Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q1 FY2019-20 Earnings Presentation
34 slides from Indian Hotels's earnings presentation, Aug 5, 2019
Slide 1: Cover letter to stock exchanges
I 11CI~ August 5, 2019 BSE Limited National Stock Exchange of India Corporate Relationship Departtnent Limited 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. Svmbo l: INDHOTEL crip Cod e
Slide 2: Global Conference Call FY 2019-20 Q1 Results
A TATA Enterprise Global Conference Call I l~CI~ FY 2019-20 - Q1 Results 5th Aug, 2019 TAj SELE~IONS VIVANTA GINGER EXPRESSIONS TAj.
Slide 3: Agenda
AGENDA • Industry Trends • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 2
Slide 4: Indian economy: Real GDP growth at a 20-quarter low
Indian economy: Real GDP growth at a 20-quarter low in Q4 FY 2018 / 19 GDP Growth - India r 8.0 75 7.0 7.0 7 .2 6.6 • 6.-8 65 F 19 ' 5 8, 6.0 5.5 50 FY12 1 IFY13 FY14 FYlS FY16 FY17 FYl8 l QFY19 2·QFY19 3QFV19 ,4 QFYl9 1 ,------------------------------------------ 1 Slowdown in private consumption |
Slide 5: Long term outlook remains positive for India
Long term outlook remains positive for India • • Key Enablers on this Journey Rapid infrastructure development Ease of doing business * USD 5+ Trillion Economy by 2023 • Employment generation • Make in India • Resolution of crisis in the financial services sector 7%+ Real GDP Growth p.a. * USD 3 Tri
Slide 6: Indian hospitality – short-term headwinds but good long-term potential
Indian hospitality – short-term headwinds but good long-term potential Headwinds Tailwinds • Impact of elections on occupancies, MICE • Increasing foreign tourist arrivals (14% yoy, < 1% global) • Hold back of discretionary spends • Improving domestic demand • Increasing local airfare / turmoil in a
Slide 7: Agenda
AGENDA • Industry Trends • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 6
Slide 8: Aspiration 2022
Aspiration 2022 15 Hospitality Company NEW PROJECTS EVERY YEAR Re-imagine Service, Brandscape,,/ 8% Portfolio ' , / Re-engineer Scale, Simplify, , / Margins, Tech no log EBITDA Sell ' People MARGIN High Customer EXPANSION Strong Brand Equity Engagement Pan-India Footprint Market Leaders in Leisure &
Slide 9: From a Branded House to a House of Brands
From a Branded House to a House of Brands ll~CI~ 8 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., _..,j
Slide 10: Momentum of New Signings Continues
Momentum of New Signings Continues SMART Strategic Margin Asset Relationships Tracking Enhancing Management 22 + 7 New Contracts Signed in FY 2018/19 Signed in Q1 FY 2019 / 20 9 Signed Till Date 9 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., _..,j
Slide 11: Shift in Business Mix
Shift in Business Mix 23% 20% ,-----------------------------, I I Holding Company Holding Company I I 32% I I 41% I I I I I I I I I I Management Contracts I I Management Contracts I---------------------------- I 45% 39% Group Companies Group Companies Portfolio as on 31st March 2018 Portfolio as on
Slide 12: Openings in Q1: 544 Keys
Scale Sell Simplify TAJCIDADE HOTEL Scaling up & CONVENTION our DE GOA– Openings in Q1 Inventory inventory GINGER DWARKA CENTER, AGRA Cidade de Goa Taj Hotel & Convention Center, Agra 98 KEYS 207 Keys 239 Keys Keys Ginger Dwarka ~---------------------~ I 3 Hotels I I I I I - I I I 544 Keys I 11 L --
