Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — FY2011 Earnings Presentation
60 slides from Indian Hotels's earnings presentation, May 24, 2011
Slide 1: Analyst Meet – Results for the Year ended March 31, 2011
The Indian Hotels Company Limited Analyst Meet Results for the Year ended March 31, 2011 May 24, 2011 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 Raymond Bickson - Managing Director 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 New Inventory Sales & Marketing Initiatives Financial Results Treasury Initiatives 4
Slide 5: Industry Trends
Hotels Resorts and Palaces Industry Trends
Slide 6: Overview
Overview The international travel and tourism industry is currently on a recovery path and on their way to return to the pre-crisis peak levels. Companies are likely to increase spends on corporate travel. Discretionary spending is expected to increase further, especially on leisure travel. In 2010,
Slide 7: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India Jan – Mar 2011 FTAs’ showed an 11.1% increase over Jan – Mar 2010 The Foreign Tourist Arrivals (FTA) in India during 2010 were 5.58 million as compared to the FTAs of 5.17 million during 2009, showing a growth of 8.1%. 7 Source: Ministry of Tourism
Slide 8: Domestic Visits – Growing over the Years
Domestic Visits – Growing over the Years Figures in Millions 650 527 563 462 366 392 270 309 220 236 160 168 191 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Domestic Travel Visits Source: Ministry of Tourism, BNP Paribas Domestic travel visits have registered a minimum growth ra
Slide 9: Occupancies – Year on Year Trend
Occupancies – Year on Year Trend 70 73 70 62 67 67 65 66 62 66 64 66 57 56 58 57 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai 2009/10 2010/11 Source: Internal Survey Increase in occupancies in all markets barring South Mumbai South Mumbai room inventory has increased over
Slide 10: ARRs – Year on Year Trend
ARRs –Year on Year Trend 11233 10368 10624 9757 8904 8676 8486 8219 7209 7454 6737 7140 6653 6673 6135 6041 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai 2009/10 2010/11 Source: Internal Survey Rates increase in most of the cities barring Chennai and Hyderabad 10
Slide 11: Rev PARs – Year on Year Trend
Rev PARs – Year on Year Trend 8170 7481 6053 5894 5983 5669 5614 5201 4615 4787 4684 4413 4271 3883 3486 3734 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai 2009/10 2010/11 Source: Internal Survey Increase in RevPAR in all markets barring South Mumbai, driven by higher occup
Slide 12: Supply and Demand Scenario
Supply and Demand Scenario A healthy increase in demand across the country has been observed The industry will also see an infusion of supply over the next few years from domestic and international brands 12 Source: HVS Research
Slide 13: New Inventory
Hotels Resorts and Palaces New Inventory 13
Slide 14: Taj Group Inventory – March 2011
Taj Group Inventory – March 2011 12,243 12,795 11,546 9,931 10,464 9,182 107 8,219 103 97 88 82 76 66 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 14
Slide 15: New Hotels Opening in 2011/12
New Hotels Opening in 2011/12 Hotel Indicative Timeline Company Rooms IHCL – Direct/ Management Contract Vivanta by Taj, Yeshwantpur September, 2011 IHCL 327 Vivanta by Taj, Srinagar Launched Management Contract 88 Vivanta by Taj, Bekal, Kerala September, 2011 Management Contract 75 Taj Palace, Marr
Slide 16: Vivanta by Taj, Yeshwantpur, Bangalore
Vivanta by Taj, Yeshwantpur, Bangalore 16
Slide 17: Vivanta by Taj, Srinagar
Vivanta by Taj, Srinagar 17
Slide 18: Vivanta by Taj, Bekal
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Slide 19: Taj Palace, Marrakech, Morocco
Taj Palace, Marrakech, Morroco 19
Slide 20: Vivanta by Taj, Gurgaon
Vivanta by Taj, Gurgaon ENCLOSED COURTYARD DROP OFF
Slide 21: Vivanta by Taj, Begumpet, Hyderabad
Vivanta by Taj, Begumpet, Hyderabad 21
Slide 22: Vivanta by Taj, Coimbatore
Vivanta by Taj, Coimbatore 22
Slide 23: Vivanta by Taj, Coorg
Vivanta by Taj, Coorg 23
Slide 24: Hotels in Pipeline
Hotels in Pipeline Hotel Indicative Timeline Company Rooms Vivanta by Taj Vivanta by Taj, Nagpur 2013 Management Contract 255 Vivanta by Taj, Pondicherry 2013 Management Contract 60 Vivanta by Taj, Dwarka 2013 IHCL 250 Vivanta by Taj, Guwahati 2013 IHCL 150 Gateway Gateway, Raipur 2012 Management Co
