The Indian Hotels Company Limited

Corporate Presentation
May ,2016

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.
Although we believe the expectations reflected in such forward looking statements
are based upon reasonable assumptions, we can give no assurance that our
expectations will be attained or that results will not 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
2

Key Highlights
World GDP growth
projected at 3.2%
for 2016

Growth rate in
Domestic
rooms Demand
Outpaces supply
growth

2015 GDP growth

of India higher
than China
7.3% vs 6.9%

Indias GDP
projected to
grow by 7.5 % in
2016/17

Monsoon,
Inflation,
Oil Prices,
Reforms key areas
to look out for
in Indias growth

Occupancies
show improvement
However, ARRs
remain flat

Foreign Tourists
arrivals growth at
10 % for
Jan to April 2016
(E visa Scheme)

Domestic Tourists
&
F&B to drive
growth

Taj Group
portfolio
touches 136 Hotels;
Room inventory
Of 16759

Taj Group crowned

the Best Hotel
Group in India
at the T+L India's
Best Awards

Taj Group featured

on the list of
10 of the Worlds
Best Luxury Hotel
Brands by Forbes

Added 1400 rooms

in 2015/16.
To add 900 rooms
in current year

Completed Restructuring of
International Overseas
Holdings, now housed
in a offshore WOS

Currently in
process of
amalgamating two
WOS with IHCL

To Pursue Divestment
of Taj Boston, whilst
Retaining management
contract

Focus on growth
by management
contracts to ensure
minimal capital
requirement

Presentation Structure
Industry Highlights
Taj Group An Overview
New Inventory
Land Bank
Financial Performance
Awards & Accolades
4

Industry Highlights

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.
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.

Source : WTTC, UNWTO, Ministry of tourism India, STR Global

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

India : Source Markets

In Lakhs
Country of Nationality
America
North America

2013

No of Arrivals
2014

2015

2013

Percentage Share
2014

2015

13.4

13.9

14.9

19.2%

18.1%

18.6%

0.7

0.7

0.7

1.0%

0.9%

0.9%

14.1

14.6

15.7

20.2%

19.0%

19.5%

18.6
4.1

18.6
4.2

18.8
3.3

26.6%
5.8%

24.2%
5.5%

23.4%
4.1%

22.6

22.8

22.1

32.4%

29.7%

27.5%

3.4
12.2
6.3
5.5

4.1
16.9
6.9
5.5

4.2
19.5
7.0
5.6

4.9%
17.4%
9.0%
7.9%

5.4%
22.1%
8.9%
7.1%

5.2%
24.2%
8.7%
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

Others

2.6
0.2

2.9
0.3

3.1
0.2

3.8%
0.3%

3.7%
0.4%

3.9%
0.3%

69.7

76.8

80.3

100.0%

100.0%

100.0%

Central and South America

Europe
Western Europe
Eastern Europe

Asia
West Asia
South Asia
South East Asia
East Asia

Source:- INDIA TOURISM STATISTICS 2015

Domestic Visits Growing over the Years

Figures in crores

Source: INDIA TOURISM STATISTICS 2014

Domestic travel visits continue to show robust growth and grew 12.9 % in 2014

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
Source : STR Global

10

Occupancies % Year on Year Trend

All Cities have witnessed improved occupancy levels over the previous year

Source : STR Global

11

ARRs Year on Year Trend

Despite growth in domestic demand , ARRs have continued to be flat , across India
Source : STR Global

