The Indian Hotels Company Limited
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1 The Indian Hotels Company Limited May ,2016 Corporate Presentation
Transcript of The Indian Hotels Company Limited
1
The Indian Hotels Company Limited
May ,2016
Corporate Presentation
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Disclaimer
These presentations contain forward-looking statements within the meaning ofapplicable securities laws. Similarly, statements that describe our businessstrategy, outlook, objectives, plans, intentions or goals also are forward-lookingstatements. Forward-looking statements are not guarantees of future performanceand involve risks and uncertainties and other factors that may cause actual results todiffer materially from those anticipated at the time the forward-looking statementsare made. Future results, performance and achievements may be affected by generaleconomic conditions, regulatory environment, business and financing conditions,foreign exchange fluctuations, cyclicality and operating risks associated with thehospitality industry and other circumstances and uncertainties.
Although we believe the expectations reflected in such forward looking statementsare based upon reasonable assumptions, we can give no assurance that ourexpectations will be attained or that results will not materially differ. We undertakeno obligation to publicly update or revise any forward-looking statement, whether asa result of new information, future events or otherwise
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Taj Group portfolio
touches 136 Hotels; Room inventory
Of 16759
Key Highlights
Currently inprocess of
amalgamating two WOS with IHCL
World GDP growthprojected at 3.2%
for 2016
Domestic Tourists&
F&B to drivegrowth
Taj Group crowned the Best Hotel Group in India
at the T+L India's Best Awards
To Pursue Divestmentof Taj Boston, whilst
Retaining managementcontract
Growth rate in Domestic
rooms Demand Outpaces supply
growth
Taj Group featuredon the list of
10 of the World’sBest Luxury HotelBrands by Forbes
Focus on growthby management
contracts to ensureminimal capital
requirement
India’s GDP projected to
grow by 7.5 % in2016/17
Occupanciesshow improvementHowever, ARRs
remain flat
Added 1400 roomsin 2015/16.
To add 900 roomsin current year
Completed Restructuring of International OverseasHoldings, now housed
in a offshore WOS
Monsoon, Inflation, Oil Prices,
Reforms key areasto look out for
in India’s growth
Foreign Touristsarrivals growth at
10 % forJan to April 2016(E visa Scheme)
2015 GDP growth of India higher
than China7.3% vs 6.9%
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Industry Highlights
Taj Group – An Overview
New Inventory
Land Bank
Financial Performance
Awards & Accolades
Presentation Structure
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Industry Highlights
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International travel and tourism arrivals grew by 4.4% to reach a total of 1,184 million in 2015,50 million more than in 2014.
Strong growth in Americas (+5%), Asia Pacific (+5%), Europe (+5%), the Middle East (+3%),whilst limited data available for Africa points to a (3%) decrease in that market
As per WTTC Travel & Tourism sector generated US $7.2 trillion (9.8% of global GDP)supported 284 million jobs.
Over the next ten years, travel and tourism is anticipated to contribute US$ 11.0 trillion in GDPto the world economy, and will support 370 million jobs worldwide.
2015 /16 saw a supply growth of 3.9%, while demand increased by 10.5% over the previous year.
Most key cities witnessed an increase in supply in the range of 3% to 6%
E-Tourist Visa scheme for India is now available across 150 countries, at 16 Airports in India.
Industry Highlights - Outlook
Source : WTTC, UNWTO, Ministry of tourism India, STR Global
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Foreign Tourist Arrivals in India
Foreign tourist arrivals in India have shown growth in each quarter for past 5 years .
Foreign tourist arrivals during 2015 / 16 were 82.42 lakh, a growth of 6.2%
Source : Ministry of tourism India
8Source:- INDIA TOURISM STATISTICS 2015
India : Source Markets
In Lakhs
Country of Nationality No of Arrivals Percentage Share2013 2014 2015 2013 2014 2015
AmericaNorth America 13.4 13.9 14.9 19.2% 18.1% 18.6%
Central and South America 0.7 0.7 0.7 1.0% 0.9% 0.9%
14.1 14.6 15.7 20.2% 19.0% 19.5%EuropeWestern Europe 18.6 18.6 18.8 26.6% 24.2% 23.4%Eastern Europe 4.1 4.2 3.3 5.8% 5.5% 4.1%
22.6 22.8 22.1 32.4% 29.7% 27.5%AsiaWest Asia 3.4 4.1 4.2 4.9% 5.4% 5.2%South Asia 12.2 16.9 19.5 17.4% 22.1% 24.2%South East Asia 6.3 6.9 7.0 9.0% 8.9% 8.7%East Asia 5.5 5.5 5.6 7.9% 7.1% 6.9%
27.4 33.4 36.2 39.3% 43.5% 45.1%Africa 2.8 2.8 2.9 4.0% 3.7% 3.7%
Australia & New Zealand 2.6 2.9 3.1 3.8% 3.7% 3.9%Others 0.2 0.3 0.2 0.3% 0.4% 0.3%
69.7 76.8 80.3 100.0% 100.0% 100.0%
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Domestic Visits – Growing over the Years
Source: INDIA TOURISM STATISTICS 2014
Domestic travel visits continue to show robust growth and grew 12.9 % in 2014
Figures in crores
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India Hotel Performance – Key cities2015 / 16
•There has been an overall 3.9% increase in Supply in 2015 /16 as compared to the sameperiod last year.
