IHCL : Financial Analysis - by mittar_b
Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces emerged as a global brand by integrating an international network of luxury hotels.Company runs hotels under the brands like Taj, Gateway and Ginger hotels both in india and in overseas. Company operates “The Pierre” in New York, Ritz Carlton Hotel in Boston, which was renamed as Taj Boston and Carlton Place Hotel in San Francisco. Currently the Taj Hotels Resorts and Palaces is having 57 hotels at 40 locations across India having an additional 18 international hotels in the countries like Maldives, Mauritius, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa, and the Middle East. Taj hotels are categorized as luxury, leisure and business hotels which offer exciting activities ranging from sports, culture, environment, adventure, music, and entertainment with the finest standards of hospitality. Taj brand is valued in excess of 4,000 crores revealed by the Group Chairman Mr. Ratan Tata at the Indian Hotel Companies' shareholder meeting.Indian Hotels Company Ltd has been rewarded with CNBC TV 18 International Travel Award for the Outstanding Exporter of the Year, in the Travel, Tourism & Hospitality Category.
Company plans to set up four airport hotels in the country, including one in Navi Mumbai over the next few years and plans to build a luxury resort at Andaman & Nicobar Islands.The company recently bought more than 20 hectares of Koh Lone Island, off Phuket and is developing villas under the Taj Exotica Resort & Spa brand name and has signed up management contracts for hotels in Pune, Kolkata, Pondicherry and a service apartment in Pune.Company plans to invest Rs. 2,100 crores to add 5900 rooms in the next three years. Of the total investment the company will invest Rs. 1,500 crore to add about 1900 rooms in the five star and luxury category and Rs. 600 crores to add around 4000 rooms in the premium and budget segments.
Meanwhile IHC has signed a Management contract for two properties i.e Temple of Heaven and the Hainan Hotel Project in China in order to made its foray in Chinese market. The contract was signed between Taj International Hong Kong Ltd, a subsidiary of IHC, andCuiting Hot Spring Management, a subsidiary of Zhong Qi International Investment Co. Temple of Heaven Project which involves a total of 106 rooms will be taken up in two phases-the first phase(46 rooms) will be completed and will be opened by March 2009 and the second phase(60 rooms) will be taken up after the first phase. The second property involves 500 rooms and 40 Villas that will come up in 60 acre of land in the Hainan Island- it will be opened in three years time.
The company has posted a profit from ordinary activities after tax of Rs. 61.27 crores for the Quarter Ended, June 2008 as compared to Rs. 54.76 crores for the Quarter Ended, June 2007 backed by a robust growth in tourist arrivals at over two million during the first Quarter of 2008. Total Income of the company increased from Rs. 349.86 crores for the Quarter Ended June,2007 to Rs.398.01 crores for the Quarter Ended 30 June 2008 while net sales of the company during this time period surged to Rs. 376.91 crores from Rs. 346.50 crores last year. However Expenditure of the company during April,June 2008 Quarter increased from Rs. 257.31 crores to Rs. 280.50 crores.