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- Jan 20, 2000 - Indian Hotels reports dismal results
Indian Hotels reports dismal results
IHCL (Indian Hotels Company Ltd), reported a dismal performance for the 3QFY2000 as its net fell by 21% YoY to Rs 332.8 m. Its operating income reported a marginal improvement of 2% from Rs 1646.8 m in 3QFY99 to Rs 1676.9 m in the 3QFY2000. IHCL, India's largest hotel chain reported a turnover of Rs 5,915 m in FY99. It currently operates 42 hotels in India under the "Taj' brand.
| (Rs m) | 3QFY2000 | 3QFY1999 | Change |
| Operating Income | 1,676.9 | 1,646.8 | 2% |
| Other Income | 6.8 | 10.0 | -32% |
| Expenditure | 1,152.0 | 1,050.8 | 10% |
| Interest | 54.2 | 11.8 | 359% |
| Depreciation | 85.7 | 79.8 | 7% |
| Profit before Tax | 391.8 | 514.4 | -24% |
| Tax | 59.0 | 93.6 | -37% |
| Profit after Tax/(Loss) | 332.8 | 420.8 | -21% |
| Net profit margin (%) | 20% | 25% |
The other key highlights of the results was interest expenses which went up by 359% YoY in the 3QFY2000. Interest expenses were up mainly due to additional borrowings for funding of acquisitions and new hotel projects. Additional costs like performance linked bonus and customer loyalty programmes also added to its operating expenditure which went up by 10% YoY over the corresponding period The operating margins have fallen to 31.7% in the 3QFY2000 from 36.8% in the 3QFY99.
The hotel industry continues to reel under lacklustre occupancy rates and pressure on average room rates. IHCL's 3Q earnings did not receive a boost from millenium celebrations. The five star hotels in metro cities have been badly hit by the economic downturn due to slowdown in business travel. IHCL which receives around 75% of its revenues and profits from its hotels in Mumbai and Delhi has suffered as a result of this. We do feel however that occupancy rates will pick up in future as the country has got a stable government in place and industry is showing signs of a pick up.
Market View:
Hotel stocks have been out of favour for the past two years as a result of a fall in occupancy rates. IHCL however continues to be a long term favourite of analysts due to its large hotel network, aggressive expansion plans, professional management and its sound financials.
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THE INDIAN HOTELS 2019-20 Annual Report Analysis (Annual Result Update)
Dec 1, 2020 | Updated on Dec 1, 2020Here's an analysis of the annual report of THE INDIAN HOTELS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of THE INDIAN HOTELS. Also includes updates on the valuation of THE INDIAN HOTELS.
THE INDIAN HOTELS Announces Quarterly Results (4QFY20); Net Profit Down 42.9% (Quarterly Result Update)
Jun 11, 2020 | Updated on Jun 11, 2020For the quarter ended March 2020, THE INDIAN HOTELS has posted a net profit of Rs 668 m (down 42.9% YoY). Sales on the other hand came in at Rs 11 bn (down 14.6% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.
THE INDIAN HOTELS Announces Quarterly Results (3QFY20); Net Profit Up 21.4% (Quarterly Result Update)
Feb 1, 2020 | Updated on Feb 1, 2020For the quarter ended December 2019, THE INDIAN HOTELS has posted a net profit of Rs 2 bn (up 21.4% YoY). Sales on the other hand came in at Rs 14 bn (up 3.7% YoY). Read on for a complete analysis of THE INDIAN HOTELS's quarterly results.
THE INDIAN HOTELS 2018-19 Annual Report Analysis (Annual Result Update)
Jun 5, 2019 | Updated on Jun 5, 2019Here's an analysis of the annual report of THE INDIAN HOTELS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of THE INDIAN HOTELS. Also includes updates on the valuation of THE INDIAN HOTELS.
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