Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — FY2008 Earnings Presentation
34 slides from Indian Hotels's earnings presentation, Jun 23, 2008
Slide 1: Analyst Meet: Results for the Year ended March 31, 2008
The Indian Hotels Company Limited Analyst Meet Results for the Year ended March 31, 2008 June 23, 2008 1
Slide 2: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director Anil P Goel – Executive Director – Finance Ajoy Misra - Senior Vice President, Sales & Marketing 2
Slide 3: Outline of Presentation
Outline of Presentation Industry trends Financial performance Consolidated Financial Performance Overview of Taj Group Expansion Plans 3
Slide 4: Industry Trends
Hotels Resorts and Palares Industry Trends
Slide 5: Foreign Tourist Arrival – 2007/08
Foreign Tourist Arrival – 2007/08 Foreign Tourist Arrivals 11% 13% 5.2m 4.6m 4.1m 2006 2007 2008 Period: April – March, Source: Ministry of Tourism • Continued buoyancy in foreign tourist arrivals in 2007/08 • Strong domestic demand 5
Slide 6: Occupancies – 2007/08
Occupancies -2007/08 76 76 75 75 74 74 75 73 71 71 69 70 69 70 70 68 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY08 FY07 Source: Internal Survey Aggregate supply grew by 2% to 18,018 rooms per day Aggregate demand was flat at 12,961 rooms per day 6
Slide 7: ARRs – 2007/08
ARRs – 2007/08 12787 12629 12002 12086 12221 10915 10289 9631 8251 8081 7786 7619 7343 6893 6948 5745 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY08 FY07 Source: Internal Survey ARR grew across major metro cities However, marginal reduction in ARR in Bangalore & Hyderab
Slide 8: Rev PARs – 2007/08
Rev PARs – 2007/08 9165 9373 9054 8693 8239 8479 7104 7305 5836 5760 5476 5435 5058 5268 4830 4287 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY08 FY07 Source: Internal Survey Rev PAR in most cities grew by between 13% to 28% 8
Slide 9: Financial Performance 2007/08
Financial Performance 2007/08 9
Slide 10: Highlights – 2007/08
Highlights – 2007/08 Turnover of Rs.1823 crores - up by 13% PBIT of Rs.675 crores - up by 23% PBT of Rs.580 crores – up by 22% PAT of Rs.377 crores – up by 17% EPS higher at Rs. 6.26 CY vs Rs. 5.35 PY 10
Slide 11: Turnover Trend
Turnover Trend 1823.1 1617.2 Rs. Crores 1154.8 Full Year FY06 FY07 FY08 Full Year growth - 13% over last year 11
Slide 12: PBIT Trend
PBIT Trend 674.8 546.5 Rs. Crores 292.4 Full Year FY06 FY07 FY08 Full Year growth - 23% over last year 12
Slide 13: Financial Results – 2007/08
Financial Results – 2007/08 Rs. Crores 2007/08 2006/07 % Change Sales & Other Operating Income 1764.51 1540.74 15 Other Income 58.62 76.45 (23) Total Income 1823.13 1617.19 13 Consumption of Raw Material 128.24 121.20 6 Staff Cost 309.84 280.29 11 License Fees 103.73 98.48 5 Fuel, Power & Light 92.3
Slide 14: Financial Results – 2007/08
Financial Results – 2007/08 Rs. Crores 2007/08 2006/07 % Change Room sales 978.71 845.15 16 F&B Sales 585.32 523.73 12 Other operating income 200.48 171.86 17 Non Operating Income 58.62 76.45 (23) Sales & Other Operating Income 1823.13 1617.19 13 Room Sales driven by 16% higher ARRs Strong F&B sales
Slide 15: ARR & Occupancy
ARR & Occupancy Occupancy (%) ARR (Rs) RevPAR (Rs) 2007/08 2006/07 2007/08 2006/07 2007/08 2006/07 % Change Full Year 73 73 10674 9233 7842 6783 16 15
Slide 16: Operating Margins
Operating Margins PBIT margin at 37% of sales for 2007/08 (PY 34%) Net Profit Margin at 21% of sales for 2007/08 (PY 20%) 16
Slide 17: Expenditure
Expenditure Staff cost increased by 11% over last year , in line with industry trends Other Expenses increased on account of higher A&P spends, increased variable operating costs and a one-time charge for an infructuous project. Interest expense increased on account of full utilization of the FCCB f
Slide 18: Balance Sheet
Balance Sheet Rs. Crores As on March 31, 2008 As on March 31, 2007 Sources of Funds Capital 60.29 60.29 Share Application Money 19.97 - Reserves and Surplus 1956.29 1738.39 Loan Funds 1134.18 941.90 Trade Deposits 23.63 15.28 Deferred Tax Liability 137.86 135.40 Total 3332.22 2891.26 Application of
Slide 19: Key Financial Parameters – 2007/08
