Indian Hotels Co Ltd's Q4FY18 adjusted consolidated net profit came in at Rs89.34cr : In-line with Estimates

The company’s consolidated revenue stood at Rs1,143.46cr, up 8.67% yoy but down 4.49% qoq.

May 25, 2018 12:05 IST India Infoline Research Team

Indian Hotels Co Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,143.46 8.7
EBITDA 244.67 37.7
EBITDA Margin (%) 21.4 451
Net Profit (adjusted) 89.34 1,249.6
***EBITDA margin change is bps
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Reco. Price

140

Last updated on

21-May-2018

The Indian Hotels Company Ltd's revenue for Q4FY18 came in at Rs1,143.46cr, up by 8.7% yoy. The operating profit for the quarter came in Rs244.67cr, up by 37.7% yoy. The EBITDA margin expanded significantly by ~451bps yoy to 21.4% in Q4FY18. The adjusted net profit attributable to owners for Q4FY18 stood at Rs89.34cr as against Rs6.62cr in Q4FY17. The revenue, operating profit and net profit were in-line with the consensus estimates.
  • Indian Hotels (IHCL) aims at consolidating its position of being an iconic and profitable hospitality company in South Asia on account of its brand space and continuous focus on growth.
  • The debt-equity ratio of the company reduced to 0.45x as on March 31, 2018, on account of the rights issue and better balance sheet management. The total debt (long-term and short-term) reduced to Rs2,334cr as on March 31, 2018, as against Rs2,808.02cr as on March 31, 2017.
  • Finance cost of the company reduced significantly by 33% yoy to Rs51.97cr in Q4FY18.
  • During FY18, the company opened ten hotels (697 keys). It opened the Taj Hotel in Andamans in February 2018, and nine Ginger hotels in some of India’s key cities like Mumbai, Gurgaon, Lucknow, Ahmedabad, Vadodara, Aurangabad and Goa.
  • IHCL signed five new hotels across its brands during the financial year – a Taj hotel in Vikhroli in Mumbai, Vivanta in Bhopal and three Ginger hotels in Lucknow, Vadodara and Goa.
  • IHCL undertook a phased renovation, renovated 800 rooms and other facilities at several of its landmark hotels including the iconic flagship hotel The Taj Mahal Palace, Mumbai, Taj Lands End, Mumbai, Taj Bengal, Kolkata, Taj Exotica Resort & Spa, Goa and Taj Fort Aguada Resort & Spa, Goa.
  • Board of directors declared a dividend of Rs0.4 per equity share.
  • The exceptional item for the quarter include:
    • Loss on change in fair value on cross currency swap derivative contracts for the quarter ended March 31, 2018, of Rs11.91cr;
    • Expenditure on projects written off for commercial reasons amounting to Rs2.57cr.
  • IHCL has a pipeline of 20 new hotels going ahead. The company has 145 hotels with 17,145 rooms as on April 30, 2018.
  • IHCL witnessed a demand growth of 5% yoy in FY18 as against 3.2% supply growth yoy. As per the management, the supply-demand gap is still significant in most cities, which would positively impact hotel industry occupancy and average room rentals.

Technical View:

Indian Hotels Co Ltd is currently trading at Rs137.10, down by 0 points or 0% from its previous closing of Rs137.10 on the BSE. The scrip opened at Rs137.05 and has touched a high and low of Rs139.40 and Rs136.25 respectively. So far 3,59,752 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.


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