PowerPoint Presentation€¦ · presentation on the performance of the Company for quarter/half...

BSE Limited Corporate Relationship Department 18t Floor, New Trading Ring, Rotunda Building, P. J. Towers, Dalal Street, Fort, Mumbai - 400 001. Scrip- Code: 500850

I ~CI~ November 14,2018

National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex Bandra (E) Mumbai 400 051 Symbol: INDHOTEL

Kind Attn: Mr. S. Subramanian DCS- CRD

Dear Sirs,

Further to our letter of date, intimating the Financial Results of the Company for the

quarter/half year ended September 30, 2018, enclosed is a copy of the investors / analyst

presentation on the performance of the Company for quarter/half year ended

September 30,2018 for your records.

I<:indly acknowledge receipt.

Yours sincerely,

BE J ESAI Sen or Vice -P:;esident - Legal & Company Secretary

Encl: a/a

THE INDIAN HOTELS COMPANY LIMITED CIN L74999MH1902PLC000183

CORP Office: Ninth Floor, Express Towers, Barrister Rajni Patel Marg, Nariman Point, Mumbai 400021, Maharashtra, India

REGD Office: Mandlik House, Mandlik Road, Mumbai 400 001, Maharashtra, India www.taJhotels.com

o TAJ VIVANTA GINGER EXPRESSIONS

o TAJSATS

T + 91 22 6137 1637, F +91 22 6137 1919

T + 91 22 6639 5515, F +91 22 2202 7442

A TATA Enterprise

Analyst Meet

Results for the Half Year Ended

September 30, 2018

2

AGENDA

• Industry Trends

• Key Highlights

• Financial Performance

• Q&A

3

The FOMO Syndrome of Indian Hospitality

7989

57595496

3837

68.8%

66.6%

56.0%

58.0%

60.0%

62.0%

64.0%

66.0%

68.0%

70.0%

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

0 2 4 6 8 10 12

ARR RevPAR Occupancy

ARR Decline of 28%

Source: 2018 Indian Hospitality Trends & Opportunities Report, Hotelivate

4

Performance of Key Cities – FY 2008 / 09 to FY 2017 / 18

-28%

-39%

-15%

25%

-22%

-41%-33%

-13% -10%

-26% -27%

Mumbai Bengaluru Jaipur Goa Hyderabad Pune New Delhi Ahmedabad Kolkata Gurugram Chennai

Change in ARR

15% 15%13%

11% 11%

7%

4% 3% 2% 2%1%

Mumbai Bengaluru Jaipur Goa Hyderabad Pune New Delhi Ahmedabad Kolkata Gurugram Chennai

Change in Occupancy (Abs. % points)

Source: 2018 Indian Hospitality Trends & Opportunities Report, Hotelivate

5

Performance of Key Cities – H1 2018/19

2.9%

6.3%

2.9% 2.7%1.6% 1.9%

3.6% 4.3%

-1.6%

0.6%

5.4%

0.2%0.0%

7.8%

4.2%

10.6%9.9%

8.2% 7.8% 7.6% 7.2%

4.5% 4.1% 3.6% 3.1%

0.5%

-0.1%

-11.0%

Supply % Change Demand % Change

The supply–demand gap is still significant in most cities, which will positively impact RevPARs

Source: STR Global

6

Performance of Key Cities – H1 2018/19₹

3,2

33

₹ 5

,26

5

₹ 4

,18

1

₹ 3

,62

1

₹ 3

,76

1

₹ 3

,65

5

₹ 3

,40

6

₹ 3

,11

0

₹ 2

,93

1

₹ 3

,04

5

₹ 2

,68

3

₹ 2

,24

0

₹ 2

,38

0

₹ 2

,40

4

₹ 3

,35

2

₹ 5

,59

1

₹ 4

,19

2

₹ 4

,11

5

₹ 4

,03

8

₹ 3

,79

6

₹ 3

,58

3

₹ 3

,40

6

₹ 3

,32

8

₹ 3

,20

8

₹ 2

,73

1

₹ 2

,36

4

₹ 2

,27

8

₹ 2

,05

6

H1 2017-18 H1 2018-19

Industry RevPAR growth at 3.7%

Source: STR Global

7

Performance of Key Cities – IHCL (H1 2018/19)

