Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — FY2017 Earnings Presentation
31 slides from Indian Hotels's earnings presentation, May 26, 2017
Slide 1: The Indian Hotels Company Limited Analyst Meet
The Indian Hotels Company Limited Analyst Meet Results for the Year ended March 31, 2017 1 May 26, 2017
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 gu
Slide 3: Presenter Panel
Presenter Panel Rakesh Sarna - Managing Director & CEO Giridhar Sanjeevi - Chief Financial Officer Rajeev Newar – Vice President, Finance 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends Inventory – Taj Group Financial Results - Standalone & Consolidated Treasury Other Update 4
Slide 5: Industry Trends: Global outlook
Industry Trends Global outlook International travel and tourism arrivals grew by 3.9% to reach a total of 1,235 million in 2016 (Jan to Dec), 46 million more than 2015 in the same period. Growth accelerated in Asia Pacific by (+8%) Europe by (+2%), America (+4%), and Africa (8%) enjoyed strong rebou
Slide 6: Industry Trends: India Market Overview
Industry Trends Industry Trends India Market Overview 2016-17 saw a supply growth of 3.1%, where demand increased by 6.2% over the previous year. Most key cities witnessed an increase in supply in the range of 1% to 5% E-Tourist Visa scheme for India is now available across 161 countries arriving at
Slide 7: All India Hospitality Overview: 2016-17 v/s 2015-16
All India Hospitality Overview: 2016-17 v/s 2015-16 Market Dynamics All India Hotels’ Performance Key Markets •Growing Markets: •Supply Growth +3.1% •Occupancy Ahmedabad, Kochi, Jaipur, 64% (+3.0%) Pune, Goa, Chandigarh, •Demand Growth +6.2% Mumbai, Hyderabad, •Avg. Room Rate Chennai, Kolkata, ` 5,5
Slide 8: Taj Group Inventory
e TAJ Taj Group Inventory
Slide 9: Taj Group Inventory Brand Distribution
Taj Group Inventory Brand Distribution Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 21 3,572 10 1,851 29 5,423 35 4,939 5 575 40 5,514 27 2,206 1 208 28 2,414 35 3,324 - - 35 3,324 Total 118 14,041 16 2,634 134 16,675 9
Slide 10: Upcoming Development in 2017/18
Upcoming Development in 2017/18 Hotel Company Rooms Andamans IHCL 75 Rishikesh Management Contract 79 Shimla Management Contract 95 Tirupati Management Contract 102 Ginger Ahmedabad – Satellite (Opened in May 2017) Management Contract 36 Ahmedabad - SG Highway(Opened in May 2017) Management Contract
Slide 11: Standalone Financial Performance for the Year ended March 31, 2017
Standalone Financial Performance for the Year ended March 31, 2017 11
Slide 12: IND-AS – Effective April 1, 2016
IND-AS – Effective April 1, 2016 Effective April 1, 2016, IHCL has migrated to the new Accounting Standards – IND-AS. Transition to IND-AS has resulted in key change in presentation of accounts, inter alia, in the following areas Head Important Areas Revenue recognition Loyalty Income Fair Value Inv
Slide 13: IHCL Standalone Key Indicators
IHCL Standalone Key Indicators for Year ended March 31, 2017 `/crores `/crores 23 Operating Revenue 5% Operating EBITDA % 2,450 600 521 2,400 2,391 500 422 400 2,350 300 2,300 200 2,268 100 2,250 - 2015/16 2016/17 2,200 2015/16 2016/17 `/crores 41% `/crores 69% Profit Before Tax Profit After Tax (be
Slide 14: Profit and Loss Account
Profit and Loss Account for Period ended March 31, 2017 Quarter IV Year `/ crores 2016/17 2015/16 % Change 2016/17 2015/16 % Change Revenue from Operations 707 686 3% 2391 2268 5% Other Income 18 23 (22)% 54 106 (49)% Total Income 725 708 2% 2445 2374 3% Food and Beverages consumed 62 58 7% 220 210
Slide 15: Income Details
Income Details For period ending March 31, 2017 ` / Crores 2016/17 2015/16 % Change Room Income 1,048 973 8 Food , Restaurants & Banquet Income 942 928 1 Management & Operating fees 159 149 7 Other Operating Income 242 217 11 Income from Operations 2391 2268 5 Non Operating Income 54 106 (49) Total
Slide 16: Exceptional Items
Exceptional Items For period ending March 31, 2017 ` / Crores Particulars 2016/17 2015/16 Exchange Gain/ (Loss) on Long-term Borrowings/Assets (Net) 2 28 Change in fair value of derivative contracts 65 (24) Recovery of costs along with interest on a surrendered project 24 - Provision for impairment
