Motilal Oswal Financial Services

28 April 2022

4QFY22 Results Update | Sector: Hotels

Indian Hotels

Buy

Estimate change

TP change

Rating change

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Financials & Valuations (INR b)

Y/E Mar

2022 2023E

Sales

30.6

49.0

EBITDA

4.0

13.1

PAT

-2.6

4.8

EBITDA (%)

13.2

26.8

EPS (INR)

(1.8)

3.4

EPS Gr. (%)

(69.1) (285.4)

BV/Sh. (INR)

49.7

52.5

Ratios

Net D/E

(0.0)

(0.1)

RoE (%)

(4.8)

6.6

RoCE (%)

1.3

8.0

Payout (%)

(28.0)

17.7

Valuations

P/E (x)

(129.1)

69.7

EV/EBITDA (x)

84.0

25.6

Div Yield (%)

0.2

0.3

FCF Yield (%)

0.7

2.0

IH IN

CMP: INR236

TP: INR278 (+18%)

Business hotels to provide further growth

1,420



334.9 / 4.4

260 / 104

5/27/99

1431



EBITDA below our estimate, but PAT above our estimate on higher other

income

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.

2024E

55.3

17.0

7.9

30.8

5.5

63.6

57.4

(0.2)

10.1

11.4

10.8

42.6

19.2

0.3

3.1

Higher ARR drives performance



Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Mar-22 Dec-21 Mar-21

38.2

41.1

40.8

28.6

25.3

29.2

16.0

17.1

15.2

18.5

12.3

17.8

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



RevPAR:

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.

Pipeline:

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

constitute 74%.

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

(Sumant.Kumar@MotilalOswal.com)

Research Analyst: Pranav Sanjeev Lala

(Pranav.Lala@motilaloswal.com) |

Meet Hasmukh Jain

(meet.jain@motilaloswal.com)

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.

Indian Hotels

Valuation and view



IHIN's asset-light model as well as new/reimagined revenue-generating avenues,

with higher EBITDA margin, bodes well for RoCE expansion.

Like FY22, we anticipate a strong recovery in FY23 and FY24 on: a) improvement

in ARR once the economic activity normalizes; b) improved occupancies, led by

business travel as well as the Leisure segment; c) cost rationalization efforts; d)

an increase in F&B income as banqueting/conferences resume; and e) higher

income from management contracts.

Revenue was in line, while EBITDA came in below our estimate in 4QFY22. We

maintain our FY23/FY24 EBITDA on account of an ongoing demand recovery in

Business Hotels. We maintain our

Buy

rating with a SoTP-based TP of INR278

per share.

(INR m)

Var.

(%)

-2

-15

Consolidated quarterly earnings

Y/E March

Gross Sales

YoY Change (%)

Total Expenditure

EBITDA

Margin (%)

Depreciation

Interest

Other Income

PBT before EO expense

Extra-Ord. expense

PBT

Tax

Rate (%)

MI and P/L of Asso. Cos.

Reported PAT

Adjusted PAT

YoY Change (%)

Margin (%)

1,436

-85.9

4,096

-2,660

-185.2

1,001

879

317

-4,223

-861

-3,362

-693

20.6

130

-2,799

-3,445

-239.9

FY21

2,567 5,599

-74.5 -59.2

4,070 5,766

-1,503

-167

-58.6

-3.0

1,028 1,023

968 1,121

669

547

-2,831 -1,764

-205

-280

-2,626 -1,484

-429

-307

16.3

20.7

103

-2,300 -1,189

-2,454 -1,399

-95.6 -25.0

6,150

-42.1

5,437

713

11.6

1,043

1,061

115

-1,277

-254

-1,023

-124

12.1

-913

-1,103

-349.4

-17.9

3,446

139.9

4,934

-1,488

-43.2

1,025

1,097

258

-3,354

-203

-3,150

-450

14.3

-2,773

-2,926

-15.1

-84.9

FY22

7,284 11,112

183.8

98.5

6,555 7,895

728 3,218

10.0

29.0

1,018

999

1,139 1,249

239

227

-1,189 1,197

108

102

-1,297 1,095

-113

232

8.7

21.2

103

-1,206

760

-1,125

837

-54.2

-15.4

7.5

8,721

41.8

7,131

1,590

18.2

1,019

792

828

607

-164

771

-26

-3.4

742

619

7.1

FY21

15,752

-64.7

19,369

-3,618

-23.0

4,096

4,028

1,647

-10,095

-1,600

-8,495

-1,553

18.3

259

-7,201

-8,401

-359.5

-53.3

FY22

30,562

94.0

26,515

4,048

13.2

4,061

4,277

1,552

-2,738

-156

-2,582

-358

13.9

253

-2,477

-2,594

-69.1

-8.5

FY22E

4QE

8,918

45.0

7,052

1,866

20.9

1,030

1,100

120

-144

-48

33.0

-104

-1.2

-696

Key performance indicators

Y/E March

Revenue growth (%)

