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Indian Hotels: Domestic Operations Performs Well - Views on News from Equitymaster
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Indian Hotels: Domestic Operations Performs Well
Oct 17, 2016

The Indian Hotels Company Limited (IHCL) has announced its results for the first quarter FY17. On a consolidated basis, the company has reported 5.6% YoY increase in sales and a loss of Rs 1,695 m in 1QFY17.

Performance summary
  • The topline increased 5.6% YoY on a consolidated basis in 1QFY17 led by 6.4%YoY growth in the domestic operations.
  • The consolidated operating profit decreased 21.1% YoY in 1QFY17. However, savings across the board (as a percentage of sales) in the domestic operations led to an improvement in the standalone performance. The standalone and consolidated operating margins for 1QFY17 were 11.2% and 10% respectively.
  • The exceptional loss of Rs 1,127 m in 1QFY17 was largely the result of the sale of Taj Boston.
  • The company reported a consolidated net loss of Rs 1,695 m in 1QFY17. Losses at the consolidated level increased by 134.1% YoY.

    Financial Snapshot
    (Rs m) 1QFY16 1QFY11 Change 1QFY16 1QFY17 Change
    Net sales 4,461 4,745 6.4% 8,964 9,466 5.6%
    Expenditure 4,113 4,214 2.5% 7,770 8,524 9.7%
    Operating profit (EBDITA) 348 531 52.6% 1,194 942 -21.1%
    Operating profit margin (%) 7.8% 11.2% 13.3% 10.0%
    Other income 284 168 -40.9% 254 134 -47.5%
    Finance cost 467 473 1.2% 835 896 7.3%
    Depreciation 298 341 14.6% 985 737 -25.1%
    Exceptional Item 23 -22 -211 -1,127
    Profit before tax -110 -137 -582 -1,684
    Tax -62 -47 -13 -18
    Profit after tax/(loss) -48 -90 -569 -1,666
    Minority interest 0.00 0.00 109 14 -87.0%
    Share of profit/(loss) of asso. 0.00 0.00 -46 -15
    Other comprehensive income -11.4 31.0 0.00 0.00
    Net Profit -60 -59 -724 -1,695
    Net profit margin (%) -1.3% -1.2% -8.1% -17.9%
    No. of shares (m) 989.3
    Diluted earnings per share (Rs) -1.6
    P/E ratio (x)* N.A

    *On a trailing 12 months basis

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