Slide 25: Sales and Marketing Initiatives
Sales and Marketing Initiatives 25
Slide 26: Taj Mahal Palace Reopening
Taj Mahal Palace Reopening August 2010 26
Slide 27: Vivanta by Taj Launch
Vivanta by Taj Launch September 2010 27
Slide 28: Taj Falaknuma Palace Launch
Taj Falaknuma Palace Launch November 2010 28
Slide 29: Focus – Heads of States
Focus – Heads of States The President of The United States of America French President Nicholas Sarkozy Barack Obama and First Lady Michelle Obama and First lady Carla Bruni The Taj Mahal Palace, Mumbai The Taj Palace, New Delhi & The Taj Mahal Palace, Mumbai November 2010 December 2010 His Excellen
Slide 30: TAJ FOREVER
TAJ FOREVER PATA Gold Award winning campaign 30
Slide 31: International Recognition
International Recognition Harvard Business School Case Studies on Taj – Two case studies on Taj Hotels Resorts and Palaces written by Harvard Business School emerging from our business practices. Crisis Management during and post 26/11 which focuses on the work culture, employee engagement and brave
Slide 32: Awards and Accolades
Awards and Accolades •Business Traveller Awards 2010, UK - Best Business Hotel Chain in India - Taj Hotels Resorts and Palaces • The Taj Hotels Resorts and Palaces has been voted as India’s Favourite Hotel Chain, in the Conde Nast Readers Travel Awards India Special The Indian Hotels Company Ltd, ha
Slide 33: Awards and Accolades
Awards and Accolades The Taj Mahal Palace Mumbai featured in the Conde Nast Traveller, UK Hotlist 2011 - The World's Best New Hotels •Taj Falaknuma Palace is featured in the sixth annual list of Travel+Leisure,USA It List •Conde Nast Traveller, UK Hotlist 2011 - The World's Best New Hotels •Conde Na
Slide 34: Standalone Financial Performance
Standalone Financial Performance 2010/11 34 34
Slide 35: Highlights – 2010/11
Highlights – 2010/11 Total Turnover of ` 1,713 crores higher by ` 196 crores PBIET of ` 351 crores higher by ` 31 crores PBT of ` 223 crores higher by ` 5 crores PAT of ` 141 crores lower by ` (12) crores EPS at ` 1.93 vs ` 2.12 35 35
Slide 36: Highlights – Q4 2010/11
Highlights – Q4 2010/11 Total Turnover of ` 546 crores higher by ` 94 crores PBIET of ` 173 crores higher by ` 49 crores PBT of ` 145 crores higher by ` 53 crores PAT of ` 94 crores higher by ` 34 crores EPS at ` 1.28 vs ` 0.83 36 36
Slide 37: Turnover Trend
Turnover Trend 1517 1713 546 452 ` Crores 488 441 330 344 294 335 2009/10 2010/11 Q1 Q2 Q3 Q4 Significant pickup in Q4 of 2010/11 37 37
Slide 38: PBIET Trend
PBIET Trend 351 371 124 173 ` Crores 129 117 48 27 19 34 2009/10 2010/11 Q1 Q2 Q3 Q4 Q4 2010/11 PBIET higher than Q4 2009/10 by 40% 38 38
Slide 39: Profit and Loss - 2010/11
Profit and Loss - 2010/11 `/ crores 2010/11 2009/10 % Change Net Sales/Income from Operations 1673.45 1408.94 19 Other Operating Income - 64.35 - Total Income 1673.45 1473.29 14 a. Consumption of Raw Materials 136.18 112.58 21 b. Staff Costs 412.39 356.11 16 c. License Fees 104.93 89.34 17 d. Fuel,
Slide 40: Financial Results – 2010/11
Financial Results – 2010/11 ` crores 2010/11 2009/10 % Change Room sales 834.52 699.63 19 F&B sales 636.70 536.34 19 LOP Income - 64.35 - Other Income 132.10 113.00 17 Management Fees 70.13 59.97 17 Total Income 1673.45 1473.29 14 Non – Operating Income 39.74 43.74 (9) Total Income including Other I
Slide 41: Expenditure
Expenditure Staff Cost – ` 412.39 Crores Includes incremental provisioning towards the retirement funds liability on account of change in GSEC rates in the current year. Raw Materials Cost – ` 136.18 crores Increase in line with higher F&B revenue. License Fees – ` 104.93 crores Higher by ` 16 crore
Slide 42: Exceptional items
Exceptional items Expense of ` (5.5) crores in the current year against an income of ` 51.2 crores in the previous year Particulars 2010/11 2009/10 Profit on sale of hotel/project 4.3 6.8 Profit/(loss) on divestment (16.3) 39.2 Project write off (5.2) - Exchange gain/(loss) 11.7 3.3 Others - 1.9 Tot
Slide 43: Balance Sheet as at March 31, 2011
Balance Sheet as at March 31, 2011 As at As at ` / Crores March 31, 2011 March 31, 2010 Shareholders’ Funds 3228.91 2689.22 Loan Funds Secured Loans 1464.01 1752.77 Unsecured Loans 874.66 897.78 Long Term Trade Deposits 12.76 21.69 Deferred Tax Liability 27.78 - Foreign Currency Translation Account