Slide 13: Financial Performance Highlights – Q1 FY 2019/20
Financial Performance Highlights – Q1 FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 1,057 cr ₹ 166 cr 15.68% ₹ 14 cr 304 6% 32% (8%) bps ₹ 995 cr ₹ 126 cr 12.63% ₹ 15 cr *Consolidated Performance – Excludes IND AS Lease Standard Impact (like-for-like) 12 () TAJ SELE~IONS VI VANTA GINGER EXPRESSION
Slide 14: New Accounting Rules under Ind AS 116 Leases
New Accounting Rules under Ind AS 116 Leases • The erstwhile concept of Operating Lease will cease to exist. • All the leases will be considered as a Finance Lease irrespective of the arrangements (subject to two exceptions). Impact Areas Balance Sheet Profit and Loss Assets - ~ I"" EBITDA ] Depreci
Slide 15: Consolidated Key Indicators – Q1 2019/20
Consolidated Key Indicators – Q1 2019/20 ₹ /crores Total Revenue EBITDA 6% 32% 1,057 210 Pre IND AS 995 166 126 Pre IND AS Post IND AS ■ Q1 2018/19 ■ Q1 2019/20 ■ Q1 2018/19 Q1 2019/20 Pre Ind AS ■ Q1 2019/20 Post Ind AS -------------------------------------------------------------------------------
Slide 16: Consolidated Key Indicators – Q1 2019/20
Consolidated Key Indicators – Q1 2019/20 ₹ /crores Profit before Exceptional Items & Tax Profit After Tax -8% 37 Pre IND AS 15 14 25 Pre IND AS Post IND AS 6 Pre IND AS Post IND AS 0 ■ Q1 2018/19 Q1 2019/20 Pre Ind AS ■ Q1 2019/20 Post Ind AS ■ Q1 2018/19 Q1 2019/20 Pre Ind AS ■ Q1 2019/20 Post Ind
Slide 17: Agenda
AGENDA • Industry Trends • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 16
Slide 18: Summary of IndAS 116 impact on Consolidated P&L
Summary of IndAS 116 impact on Consol P&L – Q1 2019/20 ₹ /crores Q1 2019/20 Particulars Ind AS 116 Q1 2018/19 Pre Ind AS 116 Post Ind AS 116 Impact Revenue 1,057 - 1,057 995 Operating Expenses 891 -45 846 869 EBITDA 166 45 210 126 Depreciation 83 17 100 78 Interest 46 39 85 47 Profit Before exceptio
Slide 19: Consolidated – Reported Profit & Loss Statement
Consolidated – Reported Profit & Loss Statement – Q1 2019/20 ₹ /crores Q1 2019/20 2019/20 Actual Particulars Ind AS 116 2018/19 Actual Actual Pre Ind AS Vs Impact Actual Post Ind AS Pre Ind AS PY Revenue from Operations 1,020 0 1,020 980 4% Non-Operating Revenue 37 0 37 15 147% Total Revenue 1,057 0
Slide 20: IHCL Consolidated Exceptional Items
IHCL- Consolidated Exceptional Items For Q1 2019/20 ₹ /crores Q1 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts 2 (50) 52 Boston lease modification income 0 46 (46) Total 2 (4) 6 Gain on Sale of Flats included in Non Operating Revenue 25 - 25 19 TAJ SELEQIONS VIVANTA G
Slide 21: IHCL Network Revenue – Q1 2019/20
IHCL Network Revenue – Q1 2019/20 ₹ /crores Domestic International Particulars CY PY Growth over PY % CY PY Growth over PY % Room Revenue 483 464 4.2% 256 237 8.2% RevPAR 4,726 4,848 -2.5% 11,501 11,121 C) 3.4% F & B Revenue 464 456 C) 1.6% 186 182 C) 2.3% No of Hotels: 105 Domestic hotels: 88 Inter
Slide 22: Standalone Key Indicators – Q1 2019/20
Standalone Key Indicators – Q1 2019/20 ₹ /crores Total Revenue EBITDA 608 5% 24% 580 146 Pre IND AS 124 100 Pre IND AS Post IND AS ■ Q1 2018/19 ■ Q1 2019/20 ■ Q1 2018/19 Q1 2019/20 Pre Ind AS ■ Q1 2019/20 Post Ind AS : I I I I • Pre Ind AS EBITDA Margin Expansion 3.16 pp I I I • Pre Ind AS Operating
