Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q3 FY2005 Earnings Presentation
32 slides from Indian Hotels's earnings presentation, Jan 24, 2005
Slide 1: Analyst Meet: Performance for the Quarter ended December 2004
The Indian Hotels Company Limited Analyst Meet Performance for the Quarter ended December, 2004 January 24, 2005 1
Slide 2: Presenter Panel
Presenter Panel Raymond N. Bickson (Managing Director) Anil P. Goel (Senior Vice-President Finance) Ajoy Misra (Senior Vice-President Sales & Marketing) 2
Slide 3: Outline of Presentation
Outline of Presentation § Industry Trends § Company Performance Review § New Properties & Renovations § Initiatives § Way forward § Question & Answers 3
Slide 4: Industry Trends
Industry Trends 4
Slide 5: Tourist Arrivals
Tourist Arrivals Tourism sector Tourist arrivals Forex earnings (million nos) ($ million) Dec-03 0.32 383 Dec-04 0.39 498 Growt h 23% 30% April-December 2003 2.73 3,607 April-December 2004 3.41 4,732 Growt h 25% 31% § April - December 2004, 3.41 million foreign tourists up 25% § Total forex earnings
Slide 6: Occupancy
Occupancy 79.7 79.9 74.0 70.0 67.5 65.9 65.7 65.0 55.5 55.7 56.0 48.2 Mumbai Delhi Bangalore Kolkata Goa Chennai Apr - Dec '03 Apr - Dec '04 § Increase in occupancy in all key destinations Mumbai 70% Delhi 74% Bangalore 80% Kolkata 65% Goa 56% Chennai 66% 6 Source : CRIS INFAC HOTELS, January 2005
Slide 7: Average Room Rate
Average Room Rate 9022 5601 5080 4986 4479 4185 4112 3696 3379 3420 3183 3170 Mumbai Delhi Bangalore Kolkata Goa Chennai Apr- Dec '03 Apr - Dec '04 § ARR Growth Mumbai 13% Delhi 19% Bangalore 61% Kolkata 6% Goa 20% Chennai 17% 7 Source : CRIS INFAC HOTELS, January 2005
Slide 8: Revenue Per Available Room
Revenue Per Available Room 7214 4463 3691 3554 2939 2828 2435 2197 2289 1766 1647 1776 Mumbai Delhi Bangalore Kolkata Goa Chennai Apr- Dec '03 Apr - Dec '04 § Growth in occupancy & Average Room Rate have led to an increase in Revenue Per Available Room Mumbai 21% Delhi 31% Bangalore 62% Kolkata 24%
Slide 9: Company Performance Review
Company Performance Review 9
Slide 10: Highlights
Highlights Quarter records improved performance across all destinations/segments § Revenues up by 29% § EBITDA higher by 83% § PAT higher by 110% 10
Slide 11: Turnover Trend
Turnover Trend 603.4 472.4 Rs. Crores 414.7 252.6 195.2 170.1 3rd Quarter 9 Months FY 03 FY04 FY05 § Consistent turnover growth § Quarterly Turnover growth over last year 29 % § 9 month Turnover growth over last year 28 % 11
Slide 12: ARR & Occupancy
ARR & Occupancy Occupancy ARR RevPAR (Rs) (Rs) FY05 FY04 FY05 FY04 FY05 FY04 Change Q3 (Oct-Dec) 75% 73% 6,050 4,712 4,523 3,444 31% 9M (Apr-Dec) 69% 65% 5,105 4,154 3,513 2,698 30% § ARRs have grown at 28 % for Q3 and 23% for 9 months § Occupancies have increased by 2% for Q3 and 4% for 9 months 12
Slide 13: Expenses
Expenses § Raw material cost increase commensurate with enhanced F&B Income § Staff costs up by due to – induction of global skills, restructure of terms & addition of new hotels § Licence fee - increase linked to top line growth § Cost rationalisation measures contribute to improved operating margi
Slide 14: Treasury Operations