•Demand growth has been 10.5% for this period However, the supply / demand gap is stillsignificant in most cities, impacting ARRs
Source : STR Global
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Occupancies % – Year on Year Trend
All Cities have witnessed improved occupancy levels over the previous year
Source : STR Global
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ARRs– Year on Year Trend
Despite growth in domestic demand , ARRs have continued to be flat , across India
Source : STR Global
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Taj Group – An Overview
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Business Structure
Owned hotels
Managed hotels Associate companies
Subsidiary companies
Joint ventures
IHCL
By business portfolio By legal entity
Leased/ Licensed hotels
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Taj GroupMajor Companies
Company Name Effective Holding %
Company Name Effective Holding
%Subsidiaries Joint VenturesPiem Hotels Ltd 51.57 Taj GVK Hotels & Resorts Ltd 25.52
Taj SATS Air Catering Ltd 51.00 Taj Madras Flight Kitchen Pvt Ltd 50.00
TIFCO Holdings Ltd [Investment Company] 100.00 Taj Kerala Hotels & Resorts Ltd 28.30
Benares Hotels Ltd 51.68 Taj Karnataka Hotels & Resorts Ltd 44.27
United Hotels Ltd 55.00 Taj Safaris Ltd 28.96
Roots Corporation Ltd 63.25 Kaveri Retreat & Resorts Ltd 50.00
Lands End Properties Pvt Ltd 100.00 IHMS (SA) Pty Ltd 50.00
Skydeck Properties Pvt Ltd 100.00 TAL Hotels & Resorts Ltd 27.49
United Overseas Holdings, Inc. 100.00
St James Court Hotel Ltd 72.25 Associates
IHOCO BV [Investment Company] 100.00 Oriental Hotels Ltd 35.67
Samsara Properties Ltd [Investment Company] 100.00 Lanka Island Resorts Ltd 24.66
TAL Lanka Hotel PLC 24.62
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Taj Brand Extensions
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Taj Group InventoryBrand Distribution
Brands Domestic International TotalNo of Hotels
Inventory No of Hotels
Inventory No of Hotels
Inventory
20 3,415 10 1849 30 5,264
35 4,946 5 575 40 5,521
31 2,596 1 208 32 2,804
34 3,170 - - 34 3,170
Total 120 14,127 16 2,632 136 16,759
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# Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms
HOLDING COMPANY SUBSIDIARY COMPANIES SUBSIDIARY COMPANIES (Continued)
The Indian Hotels Company LimitedPiem Hotels Limited Roots Corporation Limited
4406 (Taj Group – 51.57%, Nagpals – 39.47%) 922 (Taj Group – 66.9%, Tata Fund– 27.6%) 26551 Taj Mahal Palace, Mumbai 550 26 Vivanta by Taj - President, Mumbai 287 41 Ginger Hotel - Agartala 1002 Taj Lands End, Mumbai 493 27 Vivanta by Taj - Blue Diamond, Pune 110 42 Ginger Hotel - Ahmedabad 933 Taj Wellington Mews, Mumbai 78 28 Vivanta by Taj - Gomti Nagar, Lucknow 110 43 Ginger Hotel - Bangalore (Whitefield) 1014 Taj Mahal Hotel, New Delhi 292 29 Vivanta by Taj - M G Road, Bangalore 167 44 Ginger Hotel - Bangalore (Inner Ring Road) 885 Taj Palace, New Delhi 403 30 The Gateway Hotel - Ambad, Nashik 148 45 Ginger Hotel – Bhubaneshwar 1016 Taj Bengal, Kolkata 229 31 The Gateway Hotel- Fatehabad Road ,Agra 100 46 Ginger Hotel - Chennai (Vadapalani) 797 Taj West End, Bangalore 117 47 Ginger Hotel - Chennai (IITM) 858 Taj Lake Palace, Udaipur 83 United Hotels Limited 48 Ginger Hotel – Faridabad 919 Taj Falaknuma Palace, Hyderabad 60 (Taj Group – 55%, Kumar Family– 45%) 49 Ginger Hotel – Goa 13510 Taj Exotica, Goa 140 32 Vivanta by Taj - Ambassador, New Delhi 88 50 Ginger Hotel – Guwahati 7011 Vivanta by Taj - Aurangabad, Maharashtra 63 51 Ginger Hotel – Indore 9512 Vivanta by Taj - Connemara, Chennai 150 Benares Hotels Limited 52 Ginger Hotel – Jaipur 10313 Vivanta by Taj - Dwarka, New Delhi 250 (Taj Group – 53.7%, Royal Family – 8.8%) 174 53 Ginger Hotel – Jamshedpur 9414 Vivanta by Taj - Fort Aguada, Goa 145 33 Nadesar Palace – Varanasi 10 54 Ginger Hotel – Mangalore 7915 Vivanta by Taj - Holiday Village, Goa 142 34 The Gateway Hotel - Ganges, Varanasi 130 55 Ginger Hotel - Mumbai (Andheri East) 11616 Vivanta by Taj - Hari Mahal, Jodhpur 93 35 The Gateway Hotel - Balaghat Road, Gondia 34 56 Ginger Hotel – Mysore 9817 Vivanta by Taj - Whitefield, Bangalore 199 57 Ginger Hotel – Nashik 92