Superior RevPAR performance

• All India RevPAR up 8.1% to ₹4,735

• All India Occupancy up 3.5% to 63%

• All India ADR up 2.0% to ₹7,573

City RevPAR ARR Occupancy

Mumbai ↑ ↓ ↑

New Delhi ↑ ↑ ↑

Bengaluru ↑ ↑ ↑

Chennai ↓ ↑ ↓

Goa ↑ ↑ ↑

Jaipur ↑ ↑ ↓

Pune ↑ ↓ ↑

Hyderabad ↑ ↑ ↑

Kolkata ↑ ↑ ↑

Gurugram ↑ ↑ ↑

Chandigarh ↑ ↓ ↑

Kochi ↓ ↓ ↑ Occupancy including International hotels is 64%

8

AGENDA

• Industry Trends

• Key Highlights

• Financial Performance

• Q&A

9

Retaining Iconic Status

10

14% 73%₹ (5) Crore

Vs₹ (58) Crore

Revenue EBITDA PAT

Consolidated Results – Q2 2018 / 19

11

11% 46%₹ 10 Crore

Vs₹ (83) Crore

Revenue EBITDA PAT

Consolidated Results – H1 2018 / 19

12

Particulars

Domestic International

CY PY Growth over PY % CY PY Growth over PY %

Room Revenue 911 847 7.5% 599 570 5.0%

RevPAR 4,735 4,381 8.1% 12,502 11,858 5.4%

F & B Revenue 914 822 11.3% 361 335 7.7%

₹ /crores

*Excluding Ginger brand

IHCL Network Revenue – H1 2018 / 19

13

Sustained Positive Performance (Q-o-Q)

1069920 864

1164995 981

0

500

1000

1500

Q4 Q1 Q2

Revenue (₹ Cr) – Up 9%

PY CY

195

9967

265

126 116

0

100

200

300

Q4 Q1 Q2

EBITDA (₹ Cr) – Up 29%

PY CY

40

-25

-58

76

15

-5

-100

-50

0

50

100

Q4 Q1 Q2

PAT (₹ Cr) – Up 150%

PY CY

18%

11%8%

23%

13% 12%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Q4 Q1 Q2

EBITDA Margin – Up 3.5 pp

PY CY

14

Re-imagining Portfolio: New Signings FY 18/19

Pawna Dam, Lonavla (145)

Makkah (340)

Taj Bangalore Expansion (220)

Deira Water Front, Dubai (200)

Udaipur Expansion (80)

Katra (80)

Vadodara Expansion (60)

Heathrow Airport (108)

Jhamel, Kathmandu (111)

Bhubaneswar (137)

Vizag (56)

Jhansi, (76)

Noida (119)

Bharuch (55)

Margao (47)

Nashik (56)

Connaught Hotel, New Delhi (85)

Aspiration 2022: Increase portfolio by 30% in the next 5 years (15 New Signings per annum)

YTD FY 2018 / 19 15 New Signings* (1825 keys)

*Excludes Vadodara, Udaipur Expansions

15

Pipeline Growth – YTD FY 2018 / 19

71%

7%

22%

Pipeline by Brand –2200 Keys as on 31st March 2018

Taj Vivanta Ginger

61%15%

22%

2%

Pipeline by Brand –4175 Keys as on 14th November 2018

Taj Vivanta Ginger SeleQtions

90% Growth in Pipeline

16

The New IHCL Corporate Website – www.theindianhotels.com

17

18

AGENDA

• Industry Trends

• Key Highlights

• Financial Performance

• Q&A

19

67

116

EBITDA

Q2 2017/18 Q2 2018/19

864

981

Total Revenue

Q2 2017/18 Q2 2018/19

₹ /croresConsolidated Key Indicators – Q2 2018/19

14% 73%

Margin Expansion 4 pp

20

(75)

(12)

Profit before Exceptional Items & Tax

Q2 2017/18 Q2 2018/19

(58)

(5)

Profit After Tax

Q2 2017/18 Q2 2018/19

₹ /croresConsolidated Key Indicators – Q2 2018/19

(This is despite a ₹50 cr negative swing on account of change in fair value of derivative contracts (MTM))

