The 3 reports from 1 analysts offering long term price targets
for EIH Ltd. have an average target of 105.00. The consensus estimate
represents an upside of 16.86%
from the last price of 89.85.
Efforts to bring more efficiency to get visible from FY22E onwards While there remained uncertainty on the recovery, which is solely dependent on the launch of vaccine, the company has initiated major steps to bring down costs and come out stronger and more efficient. During the quarter, it managed to reduce fixed overhead by 29%, major being the salary and admin related. It has also resorted to process efficiency like back-office automation, using AI, paperless processing, focus on solar panel to bring down power costs, etc, expertise driven services in finance and data...
The ongoing coronavirus outbreak has had a severe impact on the hotel bookings in India from Feb-20 onwards with massive forward booking cancellations across cities. This in turn has eroded the ability of hotels across India with heavy loss of business during this peak season time. The extent of this lost business has primarily been seen across all major tourist and business destinations and we expect the situations to remain severely weak with individuals cancelling or deferring their travel plans and thousands of companies adopting the work from home' and no travel' policies. This...
The ongoing coronavirus outbreak has had a severe impact on the hotel bookings in India from Feb-20 onwards with massive forward booking cancellations across cities. This in turn has eroded the ability of hotels across India with heavy loss of business during this peak season time. The extent of this lost business has primarily been seen across all major tourist and business destinations and we expect the situations to remain severely weak with individuals cancelling or deferring their travel plans and thousands of companies adopting the work from home' and no travel' policies. This...
EIH Ltd reported a subdued set of Q2FY20 numbers. The company reported a 13.7% decline in revenues to | 287.7 crore (vs. I-direct estimate of | 302.7 crore). This drop in revenues is mainly attributable to a loss of flight catering business from Jet Airways, which was a major client for that segment. EBITDA margins for the quarter contracted 530 bps YoY to 5.7% while absolute EBITDA fell 55% YoY to | 16.4 crore (vs. I-direct estimate of | 36.6 crore) driven by lower contribution of the flight catering business to the profitability. Lower operating profits combined with higher depreciation and...
1. Strategy focused on ARR rather than occupancy. 2. Cost optimization and automation initiatives to improve operating leverage. 3. Increasing share of business from OTAs and direct walk-ins. 4. Focus on increasing F&B; revenue. 5. Weak 1HFY20 owing to economic slowdown and national elections. ARR growth of 7-8% YoY in FY20: Management on the call said that they have cut down their own ARR growth expectations from 10% YoY earlier to 7%-8% YoY, owing to weak 1HFY20. However, management is optimistic about growth in ARR in 2HFY20....
We met the management of EIH Ltd. The key highlights of the meeting are as follows 1. Core focus on upper upscale and luxury segments only. The company has three brands 1. Vilas in the upper upscale category 2. Oberoi in the luxury segment and 3. Trident. 2. Slower growth in number of rooms deliberate to maintain quality....
We met the management of EIH Ltd. The key highlights of the meeting are as follows 1. Core focus on upper upscale and luxury segments only. The company has three brands 1. Vilas in the upper upscale category 2. Oberoi in the luxury segment and 3. Trident. 2. Slower growth in number of rooms deliberate to maintain quality....
EIH reported a weak set of results mainly on account of the weak performance of the flight catering business. Revenues declined 13.5% YoY to | 290 crore (vs. I-direct estimates of ~| 350 crore). This drop in revenues was on the back of flight catering business losing ~50% business with the grounding of Jet Airways. Flight catering revenues came in at | 38 crore (down 49% YoY) while revenues from rooms and F&B; segment were at | 252 crore vs. | 257 crore YoY. Combined (domestic and managed hotels) RevPAR increased 0.6% YoY to | 6310 and occupancy improved 86 bps to...
Despite short-term setback, growth momentum to stay Q4FY19 was a challenging quarter for the hospitality industry as a whole led by the grounding of a major airline. This led to a financial setback and also impacted the business growth momentum. As seen in Q4FY19, EIH has taken a hit on its P&L; relating to receivables of its airline catering business from a single customer to the tune of ~| 85 crore. We believe this would have been further aggravated by lower revenues from that segment. Additionally, due to the grounding of the airline company, air fares had shot...