18 Vivanta by Taj - Yeshwantpur, Bangalore 327 International Hotel Mgmt Services Inc (Taj Group - 100%)572
58 Ginger Hotel - Delhi (Rail Yatri Niwas) 10919 Jai Mahal Palace, Jaipur 100 36 The Pierre, New York 189 59 Ginger Hotel - East Delhi 8220 Usha Kiran Palace, Gwalior 40 37 Taj Boston, Boston 273 60 Ginger Hotel – Noida 8321 Vivanta by Taj - Guwahati 150 38 Taj Campton Place, San Francisco 110 61 Ginger Hotel – Pantnagar 9822 The Gateway Hotel - Residency Road, Bangalore 98 62 Ginger Hotel – Pondicherry 9423 The Gateway Hotel - Beach Road, Calicut 74 St James Court Hotels Limited 63 Ginger Hotel - Pune (Wakad) 12824 Hotel Chandela, Khajuraho 90 (Taj Group – 100 % ) 423 64 Ginger Hotel - Pune (Pimpri) 9725 Hotel Savoy, Ooty 40 39 St. James Court, A Taj Hotel, London 338 65 Ginger Hotel – Surat 98
40 Taj 51 Buckingham Gate Suites, London 85 66 Ginger Hotel – Thane 4667 Ginger Hotel – Trivandrum 10168 Ginger Hotel – Vadodara 99
Current Portfolio
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Current Portfolio
# Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit RoomsMANAGED PROPERTIES – ROOTS CORP 525 MANAGEMENT AGREEMENTS 3607
69 Ginger Hotel - Chandigarh 102 Taj GVK Hotels & Resorts Limited 70 Ginger Hotel - Gurgaon (Manesar) 61 (Taj Group- 25.52%, GVK Group - 49.57%) 1083 105 Taj Santacruz 27971 Ginger Hotel - Katra, Jammu 80 87 Taj Krishna, Hyderabad 260 106 Umaid Bhawan Palace, Jodhpur 6472 Ginger Hotel – Tirupur 91 88 Vivanta by Taj - Begumpet , Hyderabad 181 107 Rambagh Palace, Jaipur 7873 Ginger Hotel – Vizag 72 89 Taj Banjara – Hyderabad 122 108 Imperial Club by Taj, Mumbai 974 Ginger Hotel – Tirupati 119 90 Taj Deccan, Hyderabad 151 109 Taj Dubai 296
91 Taj Club House, Chennai 220 110 Taj Bangalore 154ASSOCIATE COMPANIES 92 Taj Chandigarh, Chandigarh 149 111 Vivanta by Taj – Bekal, Kerala 66
112 Vivanta by Taj – Dal View, Srinagar 83Oriental Hotels Limited 1060 Taj Kerala Hotels & Resorts Limited 113 Vivanta by Taj – Gurgaon, NCR 208(Taj Group – 37.05, Reddy’s – 26.72%) (Taj Group – 31.3% Govt 33.33%) 166 114 Vivanta by Taj – Kovalam, Kerala 59
75 Taj Coromandel, Chennai 212 93 Vivanta by Taj - Kumarakom, Kerala 28 115 Vivanta by Taj – Panaji, Goa 17076 Vivanta by Taj - Fisherman's Cove, Chennai 152 94 The Gateway Hotel - Marine Drive, Ernakulam 108 116 Vivanta by Taj – Sawai Madhopur 3677 Vivanta by Taj - Malabar, Cochin 95 95 The Gateway Hotel-Janardhanapuram, Varkala 30 117 Vivanta by Taj – Surajkund 28678 Vivanta by Taj - Surya, Coimbatore 178 118 Taj Pamodzi – Zambia 19379 Vivanta by Taj - Trivandrum, Kerala 137 Kaveri Retreats & Resorts Limited 119 Taj Tashi, Thimpu, Bhutan 6680 The Gateway Hotel - Beach Road, Visakhapatnam 95 (Taj Group - 50%, Pramod Ranjan Group - 50%) 120 Vivanta by Taj - Reebak Island, Langkawi 9481 The Gateway Hotel - Church Road, Coonoor 32 96 Vivanta by Taj - Madikeri, Coorg 63 121 The Gateway Hotel – Akota Gardens, Vadodara 8682 The Gateway Hotel - Old Port Road, Mangalore 96 122 The Gateway Hotel – Athwalines, Surat 20683 The Gateway Hotel - Pasumalai, Madurai 63 Taj Safaris Limited 123 The Gateway Hotel - Damdama Lake Gurgaon 78
(Taj Group – 33.48%, Choudhury group – 31.9%) 54 124 The Gateway Hotel – EM Bypass, Kolkata 79TAL Lanka Hotels PLC ( TAL - 58.14%, IHCL – 24.62%) 97 Mahua Kothi - Bandhavgarh 12 125 The Gateway Hotel – Gir Forest ,Junagadh 28