Standalone

Subsidiaries

EBITDA margin (%)

Standalone

Subsidiaries

Cost break-up

F&B cost (as a percentage of sales)

Staff cost (as a percentage of sales)

Other cost (as a percentage of

sales)

Gross margin (%)

EBITDA margin (%)

EBIT margin (%)

-83.3

-89.2

(170.0)

(215.3)

6.4

167.0

111.9

93.6

-185.2

-254.9

FY21

-72.4

-77.6

(53.1)

(68.4)

8.5

79.6

70.5

91.5

-58.6

-98.6

-52.2

-70.8

11.7

(42.9)

10.0

43.2

49.8

90.0

-3.0

-21.3

-35.4

-56.2

22.6

(22.1)

9.2

33.8

45.3

90.8

11.6

-5.4

117.8

183.5

(46.5)

(38.1)

8.1

72.2

62.9

91.9

-43.2

-73.0

FY22

179.3

191.8

13.1

4.6

8.6

38.3

43.1

91.4

10.0

-4.0

81.3

145.1

35.2

16.4

8.8

28.1

34.2

91.2

29.0

20.0

27.9

84.4

27.5

(1.6)

7.9

35.6

38.3

92.1

18.2

6.5

FY21

(58.7)

(74.3)

(8.6)

(59.9)

9.1

56.8

57.1

90.9

-23.0

-49.0

FY22

76.8

138.2

19.4

1.6

8.4

37.6

40.7

91.6

13.2

0.0

28 April 2022

Indian Hotels

Key exhibits

Exhibit 1: Consolidated revenue trend

Revenue (INRm)

Growth YoY (%)

184

140

Exhibit 2: Consolidated EBITDA trend

EBITDA (INRm)

EBITDA Margin (%)

123

-185 -59 -104 -66 -44 -148

-15

-59 -42

-86 -75

-2022

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY20

FY21

FY22

Source: Company, MOFSL

FY20

FY21

FY22

Source: Company, MOFSL

Exhibit 3: Consolidated adjusted PAT trend

Adj PAT (INRm)

Exhibit 4: Standalone revenue trend

Revenue (INRm)

Growth YoY (%)

118

-15

-52 -35

-83 -72

179

FY20

FY21

FY22

Source: Company, MOFSL

FY20

FY21

FY22

Source: Company, MOFSL

Exhibit 5: Standalone EBITDA trend

EBITDA (INRm)

-53

EBITDA Margin (%)

-47

Exhibit 6: Standalone adjusted PAT trend

Adj PAT (INRm)

-170

FY20

FY21

FY22

Source: Company, MOFSL

FY20

FY21

FY22

Source: Company, MOFSL

28 April 2022

Indian Hotels

Exhibit 7: IHIN's industry-leading recovery in rates and occupancies

Source: Company, MOSL

Exhibit 8: Industry-leading recovery across key markets

Source: MOSL, Company

28 April 2022

Indian Hotels

Exhibit 9: IHIN's launch progression

Source: MOSL, Company

Exhibit 10: IHIN's industry-leading pipeline

Source: Company, MOSL

Exhibit 11: Leisure v/s non-leisure ORR (%) in domestic hotels Exhibit 12: Leisure v/s non-leisure ARR domestic hotels (INR)

Source: MOSL, Company

28 April 2022

Indian Hotels

Exhibit 13: Occupancy in key international geographies (%)

Exhibit 14: ARR for key international geographies (USD)

Source: MOSL, Company

Exhibit 15: Performance of key subsidiaries in FY22 (INR crore)

Source: MOSL, Company

Exhibit 16: Robust recovery in key cities v/s CY19/CY20

Source: MOSL, Company

28 April 2022

Indian Hotels

Exhibit 17: Revenue recovery in key international cities v/s CY19/CY20

Source: MOSL, Company

Exhibit 18: IHIN – standalone revenue metrics

Particulars

Occupancy (%)

