Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — FY2018 Earnings Presentation
38 slides from Indian Hotels's earnings presentation, May 25, 2018
Slide 1: Analyst Meet: Results for the Year Ended March 31, 2018
Analyst Meet Results for the Year Ended March 31, 2018 May 25, 2018
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 g
Slide 3: Agenda
Agenda • Key Highlights– Mr. Puneet Chhatwal, MD & CEO • Industry Trends / Sales & Marketing Initiatives - Chinmai Sharma, Chief Revenue Officer • Summary Financials & Treasury Update - Giridhar Sanjeevi, Chief Financial Officer • Q&A Slide No: 3
Slide 4: New Openings
New Openings Taj Exotica Resort & Spa, Andamans Slide No: 4
Slide 5: New Openings
New Openings Ginger Mumbai (Andheri East) Ginger Gurgaon Ginger Lucknow (Gomti Nagar) Ginger Ahmedabad (S G Road) Ginger Ahmedabad (Satellite) Ginger Goa (Dona Paula) Slide No: 5
Slide 6: Highlights 2017/18 - Full Year & Q4
Highlights 2017/18 - Full Year & Q4 Full Year Revenue EBITDA PAT 10 % ` 101 Crores 2% Vs ` (63) Crores 9% 36% 89% Q4 Slide No: 6
Slide 7: Contracts Signed
Network Hotel Count HotelS in Pipeline Contracts Signed 10 145 Hotels 20 New Hotels Contracts Signed in 17,150 Last 12 Rooms Months Slide No: 7
Slide 8: Our Portfolio
Our Portfolio Geography wise Hotel Contract wise International, Holding 2625 Management Contracts, Company, 1518 4357 Domestic, Group 14520 Companies, 8440 Domestic International Holding Company Group Companies Management Contract As at April 30, 2018, Taj Group has 145 hotels with 17,145 Rooms Slid
Slide 9: Dividend - 2017/18
Dividend - 2017/18 The Board of Directors has recommended a Final Dividend of 40% for 2017/18 (2016/17 - 35%) Slide No: 9
Slide 10: Industry Trends, Sales & Marketing Initiatives
Industry Trends Sales & Marketing Initiatives Slide No: 10
Slide 11: Tourism Industry Overview
Tourism Industry Overview •International travel and tourism arrivals grew by about 7% globally in 2017, the strongest since International 2004 •Most of the geographies witnessed high growth rates •India room demand growth rates continue to outpace new supply growth rate resulting in an all Domestic
Slide 12: All India Hospitality Overview 2017-18 v/s 2016-17
All India Hospitality Overview 2017-18 v/s 2016-17 Market Dynamics All India Hotels’ Performance Supply Growth Occupancy +3.2% 65% (+1.8%) Demand Growth Avg. Room Rate +5.0% ₹5,649 (+1.4%) RevPAR ₹3,658 (+3.2%) Source : STR Global Slide No: 12
Slide 13: India Hotel Performance: 2017-18 Key cities
India Hotel Performance: 2017-18 Key cities Supply % Change Demand % Change 20.0% 15.3% 15.0% 10.0% 9.4% 7.0% 6.6% 6.8% 7.1% 6.1% 6.2% 6.1% 5.8% 5.0% 4.3% 5.0% 5.0% 3.2% 4.3% 3.9% 2.8% 2.6% 3.1% 2.7% 1.7% 1.7% 1.9% 2.3% 2.2% 2.0% 0.8% 0.0% 0.0% Overall 3.2% increase in Supply in 2017-18 vis-à-vis
Slide 14: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India In Lakhs 31.5 30.6 28.4 26.8 25.1 24.1 23.2 22.8 22.4 22.0 21.5 20.4 20.2 20.1 20.5 17.6 16.8 16.5 15.0 15.6 14.5 13.4 12.6 13.2 Apr- Jun Jul- Sep Oct- Dec Jan-Mar 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Foreign tourist arrivals in India have shown growth
Slide 15: Brand Equity
Brand Equity Brand Equity: Brand Engagement Index for Taj improved over last year, increasing our lead vs. all competing hotel brands in India Brand Awareness and Recall: Taj brand was ranked # 1 in India for Top of Mind (unaided recall) amongst all other hotel brands Source: Guest Engagement an
