Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q2 FY2004 Earnings Presentation
30 slides from Indian Hotels's earnings presentation, February 2004
Slide 1: The Indian Hotels Company Limited Analyst Meet Q2 FY2004
The Indian Hotels Company Limited Analyst Meet Q2 FY2004 1
Slide 2: Agenda
Agenda Financial Results Q2 FY04 Performance Review 2
Slide 3: Performance Overview & Outlook
Performance Overview & Outlook ¾ Operating revenues up 18% in Q2. On adjusting for Lands End and sale of Pune & Lucknow revenues up 14%. ¾ Gross Operating Profit higher by 25% at Rs. 18.4 Crs. ¾ Profit before Tax and exceptional items higher by 104%. ¾ Extraordinary expense of Rs. 2.9 Crs due to VRS
Slide 4: Financial Results
Financial Results 4
Slide 5: Trends in Quarterly Turnover
Trends in Quarterly Turnover 250 FY2001 FY2002 FY 2003 FY 2004 200 150 Rs. Crores 100 50 0 Q1 Q2 Q3 Q4 * Restated to reflect sale of Air Catering business5
Slide 6: Trends in Quarterly EBIDTA
Trends in Quarterly EBIDTA 80 FY2001 FY2002 60 FY2003 FY2004 Rs . Crore s 40 20 0 Q1 Q2 Q3 Q4 6
Slide 7: Trends in Quarterly PBT
Trends in Quarterly PBT 35 FY2002 FY2003 FY2004 30 25 Rs. Crores 20 15 10 5 0 Q1 Q2 Q3 Q4 PBT before exceptional items and sale of businesses 7
Slide 8: Trends in Turnover
Trends in Turnover Monthly Turnover 70.0 65.0 60.0 FY 03 55.0 Rs. Crores 50.0 45.0 40.0 FY 02 35.0 30.0 25.0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 12 months to Sep - 03 12 months to Sep - 02 8
Slide 9: Trends in ARR & Occupancy
Trends in ARR & Occupancy Occupancy(%) ARR RevPAR (Rs.) (Rs.) FY2003 FY2004 FY2003 FY2004 FY2003 FY2004 % Change Q2 53 63 3519 3830 1879 2428 29.2 1st Half 53 61 3683 3832 1941 2355 21.3 9
Slide 10: Financial Results Second Quarter of 2003-04
Financial Results Second Quarter of 2003-04 Items Quarter ended (Rs. Crores) Sept 30 2003 Sept 30 2002 % Change Sales and Other Operating Income 136.5 115.9 17.82 Other Income 7.7 10.5 (26.76) Total Income 144.2 126.4 14.11 a. Consumption of raw materials 15.1 13.1 15.14 b. Staff cost 33.7 29.1 15.8
Slide 11: Performance Analysis: Revenues
Performance Analysis Revenues: ¾ Operating revenues showed strong growth and increased by 18% in Q2. On adjusting for Lands End and sale of Pune & Lucknow to Piem the increase was 14%. ¾ Revenue growth was driven by ¾Higher Room Revenue : Up 19%. ¾Continued uptrend in occupancy: 63% in Q2 FY04 compa
Slide 12: Performance Analysis: Operating Expenses
Performance Analysis ¾Total Operating expenses increased by Rs. 17 Crs. The increase in costs were due to: ¾Operating expenses of Lands End Rs. 12.4 Crs. ¾Payroll costs higher by Rs. 4.6 Crs (after adjusting for Lands End and TR Lucknow and Blue Diamond Pune) due to, wage settlement & increments and
Slide 13: Performance Analysis: Gross Operating Profit
Performance Analysis ¾Gross Operating Profit increased from Rs. 14.7 Crs to Rs. 18.4 Crs. an increase of 25%. ¾GOP margin up 0.8 %. ¾Profit before Tax & Extraordinary Expense increased by 104%. ¾Higher GOP. ¾Lower interest expense. ¾Extraordinary expense of Rs. 2.9 crs towards VRS & Prior period ite
Slide 14: Financial Results First Half of 2003-04
Financial Results First Half of 2003-04 Items Six months ended (Rs. Crores) Sept 30 2003 Sept 30 2002 % Change Sales and Other Operating Income 266.2 228.5 16.51 Other Income 15.7 15.7 (0.13) Total Income 281.9 244.2 15.44 a. Consumption of raw materials 29.6 26.2 12.93 b. Staff cost 66.4 58.9 12.67
Slide 15: Performance Analysis: Half-Year Revenues
Performance Analysis ¾ Operating Revenues increased by 17% to Rs. 266 Crs. On adjusting for Lands End and sale of Pune & Lucknow the increase was 12%. ¾ The increase in revenues was driven by : ¾Higher Room Revenue : Up 18% ¾Increase in occupancy from 53% in H1 FY2003 to 61% in H1 FY2004 ¾Higher ARR
Slide 16: Performance Analysis: Half-Year Expenses
Performance Analysis ¾ Operating expenses increased by Rs. 38.5 Crs. ¾ Lands End Rs. 25.4 Crs. ¾ Increase in staff Costs Rs. 7.5 Crs. ¾ Higher travel costs. ¾ Higher advertisement expenditure in Q1. ¾ Interest cost declined by Rs. 7.4 crores. ¾ Gross Profit declined by Rs. 0.8 Crs. The decline was d
