28 April 2022
4QFY22 Results Update | Sector: Hotels
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
EPS Gr. (%)
Div Yield (%)
FCF Yield (%)
TP: INR278 (+18%)
Business hotels to provide further growth
334.9 / 4.4
260 / 104
EBITDA below our estimate, but PAT above our estimate on higher other
IHIN’s standalone RevPAR grew 27% YoY due to higher ARR. The same fell by
18% QoQ due to lower occupancy as well as ARR owing to the third COVID
wave. Higher demand in the Leisure segment as well as a recovery in
business travel has driven overall growth on a YoY basis.
Revenue was in line, while EBITDA in 4QFY22 came in below our estimate.
We maintain our FY23/FY24 EBITDA on account of the ongoing demand
recovery in Business Hotels. We maintain our Buy rating with a SoTP-based
TP of INR278 per share.
Higher ARR drives performance
Shareholding pattern (%)
Mar-22 Dec-21 Mar-21
Consolidated revenue grew 42% YoY, but fell 22% QoQ to INR8,721m (est.
INR8,918) in 4QFY22. EBITDA stood at INR1,590m (est. INR1,866m) v/s
INR713m/INR3,218m in 4QFY21/3QFY22. Adjusted PAT stood at INR619m
(v/s our estimated loss of INR104m and a loss of INR1,103m in 4QFY21).
Standalone revenue grew 28% YoY (-20% QoQ) to INR5,936m in 4QFY22, led
by RevPAR growth, owing to an improvement in occupancy at 130bp YoY
and an ARR growth of 24% YoY, with RevPAR at INR6,176 v/s INR4,877 in
4QFY21. EBITDA grew 56% YoY, but fell 37% QoQ, to INR1,634m.
Subsidiary (consolidated less standalone)
revenue stood at INR2,785m, up
84% YoY (-25% QoQ). Operating loss for its subsidiary came in at INR44m v/s
a loss of INR334m in 4QFY21 (EBITDA at INR608m in 3QFY22).
Revenue grew 94% YoY to INR30.6b, whereas EBITDA stood at INR4.1b in
FY22 v/s an operating loss of INR3.6b in FY21. IHIN generated a CFO of
INR6.7b in FY22. Its consolidated performance during FY22 was aided by a
reduction in total fixed costs/corporate overheads by 18%/28%.
Highlights from the management commentary
FII Includes depository receipts
All-India RevPAR improved substantially and touched 76% of pre-
COVID levels in FY22, against the industry recovery rate of 65%. Recovery in
RevPAR was strongly supported by a revival in demand/occupancy in Leisure
(higher than pre-COVID levels) and Business segment. Estimated recovery in
Delhi/Mumbai/Bengaluru stood at 121%/118%/102% YoY in April’22.
IHIN has 60 Hotels, with more than 7,500 rooms, under various
stages of development. The management is aggressively expanding its
Ginger portfolio. Of the projects in the pipeline, 40% will be under the
Ginger brand. Of the total projects in the pipeline, management contracts
The company currently has 7,600 odd rooms under
management, with 1,100 rooms under the Ginger brand. Revenue from
management contracts stood at INR2.3b in FY22 and is expected to touch
INR3.5b in the future.
Sumant Kumar - Research Analyst
Research Analyst: Pranav Sanjeev Lala
Meet Hasmukh Jain
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.