Slide 16: Digital-Performance
Digital-Performance Increase 2017-18 v/s FY 2016-17 Room Nights Revenue Website 24% 19% Performance % Revenue Growth in Channels FY 2017-18 19% Website/Mobile Revenue Details: 12% • Overall Website Revenue has increased by 19% for FY 2017-18 when compared to FY 2016-17 7% 4% • Mobile Revenue alone u
Slide 17: Loyalty Update
Loyalty Update Member base has increased Consumer loyalty revenue has grown by by 40% FY 17-18 v/s FY 16-17 30% FY 17-18 v/s FY 16-17 ‘Best Loyalty Partnership’ Shangri La-Warmer Welcomes at 2018 LOYALTY AWARDS EVENT enrolments have increased 6.5X for as on March, 2018 Warmer Welcomes Slide No: 17
Slide 18: Awards & Accolades (Organization)
Awards & Accolades (Organization) • Best Hotel Company at the Dun and Bradstreet Corporate awards 2017 • Best Business Hotel Chain in India by the Business Traveller UK Awards • TripAdvisor Certificates of Excellence • Best Hotel Group - Runner-Up by The Telegraph Travel Awards 2017 • Best Hospitali
Slide 19: Awards & Accolades (Hotels)
Awards & Accolades (Hotels) • 17 Awards including Top 25 Hotels - #3 Umaid Bhwan Palace, Jodhpur • 7 awards across various categories • Taj Lake Palace, Udaipur and The Taj Mahal Palace, Mumbai listed in the Gold List of Conde Nast Traveler Magazine • Taj Rambagh Palace, Jaipur ranked in the Top 100
Slide 20: Financial Performance for the Year Ended March 31, 2018
Financial Performance for the Year Ended March 31, 2018 Slide No: 20
Slide 21: Consolidated Key Indicators Full Year 2017-18
Consolidated Key Indicators Full Year 2017-18 ₹ /crores Total Revenue EBITDA 4,165 4,165 732 732 4,076 2% 4% 10% 11% 3,999 665 657 Reported Financials Like for Like Reported Financials Like for Like 2016/17 2017/18 2016/17 2017/18 Profit before Exceptional Items & Tax Profit after Tax 162 162 101 10
Slide 22: Consolidated Key Indicators Q4 2017-18
Consolidated Key Indicators ₹ /crores Q4 2017-18 Total Revenue EBITDA 1,164 265 9% 36% 195 1,069 Q4 2016/17 Q4 2017/18 Q4 2016/17 Q4 2017/18 Profit Before Exceptional Items & Tax Profit After Tax 76 128 371% 89% 40 27 Q4 2016/17 Q4 2017/18 Q4 2016/17 Q4 2017/18 Slide No: 22
Slide 23: Consolidated Financial Year 2017-18 Increase in PAT
Consolidated Financial Year 2017-18 Increase in PAT 200 55 (40) 150 90 (22) (30) 8 101 100 50 103 (63) 0 (50) (100) PAT Loss on Rev Inc. Exp. Inc. Interest MTM Dec. Except. Others PAT 2016/17 Boston Sale Dec. Gains LY 2017/18 LY Increase in PAT from Loss of ₹ (63) crores in FY 2016/17 to profit of
Slide 24: Highlights 2017/18: Healthy Balance Sheet & Ratios
Highlights - 2017/18 Healthy Balance Sheet & Ratios • Raised ` 1,500 crores Rights Issue • Primarily utilised to reduce debt Tifco Holdings Ltd • Boost Standalone Reserves & Liquidity Amalgamation • Simplify Structure • Net Debt to Equity - 0.45 Healthy Ratios • Net Debt to EBITDA - 2.58 • Consolida
Slide 25: Consolidated Financials: Borrowings as on March 31, 2018
Consolidated Financials Borrowings as on March 31, 2018 ₹ /crores Particulars March 31, 2018 March 31, 2017 Increase / (Decrease) Non Current Liabilities Borrowings 2,329 2,790 (461) Current Liabilities Borrowings 98 593 (495) Total Borrowings 2,427 3,383 (956) Company wise Borrowings March 31, 2018
