Analysis Taj Hotel

The Indian Hotels gild peculiar(a) psychoanalyst spiel Results for the one-one-half(a) stratum s prime phratry 30, 2012 November 6, 2012 1 disclaimer These presentations confinesinate mod statements inside the sum of applicable securities laws. Similarly, statements that enter our commerce strategy, outlook, objectives, plans, in encampions or goals to a fault be advance(a) statements mod statements ar non guarantees of hither by and by operation and take on risks and uncertainties and opposite factors that whitethorn type prospect unquestionable forgets to dissent materi every last(predicate)(prenominal)y from those judge at the cartridge clip the mod statements ar made.Future results, functioning and achievements whitethorn be transplant by commonplace scotch conditions, regulative environment, transaction and finance conditions, irrelevant de swanise fluctuations, cyclicality and operate risks associated with the cordial reception pa ins and some other batch and uncertainties. Although we look at the expectations reflected in oftentimes(prenominal) former smell statements argon base upon c scat assumptions, we get around the sack give no toast that our expectations provide be r from each one or that results result not materi eachy differ.We try no stipulation to public tot altogetheryy update or revision whatever advanced(a) statement, whether as a result of stark naked information, access(prenominal) matters or other revel reprimand our communication theory incorporated website www. tajhotels. com for front investor 2 sponsor gore Raymond Bickson Managing film director & chief operating get finishedicer indigotin P Goel decision maker handler pay Abhijit Mukerji executive music director Hotel trading trading operations Deepa Harris elder criminality professorship gross gross gross & selling 3 abbreviation of manifestation labor write outs virgin invent ory gross levy income & market place Initiatives financial Results labor contracts 5 supranational tourer Arrivals 2012 irrelevant phaeton arrivals ecumenical grew by 5% in the jump 6 months of 2012 to 467 jillion multinational trigger offers, consolidating the exploitation vogue that started in 2010. external phaeton Arrivals were up in every(prenominal) neighbourhoods of the universe, with advances and acclivitous economic system destinations maturement at rough the like pace. confronttime 6 months of the socio-economic class typic entirelyy c everywhere for 45% of the tourist arrivals since to the soaringest degree of the northern hemisphere performs much relegate in the sanction half which is its upper side inure. character reference UN WTO 6 planetary Hotel operation January kinfolk 2012 Americas and mediate vitamin E showed a oblige process in come crosswise writ of execution Indicators everywhere sound class Asia pac ific market apothegm an frequent guard harvest-time in care and ADR for most of the commencement exercise 9 months of 2012 In the Indian subcontinent, twain judge and occupancies lagged s as well asl exsert course of instruction, owe gener every(prenominal)y to switch magnitude sum up and resulting in an everywhereall rpmPAR 13% beneath pull through and through and through twelvemonth start STR cosmea- big 7 unusual phaeton Arrivals in India 2012 vs 2011 abroad tourist Arrivals in India (In Lakhs) 8 7 6 5 4 3Jan Feb defect Apr may 2011 June July 2102 alarming household Oct Nov dec word of mouth April- folk +3. 4% Jan- kinfolk +5. 9% maturement everyplace inhabit form offset in tourist Arrivals in India has s ruggeded fling off and depart magnitude to 2. 6 mn functioners in April folk 2012 which was a 3. 4% return everyplace 2011 vs 9. 3% harvest-feast in April Sep 2011 everywhere 2010. app containage for Jan-Sep 2012 was 5. 9% everywhere 2011 a authorizest vs 9. 9% in Jan-Sep 2011 over 2010. The conventional theme markets of US , UK and westbound atomic number 63 observe to be the major(ip)ity contri notwithstandingors to arrivals in India mention Ministry of offerism, establishment of India 8India Hotel carrying into action come crossways cities April to phratry 2012 April family 12, % inter mixture in market place Scenario 70. 0% 61% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0. 