84 Taj Samudra, Colombo 300 98 Banjaar Tola – Kanha 18 126 The Gateway Hotel – GE Road, Raipur 10999 Pashan Garh – Panna 12 127 The Gateway Hotel – IT Expressway, Chennai 200
Lanka Island Resorts Limited 100 Baghvan – Pench 12 128 The Gateway Hotel – Lakeside Hubli 92(Hirdaramanis–50%, Taj Group – 50 %) 129 The Gateway Hotel – Pune 150
85 Vivanta by Taj - Bentota, Sri Lanka 160 MANAGED PROPERTIES – Taj Safaris Limited 130 The Gateway Hotel – MG Road ,Vijayawada 108101 Meghauli Serai - Chitwan National Park 30 131 The Gateway Hotel – Ramgarh Lodge, Jaipur 14
JOINT VENTURE COMPANIES 132 SMS Hotel, Jaipur 27IHMS (SA) Pty Limited 133 The Gateway Hotel -Airport Garden, Colombo 208
Taj Karnataka Hotels & Resorts (Taj Group - 50% , Tata Africa – 50%) 134 The Gateway Resort Pushkar Bypass Ajmer 81(Taj Group 60 %, Government - 40%) 102 Taj Cape Town, South Africa 166
86 The Gateway Hotel- KM Road, Chikmagalur 29TAL Maldives Resorts Private Limited (Taj Group -50% Choudhury – 50%) 126
103 Taj Exotica, Maldives 64104 Vivanta by Taj - Coral Reef, Maldives 62
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Midscale Brand
Competitive Set
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Overview of Taj GroupFor the Year ended March 31, 2016
Total Revenue denotes the arithmetical aggregate of the turnover of all hotels/units irrespective of ownership, including Management Contracts
Particulars 2015/16 2014/15 2013/14 2012/13
Number of Hotels136 130 125 118
Rooms Inventory16,459 15,658 15,391 14,331
Total Revenue (`/crores)6,717 6,015 5,677 5,102
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New Inventory
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Hotels Opened In 2015/16
Hotel Company Rooms
TAJ
Taj Downtown, Dubai Management Contract 296
Taj Bangalore Hotel , Bangalore Management Contract 154
Taj Santacruz Hotel, Mumbai Taj GVK 283
Vivanta
Vivanta by Taj, Guwahati IHCL 150
Gateway
Gateway Hotel, Nashik (Expansion) Piem Hotels 78
Gateway Hotel, Hinjewadi, Pune Management Contract 150
Gateway Hotel ,Ajmer Management Contract 81
Ginger
Ginger Udayee, Tirupati Roots Corporation 119
Total 8 Hotels 1423
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New Launches in 2015 / 16
Taj Santacruz
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New Launches in 2015 / 16
Taj Bangalore
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New Launches in 2015 / 16
Taj Santacruz Taj Bangalore
VBT Guwahati
Vivanta by Taj, Guwahati
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New Launches in 2015 / 16
Taj Safaris-Meghauli Serai, Nepal
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New Launches in 2015 / 16
The Gateway Hotel, Hinjewadi, Pune
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New Launches in 2015 / 16
Taj Safaris-Meghauli Serai
Gateway Hotel, Hinjewadi
The Gateway Resort, Ajmer
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Upcoming Development in 2016/17Hotel Company RoomsTaj
Taj Exotica, Havelock, Andamans Kaveri Hotels (JV) 75
Safari
Meghauli Serai – Chitwan National Park, Nepal (Soft Opened) Management Contract 26
Vivanta by Taj
Vivanta by Taj, Amritsar PIEM Hotels 157
Vivanta by Taj, Udaipur Management Contract 112
Gateway
Gateway Hotel, Corbett Management Contract 52
Gateway Hotel , Tirupati Management Contract 125
Ginger
Vapi, Opp Empress Mall Roots Corporation 87
Bhubaneshwar (Expansion) Roots Corporation 60
Telly Gally , Mumbai Roots Corporation 142
Noida 2, UP Roots Corporation 90
10 Hotels 926
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Land Bank
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Land Bank