Slide 26: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 Gross Debt 1,784 2,049 2,427 3,383 Liquidity (423) (80) (539) (232) Net Debt 1,361 1,969 1,889 3,151 Net Debt/ Equity # 0.31 0.71 0.45 1.25 Weighted cost of Debt 7.9% 7.7% 7.0% 7.7
Slide 27: Recap: HCL Aspiration 2022
Recap: HCL Aspiration 2022 Slide No: 27
Slide 28: Q&A
THE INDIAN HOTELS COMPANY LIMITED Q&A ATATA Enterprise 9 Slide No: 28 TA} VIVANTA GINGER TAJSATS
Slide 29: Annexure
THE INDIAN HOTELS COMPANY LIMITED Annexure ae nt 2 Slide No: 29 TAJ VIVANTA GINGER TAJSATS ATATA Enterprise
Slide 30: 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
Slide 31: Consolidated Financials Balance Sheet as on March 31, 2018
Consolidated Financials Balance Sheet as on March 31, 2018 ₹ /crores Particulars March 31, 2018 March 31, 2017 Non Current Assets Fixed Assets 5,792 5,483 Goodwill 566 556 Other Non Current Assets 1,799 1,670 Current Assets 1,219 926 Total Assets 9,378 8,634 Equity Equity Share Capital 119 99 Other
Slide 32: Consolidated Financials Profit & Loss Statement
Consolidated Financials Profit & Loss Statement ₹ /crores Quarter IV Full Year Particulars Like to Like % 2017/18 2016/17 % Change 2017/18 2016/17 % Change Changes Revenue from Operations 1143 1052 9% 4104 4021 2% 4% Other Income 20 17 20% 62 55 12% 12% Total Income 1164 1069 9% 4165 4076 2% 4% Food
Slide 33: Consolidated Financials Exceptional Items - 2017/18
Consolidated Financials Exceptional Items - 2017/18 ₹ /crores Particulars 2017/18 2016/17 Change in fair value of derivative contracts 26 66 Provision of financial exposure in an associate (1) (5) Recovery of costs along with interest on a surrendered project 24 Refund of municipal tax 6 Project wri
Slide 34: IHCL Standalone Financials Balance Sheet
IHCL Standalone Financials Balance Sheet as on March 31, 2018 ` / Crores Particulars March 31, 2018 March 31, 2017 Non Current Assets Fixed Assets 2,464 2,296 Other Non Current Assets 4,313 3,382 Current Assets 930 559 Total Assets 7,707 6,237 Equity Equity Share Capital 119 99 Other Equity 4,275 2,
Slide 35: IHCL Standalone Financials Profit & Loss Statement
IHCL Standalone Financials Profit & Loss Statement ` / Crores Quarter IV Full Year Particulars 2017/18 2016/17 % Change 2017/18 2016/17 % Change Revenue from Operations 786 710 11% 2,584 2,402 8% Other Income 18 23 55 58 Total Income 804 733 10% 2,639 2,460 7% Food and Beverages consumed 63 62 233 2
Slide 36: IHCL Standalone Financials Income Details
IHCL Standalone Financials Income Details ` / Crores Particulars 2017/18 2016/17 % Change Room Income 1,092 1,048 4 Food , Restaurants & Banquet Income 1,031 952 8 Management & Operating fees 210 159 33 Other Operating Income 251 242 4 Income from Operations 2,584 2,402 8 Non Operating Income 55 58
Slide 37: IHCL Standalone Financials Exceptional Items - 2017/18
IHCL Standalone Financials Exceptional Items - 2017/18 ` / Crores Particulars 2017/18 2016/17 Exchange Gain/ (Loss) on ECB - (2) Exchange Gain/ (Loss) on Shareholders Deposit Revaluation - 4 Change in fair value of derivative contracts 26 65 Recovery of costs along with interest on a surrendered pro
Slide 38: Thank You
THE INDIAN HOTELS COMPANY LIMITED Thank You r) ATATA Enterprise 2 Slide No: 38 TAJ VIVANTA GINGER TAJSATS
The Indian Hotels Company — FY2018 Earnings Presentation on 6ix