Slide 17: Revenue Analysis By Category
Revenue Analysis By Category – Q2 FY 04 v/s Q2 FY 03 FY04 FY03 Mgmt. Mgmt. Other Fees Other Fees 6% 4% 7% 4% F&B Rooms Rooms F&B 45% 44% 46% 44% 17
Slide 18: Revenue Analysis By SBU
Revenue Analysis By SBU – Q2 FY04 v/s Q1 FY03 FY 04 FY 03 Leisure Leisure 7% 6% Business Business Corporate Corporate 8% 13% 7% 4% Luxury Luxury 80% 72% 18
Slide 19: Luxury Division Second Quarter
Luxury Division Second Quarter Rs lacs LUXURY PARTICULARS 2003-04 2002-03 % change Turnover Room 5,392 4,209 28.1 Food & Beverage 5,235 4,117 27.2 Other Income 697 658 5.9 Total 11,324 8,984 26.0 Management Fees 138 108 28.3 Total 11,462 9,091 26.1 Avg Room Available 2,004 1,994 0.5 Average Realisat
Slide 20: Luxury Division First Half
Luxury Division First Half Rs. lacs LUXURY PARTICULARS 2003-04 2002-03 % change Turnover Room 10,453 8,274 26.3 Food & Beverage 10,249 8,147 25.8 Other Income 1,403 1,244 12.8 Total 22,105 17,665 25.1 Management Fees 246 206 19.5 Total 22,351 17,871 25.1 Avg Room Available 2,008 1,872 7.3 Average Re
Slide 21: Business Division Second Quarter
Business Division Second Quarter Rs Rslacs lacs BUSINESS PARTICULARS 2003-04 2002-03 % change Turnover Room 480 394 21.9 Food & Beverage 364 317 14.9 Other Income 38 47 (18.6) Total 881 757 16.5 Management Fees 286 216 32.7 Total 1,167 972 20.1 Avg Room Available 295 298 (1.1) Average Realisation Pe
Slide 22: Business Division First Half
Business Division First Half Rs lacs Rs lacs PART ICULARS BUSINESS 2003-04 2002-03 % change Turnover Room 866 742 16.6 Food & Beverage 664 603 10.0 Other Income 70 89 (21.4) Total 1,600 1,435 11.5 Management Fees 563 427 31.9 Total 2,163 1,861 16.2 Avg Room Avl 294 298 (1.3) Average Realisation Per
Slide 23: Leisure Division Second Quarter
Leisure Division Second Quarter Rs lacs LEISURE PARTICULARS 2003-04 2002-03 % change Turnover Room 392 308 27.3 Food & Beverage 344 290 18.5 Other Income 49 52 (5.8) Total 785 650 20.7 Management Fees 74 57 29.2 Total 859 708 21.4 Avg Room Available 506 530 (4.5) Average Realisation Per Room 2,033 1
Slide 24: Leisure Division First Half
Leisure Division First Half Rs lacs LEISURE PARTICULARS 2003-04 2002-03 % change Turnover Room 837 670 24.9 Food & Beverage 703 615 14.4 Other Income 105 130 (19.5) Total 1,645 1,415 16.2 Management Fees 169 139 21.2 Total 1,814 1,555 16.7 Avg Room Available 518 530 (2.3) Average Realisation Per Roo
Slide 25: Corporate Second Quarter
Corporate Second Quarter Rs Rslacs lacs CORPORATE PARTICULARS 2003-04 2002-03 % change Turnover Other Income & Management Fee 849 1,106 (23) Total 849 1,106 (23) •Other Income includes dividend income, income from sale of land •Management Fee under Corporate is fees from International properties 25
Slide 26: Corporate First Half
Corporate First Half Rs Rslacs lacs CORPORATE PARTICULARS 2003-04 2002-03 % change Turnover Other Income & Management Fee 1,702 1,661 2.5 Total 1,702 1,661 2.5 •Other Income includes dividend income, income from sale of land •Management Fee under Corporate is fees from International properties 26
Slide 27: Revenue Enhancement Initiatives
Revenue Enhancement Initiatives ¾Rate increases being implemented for most of the hotels ¾Appointment of Direct Sales Agents to increase coverage at no fixed costs ¾Focus on increasing proportion of negotiated accounts ¾Sales blitz covering over 200 corporates in SE Asia ¾Events for Travel Agents fo
Slide 28: Guidance
Guidance ¾Second Half FY2004: Growth rates expected to continue with a combination of Occupancy and ARR increases from Q3. ¾Pay roll cost will be higher YoY as we induct people with international experience ¾Other expenses will be higher due to higher travel costs and variable expenses due to higher
Slide 29: Awards
Awards ¾ Taj Mahal Mumbai ¾ 2003 World’s Best Business Hotels; Readers of Travel & Leisure ¾ Business Traveller Asia Pacific Reader Survey; World Travel Awards ¾ Taj Exotica Resort & Spa, Maldives ¾ Condé Nast Traveller, UK – Hot Hotels list for 2003 ¾ Conde Nast Traveller’s – The Hot List 2003 – 50
Slide 30: Thank you
Thank you Back to home Back to company 30
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