ARR (INR)

RevPAR (INR)

Room revenue (INR m)

F&B revenue (INR m)

Other revenue (INR m)

Total revenue (INR m)

4QFY21

57.1

8,537

4,877

2,010

1,730

1,040

4,780

1QFY22

28.4

7,024

1,992

880

650

730

2,260

2QFY22

56.6

8,273

4,679

1,990

1,650

1,160

4,800

3QFY22

66.6

11,348

7,559

3,110

2,840

1,760

7,710

4QFY22

58.4

10,569

6,176

2,500

2,000

2,250

6,750

YoY (%)

130bp

116

QoQ (%)

-820bp

(7)

(18)

(20)

(30)

(12)

Source: Company, MOFSL

Exhibit 19: Revenue metrics for its domestic network

Particulars

Occupancy (%)

ARR (INR)

RevPAR (INR)

Room revenue (INR m)

F&B revenue (INR m)

Other revenue (INR m)

Total revenue (INR m)

4QFY21

55.9

5,953

3,329

4,910

3,940

850

9,700

1QFY22

28.6

4,656

1,331

2,070

1,880

1,050

5,000

2QFY22

53.9

5,878

3,168

4,940

4,190

1,630

10,760

3QFY22

62.7

8,089

5,070

7,930

7,090

2,430

17,450

4QFY22

54.5

7,671

4,183

6,520

5,640

3,000

15,160

YoY (%)

-140bp

253

QoQ (%)

-820bp

-5

-17

-18

-20

-13

Source: Company, MOFSL

Exhibit 20: Consolidated debt position

INR m

Gross debt

Liquidity

Net debt

4QFY20

26,020

7,450

18,570

1QFY21

26,020

6,870

19,150

2QFY21

34,620

5,200

29,420

3QFY21

35,880

5,090

30,790

4QFY21

36,330

5,230

31,100

1QFY22

40,420

4,300

36,120

2QFY22

40,810

5,090

35,710

3QFY22

27,300

8,250

19,050

4QFY22

19,850

20,900

-10,600

Source: Company, MOFSL

Exhibit 21: Standalone debt position

INR m

Gross debt

Liquidity

Net debt

4QFY20

19,430

5,550

13,880

1QFY21

19,430

5,400

14,030

2QFY21

24,990

3,890

21,100

3QFY21

25,950

4,200

21,750

4QFY21

25,920

4,130

21,790

1QFY22

28,860

2,710

26,150

2QFY22

28,860

3,110

25,750

3QFY22

16,650

5,800

10,850

4QFY22

9,430

19,020

-9,600

28 April 2022

Indian Hotels

Highlights from the management interaction



Recovery:

There has been a resurgence in demand, with average rates in FY22

reaching 94% of pre-COVID levels (v/s CY19/CY20). The IMF has cut India’s GDP

growth outlook to 8.2% from 9.2% in CY22 (v/s the global outlook of 3.6%),

which will support demand in Hospitality and allied sectors. IHIN has seen a

recovery in ORR at 81% of pre-COVID levels v/s 74% at the industry level.

RevPAR:

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.

Qmin:

IHIN continues to expand the brand, which currently stretches beyond 20

cities. The management aims to expand to more than 25 cities in the future. It

plans to diversify further into cloud kitchens to reduce dependence on its Hotel

portfolio. The GMV for the Qmin brand was upwards of INR660m in FY22.

Ama Stays’

portfolio has 80 properties in 40 destinations. By FY25, IHIN plans to

reach 500 properties. Revenue from Ama Stays stood at INR600m in FY22.

Its

Ginger

portfolio consists of more than 85 Hotels. In 4QFY22, revenue from

Ginger touched 96% of pre-COVID levels, with margin expanding due to the shift

towards a ‘Lean Lux’ model. The management aspires to expand the portfolio to

100-150 hotels in coming years.

Cost management:

Corporate overheads stood at INR2.5b in FY22, implying a

sharp 28% drop (v/s INR3.5b in FY20). Overall fixed cost/month fell 18% to

INR15.9b due to various cost-saving initiatives taken by the management during

the COVID-19 pandemic, including manpower rationalization.

New openings/launches:

IHIN opened five new Hotels and signed five Hotels in

4QFY22, taking its total signed/new openings to 19/13 Hotels. The management

has guided at double-digit openings of the Ginger brand in FY23.

Pipeline:

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 constitute 74%.

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.

