30. Slide 30: IHCL Standalone – Performance Trend

    IHCL STANDALONE – PERFORMANCE TREND ₹ /crores CY PY CY PY 80 707 2 TOTAL 481 EBITDA EBITDA REVENUE 332 (38) 226 215 117 (78) TOTAL (140) REVENUE (178) Q1 Q2 H1 Q1 Q2 H1 CY PY CY PY (61) (54) PBT PBT (173) PAT PAT (220) (142) (291) (281) (190) (239) (244) (464) TOTAL REVENUE Q1 Q2 H1 Q1 Q2 H1(380) 29

  31. Slide 31: Domestic Hotels – Leisure / Non-Leisure

    DOMESTIC HOTELS – LEISURE / NON-LEISURE OCCUPANCY % ARR in ₹ 57% 10,305 51% 9,098 5,697 30% 4,530 20% Leisure Non - Leisure Leisure Non - Leisure Q1 2021 Q2 2021 Q1 2021 Q2 2021 30

  32. Slide 32: Key International Geographies - Occupancy & ARR

    KEY INTERNATIONAL GEOGRAPHIES - OCCUPANCY & ARR OCCUPANCY % ARR in ₹ 45,463 65% 66% 59% 44,706 33,874 28,967 41% 41% 29,912 24,852 32% 27% 8,896 14% 8,180 USA UK Maldives Dubai USA UK Maldives Dubai Q1 2021 Q2 2021 Q1 2021 Q2 2021 31

  33. Slide 33: Revenue Drivers

    REVENUE DRIVERS Revenue Recovery Asset Light Growth New & Reimagined Business  Portfolio - 225 Hotels,  Ginger – Portfolio 80+  Occupancy – 43% (+ 17 PP) 27700+ Rooms incl. pipeline Hotels  ADR - ₹ 7,858 (+ 51%)  New Openings - 13+  Qmin - 19 Cities, 37 Expected in 2021/22 Hotels, 75+Restauran

  34. Slide 34: Cost Management: Driving Operating Leverage

    COST MANAGEMENT: DRIVING OPERATING LEVERAGE ₹ /crores Consolidated Standalone 125% 41% 113% 38% 707 705 1,123 1,149 510 817 332 499 Revenue Expenditure Revenue Expenditure H1 - CY H1 - PY H1 - CY H1 - PY  Corporate Overheads at ₹ 112 crores ( H1 19/20 ₹ 149 crores) - 25% reduction  Overall Fixed C

  35. Slide 35: International Hotels: USA & UK Showing Improvement

    INTERNATIONAL HOTELS: USA & UK SHOWING IMPROVEMENT ₹ /crores USA UK 93 323% 254% 138 22 8 39 -7 -18 -71 Revenue EBITDA Revenue EBITDA H1 - CY H1 - PY H1 - CY H1 - PY  Occupancy improved from 27% in Q1 to 41 % in Q2  Occupancy improved from 14% in Q1 to 41% in Q2  ADR of $ 612, higher than pre Cov

  36. Slide 36: Q2, H1 2021/22 – IHCL Consolidated Exceptional Items

    Q2, H1 2021 / 22 – IHCL CONSOLIDATED Exceptional Items: ₹ /crores Q2 H1 Particulars 2021/22 2020/21 Var 2021/22 2020/21 Var Change in fair value of derivative contracts - 13 (13) 6 17 (11) Exchange Gain / (Loss) - IHMS SA (11) 8 (19) (4) 8 (12) Profit on acquisition of JV - - - - 82 (82) Gain on Sal

  37. Slide 37: Q2, H1 2021/22 – IHCL Standalone Exceptional Items

    Q2, H1 2021 / 22 – IHCL STANDALONE Exceptional Items: ₹ /crores Q2 H1 Particulars 2021/22 2020/21 Var 2021/22 2020/21 Var Gain / (Loss) on Change in fair value of derivative contracts - 13 (13) 6 17 (11) Provision for Pierre Cash Loss funding (7) (29) 22 (20) (71) 51 Provision for Taj Cape Town Cash

  38. Slide 38: H1 2021/22 - Performance of Key Subsidiaries

    H1 2021 / 22 - PERFORMANCE OF KEY SUBSIDIARIES ₹ /crores PBT Before Legal Entity Revenue EBITDA PAT Exc. Items UOH Inc. - USA 138 (18) (54) (54) St. James Court - UK 76 7 (28) (22) PIEM Hotels Ltd. 92 (19) (48) (34) Roots Corporation Ltd 73 8 (34) (27) 37

  39. Slide 39: Debt Position – Standalone & Consolidated

    DEBT POSITION – STANDALONE & CONSOLIDATED ₹ /crores Standalone Consolidated Particulars Sept 30, June 30, March 31, Sep 30, June 30, March 31, 2021 2021 2021 2021 2021 2021 Gross Debt 2,886 2,886 2,592 4,081 4,042 3,633 Liquidity (311) (271) (413) (509) (430) (523) Net Debt 2,575 2,615 2,179 3,571 3

  40. Slide 40: Other Updates: Proposed Equity Issue

    OTHER UPDATES : PROPOSED EQUITY ISSUE 1. In partial modification to its earlier decision taken on August 23, 2021 to raise funds not exceeding ₹ 3,000 crores by Rights Issue, the Board of Directors have decided / approved the following:  Issue of Equity Shares by way of a Rights Issue to the existi