The Taj Group currently has more than 900 acres of land at strategic locations
in India, across 26 sites
This landbank has been acquired over a period of time in the past and would
beneficially impact project viability/feasibility of new developments on such
sites
Alternatively, the landbank represents a significant means of options to create
liquidity, where owned
The Taj Group is currently evaluating strategic options to efficiently leverage
the value creation potential in its land bank and project time lines.
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Financial Performance Year ended March 31, 2016
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IHCL Standalone Key Indicators
2,104
2,382
1,500
2,000
2,500
2014/15 2015/16
Turnover
231
322
100
200
300
Profit Before Tax(before Exceptional Items)
438 537
-
200
400
600
2014/15 2015/16
EBITDA
201
0
100
200
300
2014/15 2015/16
Profit After Tax
13%
23%
39%
`/crores `/crores
`/crores `/crores
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Profit and Loss AccountYear ended March 31, 2016
`/ croresQuarter IV Full Year
2015/16 2014/15 % Change 2015/16 2014/15 % ChangeNet Sales/Income from Operations 686.82 610.77 12 2273.70 2024.38 12Other Operating Income - -Total Income from Operations 686.82 610.77 12 2273.70 2024.38 12Cost of Materials Consumed 57.60 49.63 16 209.82 181.88 15Employee Benefits Expense 163.15 138.86 17 615.98 531.37 16License Fees 43.97 39.04 13 146.87 128.39 14Fuel, Power and Light 40.48 39.33 3 179.98 174.27 3Depreciation and Amortisation Expense 36.29 29.19 24 127.08 117.85 8Other Expenditure 199.09 190.07 5 692.50 649.80 7Total Expenditure 540.58 486.12 11 1972.23 1783.56 11
Profit/ (Loss) from operations before Other Income, Finance Costs and Exceptional Items 146.24 124.65 17 301.47 240.82 25
Other Income 28.99 21.25 36 108.62 79.22 37Profit/ (Loss) before Finance Costs and
Exceptional Items 175.23 145.90 20 410.09 320.04 28
Finance Costs 22.21 19.77 12 88.20 89.46 (1)Profit/ (Loss) after Finance Costs but before
Exceptional Items 153.02 126.13 21 321.89 230.58 40
Exceptional items (17.18) (196.54) (10.21) (228.70)Profit/ (Loss) before tax 135.84 (70.41) 311.68 1.88
Provision for Taxes 47.70 48.74 110.64 83.90Profit/ (Loss) After Tax 88.14 (119.15) 201.04 (82.02)
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Financials Summary Year ended March 31, 2016
Particulars Quarter IV Full Year2015/16 2014/15 2015/16 2014/15
Total Income 715.81 632.02 2382.32 2103.60
EBITDA 211.52 175.09 537.17 437.89EBITDA % 30% 28% 23% 21%
Profit/(Loss) before Finance Cost & Exceptional Item 175.23 145.90 410.09 320.04
Profit/(Loss) after Finance Costs but before Exceptional Item 153.02 126.13 321.89 230.58
Exceptional Item – Exchange Gain/( Loss) (16.83) 7.41 (56.56) (24.75)
Exceptional Item – Others (0.35) (203.95) 46.35 (203.95)
Profit /(Loss) before Tax 135.84 (70.41) 311.68 1.88Tax Expense (47.70) (48.74) (110.64) (83.90)
Profit / (Loss) after Tax 88.14 (119.15) 201.04 (82.02)
`/crores
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Income Details
Rs / Crores 2015/16 2014/15 % Change
Room Income 1002.33 908.34 10
Food &Beverages and Banquet Income 918.20 813.42 13
Management & Operating fees 148.95 137.74 8
Other Operating Income 204.22 164.88 24
Income from Operations 2273.70 2024.38 12
Non Operating Income 108.62 79.22 37
Total Income 2382.32 2103.60 13
Room Income grew by 10%, pushed by higher occupancies as also on account of new hotels at
Dwarka - NCR ( full year impact) and at Guwahati
Healthy Increase in Restaurant sales and Banqueting business
Non Operating Income of Rs 109 crores includes Treasury Income earned on surplus funds being
carried by the company during the year as also Dividend Income.