Slide 23: Standalone Key Indicators – Q1 2019/20
Standalone Key Indicators – Q1 2019/20 ₹ /crores Profit before Exceptional Items & Tax Profit After Tax 92% 252% Pre IND AS Pre IND AS 41 25 22 36 Pre IND AS Post IND AS Pre IND AS Post IND AS 21 (17) ■ Q1 2018/19 Q1 2019/20 Pre Ind AS ■ Q1 2019/20 Post Ind AS ■ Q1 2018/19 Q1 2019/20 Pre Ind AS ■ Q1
Slide 24: Summary of IndAS 116 impact on Standalone P&L
Summary of IndAS 116 impact on Standalone P&L – Q1 2019/20 ₹ /crores Q1 2019/20 Particulars Ind AS 116 Q1 2018/19 Pre Ind AS 116 Post Ind AS 116 Impact Revenue 608 - 608 580 Operating Expenses 484 -21 462 480 EBITDA 124 21 146 100 Depreciation 43 7 51 40 Interest 40 19 59 39 Profit Before exceptiona
Slide 25: Standalone – Reported Profit & Loss Statement
Standalone – Reported Profit & Loss Statement – Q1 2019/20 ₹ /crores Q1 2019/20 2019/20 Actual Particulars Ind AS 116 2018/19 Actual Actual Pre Ind AS Vs Impact Actual Post Ind AS Pre Ind AS PY Revenue from Operations 572 572 565 1% Non Operating Revenue 36 36 15 141% Total Revenue 608 0 608 580 5%
Slide 26: IHCL Standalone Exceptional Items
IHCL- Standalone Exceptional Items For Q1 2019/20 ₹ /crores Q1 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts 2 (50) 52 Provision for impairment of investment in Pierre that incurred cash losses - (1) 1 Total 2 (51) 53 Gain on Sale of Flats included in Non Operating Re
Slide 27: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars June 30, June 30, June 30, June 30, March 31, March 31, 2019 2019 2019 2019 2019 2019 (Post Ind AS) (Pre Ind AS) (Post Ind AS) (Pre Ind AS) Gross Debt 1,791 1,791 1,784 2,319 2,319 2,326 Lease Liability 909 1,937 Liquidity (234) (234) (282)
Slide 28: Agenda
AGENDA • Industry Trends • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 27
Slide 29: 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 30: Annexure
Annexure 29 0 TAJ SFl .... Q10 s VIVI\ fl\ GINGER [XPRrSS 11-.ICI~
Slide 31: Our Operational Portfolio
Our Operational Portfolio Inventory by Geography Inventory by Contract Type International, Holding 2727 Management Company, Contracts, 4354 5444 Domestic, 15490 Group Companies, 8419 ■ Holding Company ■ Group Companies ■ Domestic ■ International ■ Management Contracts As of June 2019, IHCL has 151 h
Slide 32: Awards – 2019
Awards – 2019 / 20 TRUSTYOU .... " GALLUP G R EAT cfi.co WORKPLACE ~ /; HOSPl TALITY ) Medina AWARD 1 AWARDS Quality Food Assurance Sen/ces Conde Nast TRAVEL+ rave er LEISURE tripadvisor .. ... ·············• ·:·~ .·············•.... ~Hotelier :--- ) J~ AWARD~ 1, . ::;, 2018 ;,: . · ··•............
Slide 33: 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 34: All India Hospitality Overview – Q1 2019-20 v/s 2018-19
All India Hospitality Overview – Q1 2019-20 v/s 2018-19 Market Dynamics All India Hotels’ Key Markets Performance • Growing Markets: • Supply Growth • Occupancy India, Chandigarh, +3.2% 62.2% (-0.2%) Hyderabad, Kochi, Gurgaon, Jaipur, • Demand Growth • Avg. Room Rate Bengaluru, Mumbai. +3.0% ₹ 5,394
The Indian Hotels Company — Q1 FY2019-20 Earnings Presentation on 6ix