Slide 44: Dividend
Dividend The Board of Directors have recommended a final dividend of 100% for 2010/11. (PY 100%) 44 44
Slide 45: Consolidated Financial Performance
Consolidated Financial Performance 2010/11 45 45
Slide 46: 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 Tifco Holdings Ltd Benares Hotels Ltd United Hotels Ltd Inditravel Pvt Ltd Lanka Island Resorts Ltd Roots Corporation Ltd TAL Lanka Hotels Ltd Interna
Slide 47: Consolidated Financial Highlights – 2010/11
Consolidated Financial Highlights – 2010/11 Turnover of ` 2,927 crores PBIET of ` 289 crores PBT of ` 54 crores PAT of ` (87) crores EPS at ` (1.19) CY vs ` (1.99) PY 47 47
Slide 48: Consolidated Financial Results
Consolidated Financial Results 2010/11 Consolidated profits, though still in negative, improved by ` 50 crores over previous year. Key factors influencing the consolidated profitability are listed below: Domestic Portfolio – Gradual improvement in market conditions helped the turnover, margins and p
Slide 49: Consolidated Financials 2010/11
Consolidated Financials 2010/11 ` / Crores 2010/11 2009/10 % Change Net Sales/Income from Operations 2862.47 2456.67 17 Other Operating Income - 64.35 - Share of Profit in Associates 29.24 (4.57) - Total Income 2891.71 2516.45 15 a. Consumption of Raw Materials 296.52 254.69 16 b. Staff Costs 962.98
Slide 50: Consolidated Snapshot
Consolidated Snapshot `/Crores Revenue Profit after tax 2010/11 2009/10 2010/11 2009/10 IHCL Standalone 1,713 1,517 141 153 Subsidiaries 1,091 970 (245) (261) Joint Ventures 156 126 11 15 Associates (7) (5) (7) (5) Total 2,953 2,608 (100) (97) Less/(Add): Inter Company 61 92 (13) 40 Eliminations Con
Slide 51: Consolidated Balance Sheet
Consolidated Balance Sheet ` / Crores March 31, 2011 March 31, 2010 SOURCES OF FUNDS Share Capital 75.95 72.35 Share Warrants 124.37 - Reserves and Surplus 2,658.40 2,352.80 Preference shares issued by a subsidiary 140.00 120.00 Minority Interest 296.72 272.74 Loan Funds 4,245.18 4,460.69 Long Term
Slide 52: Overview of Taj Group
Overview of Taj Group Particulars 2010/11 2009/10 2008/09 2007/08 Number of hotels 107 103 97 88 Rooms Inventory 12,795 12,243 11,546 10,464 Total Revenue – ` / crores 4,288 3,739 3,918 4,332 • Total Revenue in 2010/11 were higher by 15% over previous year • Total Revenue denote arithmetic aggregate
Slide 53: International Hotels
International Hotels Occupancy (%) ARR ($) RevPAR ($) Hotel Name 2010/11 2009/10 2010/11 2009/10 2010/11 2009/10 The Pierre, New York * 55 38 618 632 337 240 Taj Boston 59 52 259 256 153 133 Campton Place, San Francisco 72 64 259 250 186 158 St. James Court, London 82 84 256 231 209 193 Blue, Sydney
Slide 54: Treasury Update
Hotels Resorts and Palaces Treasury Update 54
Slide 55: Treasury Update
Treasury Update Liquidity raised/ committed Preferential allotment of shares and warrants - ` 497 crores raised and expected to receive ` 373 crores by June 2012. Selective one off divestments Funds Utilized Repayment of 9.86% NCD in 2010/11 - ` 300 crores Repayment of 6% NCD in May, 2011 - ` 603 cr
Slide 56: Treasury Update
Treasury Update `/Crores Particulars March 31, 2011 March 31, 2010 Gross Debt 4,245 4,461 Available Liquidity 996 759 Net Debt 3,249 3,702 EBITDA 504 483 Net Debt : Equity 1.08 1.45 Net Debt : EBITDA 6.36 7.66 Initiatives undertaken to improve liquidity along with better operational profits has help
Slide 57: New Investment
New Investment • At its meeting held on May 24, 2011, the Board of Directors has approved for IHCL to invest up to ` 51 crores to acquire additional stake in Piem Hotels Ltd (PHL), directly or through its investment subsidiary, in which IHCL already controls 46.20% of shareholding. • With the aforem
Slide 58: Focus Areas – Going Forward
Focus Areas – Going Forward 58 58
Slide 59: Focus Areas – Going Forward
Focus Areas – Going Forward Key Focus areas: Continued thrust on US operations to make the portfolio cash neutral in the near term Manage the leverage at the consolidated level efficiently. Speedy completion of new projects in India. Facilitate speed to market of new properties coming up under manag
Slide 60: Thank you
Hotels Res: and Palace Thank you 60
The Indian Hotels Company — FY2011 Earnings Presentation on 6ix