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IHCL Corporate Presentation
IHCL Corporate Presentation
Corporate Presentation
May ,2016 1
Disclaimer
These presentations 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 guarantees of future performance
and involve risks and uncertainties and other factors that may cause actual results to
differ materially from those anticipated at the time the forward-looking statements
are made. Future results, performance and achievements may be affected by general
economic conditions, regulatory environment, business and financing conditions,
foreign exchange fluctuations, cyclicality and operating risks associated with the
hospitality industry and other circumstances and uncertainties.
Taj Group Taj Group crowned Taj Group featured Added 1400 rooms
portfolio the Best Hotel on the list of
in 2015/16.
touches 136 Hotels; Group in India 10 of the World’s
Best Luxury Hotel
To add 900 rooms
Room inventory at the T+L India's
Brands by Forbes in current year
Of 16759 Best Awards
Industry Highlights
New Inventory
Land Bank
Financial Performance
5
Industry Highlights - Outlook
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 GDP
to 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.
E-Tourist Visa scheme for India is now available across 150 countries, at 16 Airports 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%
7
Source : Ministry of tourism India
India : Source Markets
In Lakhs
No of Arrivals Percentage Share
Country of Nationality
2013 2014 2015 2013 2014 2015
America
North 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%
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%
Figures in crores
Domestic travel visits continue to show robust growth and grew 12.9 % in 2014 9
India Hotel Performance – Key cities
2015 / 16
•There has been an overall 3.9% increase in Supply in 2015 /16 as compared to the same
period last year.
•Demand growth has been 10.5% for this period However, the supply / demand gap is still
significant in most cities, impacting ARRs
10
Source : STR Global
Occupancies % – Year on Year Trend
All Cities have witnessed improved occupancy levels over the previous year
11
Source : STR Global
ARRs– Year on Year Trend
Despite growth in domestic demand , ARRs have continued to be flat , across India
12
Source : STR Global
Taj Group – An Overview
13
Business Structure
IHCL
Benares Hotels Ltd 51.68 Taj Karnataka Hotels & Resorts Ltd 44.27
16
Taj Group Inventory
Brand Distribution
Brands Domestic International Total
No of Inventory No of Inventory No of Inventory
Hotels Hotels Hotels
34 3,170 - - 34 3,170
17
Current Portfolio
# Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms
HOLDING COMPANY SUBSIDIARY COMPANIES SUBSIDIARY COMPANIES (Continued)
Piem Hotels Limited Roots Corporation Limited
The Indian Hotels Company Limited 4406 (Taj Group – 51.57%, Nagpals – 39.47%) 922 (Taj Group – 66.9%, Tata Fund– 27.6%) 2655
1 Taj Mahal Palace, Mumbai 550 26 Vivanta by Taj - President, Mumbai 287 41 Ginger Hotel - Agartala 100
2 Taj Lands End, Mumbai 493 27 Vivanta by Taj - Blue Diamond, Pune 110 42 Ginger Hotel - Ahmedabad 93
3 Taj Wellington Mews, Mumbai 78 28 Vivanta by Taj - Gomti Nagar, Lucknow 110 43 Ginger Hotel - Bangalore (Whitefield) 101
4 Taj Mahal Hotel, New Delhi 292 29 Vivanta by Taj - M G Road, Bangalore 167 44 Ginger Hotel - Bangalore (Inner Ring Road) 88
5 Taj Palace, New Delhi 403 30 The Gateway Hotel - Ambad, Nashik 148 45 Ginger Hotel – Bhubaneshwar 101
6 Taj Bengal, Kolkata 229 31 The Gateway Hotel- Fatehabad Road ,Agra 100 46 Ginger Hotel - Chennai (Vadapalani) 79
7 Taj West End, Bangalore 117 47 Ginger Hotel - Chennai (IITM) 85
8 Taj Lake Palace, Udaipur 83 United Hotels Limited 48 Ginger Hotel – Faridabad 91
9 Taj Falaknuma Palace, Hyderabad 60 (Taj Group – 55%, Kumar Family– 45%) 49 Ginger Hotel – Goa 135
10 Taj Exotica, Goa 140 32 Vivanta by Taj - Ambassador, New Delhi 88 50 Ginger Hotel – Guwahati 70
11 Vivanta by Taj - Aurangabad, Maharashtra 63 51 Ginger Hotel – Indore 95
12 Vivanta by Taj - Connemara, Chennai 150 Benares Hotels Limited 52 Ginger Hotel – Jaipur 103
13 Vivanta by Taj - Dwarka, New Delhi 250 (Taj Group – 53.7%, Royal Family – 8.8%) 174 53 Ginger Hotel – Jamshedpur 94
14 Vivanta by Taj - Fort Aguada, Goa 145 33 Nadesar Palace – Varanasi 10 54 Ginger Hotel – Mangalore 79
