Indian Hotels Company (Q1 FY14)

India Infoline News Service | Mumbai |

Indian Hotels reported consolidated revenue growth of 6.6% yoy as weak demand scenario likely persisted across both domestic and foreign portfolios; lacklustre domestic demand weighed on standalone revenues which remained flat yoy

CMP Rs43, Target Rs46, Upside 8.1%
  • Indian Hotels reported consolidated revenue growth of 6.6% yoy as weak demand scenario likely persisted across both domestic and foreign portfolios; lacklustre domestic demand weighed on standalone revenues which remained flat yoy


  • Company managed to restrict consol margin decline to 20bps yoy as rise in other overheads was offset to an extent by 34bps drop in staff expenses; standalone OPM, however declined 320bps due to rise in power & fuel costs and other overheads


  • Standalone PAT jumped 143% yoy due to lower interest expense and higher other income though company reported net loss at the consolidated level


  • We cut our FY14/15 profit estimates post Q1 FY14 consol loss and lack of any potential triggers in the near term implies our Market Performer rating stays on the stock with revised 9-12 mth target of Rs46 (earlier Rs55)

Results table (consolidated)
(Rs m)
Q1 FY14
Q1 FY13
% yoy
Net sales
9,087
8,526
6.6
License fees
(455)
(424)
7.3
Raw material
(952)
(899)
5.8
Personnel
(3,290)
(3,116)
5.6
Power & fuel
(740)
(691)
7.1
Other overheads
(2,587)
(2,381)
8.6
Operating profit
1,064
1,015
4.8
OPM (%)
11.7
11.9
(20) bps
Depreciation
(733)
(714)
2.6
Interest
(394)
(438)
(10.1)
Other income
189
137
38.0
PBT
127
(0)
-
Tax
(122)
(97)
25.3
Minority Int & Associate share
(115)
(146)
(21.3)
FX loss
(81)
(91)
(10.6)
Reported PAT
(191)
(334)
(42.8)
Source: Company, India Infoline Research

Financial summary
Y/e 31 March (Rs m)
FY12
FY13
FY14E
FY15E
Revenues
34,327
37,434
41,012
45,583
yoy growth (%)
19.9
9.0
9.6
11.1
Operating profit
5,457
5,376
5,824
6,655
OPM (%)
15.9
14.4
14.2
14.6
Reported PAT
31
(4,303)
55
656
P/BV (x)
1.1
 

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