Performance of its subsidiaries:

The US subsidiary clocked in a revenue of

INR3.2b in FY22, but incurred an operating loss of INR460m. However, it is

expected to break even in the future. Roots Corporation clocked in an EBITDA of

INR430b in FY22. Occupancy rates in the UK surged to 76% in 4QFY22. ORR

surged to 95%/80% in Maldives/Dubai.

Demand for Leisure:

The demand trajectory in leisure travel is expected to

continue, with international travel ramping up. Leisure ORR has jumped 20pp to

64% in Mar’22 from Jan’22 levels, implying continuing growth.

Growth strategy:

Excess FCF would be utilized on key projects like Taj Delhi, Taj

London, and Ginger Mumbai and on renovations that are lined up.

28 April 2022

Indian Hotels



Debt:

The company is net cash positive at INR1.1b, with a debt reduction plan in

place. Debt for the domestic business stands at INR4.5b and is due in Apr'23.

The same for the UK stands at INR2.5b.

Other highlights



Consolidated gross debt/net cash as of Mar’22 stood at INR19.9b/INR1.1b v/s

gross/net debt INR36.3b/INR31.1b as of Mar’21.

Management has declared a capex of 4% of revenue on a usual basis which

could reach a range of 5% to 6% especially coming off a pandemic.

The company has guided a cost savings of INR3b in the FY23 with wage inflation

and food inflation having limited effect.

28 April 2022

Indian Hotels

Valuation and view



We believe IHIN's asset-light model as well as the new/reimagined revenue

generating avenues with higher EBITDA margins bodes well for RoCE expansion.

Like in FY22, we anticipate a strong recovery in FY23E/FY24E as well on: a) ARR

improvement, once the economic activities normalize, b) improved occupancies

driven by business travel as well as leisure segment, c) cost rationalization

efforts, d) an increase in F&B income as banqueting/conferences resume, and e)

higher income from management contracts.

Revenue was in-line while EBITDA for 4QFY22 came in below our estimates.

However; we maintain our FY23/FY24 EBITDA on account of ongoing demand

recovery in business hotels. We maintain our BUY rating with a SoTP-based TP of

INR278.

Exhibit 22: Valuation methodology

Particulars

IHCL- ex JV/ Associate

Less: Net Debt

Less: Minority Interest

Sub Total

JV/Associate

Taj GVK (IHCL's share - 25.5%) - JV

Oriental Hotel (IHCL's share - 35.7%) - Associate

Sub Total

Target Price

CMP

Upside (%)

Methodology

EV/EBITDA (x)

Metrics

EBITDA

FY24

17,002

Multiple

(x)

22.4

Value

(INRm)

3,80,842

14,382

-5,930

3,89,294

2,220

3,359

5,578

3,94,872

Value/

share (INR)

268

(4)

274

1.6

2.4

3.9

278

236

Source: MOFSL

20% discount Attributable

to MCAP

Mcap

20% discount Attributable

to MCAP

Mcap

2,774

4,198

0.8

Exhibit 23: Change in estimates

Earnings Change

(INR m)

Revenue

EBITDA

Adj. PAT

FY23E

48,542

13,115

4,635

Old

FY24E

54,820

16,984

7,896

FY23E

48,986

13,128

4,809

New

FY24E

55,287

17,002

7,869

FY23E

Change

FY24E

Source: MOFSL

28 April 2022

Indian Hotels

Financials and valuations

Consolidated - Income Statement

Y/E March

Total Income from Operations

Change (%)

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Minority Interest

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

FY17

40,206

-0.1

34,110

84.8

6,096

15.2

2,994

3,102

3,238

549

413

-108

306

1,137

372.2

-200

-632

-551

-1.4

FY18

41,036

2.1

34,332

83.7

6,704

16.3

3,012

3,692

2,690

617

1,618

225

1,843

1,211

65.7

-376

1,009

840

2.0

FY19

45,120

10.0

36,823

81.6

8,297

18.4

3,279

5,019

1,901

834

3,951

4,017

1,571

39.1

-422

2,868

2,819

235.4

6.2

FY20

44,631

-1.1

34,956

78.3

9,675

21.7

4,042

5,633

3,411

1,324

3,546

410

3,955

448

11.3

-37

3,544

3,237

14.8

7.3

FY21

15,752

-64.7

19,369

123.0

-3,618

-23.0

4,096

-7,714

4,028

1,647

-10,095

1,600

-8,495

-1,553

18.3

259

-7,201

-8,401

-359.5

-53.3

FY22

30,562

94.0

26,515

86.8

4,048

13.2

4,061

-13

4,277

1,552

-2,738

156

-2,582

-358

13.9

253

-2,477

-2,594

-69.1

-8.5

FY23E

48,986

60.3

35,858

73.2

13,128

26.8

4,308

8,820

2,814

1,568

7,574

2,499

33.0

266

4,809

-285.4

9.8

FY24E

55,287

12.9

38,285

69.2

17,002

30.8

4,570

12,431

2,019

1,769

12,182

4,020

33.0

292

7,869

63.6

14.2

Consolidated - Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Minority Interest