15 Vivanta by Taj - Holiday Village, Goa 142 34 The Gateway Hotel - Ganges, Varanasi 130 55 Ginger Hotel - Mumbai (Andheri East) 116
16 Vivanta by Taj - Hari Mahal, Jodhpur 93 35 The Gateway Hotel - Balaghat Road, Gondia 34 56 Ginger Hotel – Mysore 98
17 Vivanta by Taj - Whitefield, Bangalore 199 57 Ginger Hotel – Nashik 92
572
18 Vivanta by Taj - Yeshwantpur, Bangalore 327 International Hotel Mgmt Services Inc (Taj Group - 100%) 58 Ginger Hotel - Delhi (Rail Yatri Niwas) 109
19 Jai Mahal Palace, Jaipur 100 36 The Pierre, New York 189 59 Ginger Hotel - East Delhi 82
20 Usha Kiran Palace, Gwalior 40 37 Taj Boston, Boston 273 60 Ginger Hotel – Noida 83
21 Vivanta by Taj - Guwahati 150 38 Taj Campton Place, San Francisco 110 61 Ginger Hotel – Pantnagar 98
22 The Gateway Hotel - Residency Road, Bangalore 98 62 Ginger Hotel – Pondicherry 94
23 The Gateway Hotel - Beach Road, Calicut 74 St James Court Hotels Limited 63 Ginger Hotel - Pune (Wakad) 128
24 Hotel Chandela, Khajuraho 90 (Taj Group – 100 % ) 423 64 Ginger Hotel - Pune (Pimpri) 97
25 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 46
67 Ginger Hotel – Trivandrum 101
68 Ginger Hotel – Vadodara 99
18
Current Portfolio
# Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms
MANAGED 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 279
71 Ginger Hotel - Katra, Jammu 80 87 Taj Krishna, Hyderabad 260 106 Umaid Bhawan Palace, Jodhpur 64
72 Ginger Hotel – Tirupur 91 88 Vivanta by Taj - Begumpet , Hyderabad 181 107 Rambagh Palace, Jaipur 78
73 Ginger Hotel – Vizag 72 89 Taj Banjara – Hyderabad 122 108 Imperial Club by Taj, Mumbai 9
74 Ginger Hotel – Tirupati 119 90 Taj Deccan, Hyderabad 151 109 Taj Dubai 296
91 Taj Club House, Chennai 220 110 Taj Bangalore 154
ASSOCIATE COMPANIES 92 Taj Chandigarh, Chandigarh 149 111 Vivanta by Taj – Bekal, Kerala 66
112 Vivanta by Taj – Dal View, Srinagar 83
Oriental 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 170
76 Vivanta by Taj - Fisherman's Cove, Chennai 152 94 The Gateway Hotel - Marine Drive, Ernakulam 108 116 Vivanta by Taj – Sawai Madhopur 36
77 Vivanta by Taj - Malabar, Cochin 95 95 The Gateway Hotel-Janardhanapuram, Varkala 30 117 Vivanta by Taj – Surajkund 286
78 Vivanta by Taj - Surya, Coimbatore 178 118 Taj Pamodzi – Zambia 193
79 Vivanta by Taj - Trivandrum, Kerala 137 Kaveri Retreats & Resorts Limited 119 Taj Tashi, Thimpu, Bhutan 66
80 The Gateway Hotel - Beach Road, Visakhapatnam 95 (Taj Group - 50%, Pramod Ranjan Group - 50%) 120 Vivanta by Taj - Reebak Island, Langkawi 94
81 The Gateway Hotel - Church Road, Coonoor 32 96 Vivanta by Taj - Madikeri, Coorg 63 121 The Gateway Hotel – Akota Gardens, Vadodara 86
82 The Gateway Hotel - Old Port Road, Mangalore 96 122 The Gateway Hotel – Athwalines, Surat 206
83 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 79
TAL 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 109
99 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 108
101 Meghauli Serai - Chitwan National Park 30 131 The Gateway Hotel – Ramgarh Lodge, Jaipur 14
JOINT VENTURE COMPANIES 132 SMS Hotel, Jaipur 27
IHMS (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 29
TAL Maldives Resorts Private Limited
(Taj Group -50% Choudhury – 50%) 126
103 Taj Exotica, Maldives 64
104 Vivanta by Taj - Coral Reef, Maldives 62
19
Competitive Set
Midscale
Brand
20
Overview of Taj Group
For 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
21
New Inventory
22
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
23
New Launches in 2015 / 16
Taj Santacruz
24
New Launches in 2015 / 16
Taj Bangalore
25
New Launches in 2015 / 16
VBT Guwahati
26
New Launches in 2015 / 16
27
New Launches in 2015 / 16
28
New Launches in 2015 / 16
Taj Safaris-Meghauli
The Gateway Resort, Ajmer Serai
29
Upcoming Development in 2016/17
Hotel Company Rooms
Taj
Taj Exotica, Havelock, Andamans Kaveri Hotels (JV) 75
Safari
Meghauli Serai – Chitwan National Park, Nepal (Soft Opened) Management Contract 26
Vivanta by Taj
31
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
32
Financial Performance
Year ended March 31, 2016
33
IHCL Standalone Key Indicators
Turnover
`/crores `/crores
2,500 EBITDA
2,382
600 23
13 537
%
% 438
2,104 400
2,000
200
322
300
200 201
231
39
200 %
100
100
0
2014/15 2015/16
34
Profit and Loss Account
Year ended March 31, 2016