12

Taj Group An Overview

13

Business Structure
IHCL
By business portfolio

By legal entity

Owned hotels

Subsidiary companies

Leased/ Licensed hotels

Joint ventures

Managed hotels

Associate companies
14

Taj Group
Major Companies
Company Name

Effective
Holding %

Company Name

Effective
Holding
%

Joint Ventures

Subsidiaries
Piem 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

15

Taj Brand Extensions

16

Taj Group Inventory

Brand Distribution
Brands

Total

Domestic

International

Total

No of
Hotels

Inventory

No of
Hotels

Inventory

No of
Hotels

Inventory

20

3,415

10

1849

30

5,264

35

4,946

575

40

5,521

31

2,596

208

32

2,804

34

3,170

34

3,170

120

14,127

16

2,632

136

16,759
17

Current Portfolio
# Company/ Hotel/ Unit

Rooms # Company/ Hotel/ Unit

HOLDING COMPANY

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

The Indian Hotels Company Limited

Taj Mahal Palace, Mumbai
Taj Lands End, Mumbai
Taj Wellington Mews, Mumbai
Taj Mahal Hotel, New Delhi
Taj Palace, New Delhi
Taj Bengal, Kolkata
Taj West End, Bangalore
Taj Lake Palace, Udaipur
Taj Falaknuma Palace, Hyderabad
Taj Exotica, Goa
Vivanta by Taj - Aurangabad, Maharashtra
Vivanta by Taj - Connemara, Chennai
Vivanta by Taj - Dwarka, New Delhi
Vivanta by Taj - Fort Aguada, Goa
Vivanta by Taj - Holiday Village, Goa
Vivanta by Taj - Hari Mahal, Jodhpur
Vivanta by Taj - Whitefield, Bangalore

4406
550
493
78
292
403
229
117
83
60
140
63
150
250
145
142
93
199

18
19
20
21
22
23
24
25

Vivanta by Taj - Yeshwantpur, Bangalore

Jai Mahal Palace, Jaipur
Usha Kiran Palace, Gwalior
Vivanta by Taj - Guwahati
The Gateway Hotel - Residency Road, Bangalore
The Gateway Hotel - Beach Road, Calicut
Hotel Chandela, Khajuraho
Hotel Savoy, Ooty

327
100
40
150
98
74
90
40

26
27
28
29
30
31

SUBSIDIARY COMPANIES
Piem Hotels Limited
(Taj Group 51.57%, Nagpals 39.47%)
Vivanta by Taj - President, Mumbai
Vivanta by Taj - Blue Diamond, Pune
Vivanta by Taj - Gomti Nagar, Lucknow
Vivanta by Taj - M G Road, Bangalore
The Gateway Hotel - Ambad, Nashik
The Gateway Hotel- Fatehabad Road ,Agra

Rooms

922
287
110
110
167
148
100

United Hotels Limited

(Taj Group 55%, Kumar Family 45%)
32 Vivanta by Taj - Ambassador, New Delhi

88

Benares Hotels Limited

(Taj Group 53.7%, Royal Family 8.8%)
33 Nadesar Palace Varanasi
34 The Gateway Hotel - Ganges, Varanasi
35 The Gateway Hotel - Balaghat Road, Gondia

174
10
130
34

International Hotel Mgmt Services Inc (Taj Group - 100%)

36 The Pierre, New York
37 Taj Boston, Boston
38 Taj Campton Place, San Francisco
St James Court Hotels Limited
(Taj Group 100 % )
39 St. James Court, A Taj Hotel, London
40 Taj 51 Buckingham Gate Suites, London

572
189
273
110

423
338
85

Company/ Hotel/ Unit

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57

SUBSIDIARY COMPANIES (Continued)

Roots Corporation Limited
(Taj Group 66.9%, Tata Fund 27.6%)
Ginger Hotel - Agartala
Ginger Hotel - Ahmedabad
Ginger Hotel - Bangalore (Whitefield)
Ginger Hotel - Bangalore (Inner Ring Road)
Ginger Hotel Bhubaneshwar
Ginger Hotel - Chennai (Vadapalani)
Ginger Hotel - Chennai (IITM)
Ginger Hotel Faridabad
Ginger Hotel Goa
Ginger Hotel Guwahati
Ginger Hotel Indore
Ginger Hotel Jaipur
Ginger Hotel Jamshedpur
Ginger Hotel Mangalore
Ginger Hotel - Mumbai (Andheri East)
Ginger Hotel Mysore
Ginger Hotel Nashik

