Indian Hotels Company Ltd. share price target

Indian Hotels (IHCL) Q2FY21 revenue decline at 75% YoY was higher than our estimate of 69%. Yet, EBITDA/APAT was ahead of estimates led by higher than expected costs savings. IHCL's net debt has increased sharply by Rs 10.3bn (Rs 6.14bn in Q2) to Rs 29.4bn. We remain positive on IHCL led by its strong brand recall and footprint across segments, asset-light approach, monetization of non-core assets, focus on driving alternate revenue streams, repositioning Ginger in lean luxury segment and efficient costs management....

Indian hotel Company Limited's (IHCL's) Q2FY2021 performance improved sequentially as revenues rose to Rs. 256.7 crore from Rs. 143.6 crore in Q1FY2021. Standalone occupancy ratio improved to 32.3% in Q2FY2021 from 20.5% in Q1FY2021; average room rentals (ARR) rose by 12% to Rs. 5,424 from Q1. Company's RESET initiative is giving desired results - 1) Newer initiatives contributed Rs. 135 crore to revenues, operating cost fell 51% (fixed cost fell by Rs. 134 crore through effective asset management). Hotel industry set for strong revival in FY2022/23 as foreign tourist arrivals are...

Focus on cost optimisation to reap benefits in long run After achieving ~75% target set in Aspire 2020, the focus now shifts to R.E.S.E.T 2020. Under this, the company is planning to maximise revenue potential through initiatives like online F&B; business (Qmin), zero tough digital transformation and rationalisation of fixed overheads. These initiatives have added | 77 crore to topline. Also, cost optimisation measures like certain temporary concessions (e.g. employee costs in UK, electricity charges in Maharashtra, re-negotiation of lease, deferring renovations, etc)...

Indian Hotels Company Ltd.'s (IHCL) Q1FY21 result was below our and consensus estimates on all parameters. Impact of COVID-19 on hospitality is strikingly visible as net sales sharply deteriorated for organized players, including IHCL. Net sales declined by 85.9% YoY to Rs1,436mn, while EBITDA came in at negative Rs2,660mn, down by 253.4% YoY. The company reported net loss of Rs3,126mn compared to net profit of Rs176mn in Q1FY20. The company's majority of inventory was closed for ~45 days in Q1FY21, while operational inventory was used for quarantine facilities and medical staff. Extension of lockdown and interstate travel ban dented leisure segment during...

Indian Hotels (IHCL) reported 14.6% drop in revenue to | 1,063 crore (I-direct estimate: | 995 crore) led by 48% drop in income for March 2020. Revenues were flattish at | 4,463 crore in FY20, in contrast to 4% growth on 9MFY20 basis. Consolidated EBITDA margins for Q4FY20 fell 330 bps YoY to 19.6% (I-direct estimate: 20.5%); standalone (pure domestic) business saw a sharper decline of 522 bps. EBITDA for the quarter dropped 27% YoY to | 207.9 crore (I-direct estimate: | 203.7 crore). For FY20, EBITDA increased 16.6% YoY, with higher share of growth coming from international business....

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...

We like IHCL amongst the domestic hospitality space considering its diverse product offerings, improving balance sheet strength and declining losses from international operations. We estimate net sales/EBITDA/PAT growth of 7.3%/23.3%/34.7% over FY19-21E. Maintain BUY with a TP of Rs 200 valuing the stock at 20x EV/EBITDA and per share value in Taj GVK and Oriental Hotels at current market capitalization. Key Highlights and Investment Rationale Strong inventory pipeline to support healthy sales growth IHCL recently reached milestone of 200 hotels with 25,000+ rooms, while 50 new...

24 February 2020 Company Update Hospitality Indias hotel industry performance this fiscal has been impacted by various factors, including Jet Airways shutdown, general elections, protests (albeit to a smaller extent) in the NCR region, and the lack of pick-up in corporate demand due to the economic slowdown. With that, the company has outpaced industry in terms of room addition under management contracts, in our view. IHIN estimates income from management contracts at INR2,350m in FY20, which has ~70% flow through to EBITDA. Overall management contract pipeline stands at 4,727 rooms, which is ~50% of rooms that generate management fee income (total of ~9,500 rooms and fees are also earned from owned managed hotels, JV, subsidiary and associates). Indian Hotels IHIN had guided for generating an additional revenue stream by capitalizing on the existing brands (Chambers)/launching new brands (Ama, nui&nau;, launch Anuka brand in Taj SATS for directly offering services to B2C segment, Brew Pub with AB InBev and Paper Moon).

Indian Hotels Company Ltd. (IHCL) reported an all-round Q3FY20 performance. The company reported net sales of Rs13,727 mn (+3.7%YoY). The growth was driven by healthy RevPAR growth across key markets where IHCL has a strong presence. EBITDA came in at Rs4,257 mn (+26.9%YoY), while EBITDA margin improved by healthy 566bps YoY to 31%. Net profit stood at Rs2,132 mn, up by 25.4% YoY. Hospitality industry is seeing early signs of ARR revival, which otherwise was limited to only growth in occupancy. The industry's RevPAR growth improved by 300bps over last quarter to 5.5%, which was driven by demand-supply gap of 220bps at 2.5% and 4.7%...

Indian Hotels (IHCL) reported a healthy performance, beating our estimates on a broad basis. The company registered 3.7% YoY growth in revenues to | 1372.7 crore (I-direct estimate: | 1404 crore). Standalone (domestic) business continued to outperform the international business for another quarter. International hotels saw a decline in RevPAR by 4.2% YoY; domestic business reported 5.6% growth YoY. EBITDA margins expanded 565 bps YoY to 31% (I-direct estimate: 27.1%). Adjusting for lease reclassification, EBITDA margins expanded 185 bps. Reported EBITDA...