Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q2 FY2018 Earnings Presentation
45 slides from Indian Hotels's earnings presentation, Nov 13, 2017
Slide 1: Cover letter to stock exchanges
Bd TA HOTELS - PALACES - RESORTS - SAFARIS Ge, <a November 13, 2017 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumb
Slide 2: Analyst Meet: Results for the Period ended September 30, 2017
The Indian Hotels Company Limited Analyst Meet Results for the Period ended September 30, 2017 November 13, 2017 1
Slide 3: 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 4: Agenda
Agenda Industry Overview & Executive Summary – Mr. Puneet Chhatwal, MD & CEO Market Trends / Sales & Marketing Initiatives - Chinmai Sharma, Chief Revenue Officer Summary Financials & Treasury Update - Giridhar Sanjeevi, Chief Financial Officer Q&A 3
Slide 5: Industry Overview & Executive Summary
Industry Overview & Executive Summary At the end of 2016 - International travel and tourism arrivals grew by about 4% globally. The growth rates have been positive in most areas except Middle East where demand growth was uneven – Asia Pacific (+8%) – Europe (+2%) – America (+4%) – Africa (+8%) – M
Slide 6: Q2 FY2018 Highlights
Q2 FY2018 Highlights Standalone ↓ Revenue marginally declined over the previous year. ↑ EBITDA grew on the back of lower expenses, EBITDA margins at 15.03% showed an increase of 1.63 pp. ↓ Loss reported at the PAT level due to write downs. Consolidated ↓ Revenue and EBITDA declined mainly due to ren
Slide 7: H1 FY2018 Highlights
H1 FY2018 Highlights Standalone ↑ Revenue increased by 3% over the previous year. ↑ EBITDA grew at a very healthy 14%, EBITDA margins at 15.23% showed an increase of 1.47 pp. ↓ Loss reported at the PAT level due to write downs. Consolidated ↓ Reported Revenue and EBITDA declined by 4% and 12% respec
Slide 8: Taj Group Inventory
if] Taj Group Inventory
Slide 9: Existing Inventory
Existing Inventory Geography wise Legal Entity wise Ginger Managed Domestic Properties IHCL 3,504 4,303 4,232 International JVs 2,634 Domestic 1,687 10,710 Associates Subsidiaries 1,520 5,106 As at September 30, 2017, the Taj Group has 137 hotels with 16,848 rooms. 8
Slide 10: Recently opened hotels and upcoming development
Recently opened hotels and upcoming development Next 12 months Hotel Company Rooms Havelock, Andamans IHCL 75 Udaipur Management Contract 125 Rishikesh Management Contract 79 Shimla (Theog) Management Contract 95 Ginger Ahmedabad – Satellite (Opened in May 2017) Management Contract 36 Ahmedabad - SG
Slide 11: Market Trends / Sales & Marketing Initiatives
Market Trends / Sales & Marketing Initiatives 10
Slide 12: All India Hospitality Overview: H1 2017-18 v/s 2016-17
All India Hospitality Overview: H1 2017-18 v/s 2016-17 Market Dynamics All India Hotels’ Key Markets Performance • Growing Markets: • Supply Growth • Occupancy Ahmedabad, Jaipur, +3.0% 62% (+2.6%) Chandigarh, Pune, Hyderabad, Bengaluru, Mumbai, New Delhi, • Demand Growth • Avg. Room Rate Chennai, Ko
Slide 13: All India Hotel Performance – Key cities
All India Hotel Performance – Key cities H1 (2017-18) v/s H1 (2016-17) 10% 9.3% 9.3% 8.5% 8.1% 8% 6.8% 5.7% 6.0% 6% 5.4% 5.4% 5.4% 4.8% 3.5% 3.7% 4% 3.0% 3.1% 3.3% 2.5% 1.9% 2.1% 2% 0.9% 0.9% 0% -1.0% -2% Supply % Change Demand % Change There has been overall a 3 % increase in Supply in H1 (2017-1
Slide 14: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India In Lakhs 28.4 26.8 25.1 24.1 23.2 22.4 21.5 22.0 22.8 20.4 20.2 20.1 20.5 17.6 16.8 16.5 15.0 15.6 14.5 13.4 12.6 13.2 Apr- Jun Jul- Sep Oct- Dec Jan-Mar 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Foreign tourist arrivals in India have shown growth in each qu
Slide 15: Industry Occupancies % – Year on Year Trend
Industry Occupancies % – Year on Year Trend H1 (2017-18) v/s H1 (2016-17) H1 (2017-18) H1 (2016-17) 80 72 70 70 70 67 67 67 68 66 64 64 62 63 62 65 62 61 63 61 59 60 61 60 55 50 40 30 20 10 - India Goa Kolkata Mumbai Pune New Delhi Gurgaon Jaipur Bengaluru Chennai Hyderabad Source : STR Global 14