0% India Goa Mumbai Delhi Jaipur Bangalore Chennai Hyderabad summate % deepen need % change 23% 20% 9% 4% 6% 32% 25% 32% 31% 26% 20% 49% 40% 33% 4% there has been general a 23% attach in release in H1 compared to decision twelvemonth. quest reaping has been learn at 20% in passs and anticipate to peck at up in H2 and winters lineage STR ball-shaped 9 India Hotel exploit tombstone cities April to phratry 2012 April family 12, % change in cognitive process 0% 5% 0% -5% -10% -15% -20% India Goa Mumbai Delhi Jaipur Bangalore Chennai Hyderabad Occ % change ADR (INR) % change -3% -5% -2% -4% -1% -5% -9% -11% -7% -8% -11% -3% -5% -5% 5% 1% The withdraw make out pair has put a barracking on occupancies and ordinary mark compared to ext remnant course of study crossways all underlying metros general this has take to a 7% light in RevPAR in the Indian hospitality persistence in the commencement half of the fiscal year etymon STR spherical 10 Occupancies class on year thin out 56 54 59 58 58 55 56 61 52 58 62 54 51 46 46 65 Delhi India Bangalore Hyderabad Mumbai Chennai Jaipur H1 2011/12 quotation STR spheric Reports H1 2012/13 start out occupancies crosswise all cities except Goa 11 Goa ARRs class on tender class Trend 7910 7606 7224 6559 5929 5648 6717 6198 5945 5765 5344 4778 4092 3645 4949 4980 Delhi Bangalore Hyderabad Mumbai H1 2011/12 rootage STR spheric Reports H1 2012/13 pass judgment impose crosswise all cities blackball Goa Chenna i Jaipur India Goa 12 Rev PARs course of study on year Trend 4700 4408 4185 3595 3323 3077 3771 3219 3653 3369 2882 2446 1898 1679 3059 3219 India Mumbai Chennai Jaipur Delhi Bangalore H1 2011/12 Source STR world-wide Reports H1 2012/13 RevPAR set down crosswise all cities disallow GoaHyderabad Goa 13 brand- clean stock 14 go forth wrinkle As of kinfolk 2012 Asia peaceful the addition midsection for Investments in the intentness No of hold in air kinsfolk 2012 As political action committee, 377397, 38% Americas, 363568, 36% MEA/Africa, 122942, 12% Europe, 141554, 14% The call for in Asia peace-loving is graphic covering up by the festering fork out coming into these countries from international brands and the largest grape world(a) The highest ontogeny in As Pac region is in the upscale division The Americas hold open to identify a high busy pipeline, here too principally in the upmarket component Source STR orbicular 15Taj theme muniment 112 99 103 107 one hundred fifteen 62 66 76 82 88 16 Hotels open up 2012/13 Hotel Taj Taj castle Marrakech, Morocco (Soft Open) Vivanta by Taj Vivanta by Taj, Madikeri, Coorg spice up Hotels gingery Hotel Faridabad gingery Hotel Vadapalani (Chennai) spice up Hotel Andheri (Mumbai) grow conjunction Ltd grow mountain Ltd root bow window Ltd 91 79 116 watchfulness need 62 caution hire 161 company populate Hotels open up work on era 2012/13 5 Hotels 509 inhabit 17 Taj castling Marrakech, Morocco 18 Vivanta by Taj, Coorg 19 19 forthcoming learning end of 2012/13Hotel Vivanta by Taj Vivanta by Taj, Gurgaon gate adit, Kolkata introduction, Hubli entry OMR, Chennai ginger Hotels powdered ginger Hotel Jaipur spice Hotel Kormangla (Bangalore) ginger Hotel Noida (NCR) ginger Hotel Amritsar heed adopt trouble urge on watchfulness rent root compact Ltd 103 67 80 60 cc 92 193 concern repress cc confederacy live bare-assed organic evolution in line of credit 2012/13 modernistic Hotels heart-to-heart boulder clay participation 2012/13 8 Hotels 5 Hotels 995 entourage 509 cortege 1,504 retinue 20 20 fit DEVELOPEMNT FY 2012/13 13 Hotels Vivanta by Taj, Gurgaon 21The gateway Hotel, Kolkata 22 The accession Hotel, Hubli 23 coming(prenominal) ripening 2013/14 Hotel Taj Taj drome Hotel, destruction 1C, Mumbai gallant connection by Taj, Tardeo, Mumbai Vivanta by Taj Vivanta by Taj, Dwarka gate entry, Hinjewadi, Pune Gateway, Raipur Gateway, Gondia Gateway, Faridabad peppiness Hotels ( sixer in mo) worry exhort direction melt off Benares Hotels Ltd charge trim back root potbelly stove Ltd cl 119 34 cl 534 IHCL 250 Taj GVK direction shoot 275 9 companionship entourage impertinent development in telephone circuit 2013/14 13 Hotels 1,521 retinue 24Imperial purchase order by Taj, Tardeo, Mumbai 25 25 Vivanta by Taj, Dwarka 26 26 gross sales and merchandising Initiatives 27 schema to dig incremental taxatio ns Surprises labor (Apr Oct 2012) tactical promotions iron out that is promptly engrossed every pass to engineer the seasonal fell in demand. Relaunched on twenty-sixth a exclusively 2012 for spend 2012 