53

21

1,784 1,976

Total Revenue

H1 2017/18 H1 2018/19

166

242

EBITDA

H1 2017/18 H1 2018/19

₹ /croresConsolidated Key Indicators – H1 2018/19

11% 46%

Margin Expansion 2.9 pp

22

(116)

(12)

Profit before Exceptional Items & Tax

H1 2017/18 H1 2018/19

(83)

10

Profit After Tax

H1 2017/18 H1 2018/19

₹ /croresConsolidated Key Indicators – H1 2018/19

(This is despite a

₹116 cr negative swing on account of change in fair value of derivative contracts (MTM))

93

Positive H1 PAT for the first time

since 2008

23

ParticularsQ2 H1

18/19 17/18Growth vs

PY18/19 17/18

Growth vs PY

Revenue from Operations 965 852 13% 1,944 1,763 10%

Non Operating Revenue 17 13 33% 32 21 48%

Total Revenue 981 864 14% 1,976 1,784 11%

Total Expenditure 865 797 9% 1,734 1,618 7%

EBITDA 116 67 73% 242 166 46%

Operating EBITDA 99 55 82% 210 145 45%

EBITDA Margin 11.81% 7.76% 4.05pp 12.22% 9.33% 2.89pp

Depreciation and Amortization Expense 81 70 15% 160 142 13%

Finance Costs 47 72 -35% 94 141 -34%

Profit Before exceptional Items & Tax (12) (75) + (12) (116) +

Exceptional items Gain/(Loss) (45) 2 - (49) 18 -

Profit/ (Loss) before tax (57) (73) + (61) (98) +

Provision for Taxes (19) (21) + (29) (18) -

Profit/ (Loss) After Tax (38) (51) + (32) (81) +

Add: Share of Profit/(Loss) in Associates & JV’s 32 (9) + 35 (8) +

Less : Profit / (Loss due to Non Controlling interest) 0 2 - 7 6 +

Profit / (Loss) after Non controlling interest, share of associates and JV (5) (58) + 10 (83) +

Consolidated – Reported Profit & Loss Statement₹ /crores

24

ParticularsQ2

Var.H1

Var.2018/19 2017/18 2018/19 2017/18

Exchange Gain/ (Loss) on Long-term Borrowings/Assets (Net)

(2) 2 (1) 1

Change in fair value of derivative contracts (46) 4 (50) (96) 20 (116)

TIHK - Bjets advances w/off (1) 1

Boston lease modification income 1 - 1 47 - 47

Total (45) 2 (47) (49) 18 (67)

IHCL - Consolidated Exceptional Items

₹ /crores

On a post Tax basis, MTM losses ` 64 crores offset by post tax Boston Income of ` 47 crores and post tax share of profit on Vizag sale of ` 28 crores.

25

80

120

EBITDA

Q2 2017/18 Q2 2018/19

523 601

Total Revenue

Q2 2017/18 Q2 2018/19

₹ /croresStandalone Key Indicators – Q2 2018/19

15% 50%

26

(6)

38

Profit before Exceptional Items & Tax

Q2 2017/18 Q2 2018/19

(19)

(22)

Profit After Tax

Q2 2017/18 Q2 2018/19

₹ /croresStandalone Key Indicators – Q2 2018/19

27

1,059 1,180

Total Revenue

H1 2017/18 H1 2018/19

164

220

EBITDA

H1 2017/18 H1 2018/19

₹ /croresStandalone Key Indicators – H1 2018/19

11% 34%

28

(2)

59

Profit before Exceptional Items & Tax

H1 2017/18 H1 2018/19

(11)

(39)

