Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q2 FY2019-20 Earnings Presentation
46 slides from Indian Hotels's earnings presentation, Nov 11, 2019
Slide 1: Cover letter to stock exchanges: Presentation to Analysts
111CI~ November 11, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai - 400 001. Symbol: INDHOTEL •crip Cod
Slide 2: Global Conference Call FY 2019-20 – Q2 Results
A TATA Enterprise Global Conference Call I l~CI~ FY 2019-20 – Q2 Results 11th November, 2019 TAj SELE~IONS VIVANTA GINGER EXPRESSIONS TAj.
Slide 3: Taj Tirupati – Strengthening Religious Tourism Presence
Taj Tirupati – Strengthening Religious Tourism Presence On the Foothills of Tirumala Curated Experiences 106 Rooms and Suites Temple Tour Visit to Kalahasti 4 F&B Outlets Local Sightseeing, Shopping 2 Ballrooms – Total 750 sq.m. 2
Slide 4: Agenda
AGENDA • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 3
Slide 5: Aspiration 2022
Aspiration 2022 Unveiled in February, 2018 Hospitality Company 15 NEW PROJECTS Re-imagine _,- EVERY YEAR Service, Brandscape,,,' 8% Portfolio ,. ,/ Re-engineer Scale, Simplify, , , / Margins, Technolog EBITDA Sell People MARGIN 50-50 High Customer EXPANSION Strong Brand Equity Engagement Pan-India F
Slide 6: A Journey Well Begun
A Journey Well Begun Managed EBITDA ROE Net Debt Portfolio* ₹ / crores Revenue EBITDA PAT Portfolio Margin (Pre-Tax) / EBITDA (#Hotels) (%) Aspiration 2022 25% < 2.00 225 50% FY 2018 / 19 4,595 913 19.9% 287 6.7% 2.11 179 39% FY 2017 / 18 4,165 732 17.6% 101 3.0% 2.58 158 32% FY 2016 / 17 4,076 665
Slide 7: Industry Leader in Development Momentum (New Hotels Signed)
Industry Leader in Development Momentum (New Hotels Signed) 36 New Hotels Signed SELE~IONS VIVANTA G I NGE R In 18 Months Alwar Bharuch Bangalore Bhubaneshwar Jhansi Dubai* Goa Jaipur Margaon FY 2018 / 19 Goa Jaipur Kathmandu* Nashik Lonavala New Delhi Katra Noida Lucknow London* Srinagar Makkah* Vi
Slide 8: On Track to Open More Than a Hotel a Month in FY 2019/20
On Track to Open More Than a Hotel a Month in FY 2019 / 20 15 New SELE~IONS VIVANTA G I NGE R Hotels To Open in FY 2019 / 20 Dwarka April 2019 to Sanand Agra Cidade de Goa - October 2019 Madgaon Patna Tirupati November 2019 Surat Goa New Delhi to March 2020 - Vizag Darjeeling Jaipur (Expected) Bharu
Slide 9: Six Consecutive Quarters of EBITDA Margin Expansion
Six Consecutive Quarters of EBITDA Margin Expansion in line with Aspiration 2022 EBITDA Margin Expansion 26% 25% 25% 23% 20% 18% 13% 12% 13% 12% 11% 8% Q1 2018/19 Q2 2018/19 Q3 2018/19 Q4 2018/19 Q1 2019/20 Q2 2019/20 ■ PY ■ CY *Q1 and Q2 FY 2019/20 figures are based on Post Ind AS 116 figures **FY
Slide 10: Higher Q2 RevPAR growth compared to industry
Higher Q2 RevPAR growth compared to industry Industry – All India IHCL Network – All India RevPAR - ₹ 3,254 RevPAR - ₹ 4,833 RevPAR Growth – 3.1 % RevPAR Growth – 3.9 % Source – STR Global; *Note: IHCL RevPAR and Growth figures are on Same Store basis 9 TAJ() SELE~IONS VI VANTA GINGER EXPRESSIONS l'
Slide 11: Q2 RevPAR growth - outperformance vs competition in key markets
Q2 RevPAR growth - outperformance viz competition in key markets +6% +8% +10% +9% +5% Mumbai New Delhi Chennai Hyderabad Bangalore ,-----------------------~ I Outperforming the Competition I '------------------------ I 10 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., _..,j
Slide 12: Focus on Cost Optimization – Q2 FY 2019/20