Key Financial Parameters – 2007/08 Particulars As on March 31, 2008 As on March 31, 2007 Debt Equity Ratio 0.56 0.52 Return on Capital Employed 20.3% 18.9% Return on Net Worth 18.5% 17.9% 19
Slide 20: Dividends
Dividends • The Board of Directors had recommended an interim dividend of 190% for 2007/08 which has been since disbursed. (PY 160%) • No Final Dividend recommended 20
Slide 21: Update on Rights Issue
Update on Rights Issue Equity shares in the ratio of 1:5 @ Rs 70 per share - Rs 844 crores raised 6% Non Convertible Debentures with Detachable Warrants in the ratio of 1:10 of face value of Rs 100 – Rs 603 crores raised An option to receive one equity share for every Detachable warrant at an exerci
Slide 22: Consolidated Financial Performance 2007/08
Consolidated Financial Performance 2007/08 22
Slide 23: Major Taj Group companies forming part of Consolidated accounts
Major Taj Group companies forming part of Consolidated accounts Subsidiaries Associates Piem Hotels Ltd Taj SATS Air Catering Ltd Oriental Hotels Ltd Taj Investment & Finance Company Benares Hotels Ltd Ltd Inditravel Pvt Ltd United Hotels Ltd Taj Air Ltd Taj Lanka Resorts Roots Corporation Ltd Taj L
Slide 24: Consolidated Financial Highlights – 2007/08
Consolidated Financial Highlights – 2007/08 Turnover of Rs.3077 crores - up by 16% PBIT of Rs.881 crores - up by 24% PBT of Rs.679 crores – up by 16% PAT before Exceptional item of Rs.409 crores – up by 10% PAT after Exceptional item of Rs. 355 crores – lower by 4% EPS before Exceptional item higher
Slide 25: Consolidated Financial Results – 2007/08
Consolidated Financial Results – 2007/08 Rs. Crores 2007/08 2006/07 % Change Sales & Other Operating Income 2920.03 2506.13 17 Other Income 92.56 94.88 (2) Share of Profit in Associates 64.18 54.39 18 TOTAL INCOME 3076.77 2655.40 16 Consumption of Raw Material 266.07 253.76 5 Staff Cost 781.18 652.2
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Crores As on March 31, 2008 As on March 31, 2007 Sources of Funds Capital 60.29 60.29 Share Application Money 19.97 - Reserves and Surplus 2188.83 2036.33 Minority Interest 282.01 275.84 Loan Funds 3466.83 2055.14 Trade Deposits 23.63 15.28 Deferred Tax Liability 148.8
Slide 27: Taj Group: An overview
Taj Group An overview 27
Slide 28: Taj Group – Inventory
Taj Group – Inventory Hotel (Room) Nos. Luxury Business Leisure International Ginger Total IHCL 8 (2,149) 5 (422) 11 (863) - - 24 (3,434) Subsidiaries - 1 (88) - 6 (1,111) 11 (1,097) 18 (2,296) Associate Companies 1 (207) 7 (928) 6 (509) 1 (162) - 15 (1,806) Joint Venture 1 (260) 3 (422) 7 (251) 3 (
Slide 29: Overview of Taj Group
Overview of Taj Group Particulars 2007/08 2006/07 2005/06 2004/05 No. Of Hotels 86 82 76 66 Inventory 10,291 9,931 9,182 8,219 Total Income – Rs / crores 4332 3836 3042 2219 Total Income – USD / Million 1,083 959 676 493 • Total revenues in 2007/08 grew by 13% over previous year • Revenue growth sin
Slide 30: Expansion Plans-2008/09
Hotels Resorts and Palares Expansion Plans-2008/09
Slide 31: Rollout of new capacity
Rollout of new capacity IHCL Taj ITPL, Bangalore July, 2008 199 rooms Taj Lands End, Mumbai (Expansion) July, 2008 142 rooms Taj Residency, Bangalore March, 2009 350 rooms Taj Group Companies Taj Mount Road, Chennai July, 2008 215 rooms Nadesar Palace, Varanasi August, 2008 10 rooms Fisherman’s Cove
Slide 32: Expansion Plan – New Builds
Expansion Plan – New Builds Project Cost Hotel Room s (Rs / Crores) Year of opening IHCL Taj ITPL, Bangalore 199 113 July, 2008 Taj Lands End (Expansion) 122 55 July, 2008 Taj Residency, Bangalore 330 160 M arch, 2009 Taj Falaknum a Palace, Hyderabad 60 85 August, 2009 Taj Lake End, Udaipur 80 25 Se
Slide 33: Expansion Plan - Management Contracts
Expansion Plan - Management Contracts Hotel Rooms Year of opening Domestic Taj Residency, Trivandrum 134 July, 2008 Taj Residency, Panjim 164 February, 2009 Gateway, Chennai 159 July,2009 Taj Resort, Bekal (Kerala) 75 December, 2009 Gateway, Pune 156 December, 2009 Taj Residency, Nagpur 300 April, 2
Slide 34: Thank you
Hotels Re and Pals Thank you
The Indian Hotels Company — FY2008 Earnings Presentation on 6ix