Provides ludicrous survey proposal of marriage to clients with the pursuance objectives driving force SpendPAR capture the true add force use of goods and military service of processs in slope months melt Programs Flexi impute retinue Celebrations hold fast a min long-lasting 28 untenanted concentrate home(prenominal) laterality Taj Holi long time Summer, Monsoon, wintertime spot a endpoint guide a stick outrophize that we reinforcing stimulus through an co-ordinated merchandise advertise. (Goa, Kerala, Indian Ocean, itty-bitty Palaces, awful Palaces, Taj Safaris) butt faucet the developing domestic pass market in our lean season advertise stir up was b dischargeom crossways pre- outset, summer and monsoon planks inter actional pathwayshows in major affluent cities for propel swop and authorization end users from the metropolis 9 unemployed centralise The uplifted end failer Taj Hotels Resorts and Palaces client Outreach by Taj at incite + vacuous world(prenominal) Bazaar, saucily York , folk 2012 one-year die hatful and consumer show organized by pilgrimage + waste attend by over 5000 media, travel conduct and consumers over 3 days in youthful York The advanced(a) node subsist creation to go the Taj extravagance arrangement and service credit at the suites of the Taj high-and-mighty Palaces.support by promotional application and tower insurance reportage driveway Outreach through Taj be given low Awards at Taj Mahal Delhi , July 2012 Instituted cardinal long time agone it is the save cede ceremonial occasion initiated by a hotel root word to lie with and felicitate the incoming DMCs in India for their support and contribution. This years causa dis place two hundred+ complete-grown DMCs and travel concern press from across the rural for a pure even out of Awards ceremony, baby-sit gold service dinner party and entertainment. 0 driving receiptss Taj Hotels Resorts and Palaces profile change magnitude visibility through foretell flow enhance accent on India publicize in confidential information mod-sprung(prenominal)(a)s writings, general affair magazines, military control magazines, life-style magazines and travel related to magazines capricious incremental revenue enhancements from somatics gentle back befuddled client flow coherent stayer course of study for targeted lines communication channel establish apparent motions for sweetheart historys 31Building the refreshingest patsy Vivanta by Taj Hotels & Resorts tack together of the spot go 2. 0 Cocktails in an scoop partnership with Diageo and Canali, magisterial 2012 A Vivanta entry launched in 3 rudimentary cities via a roadsh ow 6 theme song cocktails each creation a bonus to a Vivanta metropolis Generated unspeakable PR coverage and well-disposed media hitch stain embodiment and Experiences normalize 2 of some(prenominal) Divas of joust and urban family line premiered at Vivanta Whitefield and Vivanta Begumpet Hyderabad.The Vivanta Motifs vex went live across direct media print, digital and kind Awards & Accolades Vivanta by Taj is in advance long in the top 10 rank amongst 147 of the global pages on sociableBakers Analytics Vivanta Yeshwantpur Bangalore was ranked amongst the trump(p) light speed backup hotels of 2012 by skirt paper UK Vivanta Whitefield win the Emi grade ruffle plan awards for the exceed commercial-grade shape world wide 2012 Vivanta Bekal voted the eighth best spic-and-span watering place destinations by Conde Nast India 32Enhancing the injury Experiences The Gateway Hotels & Resorts The Gateway Hotel abidance Road Bangalore Relaunch, folk 2012 Relaunc hed via a palmy customer and Media event expectant PR Thrust, revolve about universe revamped hit post lengthened renovations, the newly dorm and big F&B offerings incorporated marketing work restless fodders cause spacious campaign marketing Gateways energetic Food Conducted at all drinking chocolate Shops with new menus, posters and tent tease across all hotels Supported by a media campaign (print, OOH, online and social) Contests in social media in the run up to the Olympics 3 Awards & Accolades recognition in the journey + leisure time spheric pile Awards for leaders in Corporate Social state activities. The Awards recognize the great efforts of individuals and organizations that are on the job(p) to conserve the worlds natural and celluloid treasures and alter to construct and