Total Loans

Lease Liability

Deferred Tax Liabilities

Capital Employed

FY17

989

24,188

25,177

7,378

33,830

2,820

69,206

57,923

5,506

52,417

5,737

2,227

12,437

13,173

804

2,721

2,471

7,177

16,785

3,370

11,305

2,110

-3,612

69,206

FY18

1,189

40,622

41,811

7,774

24,270

3,563

77,418

63,356

7,385

55,971

5,655

1,970

15,965

14,184

857

3,286

2,703

7,338

16,328

3,513

10,349

2,465

-2,143

77,418

FY19

1,189

42,291

43,480

7,999

23,260

3,768

78,506

69,051

10,663

58,388

5,835

1,162

13,351

17,102

804

3,214

2,409

10,675

17,331

3,253

11,579

2,500

-229

78,507

FY20

1,189

42,379

43,568

7,649

26,020

18,987

1,869

98,093

73,316

14,706

58,610

6,146

15,833

2,441

14,266

17,887

936

2,900

3,156

10,895

17,090

3,893

10,441

2,756

798

98,093

FY21

1,189

35,295

36,484

6,346

36,328

18,464

781

98,403

81,772

18,802

62,970

6,110

15,297

1,650

14,832

14,269

929

2,198

1,536

9,605

16,724

3,178

10,921

2,625

-2,456

98,403

FY22

1,420

69,202

70,623

5,930

19,848

18,604

876

1,15,880

85,655

22,863

62,792

6,229

15,134

1,933

19,668

25,139

1,008

2,553

11,878

9,700

15,016

3,873

8,233

2,909

10,123

1,15,880

FY23E

1,420

73,159

74,579

5,930

9,148

18,604

876

1,09,137

89,201

27,170

62,031

6,229

15,134

2,387

19,668

20,942

1,179

3,355

5,631

10,777

17,254

4,028

9,797

3,429

3,687

1,09,137

FY24E

1,420

80,176

81,596

5,930

1,148

18,604

876

1,08,154

93,111

31,741

61,370

6,229

15,134

2,477

19,668

22,503

1,154

3,787

6,505

11,057

19,228

4,301

11,057

3,870

3,275

1,08,154

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Goodwill on Consolidation

Right-of-Use assets

Capital WIP

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Provisions

Net Current Assets

Appl. of Funds

28 April 2022

Indian Hotels

Financials and valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

FCF per share

EV/ Adj Rooms (INRm)

EBITDA/ Room (INR)

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Creditor (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/Equity