Focus on Cost Optimization – Q2 FY 2019 / 20 Corporate Overheads as a % of Revenue Raw Mat. Costs as a % of F&B Revenue 125 bps lower 22.6% in Q2 FY 2019 / 20 in Q2 FY 2019 / 20 as against Q2 FY 2018/19 as against 23.9% in Q2 FY 2018/19 HLP Costs as a % of Revenue 6.9% in Q2 FY 2019 / 20 as against
Slide 13: Unlocking value of all brands under IHCL
Unlocking value of all brands under IHCL – intent, focus and delivery ,-..J VIVANTA G I NG E R ama STAYS & TRAILS 9 Migrated, 10 Under Progress Lean Luxe is now 20% of Portfolio 12 Operational, 6 in Pipeline © ntu&nau dJAe ?Zl1am6errJ Re-imagined Value Proposition Launched in Taj Lands End Launching
Slide 14: Summary: Strong performance exhibited across parameters
Summary: Strong performance exhibited across parameters • Industry leader in development momentum (new hotels signed) • On track to open more than a hotel a month in FY 2019 / 20 • Six consecutive quarters of EBITDA margin expansion in line with Aspiration 2022 • Higher Q2 RevPAR growth (3.8%) recor
Slide 15: Agenda
AGENDA • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 14
Slide 16: Financial Performance Highlights – Q2 FY 2019/20
Financial Performance Highlights – Q2 FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 1,029 cr ₹ 182 cr 17.65% ₹ 71 cr 584 ₹ 76 cr 5% 57% bps swing ₹ 981 cr ₹ 116 cr 11.81% (₹ 5 cr) * Consolidated Pre-IND AS - EBITDA: ₹ 136 cr, EBITDA Margin: 13.27%; PAT: ₹ 82 cr 15 () TAJ SELE~IONS VI VANTA GINGER
Slide 17: Best Q2 Consol Performance in a Decade
Best Q2 Consol Performance in a Decade – Crosses ₹ 1,000 cr topline ₹ /crores Particulars – Q2 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 Revenue 1007 965 852 887 894 937 896 814 744 626 Other Income 21 17 13 11 33 21 28 21 27 -3 Total Income 1029 981 864 898 928
Slide 18: Financial Performance Highlights – H1 FY 2019/20
Financial Performance Highlights – H1 FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 2,086 cr ₹ 392 cr 18.80% ₹ 77 cr 658 6% 62% 7.7X bps ₹ 1,976 cr ₹ 242 cr 12.22% ₹ 10 cr *Consolidated Pre-IND AS - EBITDA: ₹ 302 cr, EBITDA Margin: 14.49%; PAT: ₹ 96 cr 17 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIO
Slide 19: Best H1 Consol Performance in a Decade
Best H1 Consol Performance in a Decade – Crosses ₹ 2,000 cr topline ₹ /crores Particulars – H1 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 Revenue 2027 1944 1763 1836 1791 1874 1805 1666 1456 1235 Other Income 58 32 21 24 59 38 47 35 40 14 Total Income 2086 1976 1
Slide 20: Financial Update
FINANCIAL UPDATE Mr. Giridhar Sanjeevi, Chief Financial Officer 19
Slide 21: Summary of Ind AS 116 impact on Consolidated P&L – Q2 2019/20
Summary of Ind AS 116 impact on Consolidated P&L – Q2 2019/20 ₹ /crores Q2 2019/20 Growth % Particulars Post Ind AS 116 Pre Q2 2018/19 (Pre Ind AS) Ind AS 116 Impact Ind AS 116 Revenue 1,029 - 1,029 981 4.8% Operating Expenses 847 (45) 892 865 3.1% EBITDA 182 45 136 116 17.8% EBITDA % 17.7% 13.3% 11
Slide 22: Consolidated – Reported Profit & Loss Statement – Q2 2019/20
₹ /crores Consolidated – Reported Profit & Loss Statement – Q2 2019/20 Q2 Particulars Actual 2019/20 Actual 2018/19 Actual Vs PY Revenue from Operations 1,007 965 4% Non Operating Revenue 21 17 27% Total Revenue 1,029 981 5% Total Expenditure 847 865 (2%) EBITDA 182 116 57% Operating EBITDA 160 99 6
Slide 23: IHCL - Consolidated Exceptional Items For Q2 2019/20
IHCL - Consolidated Exceptional Items For Q2 2019/20 ₹ /crores Q2 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (2) (46) 44 Profit on sale of TMFK shares 2 0 2 Boston Lease Modification Income 0 1 (1) Total (0) (45) 45 Gain on Sale of Flats included in Non Operating R