Rooms

2655
100
93
101
88
101
79
85
91
135
70
95
103
94
79
116
98
92

58
59
60
61
62
63
64
65
66
67
68

Ginger Hotel - Delhi (Rail Yatri Niwas)

Ginger Hotel - East Delhi
Ginger Hotel Noida
Ginger Hotel Pantnagar
Ginger Hotel Pondicherry
Ginger Hotel - Pune (Wakad)
Ginger Hotel - Pune (Pimpri)
Ginger Hotel Surat
Ginger Hotel Thane
Ginger Hotel Trivandrum
Ginger Hotel Vadodara

109
82
83
98
94
128
97
98
46
101
99

18

Current Portfolio
#
69
70
71
72
73
74

Company/ Hotel/ Unit

MANAGED PROPERTIES ROOTS CORP
Ginger Hotel - Chandigarh
Ginger Hotel - Gurgaon (Manesar)
Ginger Hotel - Katra, Jammu
Ginger Hotel Tirupur
Ginger Hotel Vizag
Ginger Hotel Tirupati

Rooms
525
102
61
80
91
72
119

ASSOCIATE COMPANIES

75
76
77
78
79
80
81
82
83

Oriental Hotels Limited

(Taj Group 37.05, Reddys 26.72%)
Taj Coromandel, Chennai
Vivanta by Taj - Fisherman's Cove, Chennai
Vivanta by Taj - Malabar, Cochin
Vivanta by Taj - Surya, Coimbatore
Vivanta by Taj - Trivandrum, Kerala
The Gateway Hotel - Beach Road, Visakhapatnam
The Gateway Hotel - Church Road, Coonoor
The Gateway Hotel - Old Port Road, Mangalore
The Gateway Hotel - Pasumalai, Madurai

84

TAL Lanka Hotels PLC ( TAL - 58.14%, IHCL 24.62%)

Taj Samudra, Colombo

300

85

Lanka Island Resorts Limited

(Hirdaramanis50%, Taj Group 50 %)
Vivanta by Taj - Bentota, Sri Lanka

160

Company/ Hotel/ Unit

Rooms

87
88
89
90
91
92

Taj GVK Hotels & Resorts Limited

(Taj Group- 25.52%, GVK Group - 49.57%)
Taj Krishna, Hyderabad
Vivanta by Taj - Begumpet , Hyderabad
Taj Banjara Hyderabad
Taj Deccan, Hyderabad
Taj Club House, Chennai
Taj Chandigarh, Chandigarh

1083
260
181
122
151
220
149

93
94
95

Taj Kerala Hotels & Resorts Limited

(Taj Group 31.3% Govt 33.33%)
Vivanta by Taj - Kumarakom, Kerala
The Gateway Hotel - Marine Drive, Ernakulam
The Gateway Hotel-Janardhanapuram, Varkala

166
28
108
30

96

Kaveri Retreats & Resorts Limited

(Taj Group - 50%, Pramod Ranjan Group - 50%)
Vivanta by Taj - Madikeri, Coorg

63

97
98
99
100

Taj Safaris Limited

(Taj Group 33.48%, Choudhury group 31.9%)
Mahua Kothi - Bandhavgarh
Banjaar Tola Kanha
Pashan Garh Panna
Baghvan Pench

54
12
18
12
12

101

MANAGED PROPERTIES Taj Safaris Limited

Meghauli Serai - Chitwan National Park

30

102

IHMS (SA) Pty Limited

(Taj Group - 50% , Tata Africa 50%)
Taj Cape Town, South Africa

105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134

166

103
104

TAL Maldives Resorts Private Limited

(Taj Group -50% Choudhury 50%)
Taj Exotica, Maldives
Vivanta by Taj - Coral Reef, Maldives

