Indian Hotels Company (Q4 FY13)

India Infoline News Service | Mumbai |

Indian Hotels Q4 was hit by write offs to the tune of ~Rs4.3bn which included Rs3.1bn taken in its investment holding co that has stake in several companies including Orient Express

CMP Rs51, Target Rs55, Upside 7.2% 
  • Indian Hotels Q4 was hit by write offs to the tune of ~Rs4.3bn which included Rs3.1bn taken in its investment holding co that has stake in several companies including Orient Express

  • Cost control measures ensured that Q4 operating profit remained flat yoy despite pressure on power & fuel expenses; revenue growth remained lacklustre at 3.6% yoy as tepid demand and incoming supply put pressure in what is the seasonally strongest quarter for the company

  • Company to focus on turnaround of its American property ‘Pierre’ and maintain an asset light approach to inventory addition as most of the room growth to be via management contracts over next 18-24 months  

  • Lack of buoyancy in foreign demand and morose domestic economic scenario has hampered a revival in H2 FY13 and we foresee no near term catalysts for the stock; retain Market Performer with revised 9-12 mth target of Rs55 (earlier Rs57)

Results table (consolidated)
(Rs m)
Q4 FY13
Q4 FY12
% yoy
FY13
% yoy
Net sales
10,165
9,814
3.6
37,434
8.7
License fees
(434)
(525)
(17.3)
(1,971)
12.6
Raw material
(1,016)
(987)
2.9
(3,816)
5.2
Personnel
(3,255)
(2,973)
9.5
(12,718)
10.7
Power & fuel
(733)
(635)
15.5
(2,888)
17.6
Other overheads
(2,849)
(2,809)
1.4
(10,665)
10.4
Operating profit
1,878
1,886
(0.4)
5,376
(1.4)
OPM (%)
18.5
19.2
(74) bps
14.4
(147) bps
Depreciation
(710)
(658)
8.0
(2,884)
13.1
Interest
(461)
(451)
2.3
(1,707)
(19.6)
Other income
120
111
8.3
602
(15.7)
PBT
827
888
(6.9)
1,386
(7.0)
Tax
(423)
(553)
(23.4)
(990)
(18.7)
Minority interest
4
(81)
-
(395)
73.5
Adjusted PAT
407
255
59.8
2
(95.9)
Extra ordinary items
(4,299)
(11)
-
(4,304)
-
Reported PAT
 

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