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Exceptional Items
Particulars 2015/16 2014/15Profit on Sale of Investments 56.53 -
Exchange Gain/(Loss) (56.66) (24.75)
Diminution in value of long term investments (0.35) (213.49)
Others (9.83) 9.54
Total (10.21) (228.70)
Rs/ Crores
The company divested its holding in Tata Projects Ltd during the year and earned a gain
on sale of such investment of Rs 56.53 crores
Exchange Loss mainly comprise of notional restatement of company’s USD long term
loans on account of exchange rate movement
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Expenditure Raw Materials Cost – Rs 209.82 crores
Increase in line with higher F&B revenue for the year. Some cost push due to commodity input cost increase.
Employee Benefit Expenses – Rs 615.98 CroresCosts controlled on account of various interventions adopted by the Company. Payroll costhigher over PY due to a combination of Increments to employees, additional cost on accountof new hotels at Dwarka & Guwahati as also due to actuary driven non cash charge taken forretirement benefits
License Fees – Rs 146.87 croresIncrease linked to higher Turnover
Fuel, Power & Light – Rs 179.98 crores
Same levels as PY notwithstanding increase in turnover of the company during the current year and addition of new inventory
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Expenditure
Other Expenditure - Rs 692.5 crores
Increase during the year aligned with increase in turnover. Rent rates & Taxes, Repairs
& Maintenance costs nominally increased during the year. Conversely, the
advertising costs were lower when compared to PY.
Depreciation & Amortisation – Rs 127.08 crores
Higher due to opening of new hotel at Dwarka
Finance Costs – Rs 88.20 crores
Lower levels due to deleveraging measures of the Company resulting in reduced debt
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` / Crores March 31, 2016 March 31, 2015Shareholders’ Funds 3,886 2,615
Non- Current Liabilities
Long-term borrowings 1,558 2,898
Other Long Term Liabilities 485 585
Long-term Provisions/ Deferred Tax Liabilities (net) 352 218
Current Liabilities
Short Term borrowings 7 1
Other Current Liabilities 942 638
Trade Payables/Short-term provisions 332 242
Equity and Liabilities 7,562 7,198
Non-current Assets
Fixed Assets(including CWIP) 2,212 2,154
Non-current investments 2,781 2,546
Long Term loans and advances /Other non-current assets 1,439 1,442
Current Assets
Current Investments/ Cash and Cash Equivalents 158 788
Short term loans and advances /inventories/ trade receivables/Other currents assets 972 268
Assets 7,562 7,198
IHCL Standalone Financials Balance Sheet
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Consolidated Financial Performance for the
Year Ended March 31, 2016
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IHCL Consolidated Key Indicators
10%
41%
25%
`/crores `/crores
`/crores `/crores
4,287 4,706
1,000
2,000
3,000
4,000
5,000
2014/15 2015/16
Turnover
587
732
-
200
400
600
800
2014/15 2015/16
EBITDA
120
169
50
100
150
200
Profit Before Tax (before Exceptional Items)
(61)
(300)
(200)
(100)
02014/15 2015/16
Profit After Tax
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IHCL Consolidated - Financials Summary Year ended March 31, 2016
Particulars Full Year2015/16 2014/15
Total Income 4,706.27 4,287.36
EBITDA 731.93 587.28
EBITDA % 15.6% 13.7%
Profit/(Loss) before Finance Cost & Exceptional Item
415.26 296.00
Profit/ (Loss) after Finance Costs but before Exceptional Item
169.30 120.43
Exceptional Item – Exchange Gain/( Loss) (63.21) (51.07)
Exceptional Item – Others (3.95) (301.84)
Profit/(Loss) before Tax 102.14 (232.48)
Profit/(Loss) after Tax, Minority Interest & share of profit/(loss) in associates
(60.53) (378.10)
`/crores
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IHCL Consolidated - Profit and Loss AccountYear ended March 31, 2016
`/ croresFull Year