126
64
62

1060
212
152
95
178
137
95
32
96
63

JOINT VENTURE COMPANIES

86

Taj Karnataka Hotels & Resorts

(Taj Group 60 %, Government - 40%)
The Gateway Hotel- KM Road, Chikmagalur

Company/ Hotel/ Unit

MANAGEMENT AGREEMENTS
Taj Santacruz
Umaid Bhawan Palace, Jodhpur
Rambagh Palace, Jaipur
Imperial Club by Taj, Mumbai
Taj Dubai
Taj Bangalore
Vivanta by Taj Bekal, Kerala
Vivanta by Taj Dal View, Srinagar
Vivanta by Taj Gurgaon, NCR
Vivanta by Taj Kovalam, Kerala
Vivanta by Taj Panaji, Goa
Vivanta by Taj Sawai Madhopur
Vivanta by Taj Surajkund
Taj Pamodzi Zambia
Taj Tashi, Thimpu, Bhutan
Vivanta by Taj - Reebak Island, Langkawi
The Gateway Hotel Akota Gardens, Vadodara
The Gateway Hotel Athwalines, Surat
The Gateway Hotel - Damdama Lake Gurgaon
The Gateway Hotel EM Bypass, Kolkata
The Gateway Hotel Gir Forest ,Junagadh
The Gateway Hotel GE Road, Raipur
The Gateway Hotel IT Expressway, Chennai
The Gateway Hotel Lakeside Hubli
The Gateway Hotel Pune
The Gateway Hotel MG Road ,Vijayawada
The Gateway Hotel Ramgarh Lodge, Jaipur
SMS Hotel, Jaipur
The Gateway Hotel -Airport Garden, Colombo
The Gateway Resort Pushkar Bypass Ajmer

Rooms
3607
279
64
78
9
296
154
66
83
208
59
170
36
286
193
66
94
86
206
78
79
28
109
200
92
150
108
14
27
208
81

29

19

Competitive Set

Midscale
Brand

20

Overview of Taj Group

For the Year ended March 31, 2016
Particulars
Number of Hotels
Rooms Inventory
Total Revenue (`/crores)

2015/16

2014/15

2013/14

2012/13

136

130

125

118

16,459

15,658

15,391

14,331

6,717

6,015

5,677

5,102

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

IHCL

150

Gateway Hotel, Nashik (Expansion)

Piem Hotels

78

Gateway Hotel, Hinjewadi, Pune

Management Contract

150

Gateway Hotel ,Ajmer

Management Contract

81

Ginger Udayee, Tirupati

Roots Corporation

119

Total

8 Hotels

1423

Vivanta
Vivanta by Taj, Guwahati
Gateway

Ginger

23

New Launches in 2015 / 16

Taj Santacruz

24

New Launches in 2015 / 16

Taj Bangalore

25

New Launches in 2015 / 16

VBT Guwahati

Vivanta by Taj, Guwahati

Taj Santacruz

Taj Bangalore

26

New Launches in 2015 / 16

Taj Safaris-Meghauli Serai, Nepal

27

New Launches in 2015 / 16

The Gateway Hotel, Hinjewadi, Pune

28

New Launches in 2015 / 16

Taj Safaris-Meghauli
Serai
The Gateway Resort,
Ajmer

Gateway Hotel, Hinjewadi

29

Upcoming Development in 2016/17

Hotel

Company

Rooms

Taj
Kaveri Hotels (JV)

75

Management Contract

26

Vivanta by Taj, Amritsar

PIEM Hotels

157

Vivanta by Taj, Udaipur

Management Contract

112

Gateway Hotel, Corbett

Management Contract

52

Gateway Hotel , Tirupati

Management Contract

125

Vapi, Opp Empress Mall

Roots Corporation

87

Bhubaneshwar (Expansion)

Roots Corporation

60

Telly Gally , Mumbai

Roots Corporation

142

Noida 2, UP

Roots Corporation

90

Taj Exotica, Havelock, Andamans

Safari
Meghauli Serai Chitwan National Park, Nepal (Soft Opened)
Vivanta by Taj

Gateway

Ginger

10 Hotels

926

30

Land Bank

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
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.
32

