IHCL reports the highest full year PAT at INR 354 crore, up by 24 per cent Y-O-Y
For the year ending March 31st 2020, the Board of Directors have recommended an equity dividend of 50 per cent amounting to Rs. 0.50 per share.
The Indian Hotels Company Limited (IHCL), South Asia’s largest hospitality company, reported its Consolidated and Standalone financials for the fourth quarter ending March 31st 2020, year ending March 31st 2020.
For the year ending March 31st 2020, the Board of Directors have recommended an equity dividend of 50 per cent amounting to Rs. 0.50 per share.
Commenting on the fiscal performance, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “IHCL has delivered on the promise of profitable growth across all parameters, culminating in an all-time high EBITDA and PAT. The re-imagined brandscape helped us reach a significant milestone of 200 hotels in our portfolio. Another proud moment for us is the recent recognition of Taj as India’s Strongest Brand across all industries by Brand Finance. This ranking is a testament to the strength of our brand and the trust reposed in us by all our stakeholders, as we ready to welcome guests in the new normal with enhanced health and safety protocols.”
Two years into the execution IHCL’s five-year strategy – Aspiration 2022, the Company reported that it has made significant inroads into meeting the defined objectives as outlined below:
Aspiration 2022 - Scorecard | Target – 2022/23 | Achieved – 2019/20 |
Re-structuring Growth: New Hotels Signed | 15 per year | 50+ in Two Years |
Re-structuring Portfolio: Mix b/w Owned and Managed | 50 – 50 | 42 % Managed |
Re-imagining Excellence: Being Iconic | Iconic Brands | Taj - India’s strongest brand |
Re-engineering Profitability: EBITDA Margin Exp. | 800 bps | ~ 700 bps |
Re-engineering Balance Sheet Strength: Net Debt to EBITDA | < 2.0 X | 1.69 X |
IHCL has defined a five-point agenda named ‘R.E.S.E.T 2020’ to address the challenges posed by the unprecedented global crisis and help the company navigate through these difficult times.
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL stated, “We have consistently been able to deliver industry leading growth while maintaining profitability and balance sheet strength. The culture of performance, business sense and financial prudence institutionalized within the organization has positioned us well to combat the challenges posed by COVID-19. We are confident of resetting and rebounding stronger.”
Key Highlights of Q4 and FY 2019-20
* IHCL signed 29 hotels in the current financial year, adding over 3,700 rooms to its portfolio.
* The Company opened twelve hotels, one hotel a month, for FY 2019-20 and added over 1,500 rooms to its operational inventory.
* Taj Fateh Prakash Palace, Udaipur
* Taj Hotel & Convention Centre, Goa
* Taj Hotel & Convention Centre, Agra
* Taj Tirupati
* Taj Jumeirah Lake Towers Dubai
* Cidade de Goa (SeleQtions)
* Devi Ratn, Jaipur (SeleQtions)
* Ginger Dwarka
* Ginger Sanand
* Ginger Madgaon
* Ginger Patna
* Ginger Surat
* IHCL harnessed its diverse brandscape to drive asset light growth through management contracts. 42% of our portfolio is now management contracts. This was 32% two years ago.
* IHCL started the New Year with an addition to its magnificent collection of authentic palaces – Taj Fateh Prakash Palace, Udaipur, located within the historic City Palace on the shores of Lake Pichola in Udaipur; offering panoramic views of the lake while being surrounded by the Aravalli Hills, Jagmandir Island and the legendary Taj Lake Palace.
* The company added Taj Tirupati, further strengthening the group’s spiritual tourism portfolio.
* It expanded its strong presence in Goa with the opening of Cidade de Goa and Taj Hotel & Convention Centre, Goa. The Taj hotel and conference facility is co-located with Cidade de Goa and has over 500 rooms and 60,000 sq. ft. of conference space - the largest convention venue in Goa.
* The Company reached a milestone with the opening of the 50th Ginger in Surat, taking the total operational inventory of Ginger hotels to over 4,400 rooms across 35 locations.
* Repositioned 24 per cent of Ginger portfolio as lean-luxe hotels with a premium of 21 per cent in ARR.
* “SeleQtions”, the Company’s new brand launched in April 2019, is now a portfolio of 15 hotels.
* The Chambers – Taj’s exclusive business club was relaunched with enhanced features and added over 100 new members. It also announced an extension in London.
* amã Stays & Trails – India’s first branded homestays offering is now a portfolio of 22 bungalows with 14 operational.
* In line with re-imagining its brandscape to create a hospitality ecosystem, IHCL announced the launch of its new salon brand, niu&nau. The first niu&nau opened at Taj Lands End.
* IHCL announced a strategic partnership with Singapore’s sovereign wealth fund, GIC, for an investment platform to the tune of Rs. 4,000 crores or USD 600 million over a period of 3 years to acquire operational hotels in India.
* In keeping with the strategy to be future ready and commitment to develop talent for the future, IHCL partnered with two leading international institutions – Les Roches in Switzerland and ESSEC in France – for scholarship and development programmes. Ginger announced its partnership with the Institute of Hotel Management - Aurangabad (IHM-A), one of the country’s top hotel management Institutions, to launch the ‘Ginger Leadership Program’, which will enable the students to achieve Hotel Manager positions in a short span of five years.