2015/16 2014/15 % ChangeNet Sales/Income from Operations 4,590.92 4,188.64 10Other Operating Income - - -Total Income from Operations 4,590.92 4,188.64 10Cost of Materials Consumed 504.48 443.09 14Employee Benefits Expense 1609.71 1462.46 10License Fees 232.99 209.61 11Fuel, Power and Light 322.90 320.43 1Depreciation and Amortisation Expense 316.67 291.29 9Other Expenditure 1304.26 1264.49 3Total Expenditure 4291.01 3991.37 8
Profit/ (Loss) from operations before Other Income, Finance Costs and Exceptional Items 299.91 197.27 52
Other Income 115.35 98.71 17
Profit/(Loss) before Finance Costs and Exceptional Items 415.26 296.00 40
Finance Costs 245.96 175.57 40
Profit/ (Loss) after Finance Costs but before Exceptional Items 169.30 120.43 41
Exceptional item (67.16) (352.91)Profit/ (Loss) before tax 102.14 (232.49)
Less: Provision for Taxes (140.07) (114.60)Add: Share of Profit/(Loss) in Associates 2.85 (0.04)Less: Minority Interest in Subsidiaries (25.45) (30.97)Profit/( Loss) after Tax (60.53) (378.10)
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Particulars March 31, 2016 March 31, 2015Shareholders’ Funds 3,182 2,227
Minority Interest 835 738
Non- Current LiabilitiesLong-term borrowings 3,685 4,598
Other Long Term Liabilities 489 586
Long-term Provisions/ Deferred Tax Liabilities (net) 451 306
Current Liabilities 2,303 1,432
Equity and Liabilities 10,945 9,887Non-current Assets
Fixed Assets (including CWIP) 6,997 6,126
Goodwill on Consolidation (net) 1,346 478
Non-current investments 914 1,041
Long Term Loans and Advances/ Other Non Current Assets 566 518
Current AssetsCash and Cash Equivalents /Current Investments 395 1,050
Inventories/Trade Receivables/Other Current Assets 727 673
Assets 10,945 9,887
IHCL Consolidated FinancialsBalance Sheet
`/crores
47
TreasuryDebt Position
Particulars Standalone ConsolidatedGross Debt 2,108 4,781 Debenture Redemption Premium (Accrued) 318 331 Less : Liquidity (158) (395)Net Debt 2,268 4,717
Net Debt/ Equity 0.58 1.47Weighted cost of Debt 8.8% 7.3%
`/crores
Of the aggregate Sea Rock debt of Rs 1,400 crores, an amount of Rs 650 crores has been repaid
Balance debt of Rs 750 crores has been refinanced at a lower cost
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IND-AS – Effective April 1, 2016
Effective April 1, 2016, IHCL will migrate to the new Accounting Standards – IND-AS.
Transition to IND-AS will result in change in presentation of accounts, inter alia, in the following
areas
– Revenue recognition
– Fair Value concept
– Time Value of Money ( economic interest concept for Borrowings)
– Equity accounting for JVs
– Substance Over form ( for determining component entities for consolidation)
The company’s financial results for Q1 - 2016/17 will be published under IND-AS along with a
comparatives of the previous quarter
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Restructuring of Overseas Investments
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Restructuring of Overseas Investments
IHOCO BV , the 100 % offshore subsidiary company has since become IHCL’s apex offshore
Investment holding company.
Holdings in the, USA, UK , Sri Lanka, Maldives hotels and the two London restaurants have
since been shifted to IHOCO BV
Thus, 8 owned hotels (1584 rooms) & 2 UK restaurants are now being held through IHOCO
BV
This restructuring allows the company :
(i) Efficiency in up streaming of funds
(ii) Visibility of International holdings to stakeholders
(iii) Fund raising options ( if required in future)
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Scheme(s) of Arrangement - Update
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Amalgamation – Update
The Board of Directors at its meeting held on October 19, 2015 have approved the
amalgamation of International Hotel Management Services LLC (formerly known as
IHMS Inc.) and Lands End Properties Private Limited, two wholly owned subsidiaries
(“transferor companies”) into the Company, by way of two separate Schemes of Arrangements
between the Company
The Amalgamation process will be completed after receipt of the requisite orders of the
Bombay High Court sanctioning the Schemes and filing of the orders with the Registrar of
Companies, Mumbai.
