Indian Hotels Company: Q4FY14 Result Analysis
Nutan Gupta / 03 Jun 2014
Indian Hotels Company announced its financial results for the quarter ended 31 March, 2014. The results were very disappointing as the net loss of the company increased significantly. We give you the financial highlights of the company's performance.
Indian Hotels Company reported a profit of Rs 65.51 crore in December’13. However, in the current quarter, the company incurred loss of Rs 365.46 crore on standalone basis.
The EPS of the company was also on the negative side. It was (-Rs.5.40) in Mar’13 and (-Rs.6.86) in Mar'14. The net loss was up from Rs 430.24 crore in Mar’13 to Rs 535.85 crore in Mar’14 (Consolidated). The loss increased by 25.53% on an yearly basis.
On quarterly basis, the EPS stood at Rs 0.80 in Dec’13 but it was on a negative side in Mar’14 at (-Rs 4.53). On an yearly basis, it stood at (-Rs 7.31) in Mar’14, significantly up from (-Rs 3.47) in Mar’13.
The total income from operations increased on a quarterly basis, up from Rs 1875.86 crore in Mar’13 to Rs 1929.51 crore in Mar’14. The total expenditure incurred went up from Rs 1596.47 crore in Mar’13 to Rs 1662.31 crore in Mar’14. The increase in expenditure was mainly due to increase in other expenditure which was up from Rs 545.70 crore in Mar’13 to Rs 599.25 crore in Mar’14. The company also reported an exceptional expenditure of Rs 715 crore on its investments in Orient-Express hotels and BJets Pte, IHMS Inc.
Mr. Raymond Bickson, MD & CEO, Indian Hotels Company, which also manages the Taj Group of Hotels, said that the overall scenario for the hospitality industry has not been favorable and the supply exceeded the demand in the current fiscal year. Also, the occupancy rates have remained flat (70%) for the current fiscal year.
The company plans to launch 12 hotels which will add 1497 rooms to the existing 15391 rooms in Mar’14. Out of the twelve hotels to be launched, one will be opened near Mumbai airport and one at Burj Khalifa district, Dubai, the management said. The company will focus on online bookings, as out of the 96% travelers who search online for a hotel, 56% book online.
With a new government coming into power, the management expects the scenario for the hospitality industry to change for good going forward. Apart from the iconic Taj palaces and restaurants, the company also operates bands such as Taj Vivanta and Ginger hotels.
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