Slide 24: Summary of Ind AS 116 impact on Consolidated P&L – H1 2019/20
Summary of Ind AS 116 impact on Consolidated P&L – H1 2019/20 ₹ /crores H1 2019/20 Growth % Particulars Post Ind AS 116 Pre H1 2018/19 (Pre Ind AS) Ind AS 116 Impact Ind AS 116 Revenue 2,086 - 2,086 1,976 6% Operating Expenses 1,694 (90) 1,783 1,734 3% EBITDA 392 90 302 242 25% EBITDA % 18.8% 14.5%
Slide 25: Consolidated – Reported Profit & Loss Statement – H1 2019/20
Consolidated – Reported Profit & Loss Statement – H1 2019/20 ₹ /crores H1 Particulars Actual 2019/20 Actual 2018/19 Actual Vs PY Revenue from Operations 2,027 1,944 4% Non Operating Revenue 58 32 84% Total Revenue 2,086 1,976 6% Total Expenditure 1,694 1,734 (2.4%) EBITDA 392 242 62% Operating EBITD
Slide 26: IHCL - Consolidated Exceptional Items For H1 2019/20
IHCL - Consolidated Exceptional Items For H1 2019/20 ₹ /crores H1 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (0) (96) 96 Profit on sale of TMFK shares 2 0 2 Boston Lease Modification Income 0 47 (47) Total 2 (49) 51 Gain on Sale of Flats included in Non Operating R
Slide 27: IHCL Network Revenue – Q2 2019/20
IHCL Network Revenue – Q2 2019/20 ₹ /crores Domestic International Particulars Growth over PY Growth over PY CY PY CY PY % % F & B Revenue 475 458 3.6% 142 144 -1.4% Room Revenue 486 447 8.7% 255 258 -1.2% RevPAR* 4,833 4,653 3.9% 11,836 11,957 -1.0% *RevPAR is for Same Store No of Hotels: 104 - Dom
Slide 28: IHCL Network Revenue – H1 2019/20
IHCL Network Revenue – H1 2019/20 ₹ /crores Domestic International Particulars Growth over PY Growth over PY CY PY CY PY % % F & B Revenue 938 914 2.6% 328 326 0.6% Room Revenue 969 911 6.4% 511 495 3.3% RevPAR* 4,837 4,762 1.6% 11,896 11,541 3.1% *RevPAR is for Same Store No of Hotels: 104 - Domest
Slide 29: Standalone Key Indicators – Q2 2019/20
Standalone Key Indicators – Q2 2019/20 ₹ /crores Total Revenue EBITDA 625 601 4% 24% 148 120 ■ LY ■ CY ■ LY ■ CY --------------------------------------------------------------------------------------------------------------------------------------------------------------------------, I I I I I • Pre
Slide 30: Standalone Key Indicators – Q2 2019/20
Standalone Key Indicators – Q2 2019/20 ₹ /crores Profit before Exceptional Items & Profit After Tax Tax 38 37 119 Post Ind AS CY (22) ■ LY ■ CY ■ LY ■ CY --------------------------------------------------------------------------------------------------------------------------------------------------
Slide 31: Summary of Ind AS 116 impact on Standalone P&L – Q2 2019/20
Summary of Ind AS 116 impact on Standalone P&L – Q2 2019/20 ₹ /crores Q2 2019/20 Growth % Particulars Post Ind Ind AS 116 Pre Ind Q2 2018/19 (Pre Ind AS) AS 116 Impact AS 116 Revenue 625 - 625 601 4% Operating Expenses 478 (22) 499 481 4% EBITDA 148 22 126 120 6% EBITDA % 23.6% 20.2% 19.9% 0.3 pp De
Slide 32: Standalone – Reported Profit & Loss Statement – Q2 2019/20
Standalone – Reported Profit & Loss Statement – Q2 2019/20 ₹ /crores Q2 Particulars Actual 2019/20 Actual 2018/19 Actual Vs PY Revenue from Operations 599 570 5% Non Operating Revenue 27 30 -12% Total Revenue 625 601 4% Total Operating Expenditure 478 481 (1%) EBITDA 148 120 24% Operating EBITDA 121
Slide 33: IHCL - Standalone Exceptional Items For Q2 2019/20
IHCL- Standalone Exceptional Items For Q2 2019/20 ₹ /crores Q2 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (2) (46) 44 Profit on sale of TMFK shares 21 - 21 Provision for impairment of investment in Pierre that incurred cash losses (27) (31) 4 Total (8) (77) 69 Gain