  41. Slide 41: Other Updates: Purchase of Shares of Roots Corporation Ltd

    OTHER UPDATES : PURCHASE OF SHARES OF ROOTS CORPORATION LTD  The Board has also, subject to requisite approvals, approved purchase of 3,74,65,735 shares of Roots Corporation Limited (RCL) aggregating to ~ 39.84% from the existing shareholders  The aggregate Purchase Consideration for the above tra

  42. Slide 42: Emerging from the Pandemic, We Will ..

    EMERGING FROM THE PANDEMIC, WE WILL ..  Witness Stronger Revenue Recovery than the Industry  Be Driven by Asset Light Growth, to achieve a Balanced 50-50 Portfolio  Drive growth in New brands and businesses  Re-shape the P&L with Continued Interventions, New Ways of Working and Business Model In

  43. Slide 43: Summarised Financials

    SUMMARISED FINANCIALS a TA) SELEQTIONS VIVANTA GINGER ama Qenin we IWCL

  44. Slide 44: IHCL Consolidated Balance Sheet as at September 30, 2021

    IHCL CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2021 ₹ /crores Particulars Sep 30, 2021 March 31, 2021 Non Current Assets Fixed Assets 6,419 6,462 Right to use Assets 1,511 1,530 Goodwill 615 611 Investments 1,041 1,035 Other Non Current Assets 743 722 Current Assets 1,142 1,154 Total Assets 11,

  45. Slide 45: Q2, H1 2021/22 – IHCL Consolidated Reported P&L

    Q2, H1 2021 / 22 – IHCL CONSOLIDATED - REPORTED P&L ₹ /crores Q2 H1 Particulars 2021/22 2020/21 Var % 2021/22 2020/21 Var % Revenue from Operations 728 257 184% 1,073 400 168% Non-Operating Revenue 24 67 -64% 50 99 -50% Total Revenue 752 324 133% 1,123 499 125% Raw Material Cost 63 22 188% 91 31 193

  46. Slide 46: IHCL Standalone Balance Sheet as at September 30, 2021

    IHCL STANDALONE BALANCE SHEET AS AT SEPTEMBER 30, 2021 ₹ /crores Sep 30, March 31, Particulars 2021 2021 Non Current Assets Fixed Assets 2,529 2,565 Right to use Assets 835 846 Investments 4,041 3,964 Other Non Current Assets 788 786 Current Assets 873 986 Total Assets 9,066 9,147 Equity Equity Shar

  47. Slide 47: Q2, H1 2021/22 – IHCL Standalone Reported P&L

    Q2, H1 2021 / 22 – IHCL STANDALONE - REPORTED P&L ₹ /crores Q2 H1 Particulars 2021/22 2020/21 Var % 2021/22 2020/21 Var % Revenue from Operations 461 165 179% 669 260 157% Non Operating Revenue 19 50 -62% 38 72 -47% Total Revenue 481 215 123% 707 332 113% Raw Material Cost 42 15 183% 59 21 182% Empl

  48. Slide 48: Disclaimer

    For the Half Year ended 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-look

  49. Slide 49: Q2, H1 2021/22 – IHCL Standalone Revenue Metrics

    Q2, H1 2021/22 – IHCL STANDALONE REVENUE METRICS Particulars Q1 Jul Aug Sep Q2 H1 H1 LY Occupancy % 28.4 52.3 56.6 60.9 56.6 42.5 26.4 ARR in ₹ 7,024 7,981 8,419 8,391 8,273 7,858 5,202 RevPAR in ₹ 1,992 4,177 4,767 5,107 4,679 3,342 1,373 (₹/ crores) Room Revenue 82 58 66 69 193 275 111 F & B Reven

  50. Slide 50: Q2, H1 2021/22 – Domestic Network Revenue Metrics

    Q2, H1 2021/22 – DOMESTIC NETWORK REVENUE METRICS Particulars Q1 Jul Aug Sep Q2 H1 H1 LY Occupancy % 28.6 49.9 53.6 58.2 53.9 41.4 21.8 ARR in ₹ 4,656 5,808 5,896 5,924 5,878 5,460 3,582 RevPAR in ₹ 1,331 2,900 3,162 3,447 3,168 2,259 781 (₹/ crores) Room Revenue 201 150 165 174 488 689 229 F & B Re

  51. Slide 51: Brandscape

    BRANDSCAPE LUXURY SELECT HOTELS UPSCALE LEAN LUXE 27,700+ KEYS 225 HOTELS 13,500 KEYS 1700 KEYS 5,200 KEYS 7,300 KEYS 89 HOTELS 22 HOTELS 34 HOTELS 80 HOTELS *Portfolio figures include hotels under various stages of development 50

  52. Slide 52: Operating Portfolio

    OPERATING PORTFOLIO Inventory by Geography Inventory by Contract Type 2654 4485 8580 17120 6709 Domestic International Holding Company Management Contract Group Companies As of 30th September 2021, IHCL has 170 hotels operational with 19,774 Rooms 51

  53. Slide 53: Shareholding Pattern

    SHAREHOLDING PATTERN 19% Retail 41% 14% Tata Group FII 27% DII As on 30th September, 2021 52

  54. Slide 54: Global Conference Call Q2, H1 2021/22 Results

    GLOBAL CONFERENCE CALL Q2, H1 2021/22 RESULTS | 21st OCTOBER, 2021

The Indian Hotels Company — Q2 2021/22 Earnings Presentation on 6ix