Financial Performance
Year ended March 31, 2016

33

IHCL Standalone Key Indicators

Turnover

`/crores

2,500

EBITDA

2,382
600

13
%

2,104

`/crores
537

438

23
%

400

2,000

200

2014/15
Profit
After Tax2015/16

Profit Before Tax

1,500

(before Exceptional Items)

2014/15

2015/16

300

`/crores

`/crores

322
300

201

200

231
200

39
%
100

100
0

2014/15

2015/16

34

Profit and Loss Account

Year ended March 31, 2016
`/ crores

Net Sales/Income from Operations

2015/16
686.82

Quarter IV
2014/15 % Change
610.77
12

Other Operating Income

2015/16
2273.70

Full Year
2014/15
2024.38

% Change
12

Total Income from Operations

686.82

610.77

12

2273.70

2024.38

12

Cost of Materials Consumed

Employee Benefits Expense
License Fees
Fuel, Power and Light
Depreciation and Amortisation Expense
Other Expenditure
Total Expenditure
Profit/ (Loss) from operations before Other
Income, Finance Costs and Exceptional Items
Other Income
Profit/ (Loss) before Finance Costs and
Exceptional Items
Finance Costs
Profit/ (Loss) after Finance Costs but before
Exceptional Items
Exceptional items

57.60
163.15
43.97
40.48
36.29
199.09
540.58

49.63
138.86
39.04
39.33
29.19
190.07
486.12

16
17
13
3
24
5
11

209.82
615.98
146.87
179.98
127.08
692.50
1972.23

181.88
531.37
128.39
174.27
117.85
649.80
1783.56

15
16
14
3
8
7
11

146.24

124.65

17

301.47

240.82

25

28.99

21.25

36

108.62

79.22

37

175.23

145.90

20

410.09

320.04

28

22.21

19.77

12

88.20

89.46

(1)

153.02

126.13

21

321.89

230.58

40

(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

Particulars

Quarter IV

Full Year

2015/16
715.81

2014/15
632.02

2015/16
2382.32

2014/15
2103.60

211.52

175.09

537.17

437.89

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

1.88

Tax Expense

(47.70)

(48.74)

(110.64)

(83.90)

88.14

(119.15)

201.04

(82.02)

Total Income
EBITDA
EBITDA %

Profit / (Loss) after Tax

36

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

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.
37

Exceptional Items
Rs/ Crores
Particulars

2015/16

2014/15

Profit 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)

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 companys 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.
Employee Benefit Expenses Rs 615.98 Crores
Costs controlled on account of various interventions adopted by the Company. Payroll cost
higher over PY due to a combination of Increments to employees, additional cost on account
of new hotels at Dwarka & Guwahati as also due to actuary driven non cash charge taken for
retirement benefits
License Fees Rs 146.87 crores
Increase 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

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
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

40

IHCL Standalone Financials

Balance Sheet
` / Crores

March 31, 2016

March 31, 2015

3,886

2,615

1,558

2,898

Other Long Term Liabilities

485

585

Long-term Provisions/ Deferred Tax Liabilities (net)

352

218

Short Term borrowings

Other Current Liabilities

942

638

Trade Payables/Short-term provisions

332

242

7,562

7,198

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 Investments/ Cash and Cash Equivalents

158

788

Short term loans and advances /inventories/ trade

receivables/Other currents assets

972

268

7,562

7,198

Shareholders Funds
Non- Current Liabilities
Long-term borrowings

Current Liabilities

Equity and Liabilities

Non-current Assets

Current Assets

Assets

41

Consolidated Financial Performance

for the
Year Ended March 31, 2016

42

IHCL Consolidated Key Indicators

Turnover

`/crores
5,000

4,706

EBITDA

`/crores

800

732

4,287
4,000

587

600

25
%

10
%

3,000

400
2,000

1,000

Profit Before Tax

2014/15
(before Exceptional Items)2015/16

200

200

`/crores

Profit After Tax

0

2014/15
2014/15

169

`/crores
2015/16
2015/16

(61)
(100)