Slide 16: Industry ARR – Year on Year Trend
Industry ARR– Year on Year Trend H1 (2017-18) v/s H1 (2016-17) H1 (2017-18) H1 (2016-17) 9,000 8,000 7,378 7,129 7,000 6,782 6,367 6,000 5,719 5,625 5,821 5,889 5,253 5,409 5,465 5,390 5,147 5,306 5,047 5,000 4,794 4,795 4,340 4,574 4,087 3,906 4,000 3,618 3,000 2,000 1,000 - India Goa Kolkata Mumba
Slide 17: Sales & Marketing Initiatives
Sales & Marketing Initiatives 16
Slide 18: Sales & Marketing Initiatives
Sales & Marketing Initiatives Digital-Performance Loyalty Update Tajness Roll Out PR Campaigns Awards & Accolades 17
Slide 19: Digital-Performance
Digital-Performance Increase H1 (2017-18) vs H1 (2016-17) Room Nights Revenue Website Performance 26% 22% Website/Mobile Booking Details • Overall gross website Booking Revenue has increased by 22% for H1(2017-18) when compared H1(2016-17) • Mobile Revenue alone up by over 184% • Recently launched m
Slide 20: Social Media Update
Social Media Update Taj Hotels – Community Size Klout Score 1,074,572 134,132 243,888 Awards Won by Taj.Live (Social Media Command Center) • National Award for Marketing Excellence by CMO Asia • Tata Brand Excellence Award for Communication • Tata Innovista 2017 Finalist 19
Slide 21: Loyalty Update
Loyalty Update Consumer loyalty Member base has increased revenue has grown by 39% as on Sep’17 v/s Sep’16 18% H1 FY 17-18 v/s H1 FY 16-17 Loyalty contribution as % of revenue has increased to Active member % has healthy double digit increased by 10% H1FY17- contribution 18 v/s H1FY16-17 through var
Slide 22: Tajness Roll Out – Bekal & Coorg
Tajness Roll Out – Bekal & Coorg 21
Slide 23: Tajness Roll Out – Taj City Centre Gurugram & Taj Holiday Village
Tajness Roll Out – Taj City Centre Gurugram & Taj Holiday Village Resort & Spa, Goa 22
Slide 24: PR - Brand Highlights
PR - Brand Highlights Forbes India Country & Town House UK Hindustan Times ET Panache Conde Nast Traveler US Conde Nast Traveller The Telegraph UK 23
Slide 25: PR - Cover Stories
gb as! TAJ HOTELS « PALACES « RESORTS « SAFARIS US : Fiji Times : Cover Pag: FiJiTIME @ FAR-FLUNG.... The Getaway Guide FUN VACATIONS AROUND TOWN
Slide 26: Awards & Accolades
Awards & Accolades BUSINESS TRAVELLER UK AWARDS Best Business Hotel Chain in India: Taj Hotels Palaces Resorts Safaris GALLUP GREAT WORKPLACE AWARD Taj Hotels Palaces Resorts Safaris received the prestigious GALLUP Great Workplace Award 2017. A six-time winner of the award – Taj is the only Indian H
Slide 27: Awards & Accolades
Awards & Accolades Top 20 Hotels in India include: Rambagh Palace, Jaipur I Umaid Bhawan Palace, Jodhpur I Taj Diplomatic Enclave, New Delhi I Taj Falaknuma Palace, Hyderabad I Taj Jai Mahal Palace, Jaipur I Taj Lake Palace, Udaipur I The Taj Mahal Palace, Mumbai Top hotels across the UK, Africa, As
Slide 28: Standalone Financial Performance for the Half Year ended September 30, 2017
Standalone Financial Performance for the Half Year ended September 30, 2017 27
Slide 29: IHCL Standalone Key Indicators for Half Year ended September 30, 2017
IHCL Standalone Key Indicators for Half Year ended September 30, 2017 `/crores `/crores Operating Revenue 4% 27% Operating EBITDA 1,050 1,038 200 150 143 113 1,000 993 100 50 - 950 2016/17 2017/18 2016/17 2017/18 `/crores `/crores Profit Before Exceptional Items & Tax Profit After Tax - 30 2016/17 2
Slide 30: Profit and Loss Account for the Period ended September 30, 2017
Profit and Loss Account for the Period ended September 30, 2017 Quarter II H1 `/ crores 2017/18 2016/17 % Change 2017/18 2016/17 % Change Revenue from Operations 510 516 (1)% 1,038 993 4% Other Income 11 11 - 18 27 Total Income 521 527 (1)% 1,056 1,021 3% Food and Beverages consumed 51 49 101 95 Emp
Slide 31: Income Details