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Amalgamation – Impact
There will be also an additional impact of inter change in Reserve & Surplus .
Debit Balance of ` 359 crores Profit & Loss Account will be adjusted with theSecurities Premium account .
The Impact on IHCL’s reserves on account of the two proposed amalgamation is summarisedbelow
Particulars Standalone Books
Consolidated Books
Reserve & Surplus as on March 31, 2016 3,822 3,119
LEEPL- Scheme of Arrangement (307) (293)IHMS- Scheme of Arrangement (1,338) -
Reserve & Surplus as on March 31, 2016 post Impact ofScheme of Arrangement
2,177 2,826
`/crores
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Amalgamation - Timelines
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Particulars DatesMilestones achievedFiling of IHMS LLC & LEPPL Scheme with SEBI October 21, 2015
Receipt of SEBI Approval December 19, 2015
High Court order for Shareholders / Creditors Meeting February 26,2016
Shareholders approval vide Postal Ballot ( for LEPPL scheme) April 28, 2016
Court Convened Meeting/ EGM – Shareholders approval May 4, 2016
Way Forward
High Court final order for the schemes to be effective July, 2016 (Indicative)
Shareholders approval have been secured for the two schemes. Post amalgamation, impact on Balance Sheet will be reported for status as
on March 31 , 2016 or alternatively as on April 1 , 2016
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Divestment
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Divestments during 2015/16
Divestments during the year :-
– Tata Projects Ltd - Rs 56 crores
– Belmond shares – Of our holding of 7.13 million shares, 2 million shares were
sold during previous year - $ 12 million ( Rs 80 crores)
The Sale Proceeds from above have been utilised to reduce the Debt.
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Divestments – New Proposal
The Board of Directors has accorded its approval to allow United Overseas Holding
Inc (UOH)., a wholly owned subsidiary of the Company, to pursue the option of
divestment of Taj Boston by way of sale/ disposal of the LLC interests in IHMS
(Boston) LLC (a direct subsidiary of UOH), at a consideration not lower than US$
125 million,
This will be subject to Shareholders and other approvals, as would be necessary
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Key Focus Areas
Asset Light and Asset Right Strategy
Select Brownfield development
Exit from Non Core / Non performing Investments
Invest behind hotel renovations / Asset Refresh
Ensure efficient debt funding mix / cost
Focus on technology upgrade / digital
Ongoing cost rationalization
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Awards & Accolades
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Awards & Accolades
Taj Hotels Resorts and Palaces • Featured on the list of 10 of the World's Best Luxury Hotel
Brands by Forbes magazine • Named the Best Hotel Group in India at the Travel + Leisure
India & South Asia's Best Awards • Rated Best Business Hotel Chain in India by Business Traveller
UK
TripAdvisor Travellers’ Choice Awards 2016• Umaid Bhawan Palace, Jodhpur – Best Hotel in the World, Asia
and India • Taj Lake Palace, Udaipur• Rambagh Palace, Jaipur• The Taj Mahal Palace, Mumbai• Taj Exotica, Goa• Taj Exotica Resort and Spa, Maldives• Taj 51 Buckingham Gate Suites and Residences, London• Taj Cape Town • Vivanta by Taj – Bentota, Sri Lanka
Condé Nast Traveler US Gold List 2016• Taj Falaknuma Palace, Hyderabad• Taj Lake Palace, Udaipur• The Taj Mahal Palace, Mumbai• Umaid Bhawan Palace, Jodhpur• Taj Tashi, Bhutan
Conde Nast Traveller UK Readers’ Travel Awards• The Taj Mahal Palace,
Mumbai was the only Indian hotel in the top three in the Best Overseas Business Hotel category
• Taj Lake Palace, Udaipur, Rambagh Palace, Jaipur and Taj Falaknuma Palace, Hyderabad ranked 6th, 9th and 15th respectively on the list of World's Best Hotels in Asia & the Indian Subcontinent
Town & Country Travel Best Hotels in the World list • Mahua Kothi, Bandhavgarh• Banjaar Tola, Kanha• Umaid Bhawan Palace, JodhpurTripAdvisor • Taj Falaknuma Palace
recognized as number one in the Best Palace Hotels in the World 2015 category
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Stock Price Movement
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IHCL v/s BSE Sensex
Sensex IHCL
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Thank you