150

120

41
%

100

(200)

50

(300)

43

IHCL Consolidated - Financials Summary

Year ended March 31, 2016
`/crores

Particulars
Total Income

Full Year
2015/16
2014/15
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)

44

IHCL Consolidated - Profit and Loss Account

Year ended March 31, 2016
2015/16
4,590.92
4,590.92
504.48
1609.71
232.99
322.90
316.67
1304.26
4291.01

Full Year
2014/15
4,188.64
4,188.64
443.09
1462.46
209.61
320.43
291.29
1264.49
3991.37

% Change
10
10
14
10
11
1
9
3
8

299.91

197.27

52

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

Less: Provision for Taxes
Add: Share of Profit/(Loss) in Associates
Less: Minority Interest in Subsidiaries
Profit/( Loss) after Tax

102.14
(140.07)
2.85
(25.45)
(60.53)

(232.49)
(114.60)
(0.04)
(30.97)
(378.10)

`/ crores

Net Sales/Income from Operations

Other Operating Income
Total Income from Operations
Cost of Materials Consumed
Employee Benefits Expense
License Fees
Fuel, Power and Light
Depreciation and Amortisation Expense
Other Expenditure
Total Expenditure
Profit/ (Loss) from operations before Other Income, Finance Costs and
Exceptional Items
Other Income

45

IHCL Consolidated Financials

Balance Sheet
`/crores
Particulars

March 31, 2016

March 31, 2015

3,182

2,227

835

738

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

9,887

Fixed Assets (including CWIP)

6,997

6,126

Goodwill on Consolidation (net)

1,346

478

914

1,041

566

518

Cash and Cash Equivalents /Current Investments

395

1,050

Inventories/Trade Receivables/Other Current Assets

727

673

10,945

9,887

Shareholders Funds
Minority Interest
Non- Current Liabilities
Long-term borrowings

Non-current Assets

Non-current investments
Long Term Loans and Advances/ Other Non Current Assets
Current Assets

Assets

46

Treasury
Debt Position
Particulars
Gross Debt
Debenture Redemption Premium
(Accrued)
Less : Liquidity
Net Debt
Net Debt/ Equity
Weighted cost of Debt

`/crores

Standalone

Consolidated

2,108

4,781

318

331

(158)

(395)

2,268
0.58
8.8%

4,717
1.47
7.3%

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
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 companys 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 IHCLs 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)
50

Scheme(s) of Arrangement - Update

51

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.

52

Amalgamation Impact
The Impact on IHCLs reserves on account of the two proposed amalgamation is summarised
below

`/crores

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)

2,177

2,826

Reserve & Surplus as on March 31, 2016 post Impact of

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
Receipt of SEBI Approval
High Court order for Shareholders / Creditors Meeting
Shareholders approval vide Postal Ballot ( for LEPPL
scheme)
Court Convened Meeting/ EGM Shareholders approval

October 21, 2015

December 19, 2015
February 26,2016
April 28, 2016
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

54
54

Divestment

55

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.

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,
This will be subject to Shareholders and other approvals, as would be necessary

57

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

58

Awards & Accolades

59

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
Cond 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, Jodhpur
TripAdvisor
Taj Falaknuma Palace
recognized as number one in the
Best Palace Hotels in the World
2015 category
60

Stock Price Movement

IHCL v/s BSE Sensex
35,000

140

30,000

120

25,000

100

20,000

80

15,000

60

10,000

40

5,000

20

0
1/Apr/15

0
1/May/15

1/Jun/15

1/Jul/15

1/Aug/15

1/Sep/15

1/Oct/15
Sensex

1/Nov/15

1/Dec/15

1/Jan/16

1/Feb/16

1/Mar/16

1/Apr/16

1/May/16

IHCL

61

Thank you

62