Treasury Operations § Gross debt decreased by 3% to Rs. 1327 crores as compared to March 31, 2004 § Tight working capital management – lower by 6.7% as compared to March 31, 2004 § Cost of debt declines from 5.73% pa to 2.95% pa, post FCCB issue § Gross Interest cost lower by 13% to Rs. 39.16 crores
Slide 15: EBITDA Trend
EBITDA Trend Rs. Crores 133.3 91.3 82.0 70.4 41.6 38.5 3rd Quarter 9 Months FY 03 FY04 FY05 § EBITDA has recovered from last year’s fall § Quarterly EBITDA growth over last year 83 % § 9 month EBITDA growth over last year 63 % 15
Slide 16: Financial Results – Quarter 3
Financial Results – Quarter 3 Rs. Crores Q3 FY 2005 Q3 FY 2004 % Change Sales & Other Operating Income 249.1 188.9 32 Other Income 3.5 6.3 (44) Total Income 252.6 195.2 29 Consumption of Raw Material 23.4 18.8 24 Staff Cost 57.1 49.9 14 License Fees 28.9 18.0 61 Fuel, Power & Light 16.1 14.7 10 Othe
Slide 17: Financial Results – Nine months
Financial Results – Nine months Rs. Crores 9M FY 2005 9M FY 2004 % Change Sales & Other Operating Income 581.3 456.0 27 Other Income 22.1 16.3 36 Total Income 603.4 472.3 28 Consumption of Raw Material 57.5 48.4 19 Staff Cost 138.3 121.6 14 License Fees 60.9 39.1 56 Fuel, Power & Light 50.0 47.9 4 O
Slide 18: New Properties & Renovations
New Properties & Renovations 18
Slide 19: New Properties
New Properties § Taj Dennis Island, Seychelles § 25 Villas § Management Contract 19
Slide 20: New Properties
New Properties § Umaid Bhawan Palace, Jodhpur § 30 Rooms + 15 Suites § Inventory to be increased to 70 § Management Contract 20
Slide 21: New Properties
New Properties § Taj Exotica Resort, Mauritius § 65 Villas § Management Contract 21
Slide 22: New Properties
New Properties § Usha Kiran Palace, Gwalior § 36 Rooms § Licensed 22
Slide 23: New Properties
New Properties § Taj Green Cove Resort, Kovalam § 57 Rooms § Management Contract 23
Slide 24: New Properties
New Properties § Taj Property at Thimpu, Bhutan § To be launched in end 2005 § Management Contract 24
Slide 25: Renovations
Renovations § Upgradation of properties underway at : – Taj Mahal Palace & Tower; Mumbai – Taj Lake Palace; Udaipur – Taj West End, Bangalore – Jai Mahal, Jaipur – Taj Holiday Village, Goa § F & B Initiatives – Wasabi; Taj Mahal Palace & Tower - Mumbai – New Pan Asian Restaurant; Taj Connemara (to b
Slide 26: Initiatives
Initiatives 26
Slide 27: Initiatives
Initiatives § Brand Standards – consistent product & service experience § Training & Talent development § National Call Center launched § New interactive website § Wireless internet access extended to more properties § Interactive TV System introduced in Mumbai § ERP implementation underway 27
Slide 28: Way Forward
Way Forward 28
Slide 29: Way forward
Way forward § Consolidate position in the Indian market : – New properties in Chandigarh, Chennai & Bangalore § Accelerate roll-out of “indiOne” hotels § Promote wildlife destinations in India § Pursue opportunities in – South East Asia for Leisure properties – International gateway cities for luxur
Slide 30: IHCL shares price vs Sensex
IHCL shares price vs Sensex IHCL BSE Sensex 30
Slide 31: Question & Answers
Question & Answers 31
Slide 32: Thank you
Thank you 32
The Indian Hotels Company — Q3 FY2005 Earnings Presentation on 6ix