Quarter IV Full Year
`/ crores
2015/16 2014/15 % Change 2015/16 2014/15 % Change
Net Sales/Income from Operations 686.82 610.77 12 2273.70 2024.38 12
Other Operating Income - -
Total Income from Operations 686.82 610.77 12 2273.70 2024.38 12
Cost of Materials Consumed 57.60 49.63 16 209.82 181.88 15
Employee Benefits Expense 163.15 138.86 17 615.98 531.37 16
License Fees 43.97 39.04 13 146.87 128.39 14
Fuel, Power and Light 40.48 39.33 3 179.98 174.27 3
Depreciation and Amortisation Expense 36.29 29.19 24 127.08 117.85 8
Other Expenditure 199.09 190.07 5 692.50 649.80 7
Total Expenditure 540.58 486.12 11 1972.23 1783.56 11
Profit/ (Loss) from operations before Other
146.24 124.65 17 301.47 240.82 25
Income, Finance Costs and Exceptional Items
Other Income 28.99 21.25 36 108.62 79.22 37
Profit/ (Loss) before Finance Costs and
175.23 145.90 20 410.09 320.04 28
Exceptional Items
Finance Costs 22.21 19.77 12 88.20 89.46 (1)
Profit/ (Loss) after Finance Costs but before
153.02 126.13 21 321.89 230.58 40
Exceptional Items
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 83.90
Profit/ (Loss) After Tax 88.14 (119.15) 201.04 (82.02) 35
Financials Summary
Year ended March 31, 2016
`/crores
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.
37
Exceptional Items
Rs/ Crores
Particulars 2015/16 2014/15
Profit on Sale of Investments 56.53 -
Exchange Gain/(Loss) (56.66) (24.75)
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
38
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.
Same levels as PY notwithstanding increase in turnover of the company during the current
year and addition of new inventory 39
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
Lower levels due to deleveraging measures of the Company resulting in reduced debt
40
IHCL Standalone Financials
Balance Sheet
` / Crores March 31, 2016 March 31, 2015
Shareholders’ 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
972 268
receivables/Other currents assets
Assets 7,562 7,198 41
Consolidated Financial Performance
for the
Year Ended March 31, 2016
42
IHCL Consolidated Key Indicators
Turnover
EBITDA
`/crores
5,000 4,706
800 `/crores
732
4,287
4,000 587
600
10 25
% %
3,000
400
2,000
200
1,000 Profit Before Tax
(before Exceptional Items)2015/16
2014/15 Profit After Tax
`/crores `/crores
200 0
- 2014/15 2015/16
2014/15 2015/16
169
(61)
150 (100)
120
41
%
100 (200)
50 (300)
43
IHCL Consolidated - Financials Summary
Year ended March 31, 2016
`/crores
Full Year
Particulars
2015/16 2014/15
Total Income 4,706.27 4,287.36
EBITDA 731.93 587.28
EBITDA % 15.6% 13.7%
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
47
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
The company’s financial results for Q1 - 2016/17 will be published under IND-AS along with a
comparatives of the previous quarter
48
Restructuring of Overseas Investments
49
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
50
Scheme(s) of Arrangement - Update
51
Amalgamation – Update
The Board of Directors at its meeting held on October 19, 2015 have approved the
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
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.
52
Amalgamation – Impact
The Impact on IHCL’s reserves on account of the two proposed amalgamation is summarised
below
`/crores
Particulars Standalone Consolidated
Books Books
Reserve & Surplus as on March 31, 2016 3,822 3,119
Reserve & Surplus as on March 31, 2016 post Impact of 2,177 2,826
Scheme of Arrangement
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 the
Securities Premium account .
53
Amalgamation - Timelines
Particulars Dates
Milestones achieved
Filing of IHMS LLC & LEPPL Scheme with SEBI October 21, 2015
Receipt of SEBI Approval December 19, 2015
Way Forward
High Court final order for the schemes to be effective July, 2016 (Indicative)
54
Divestment
55
Divestments during 2015/16
– Belmond shares – Of our holding of 7.13 million shares, 2 million shares were
The Sale Proceeds from above have been utilised to reduce the Debt.
56
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,
57
Key Focus Areas
59
Awards & Accolades
30,000 120
25,000 100
20,000 80
15,000 60
10,000 40
5,000 20
0 0
1/Apr/15 1/May/15 1/Jun/15 1/Jul/15 1/Aug/15 1/Sep/15 1/Oct/15 1/Nov/15 1/Dec/15 1/Jan/16 1/Feb/16 1/Mar/16 1/Apr/16 1/May/16
Sensex IHCL
61
Thank you
62