Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q1 FY2020/21 Earnings Presentation
33 slides from Indian Hotels's earnings presentation, Aug 6, 2020
Slide 1: Cover letter to BSE and NSE
August 6, 2020 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 s t 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 Scrip Code: 500850
Slide 2: Global Conference Call Q1 FY 2020/21 Results
Global Conference Call Q1 FY 2020/21 Results | 6th August, 2020
Slide 3: Strengthening Customer Trust
Strengthening Customer Trust The Taj Mahal Palace, Mumbai rated #1 In The World by rd consecutive year 2
Slide 4: Unprecedented Downturn For The Indian Hospitality Sector
Unprecedented Downturn For The Indian Hospitality Sector Organized Semi-organized Un-organized Revenue Loss ₹ 40,309 Cr ₹ 8,379 Cr ₹ 41,126 Cr Occupancy Loss 31.6 pp RevPAR Decline 57.8 % Estimated Total Revenue 2019: ₹ 1,58,113 Cr Estimated Total Revenue Loss 2020: ₹ 89,813 Cr Source: HVS Research
Slide 5: R.E.S.E.T 2020: A 5-prong Strategy
R.E.S.E.T 2020: A 5-prong Strategy 4
Slide 6: R.E.S.E.T 2020: Revenue / Cost Impact – Q1 FY 2020/21
R.E.S.E.T 2020: Revenue / Cost Impact – Q1 FY 2020/21 ₹ 55 crores ₹ 52 crores ₹ 22 crores ₹ 19 crores R.E.S.E.T Initiatives added ₹ 77 cr to the Topline and ₹ 104 cr to the Bottomline in Q1 2020/21 5
Slide 7: R.E.S.E.T 2020: Key Highlights
R.E.S.E.T 2020: Key Highlights 6
Slide 8: Hotel Occupancies are Seeing a Significant Uplift
R E S E T [1] Hotel Occupancies are Seeing a Significant Uplift 37% 34% 30% 28% 27% 26% 22% 25% 23% 16% 16% 16% 16% 16% 19% 13% 16% 15% 15% 10% 12% 7% 8% 8% 7% 7% 6% 5% 25/Mar 1/Apr 8/Apr 15/Apr 22/Apr 29/Apr 6/May 13/May 20/May 27/May 3/Jun 10/Jun 17/Jun On Total Inventory On Operational Inventory
Slide 9: Hotel Occupancies Uplift by Brand
R E S E T [1] Hotel Occupancies are Seeing a Significant Uplift Growth in occupancies on total inventory – good uplift in Ginger brand 43% 36% 32% 29% 26% 22% 19% 17% 21% 15% 20% 11% 11% 16% 10% 14% 9% 13% 13% 8% 10% 6% 6% 6% 6% 6% 5% 4% 25/Mar 1/Apr 8/Apr 15/Apr 22/Apr 29/Apr 6/May 13/May 20/May 27
Slide 10: R.E.S.E.T Revenue Growth Initiatives Contributed 31%
R E S E T [2] R.E.S.E.T Revenue Growth Initiatives Contributed 31% 10% 1% Quarantine (Vande Bharat, Repat, Others) 20% BMC & Medical Fraternity ₹ 55 cr 44% BCP & Corporate F&B Initiatives (H@H, Qmin) 25% Packages (4D, Urban Getaways) Break-up of IHCL Consolidated Revenues in Q1 FY 2020/21 from R.E.S
Slide 11: Continued Focus on Guest & Associate Well-being
R E S E T [3] Continued Focus on Guest & Associate Well-being 10
Slide 12: I-ZEST: IHCL's Zero-touch Digital Transformation
R E S E T [4] I-ZEST: IHCL’S Zero-touch Digital Transformation Digital contactless Digital invoicing, Digital menus with Intelligent conversation check-in & check- e-signatures, check-in QR code for dining platform for customer out process & check-out & takeaway interactions 11
Slide 13: Over 51% Reduction in Q1 Total Expenditure
R E S E T [5] Over 51% Reduction in Q1 Total Expenditure - 51 % *All Numbers Include Fixed Lease Costs 12
Slide 14: Reduction Across All Cost Heads in Q1 FY 2020/21
R E S E T [6] Reduction Across All Cost Heads in Q1 FY 2020/21 - 51 % Reduction in Total Expenditure - 89 % - 64 % - 58 % - 51 % - 35 % Raw Material Costs Admin Costs HLP Costs Fixed Lease Costs Manpower Costs 13
Slide 15: Secured Significant Lease Rental Waivers
R E S E T [7] Secured Significant Lease Rental Waivers ₹ 22 cr ₹ 6 cr ₹ 24 cr ₹ 52 cr IHCL Subsidiaries Group Companies TOTAL Benefit Received in Q1 FY 2020/21 for IHCL & Subsidiaries - ₹ 19 crores 14
Slide 16: Resolving Legacy Challenges through Simplification
R E S E T [8] Resolving Legacy Challenges through Simplification SEA ROCK Completed signing the definitive Agreement to acquire 100% shareholding of ELEL, making IHCL 100% owner of the leasehold of the Sea Rock till 2069 TAJ CAPE TOWN Completed the purchase of sale equity by IHOCO BV (WOH of IHCL) f
Slide 17: Corporate Overheads Declined by 26% in Q1