Slide 34: Standalone Key Indicators – H1 2019/20
Standalone Key Indicators – H1 2019/20 ₹ /crores Total Revenue EBITDA 1,233 1,180 5% 34% 293 220 ■ LY ■ CY ■ LY ■ CY ,---------------------------------------------------------------------------------------------------------------------------------------------------------------------------~ I • I I I
Slide 35: Standalone Key Indicators – H1 2019/20
Standalone Key Indicators – H1 2019/20 ₹ /crores Profit before Exceptional Items & Tax Profit After Tax 23% 73 141 59 Post Ind AS CY (39) ■ LY ■ CY ■ LY ■ CY ~ I I I I • Pre Ind AS PBEIT : ₹ 83 crore, Pre Ind AS PAT: ₹ 149 crore I I I • I I I I Provision for Tax in CY includes opening Deferred Tax L
Slide 36: Summary of Ind AS 116 impact on Standalone P&L – H1 2019/20
Summary of Ind AS 116 impact on Standalone P&L – H1 2019/20 ₹ /crores H1 2019/20 Growth % Particulars Post Ind AS Ind AS 116 Pre Ind AS H1 2018/19 (Pre Ind AS) 116 Impact 116 Revenue 1233 - 1233 1180 5% Operating Expenses 940 (43) 983 961 2% EBITDA 293 43 250 220 14% EBITDA % 23.8% 20.3% 18.6% 1.7 p
Slide 37: Standalone – Reported Profit & Loss Statement – H1 2019/20
Standalone – Reported Profit & Loss Statement – H1 2019/20 ₹ /crores H1 Particulars Actual 2019/20 Actual 2018/19 Actual Vs PY Revenue from Operations 1170 1135 3% Non Operating Revenue 63 45 39% Total Revenue 1233 1180 5% Total Operating Expenditure 940 961 (2%) EBITDA 293 220 34% Operating EBITDA
Slide 38: IHCL - Standalone Exceptional Items For H1 2019/20
IHCL- Standalone Exceptional Items For H1 2019/20 ₹ /crores H1 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts 0 (96) 96 Profit on sale of TMFK shares 21 - 21 Provision for impairment of investment in Pierre that incurred cash losses (26) (32) 6 Total (5) (128) 123 Gain
Slide 39: Acquisitions and Monetization
Acquisitions and Monetization Sale of Residential Investment Platform Simplification & Monetization Apartments TAJ RA FLIGHT KIT H h nnai Commercial Closure Achieved 10 Apartments Sold in H1 ‘19/20 100% Completed for 1 Transaction ₹ 40 crore sale proceeds 38 () TAJ SELE~IONS VI VANTA GINGER EXPRESSI
Slide 40: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars September September March 31, September September March 31, 30, 2019 30, 2019 2019 30, 2019 30, 2019 2019 (Post Ind AS) (Pre Ind AS) (Post Ind AS) (Pre Ind AS) Gross Debt 1,806 1,806 1,784 2,355 2,355 2,326 Lease Liability 916 1955 Liquidit
Slide 41: Agenda
AGENDA • Aspiration to Execution: Key Highlights • Financial Performance • Q&A 40
Slide 42: 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 43: Annexure
Annexure 42 0 TAJ SFl .... Q10 s VIVI\ fl\ GINGER [XPRrSS 11-.ICI~
Slide 44: Our Operational Portfolio
Our Operational Portfolio Inventory by Geography Inventory by Contract Type International, Holding 2454 Company, Group 4358 companies, 8640 Domestic, Management 15566 Contracts, 5022 ■ Holding Company ■ Management Contracts ■ Domestic ■ International ■ Group companies As of 1st November 2019, IHCL h
Slide 45: Awards and Accolades continue to reinforce our direction
Awards and Accolades continue to reinforce our direction I TRAVEIL + Traveler READERS' Gcwl-fnmen1 of lnd1 Ministry of Tourism National LEII SURE CHOICE AWARDS Tourism Awards 2016- 17 2019 Tra'Viiler TRUSTYou ••· cfi.co THE HOT LIST 2019 GOLD CERTIFIED 44 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ
Slide 46: 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 Kerala Hotels & Resorts Ltd 28.30 Roots Co
The Indian Hotels Company — Q2 FY2019-20 Earnings Presentation on 6ix