Q1 Results
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Poor results as expected but good to see that Mgmt has been walking the talk. A lot has happened over the last 2 years.
Employee count has gone down.
New initiatives to add revenue sources.
Aggressive Asset light growth:Most new properties will not be owned.company will run the hotel in exchange of management fees. So Asset-light growth through management contracts. Most of them will be in the budget category.
Looks very interesting at current juncture. As occupancy increases due to revenge travel one can expect huge op. leverage to play out. Could be interesting from a 2-3 year perspective.
Disc: Studying. No investments yet
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Hospitality Industry on verge of inflexion point, post covid we may see better operational performance than pre covid.
IHCL may be beneficiary of operating leverage
I have prepared an excel sheet trackr of all properties of Indian Hotels in which we acan update the room rates daily to get a sense of the revenue number. Taj Properties 29102021.xlsx (58.4 KB)
My conclusions based on the sheet
1.I have assumed a 70% occupancy rates base on the channel checks, connections and the ARR justifies as without the occupancies, ARR wont be where they are.
2. October Month did around 330 crores in Room Rate Revenue. F&B revenue can be assumed as 60% of the Room Rate Revenue on an absolute conservative basis. So total revenue for month of October is around Rs 528 crores.
3. According to the current Rates of dates between 15th Nov-30th Nov , Average Room Revenues will be around Rs 383 crores , Adding F&B revenue at 60%, total revenue for November month would be Rs 613 crores.
4. For December month Rates are even higher. Room Revenues for December month are trending at Rs 410 crore Monthly Run Rate, Assuming F&B revenues at 60% of the Room Revenues, December monthly total revenue would be around Rs 656 crores
That brings the total revenue number to be Rs 1797 crores for December month.
In terms of costs, at the most conservative number I have assumed Rs 950 crores for the quarter,
EBIDTA comes out to be Rs 847 crores for Dec FY22.
That makes it a Rs 2600 crore EBIDTA business which should trade at a multiple of 15x EV/EBIDTA at least.
Fair EV= Rs 39000 crore in the most conservative estimates.
Leaves a room of 40% upside immediately.
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Rights Issue
Entitlement: 1 for every 9 shares
Rate: 150
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Am New to this (rights issue), so asking.
So, this means who has 9 shares has an option to apply for 1 share at Rs. 150 (when current price is Rs. 215). In that case it is a good option, right ?)
Thanks in advance.
Disc: Invested
This is good and quite a bit of work.
But after checking the transcript https://www.primeinfobase.in/z_INDHOTEL/files/Indian_Hotels_Investor_Meet_Transcript_2021.pdf
to make this better I can suggest 2 things
- Consider the other Line of businesses like Qmin, Ama, Taj SATS, The Chambers, Jiva
- Try to extrapolate this over 2-3 years⌠(Coz the new biz are in startup phase now)
These might make it a more useful for a longer term outlook
Yes your understanding is right Anand, you can apply 1 share for every 9 shares held at Rs.150.
If you hold shares than it is advisable to apply for rights as your equity will be diluted. Ex-rights price will be adjusted as per the rise in Equity Base.
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Will take the suggestions into consideration. But those new businesses tbh does not move the needle. Its the hotel industry dynamics which is the value driver - ARR and occupancy. Rest all is not very relevant.
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Hi,
Is there anything that needs to be done explicitly or do the shares just get credited? I havenât even paid anything. I just got the below message, and I am not sure what it means. My trading account is with Zerodha.
â
CDSL:CREDITED IN A/C *<ACC_NUMBER> <NUMBER_OF_SHARES> RIGHTS ENTITLEMENT OF THE INDIAN HOTELS COMPANY LIMITED ON 17/11/2021.CONTACT YOUR DP FOR MORE INFORMATION.
You will receive a from pre-filled with the quantity on registered email address. Fill-in the details & submit it at banks mentioned in the form with the cheque amount (Rs.150Xno of shares) between the dates mentioned in the image.
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Hi Varij,
Need some helpâŚ
From where did you get the october month sales number of 330 cr. I would also like to do some research with these numbers and inputs.
Also, Sep qtr sales were just 728 cr. Are you saying in Dec qtr you are expecting a revenue figure of 1797 cr?
Hi,
i had applied to India Hotels Right Issue via HDFC netbanking (ASBA). Any idea when will the amount be deducted from the bank account as the amount is still blocked??
Date of allotment is 17th Dec 2021
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Recently, during my vacations, I stayed in a Taj Hotel. I was normally chatting with the front office staff & got to that IHCL is giving a 25% discount to their shareholders.
Then a lot of Insta feed is also showing this.
Would like to know, from senior members if, they have any further information, that 
How this 25% discount works.
- Is this better than online rates on different websites.
- Are these even better than various corporate rates available.
Looking forward to hear from you.
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Youâll get an email around AGM time which has a code and a link to discounted booking page. It doesnât apply to all bookings - certain dates and properties are not available.
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Indian Hotels Co Ltd Q1 FY23 Result Update!!!
Expecting a rise in margins⌠New businesses have started contributing to margins⌠Lets see what Q2 comes up withâŚ
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In the listed space, Indian Hotels stands head & shoulders above the rest. But there is still lot of competition, mostly from the unlisted space.
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