R E S E T [9] Corporate Overheads Declined by 26% in Q1 • Prudence in All Corporate Expenditure • Reduction in Sales & Marketing Activities ↓ 26 % • Redeployments & Renegotiations 16
Slide 18: IHCL has Taken Multiple Steps to Enhance Liquidity
R E S E T [10] IHCL has Taken Multiple Steps to Enhance Liquidity • Securing Debt Lines: • Raised ₹ 500 crore of long term debt in Q1 • Additional lines secured for any further requirement • Exploring Monetization Opportunities • Deferment of Non-Essential Capex & Renovations 17
Slide 19: Q1 FY 2020/21 Performance (Consolidated)
Q1 FY 2020/21 Performance (Consolidated) ₹ /crores Q1 Particulars 2020/21 2019/20 Actual vs LY Actual Actual Revenue 175 1,057 -83% Operating Expenses 410 847 -52% EBITDA (234) 210 - Depreciation 100 100 0% Finance Costs 88 85 4% Profit Bef. except. items & Tax (422) 25 - Exceptional Items 86 2 + Pr
Slide 20: IHCL Consolidated Financial Performance (Q1 FY 2020/21)
IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q1 FY 2020/21) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER 19
Slide 21: IHCL Consolidated - Reported P&L
IHCL Consolidated - Reported P&L ₹ /crores Q1 Particulars 2020/21 2019/20 Var. % Revenue from Operations 144 1,020 -86% Non Operating Revenue 32 37 -14% Total Revenue 175 1,057 -83% Raw Material Cost 9 85 -89% Employee Benefits 240 371 -35% Fuel, Power and Light 31 72 -58% Admin Expenses 56 156 -64%
Slide 22: IHCL Consolidated Exceptional Items
IHCL Consolidated Exceptional Items ₹ /crores Q1 Particulars Var. 2020/21 2019/20 Change in fair value of derivative contracts 4 2 2 Profit on acquisition of Taj Capetown, South Africa 82 0 82 Total 86 2 84 Gain on Sale of Flats included in Non Operating Revenue 3 24 (21) 21
Slide 23: IHCL Standalone - Reported P&L
IHCL Standalone - Reported P&L ₹ /crores Q1 Particulars 2020/21 2019/20 Var. % Revenue from Operations 95 572 -83% Non Operating Revenue 22 36 -40% Total Revenue 117 608 -81% Raw Material Cost 6 51 -88% Employee Benefits 154 173 -11% Fuel, Power and Light 19 47 -60% Admin Expenses 34 91 -62% Other E
Slide 24: IHCL Standalone Exceptional Items
IHCL Standalone Exceptional Items ₹ /crores Q1 Particulars Var. 2020/21 2019/20 Change in fair value of derivative contracts 4 2 2 Provision for Pierre cash loss funding (42) - (42) Total (38) 2 (40) Gain on Sale of Flats included in Non Operating Revenue 3 24 (21) 23
Slide 25: Q1 2020/21 – IHCL Standalone Revenue Metrics
Q1 2020/21 – IHCL Standalone Revenue Metrics April May June Q1 Particulars CY LY CY LY CY LY CY LY Occupancy % 9.2 66.4 18.8 60.7 33.4 63.2 20.5 63.4 ARR in ₹ 7,656 9,811 4,890 8,849 4,048 8,726 4,848 9,141 RevPAR in ₹ 705 6,515 921 5,370 1,352 5,516 992 5,795 Room Rev (₹/ crores) 9 85 13 73 18 72 4
Slide 26: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars June 30, 2020 March 31, 2020 June 30, 2020 March 31, 2020 Gross Debt 2,238 1,943 2,967 2,602 Liquidity (548) (540) (639) (687) Net Debt 1,690 1,403 2,328 1,915 Weighted cost of Debt (%) 7.9 8.1 6.9 7.0 Net Debt to Equity 0.38 0.31 0.48 0.37
Slide 27: Q&A
Q&A 2 TAY SELEQTIONS VIVANTA GINGER ExPRESSINS TAF INCL
Slide 28: 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 29: Brandscape
Brandscape LUXURY SELECT HOTELS UPSCALE LEAN LUXE 25,000+ KEYS 200 HOTELS 12,800 KEYS 1400 KEYS 4,400 KEYS 6,400 KEYS 85 HOTELS 15 HOTELS 30 HOTELS 70 HOTELS *Portfolio figures include hotels under various stages of development 28
Slide 30: Operating Portfolio
Operating Portfolio Inventory by Geography Inventory by Contract Type Intl, Holding 2654 Management Company, Contracts, 4423 5862 Dom, Group 16263 Companies, 8679 Dom Intl Holding Company Group Companies Management Contracts As of 31st July 2020, IHCL has 158 hotels with 18,917 Rooms 29
Slide 31: Shareholding Pattern
Shareholding Pattern 16% Retail 11% 41% Tata Group FII 33% DII * As on 30th June 2020 30
Slide 32: Awards and Accolades continue to reinforce our direction
Awards and Accolades continue to reinforce our direction 31
Slide 33: Global Conference Call Q1 FY 2020/21 Results
Global Conference Call Q1 FY 2020/21 Results | 6th August, 2020
The Indian Hotels Company — Q1 FY2020/21 Earnings Presentation on 6ix