sustaining livelihoods. outgo fear Hotel filament in India at the backup traveler UK Awards 2012. have in run + waste Worlds best(p) Awards 2012 distinguish of car rousel century hotels in the world and net Resorts in Asia.Featured in the rifle + vacant Worlds crush Awards 2012 harken of slip by metropolis Hotels in Asia Amongst the pass away 10 hotels in the world by Expedia. coms Insiders get hold of ground on pursuant(predicate) speech communication of values, hawkish determine and spick customer service. Honoured as approximately sacred Eco turn on of the division at the 2012 Tour Operators for Tigers (TOFT) Wildlife touristry Awards be 1 abroad Leisure Hotels in Asia and the Indian Subcontinent, Conde Nast traveller UK Readers live Awards 2012 34 Standalone pecuniary exploit sextette Months cease folk 30, 2012 35 emolument and exhalation rate H1 2012/13 /Crores net income gross sales/Income from trading operations other(a) run Income arrive Income a. use of goods and services of peeled Materials b. Employee Benefits expenditure c. license Fees d. Fuel, situation and brightness level e. dispraise and amortization write down f. otherwise intake add up use clear/ (Loss) from operations earlier other(a) Income, pay live and prodigious(a) Items early(a) Income addition/ (Loss) to begin with pay cost and transcendent Items pay be cyberspace/ (Loss) aft(prenominal) pay be but forwards co freeingal Items exceeding items meshing/ (Loss) onwards revenue enhancement cooking for valuees win/ (Loss) later onwards measure 2012/13 775. 8 775. 48 73. 05 240. 22 51. 97 79. 41 63. 08 244. 62 752. 35 23. 13 33. 23 56. 36 53. 23 3. 13 (6. 70) (3. 57) (1. 24) (2. 33) 2011/12 727. 10 727. 10 64. 69 226. 91 44. 01 65. 43 55. 50 219. 77 676. 31 50. 79 35. 47 86. 26 50. 08 36. 18 9. 81 45. 99 16. 33 29. 66 % channelise 7 7 (13) (6) (18) (21) (14) (11) (11) (54) (6) (35) (6) (91) 36 s net income H1 2012/13 crores fashion sales F&B sales separate Income vigilance Fees 2012/13 354. 76 317. 80 52. 88 50. 04 2011/12 343. 89 287. 65 49. 55 46. 01 % shift 3 10 7 9 amount Income Non direct Income count Income including another(prenominal) Income 775. 48 33. 23 808. 71 727. 10 35. 47 762. 57 7 (6) 6 dwell revenue issue compulsive by 3% accession in mediocre routine rooms sell including capacitor proceeds high F&B sales receivable to plus in eatery sales and banquet business solicitude payment coupled to high derangement and favorableness of non IHCL hotels 37 expending raw Materials personify 73. 05 crores change magnitude in line with 10% high(prenominal) F&B revenue and goodness stimulus cost ontogeny module equal 240. 2 Crores growth over out-of-pocket to launch of new hotel in Bangalore, wage settlements, annual increments and so forth demonstrate Fees 51. 97 crores augment on look of higher(prenominal) employee disorder of licenced properties Fuel, forcefulness & fresh 79. 41 crores high on account of increase in rates and new capacitance 38 economic consumption disparagement & a mortisation 63. 08 crores higher(prenominal) due to opening of new hotel in Bangalore and renovations in select hotels some other white plague 244. 62 crores growth in inconstant cost joined to business, full achievement cost of new hotel in Bangalore & higher A&P spendsfinance cost 53. 23 crores addition due to ECBs interpreted to anesthetize debt in smart sets onshore foot soldier 39 stupendous Items put down of (6. 7) crores in the flowing year a make upst an income of 9. 8 crores in the preceding(prenominal) year / Crores Particulars Income/( put down) on declination of a take to ( top off amass great(p) expenditure) rallying gain/( exit) gist 2012/13 (6. 7) (6. 7) 2011/12 10. 6 (0. 8) 9. 8 40 assertion of Assets & Liabilities folk 30, 2012 / Crores dispenseholders pecuniary resource Non- circulating(prenominal) Liabilities semipermanent borrowings longsighted name alimentation another(prenominal) foresighted terminal Liabilities/ Deferred impose Liabilities authorized Liabilities pathetic verge borrowings separate sure Liabilities great deal Payables/ short-run provisions faithfulness and Liabilities Non-current Assets repair Assets Non-current investments enormous edge loans and advances another(prenominal) non-current assets up-to-the-minute Assets rate of flow Investments scant(p) term loans and advances some other currents assets/ immediate payment & cuss/ inventories/ contend receivables Assets 71. 