Slide 17: IHCL Standalone Financials Balance Sheet
IHCL Standalone Financials ` / Crores Balance Sheet March 31, 2017 March 31, 2016 Non Current Assets Fixed Assets (Including CWIP) 2,295 2,198 Financial Assets Investments 2,875 1,819 Loans 38 1,057 Other Financial Assets 59 56 Other Non Current Assets & Advance Tax 321 298 Current Assets Inventorie
Slide 18: Dividend
Dividend The Board of Directors have recommended a final dividend of 35% for 2016/17. 18
Slide 19: Consolidated Financial Performance for the Year Ended March 31, 2017
Consolidated Financial Performance for the Year Ended March 31, 2017 19
Slide 20: Taj Group Major Companies
Taj Group Major Companies Company Name Effective Holding % Company Name Effective Holding % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj SATS Air Catering Ltd 51.00 TIFCO Holdings Ltd [Investment Company] 100.00 Taj GVK Hotels & Resorts Ltd 25.52 Benares Hotels Ltd 51.68 Taj Madras Flight K
Slide 21: IHCL Consolidated Key Indicators
IHCL Consolidated Key Indicators for Period ended March 31, 2017 `/crores `/crores Operating Revenue Operating EBITDA 11% 4,400 4,200 630 4,023 4,010 4,000 610 3,800 600 3,600 3,400 570 552 3,200 3,000 540 2015/16 2016/17 510 2015/16 2016/17 `/crores Profit After Tax 0 2015/16 2016/17 Operating Reve
Slide 22: IHCL Consolidated Profit and Loss Account
IHCL Consolidated -Profit and Loss Account for Period ended March 31, 2017 Rs/ crores 2016/17 2015/16 % Change Revenue from Operations 4010 4023 - Other Income 55 100 (45%) Total Income 4065 4123 (1%) Cost of Materials Consumed 364 367 (1%) Employee Benefits Expense 1365 1423 (4%) Other Operating &
Slide 23: Exceptional Items
Exceptional Items For period ending March 31, 2017 ` / Crores Particulars 2016/17 2015/16 Exchange Gain/ (Loss) on Long-term Borrowings/Assets (Net) 0 (33) Change in fair value of derivative contracts 65 (24) Recovery of costs along with interest on a surrendered project 24 - Refund of municipal tax
Slide 24: IHCL Consolidated Financials Balance Sheet
IHCL Consolidated Financials ` / Crores Balance Sheet March 31, 2017 March 31, 2016 Non Current Assets Fixed Assets (Including Goodwill) 6038 7052 Financial Assets Investments 1153 1345 Loans 15 15 Other Financial Assets 72 73 Other Non Current Assets , Advance Tax & Deferred Tax 430 387 Current Ass
Slide 25: Overview of Taj Group
Overview of Taj Group For the Year ended March 31, 2017 Particulars 2016/17 2015/16 2014/15 2013/14 139 136 130 125 Number of Hotels 16,778 16,500 15,658 15,391 Rooms Inventory 7,095 6,725 6,015 5,677 `/crores) Total Revenue (` Total Revenue denotes the arithmetical aggregate of the turnover of all
Slide 26: Update on Financial Initiatives
Update on Financial Initiatives International Restructuring The restructuring exercise for overseas hotels / investments was concluded during the year Holdings in the assets in USA, UK , South Africa, Sri Lanka & Maldives have all now been shifted to IHOCO BV (100% Subsidiary) The new simplified str
Slide 27: Update on Recent Divestment Initiatives
Update on Recent Divestment Initiatives Offshore Debt Net Liquidity Transaction Sale Proceeds Divestments Year Repayment Infused in IHCL Currency $/Million $/ Million `/crores Blue, Sydney 2014/15 AUD 30 - 195 Tata Projects Shares 2015/16 ` 9 - 56 Taj Boston 2016/17 USD 125 113 80 Belmond Shares 201
Slide 28: Debt Position
Debt Position `/crores Particulars Standalone Consolidated March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Gross Debt 2,049 2,158 3,383 4,526 Liquidity (67) (157) (232) (310) Net Debt 1,982 2,001 3,151 4,216 Finance Cost 198 243 324 376 Net Debt/ Equity 0.76 0.84 0.97 1.27 Weighted cost
Slide 29: Other Update
e TAJ Other Update
Slide 30: Amalgamation
Amalgamation The Board of Directors, at its meeting held on May 26, 2017, has approved the amalgamation of TIFCO Holdings Ltd (TIFCO) , a wholly owned subsidiary (WOS), of the IHCL into the Company, by way of Scheme of Amalgamation. TIFCO is an NBFC classified as an Investment company , registered w
Slide 31: Thank you
e TAJ Thank you
The Indian Hotels Company — FY2017 Earnings Presentation on 6ix