Profit After Tax

H1 2017/18 H1 2018/19

₹ /croresStandalone Key Indicators – H1 2018/19

29

ParticularsQ2 H1

18/19 17/18Growth vs

PY18/19 17/18

Growth vs PY

Revenue from Operations 570 510 12% 1135 1038 9%

Non Operating Revenue 30 13 129% 45 21 114%

Total Revenue 601 523 15% 1180 1059 11%

Total Operating Expenditure 481 443 9% 961 895 7%

EBITDA 120 80 50% 220 164 34%

Operating EBITDA 89 67 33% 174 143 22%

EBITDA Margin 19.90% 15.36% 4.54pp 18.61% 15.49% 3.12pp

Depreciation and Amortization Expense 42 36 17% 82 73 12%

Finance Costs 40 51 -22% 79 94 -16%

Profit Before exceptional Items & Tax 38 (6) + 59 (2) +

Exceptional items (77) (31) - (128) (20) -

Profit/ (Loss) before tax (39) (37) - (69) (23) -

Provision for Taxes (17) (19) + (30) (12) -

Profit/ (Loss) After Tax (22) (19) - (39) (11) -

Effective Tax Rate 44% 51% 44% 52%

Standalone - Profit & Loss Statement₹ /crores

30

ParticularsQ2

Var.H1

Var.2018/19 2017/18 2018/19 2017/18

Exchange Gain/ (Loss) on ECB - (2) 2 - (1) 1

Exchange Gain/ (Loss) on Shareholders Deposit Revaluation

- - - (0)

Change in fair value of derivative contracts (46) 4 (50) (96) 20 (116)

Provision for impairment of investment in Pierre that incurred cash losses

(31) (33) 2 (32) (39) 7

Total (77) (31) (46) (128) (20) (108)

IHCL- Standalone Exceptional ItemsFor Q2 & H1 2018/19

₹ /crores

31

Debt Position

# Equity for consolidated ratios considers Net worth attributable to the owner

₹ /crores

Particulars

Standalone Consolidated

September 30, 2018

March 31, 2018 September 30, 2018

March 31, 2018

Gross Debt 1,757 1,784 2,448 2,427

Liquidity (270) (423) (366) (538)

Net Debt 1,487 1,361 2,082 1,889

Net Debt/ Equity # 0.35 0.31 0.50 0.45

Weighted cost of Debt 8.0 7.9 7.1 7.0

Net Debt / EBITDA (Trailing 12 months)

2.01 1.99 2.58 2.58

32

AGENDA

• Industry Trends

• Key Highlights

• Financial Performance

• Q&A

33

Disclaimer

These presentations may contain forward-looking statements within the meaning of applicable securitieslaws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goalsalso are forward-looking statements.

Forward-looking statements are not guarantees of future performance and involve risks and uncertaintiesand other factors that may cause actual results to differ materially from those anticipated at the time theforward-looking statements are made. Future results, performance and achievements may be affected bygeneral economic conditions, regulatory environment, business and financing conditions, foreign exchangefluctuations, cyclicality and operating risks associated with the hospitality industry and other circumstancesand uncertainties.

Although we believe the expectations reflected in such forward looking statements are based uponreasonable assumptions, we can give no assurance that our expectations will be attained or that results willnot materially differ. We undertake no obligation to publicly update or revise any forward-looking statement,whether as a result of new information, future events or otherwise.

Please visit our corporate website www.theindianhotels.com for previous investor communications.

34

ANNEXURE

35

Our Operational Portfolio

As of November, 2018, IHCL has 144 hotels with 17,360 Rooms

Domestic, 14735

International, 2625

Inventory by Geography

Domestic International

Holding Company,

4357

Group Companies,

8569

Management Contracts,

4434

Inventory by Contract Type

Holding Company Group Companies

Management Contracts

36

Awards – YTD FY 2018 / 19

37

Group Major Companies

Company NameEffective

Holding %Company Name

Effective

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 Madras Flight Kitchen Pvt Ltd 50.00

Roots Corporation Ltd 63.25 Taj Kerala Hotels & Resorts Ltd 28.30

Skydeck Properties Pvt Ltd 100.00 Taj Karnataka Hotels & Resorts Ltd 44.27

IHOCO BV [Investment Company] 100.00 Taj Safaris Ltd 38.15

United Overseas Holdings, Inc. 100.00 Kaveri Retreat & Resorts Ltd 50.00

St James Court Hotel Ltd 72.25 IHMS (SA) Pty Ltd 50.00

TAL Hotels & Resorts Ltd 27.49

Associates

Oriental Hotels Ltd 35.67

Lanka Island Resorts Ltd 24.66

TAL Lanka Hotel PLC 24.62

38

THANK YOU