FY17

-0.4

1.7

17.7

0.2

-53.9

-607.6

137.2

13.3

9.3

61.2

0.1

6.7

39.1

4,107

-2.2

3.8

-14.9

0.7

0.6

0.8

1.0

1.2

FY17

306

2,994

3,015

-868

-599

4,848

498

5,345

4,193

9,538

4,425

496

9,114

-11,719

-1,637

-458

-13,814

645

1,826

2,471

FY18

0.6

2.7

29.4

0.2

41.9

398.7

87.0

8.0

8.8

53.9

0.1

-0.1

36.6

4,313

2.5

4.6

2.3

0.6

0.5

0.9

1.4

0.4

FY18

1,618

3,012

2,073

-1,425

-1,033

4,246

675

4,920

-5,094

-174

-1,462

912

-5,644

14,999

-9,498

-4,089

-447

-7

957

233

2,471

2,704

FY19

2.0

4.3

30.6

0.4

25.3

118.8

54.9

7.7

8.0

43.6

0.2

1.4

35.8

5,157

6.6

5.9

5.2

0.7

0.6

1.0

2.6

0.4

FY19

4,017

3,279

1,068

-1,571

323

7,115

7,114

-5,067

2,048

2,614

-1,428

-3,882

-1,010

-1,901

-725

110

-3,527

-294

2,704

2,409

FY20

2.3

5.1

30.7

0.4

20.5

103.5

46.0

7.7

8.1

37.3

0.2

1.7

34.7

5,869

7.4

6.8

7.1

0.6

0.5

1.0

1.7

0.4

FY20

3,955

4,042

2,087

-448

-1,402

8,235

-5,855

2,380

-915

1,750

-5,019

2,760

-3,411

-725

-1,093

-2,470

746

2,409

3,156

FY21

-5.9

-3.0

25.7

0.4

-9.6

-39.9

-77.8

9.2

23.6

-102.7

0.2

-7.6

35.7

-6,404

-21.0

-5.7

-7.9

0.2

0.9

-1.9

0.8

FY21

-10,095

4,096

2,381

1,553

-2,722

-4,786

1,600

-3,187

-7,629

-10,816

-566

6,998

-1,197

10,308

-4,028

-693

-2,823

2,764

-1,620

3,156

1,536

FY22

-1.8

1.0

49.7

0.4

-28.0

-129.1

228.5

4.7

11.1

84.0

0.2

1.7

32.0

3,929

-4.8

1.3

0.0

0.4

0.3

1.7

0.0

FY22

-2,738

4,061

2,725

358

2,155

6,560

156

6,716

-4,286

2,431

-4,836

-7,303

-16,425

231

-16,481

-4,277

-693

41,270

20,050

10,342

1,536

11,878

FY23E

3.4

6.4

52.5

0.6

17.7

69.7

36.7

4.5

6.8

25.6

0.3

4.8

31.0

7,770

6.6

8.0

7.2

0.5

0.4

1.2

3.1

-0.1

FY23E

7,574

4,308

1,246

-2,499

188

10,817

-4,000

6,817

1,568

-2,432

-10,700

-2,814

-852

-266

-14,632

-6,248

11,878

5,631

FY24E

5.5

8.8

57.4

0.6

10.8

42.6

26.9

4.1

5.9

19.2

0.3

7.2

29.6

9,116

10.1

11.4

10.3

0.6

0.5

1.2

6.2

-0.2

FY24E

12,182

4,570

250

-4,020

1,287

14,269

-4,000

10,269

1,769

-2,231

-8,000

-2,019

-852

-292

-11,164

874

5,631

6,505

Consolidated - Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

Others

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

(Pur)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

Others

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

28 April 2022

Indian Hotels

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

< - 10 % to 15%

Rating may undergo a change

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take

appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in

the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary company of Passionate

Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited -

MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE),

Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository

Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and

Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of associate entities of Motilal Oswal Financial Services Limited are available on the

website at

http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or

derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial

instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and

other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are

completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL

may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage

service

transactions.

Details

pending

Enquiry

Proceedings

Motilal

Oswal

Financial

Services

Limited

are

available

the

website

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental research and Technical

Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can

have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary

to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures

Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg

No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to

“Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with

professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian

Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the

United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and

under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL , including the products and

services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act

and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any

investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption

from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission

("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities

International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,

MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research

analyst account.

For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license and an

exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial

Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this

report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited" institutional investors as defined in

section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must

immediately discontinue any use of this Report and inform MOCMSPL.

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

********************************************************************************************************************************

The associates of MOFSL may have:

financial interest in the subject company

actual/beneficial ownership of 1% or more securities in the subject company

received compensation/other benefits from the subject company in the past 12 months

other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific

recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an

inherent conflict of interest in some of the stocks mentioned in the research report.

acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or

act as an advisor or lender/borrower to such company(ies)

received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

28 April 2022

Indian Hotels

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts

which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,

or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

Terms & Conditions:

This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any

way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures

and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources

believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All

such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or

subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not

treat recipients as customers by virtue of their receiving this report.

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to

any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an

offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation

that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make

their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment

by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in

this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not

be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not

suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures

of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject

to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its

associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.

They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as

a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already

available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed

therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or

in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,

where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities

described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to

observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost

revenue or lost profits that may arise from or in connection with the use of the information.

The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees

from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any

of its affiliates or employees free and harmless from all losses, costs, damages,

expenses that may be suffered by the person accessing this information due to any errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website

www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No:

022 7188 1000.

Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822;

Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS

and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML,

which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered

through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a

group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is

no assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj

Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.

* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal,

Mumbai Bench.

28 April 2022