Income Details For period ended September 30, 2017 ` / Crores 2017/18 2016/17 % Change Room Income 428 409 5 Food , Restaurants & Banquet Income 420 404 4 Management & Operating fees 78 66 19 Other Operating Income 111 115 (3) Income from Operations 1,038 993 4 Non Operating Income 18 28 (36) Total
Slide 32: Exceptional Items
Exceptional Items For period ending September 30, 2017 Q2 H1 Particulars 2017/18 2016/17 2017/18 2016/17 Exchange Gain/ (Loss) on Borrowings/Assets (Net) (2) (8) (1) 4 Change in fair value of derivative contracts 4 32 20 18 Provision for impairment of investment in a subsidiary (33) - (39) - Recover
Slide 33: IHCL Standalone Statement of Assets & Liabilities
IHCL Standalone Financials Statement of Assets & Liabilities ` / Crores September 30, 2017 March 31, 2017 Non Current Assets Fixed Assets 2,392 2,295 Other Non Current Assets 3,809 3,293 Current Assets 522 506 Total Assets 6,723 6,094 Equity Equity Share Capital 99 99 Other Equity 2,530 2,517 Non Cu
Slide 34: Consolidated Financial Performance for the Period ended September 30, 2017
Consolidated Financial Performance for the Period ended September 30, 2017 33
Slide 35: 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 36: IHCL Consolidated Key Indicators – Like for Like
IHCL Consolidated Key Indicators for Period ended September 30, 2017 - “Like for Like” `/crores Total Income EBITDA 1,861 189 166 169 1,784 12% 153 10% 4% 1% 1,612 1,632 Reported Financials "Like for Like" Reported Financials "Like for Like" 2016/17 2017/18 2016/17 2017/18 Profit Before Exceptional
Slide 37: IHCL Consolidated - Profit and Loss Account
IHCL Consolidated - Profit and Loss Account for period ended September 30, 2017 Quarter II H1 `/ crores Like for Like 2017/18 2016/17 % Change 2017/18 2016/17 % Change % Changes Revenue from Operations 852 887 1763 1836 1% Other Income 13 11 21 24 Total Income 864 898 (4%) 1784 1861 (4%) 1% Food and
Slide 38: Exceptional Items
Exceptional Items For period ending September 30, 2017 Q2 H1 Particulars 2017/18 2016/17 2017/18 2016/17 Exchange Gain/ (Loss) on Borrowings/Assets (Net) (2) (7) (1) 1 Change in fair value of derivative contracts 4 32 20 18 Provision of financial exposure in an associate - - (1) (5) Recovery of cost
Slide 39: IHCL Consolidated Statement of Assets & Liabilities
IHCL Consolidated Financials Statement of Assets & Liabilities ` / Crores September 30, 2017 March 31, 2017 Non Current Assets Fixed Assets 6,202 6,038 Other Non Current Assets 1,763 1,670 Current Assets 974 926 Total Assets 8,939 8,634 Equity Equity Share Capital 99 99 Other Equity 2,417 2,419 Non-
Slide 40: Debt Position
Debt Position `/crores Standalone Consolidated Particulars September 30, 2017 March 31, 2017 September 30, 2017 March 31, 2017 Gross Debt 2,649 2,049 3,658 3,383 Liquidity (15) (67) (224) (232) Net Debt 2,634 1,982 3,434 3,151 Finance Cost 94 198 141 324 Net Debt/ Equity # 1.00 0.76 1.36 1.25 Weight
Slide 41: Rights Issue Update
Rights Issue Update Issue Opened October 13, 2017 Issue Closed October 27, 2017 Allotment of Shares November 7, 2017 Receipt of Funds by the Company November 7 & 8, 2017 The Issue was oversubscribed by 1.23 times. Post approval of Basis of Allotment, IHCL has allotted 20 crore shares (1999.84 La
Slide 42: Rights Issue Funds - Proposed Utilisation
Rights Issue Funds - Proposed Utilisation Particulars Proposed Timeline `/Crores Repayment of Debt in IHCL HDFC Bank Term Loan Immediate 145 Kotak Mahindra Bank Loan Immediate 50 External Commercial Borrowings November, 2017 194 Commercial Paper December, 2017 400 789 Investment in Sky Deck for Repa
Slide 43: Key Focus Areas
Key Focus Areas Optimise H2 Continue to drive development focus, primarily through managed properties Commissioning of Taj Exotica Resorts & Spa, Andaman Brand Architecture transition Taj Mansingh Bid 42
Slide 44: Q&A
& TA) HOTELS + PALACES « RESORTS « SAFARIS os Q&A
Slide 45: Thank You
& TA) HOTELS + PALACES « RESORTS « SAFARIS os Thank You
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