ICICI Securities Ltd | Retail Equity Research EIH reported healthy revenue growth of 22.6% YoY during the quarter backed by improved occupancy across its properties along with incremental revenues from refurbished Delhi property Stabilisation of Delhi property and cost optimisation led to 693 bps margin expansion in the quarter. On absolute basis, EBITDA rose sharply by 59.7% to | 132.4 crore (vs. I-direct estimate: | 112.7 crore) With healthy margins and revenue growth, PAT of | 63.9 crore was...
EIH reported a mixed set of Q4FY18 numbers. The reopening of the New Delhi property has started gaining traction and positively contributed to revenues and margins in Q4FY18 Consequently, revenues increased 16.7% YoY to | 431.4 crore (above our estimate of | 411.6 crore). EBITDA increased 73.2% YoY to | 98.8 crore (vs. I-direct estimate of | 103.6 crore). EBITDA margin increased 747 bps YoY to 22.9% led by a decline in employee expenses. The Board has recommended a dividend of | 0.90/share...
EIH reported a weak set of Q3FY18 results. The results were below our estimates on all fronts. Revenues were flat YoY at | 362.1 crore (below I-direct estimate of | 376.0 crore) On the margin front, the EBITDA margin declined 282 bps YoY to 22.9% (below I-direct estimate of 25.8%) led by an increase in employee expenses (up 14.3% YoY) Net profit declined 21.5% YoY to | 42.7 crore EIH well poised to capture cyclical upturn in hotel sector...
EIH reported a weak set of Q2FY18 numbers. The results were below our estimate on all fronts. Revenues were flat on a YoY basis at | 272.3 crore (below I-direct estimate of | 285.4 crore) On the margin front, the EBITDA margin declined from 5.0% in Q2FY17 to 3.3% (below I-direct estimate of 8.5%) led by an increase in employee expenses (up 9.9% YoY) Net profit declined 48% YoY to | 2 crore Expect recovery in domestic demand with rebound in economy...
EIH reported a mixed set of numbers. After four consecutive quarters of decline in revenues (mainly led by closure of The Oberoi, New Delhi for renovation), this is the first quarter where the company has reported revenue growth of low single digit. However, the same was below our estimate while net profit was above our expectation, mainly led by higher other income (up 259.4% YoY) Revenues increased 3.9% YoY to | 284.5 crore (below I-direct estimate of | 293.9 crore). The EBITDA margin declined 45 bps to...
For FY17, demand growth (6.2% YoY) outpaced supply growth (3.1% YoY). Further, overall occupancy improved 3.0% YoY to 64.0% while average room rate (ARR) improved 1.7% YoY. All major cities saw an increase in supply in range of 1-5%. Going forward, we expect occupancy to improve further due to a slowing down of capacity addition coupled with a rise in spending by domestic travellers. Also, with improved tourism measures by the government, we expect the sector to see better...
ICICI Securities Ltd | Retail Equity Research East India Hotels (EIH), one of the premium hotel operators, is expected to be a key beneficiary of a revival in the economic environment. We believe that a slowing down of capacity addition coupled with a rise in spending by domestic travellers will drive occupancy levels over the next few years. Also, with improved tourism measures by the government, the sector may see a better growth trajectory and pricing in the next three to four years. Apart from an improving environment, the reopening of the...
EIH's Q2FY17 numbers were below our expectations. Revenues declined 8.6% YoY to | 272.6 crore (below I-direct estimate: | 283.4 crore) mainly led by closure of The Oberoi, New Delhi for renovation On the margin front, the EBITDA margin also fell 714 bps YoY to...
On the margin front, the EBITDA margin also fell 197 bps YoY to 11.2% (below I-direct estimate of 13.9%) led by increase in fixed cost During the quarter, the company wrote off | 18.4 crore worth of assets arising out of renovation of Oberoi, New Delhi. Hence, on an adjusted basis, the company reported a net loss of | 44 lakh (vs. Idirect estimate of net profit: | 8.8 crore) Increase in demand, lower room supply domestically to drive growth For FY16, demand growth (10.5% YoY) has outpaced supply growth (3.9% YoY). All major cities have witnessed improved occupancy levels of...
EIH reported a mixed set of Q3FY16 numbers. While revenues were in line with our estimate, EBITDA and PAT were below our estimates due to lower operating margins & exceptional losses...