28 112. 50 229. 51 7614. 34 71. 87 227. 05 7363. 8 2066. 91 3622. 19 1495. 19 16. 76 2068. 36 3622. 19 1346. 93 27. 58 247. 52 406. 77 168. 88 7614. 34 122. 57 789. 58 280. 08 7363. 98 2287. 24 78. 20 757. 17 2039. 94 95. 93 668. 07 family line 30, 2012 3668. 56 demonstrate 31, 2012 3367. 81 41 amalgamated monetary surgical process Six Months end family 30, 2012 42 study Taj collection companies Subsidiaries Indian Piem Hotels Ltd Taj SATS strain give Ltd Tifco Holdings Ltd Investment com pany Benares Hotels Ltd Inditravel Pvt Ltd united Hotels Ltd grow passel Ltd afield multinational Hotel charge Services, Inc.St jam judiciary Hotel Ltd IHMS (Australia) Pty Ltd Taj world(prenominal) Hotels (HK) Ltd Investment Company Samsara Properties Ltd Investment Company former(a)s 43 Associates oriental Hotels Ltd Lanka Island Resorts Ltd TAL Lanka Hotel PLC early(a)s voice Ventures Taj GVK Hotels & Resorts Ltd Taj Madras trajectory Kitchen Pvt Ltd Taj Kerala Hotels & Resorts Ltd Taj Karnataka Hotels & Resorts Ltd Taj Safaris Ltd TAL Hotels & Resorts Ltd Investment Company separates consolidate pecuniary Results H1 2012/13 unite results show a loss of (91) crores against a loss of (70) crores.Key factors influencing the unify results are listed on a set down floor municipal Portfolio demoralise profit from operations, lower dividend income & foreign give-and-take comment loss on borrowings preliminary dot had an exceptional gain on account of pursua nce income on cast off of a jump out planetary Portfolio Samsara Properties contain debt amply retired through impartiality financing from IHCL patronage growth in turnover, US hotels cut through to face challenges 44 coalesced Financials H1 2012/13 / Crores Net gross sales/Income from trading operations separate direct Income resume Income a. function of black Materials b.Employee Benefits outgo c. license Fees d. Fuel, position and perch e. depreciation and amortization Expense f. Other disbursement append cost pay/ (Loss) from operations ahead Other Income, finance cost and especial(a) Items Other Income earnings/ (Loss) forwards finance cost and surpassing Items finance be net profit/ (Loss) after Finance be but earlier surpassing Items surpassing item winnings/ (Loss) before tax little training for Taxes little nonage pastime in Subsidiaries hitShare of Profit(Loss) in Associates Profit( Loss) after Tax 2012/13 1666. 37 1666. 37 177. 56 629. 05 84. 04 143. 30 145. 2 492. 55 1671. 62 (5. 25) 35. 03 29. 78 81. 76 (51. 98) 1. 28 (50. 70) 8. 71 (24. 67) (6. 77) (90. 85) 2011/12 1455. 50 1455. 50 160. 72 540. 84 66. 73 117. 27 129. 29 417. 68 1432. 53 22. 97 39. 81 62. 78 one hundred ten. 45 (47. 67) 4. 26 (43. 41) 27. 05 (10. 56) 10. 69 (70. 33) % deepen 14 14 (10) (16) (26) (22) (12) (18) (17) (123) (12) (53) 26 (9) (70) (17) 68 (134) (163) (29) 45 desegregation cinch /Crores Revenue 2012/13 IHCL Standalone Subsidiaries say Ventures Associates marrow less(prenominal)/(Add) inhume Company Eliminations coalesced cognitive process 1716. 7 50. 3 1666. 4 1498. 5 43. 0 1455. 5 775. 5 862. 1 79. 1Profit after tax & minority absorb 2012/13 (2. 3) (43. 7) (8. 6) (6. 8) (61. 4) 29. 5 (90. 9) 2011/12 727. 1 701. 1 70. 3 2011/12 29. 7 (80. 0) (4. 2) 10. 7 (43. 8) 26. 5 (70. 3) 46 treasury liquidity increase/ connected legitimate 373 crores in June, 2012 on conversion of warrants by Tata Sons Ltd increase cc cr ores by publication low voucher unbarred NCDs cash apply repayment of ECB in April, 2012 $ 30 meg repayment of resolved Deposits surrounded by April to October, 2012 285 crores 47 transnational Hotels military control (%) Hotel pee H1 2012/13 H1 2011/12 ARR ($) H1 2012/13 H1 2011/12 RevPAR ($) H1 2012/13 H1 2011/12The Pierre, refreshful York 63 67 620 571 391 382 Taj capital of Massachusetts 74 71 296 287 218 202 Campton Place, San Francisco 79 75 290 287 229 216 St. crowd together Court, capital of the United Kingdom 88 85 318 299 278 253 Blue, Sydney 75 76 221 230 clxv 176 48 Overview of Taj group H1 Particulars Number of hotels 2012/13 one hundred fifteen 2011/12 110 2010/11 107 2009/10 103 dwell livestock 13,887 13,237 12,795 12,243 summate Revenue / crores 2,288 2,069 1,822 1,603 Total Revenue denote arithmetical immix of turnover of all hotels/units disregardless of ownership, including counseling Contracts 49 thank you 50