EIH –

Q3 FY 24 results and concall highlights –

Revenues – 770 vs 603 cr
EBITDA – 353 vs 226 cr
PAT – 230 vs 151 cr

Net Cash ( after subtracting debt ) @ 684 vs 256 cr YoY

Performance of Flight Catering business –

Revenues – 107 vs 70 cr
EBITDA – 37 vs 15 cr ( margins @ 35 vs 15 pc !!! )

Current Portfolio of Hotels –

Owned / Leased –

06 Oberoi Hotels – Domestic
02 Trident Hotels – Domestic
05 Oberoi Hotels – International
Maidens Hotel – Delhi
Total – 14

Managed Hotels –

03 Oberoi Hotels – Domestic
02 Oberoi Hotels – International
Wildflower Hotel – Shimla
Total – 06

Hotels under EIH Associated – managed by EIH Ltd –

02 Oberoi Hotels – Domestic
06 Trident Hotels – Domestic
Total – 08

Q3 occupancy @ 79 vs 77 pc YoY ( very healthy )
Q3 ARR – 19.9 k vs 16.7 k YoY

New Hotels announced after Q2’s concall – Trident @ Tirupati ( 125 rooms ) , Vizag ( 125 rooms ) and Oberoi Hotel at Gandikota (30-35 rooms) – all three hotels to go live inside 4 yrs

Company – on track and confident of adding 50 new ( big and small ) hotels and 4500 new rooms by 2030. Will be opening smaller hotels at Leisure locations ( avg of 40-50 rooms per hotel ) and bigger hotels at City locations ( avg of 200 rooms per hotel ). Will be adding more Hotels at Leisure locations

Hotels in MENA region adversely affected by the conflict in Gaza in Q3 – specially for the hotels in Egypt

RIL continues to hold 19 pc, ITC continues to hold 14 pc stake in EIH

Company is confident of sustaining 29 -30 pc EBITDA margins on an annual basis for next 2-3 yrs

Current ARRs in India are at around Rs 20k / room / night for a Oberoi level 5-Star hotel. In the International mkts, similar hotels fetch an ARR of aprox 85-90k / room / night. Therefore, the company believes that there is significant headroom for ARRs to grow in India

Current number of 5 star and above rooms avlb in India @ 1.65 lakh. New supply coming on stream till FY 28 @ 0.55 lakh. Basically the demand – supply dynamics look good for next 5 yrs !!!

Company is expecting strong demand scenario to continue in the premium segment and that is where the company operates. See ARRs / Occupancies to remain firm

Airline catering that the company is doing is primarily focussed on International routes. They do operate on select domestic routes as well. Continue to be bullish on that business. This business has a lot of Operating leverage that can kick in going forward

Disc: holding, will add if it dips > 5-10 pc, biased, not SEBI registered. Also holding EIH Associated hotels

Wow RBI is really in a mood. This is huge, considering Gold loans short term nature and 1/3rd of its book, this is going to really hurt IIFL.

https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=57444

Certain material supervisory concerns were observed in the gold loan portfolio of the company, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default; breaches in Loan-to-Value ratio; significant disbursal and collection of loan amount in cash far in excess of the statutory limit; non-adherence to the standard auction process; and lack of transparency in charges being levied to customer accounts, etc.

Literally they pointing out concerns in every step of gold loan lifecycle followed by IIFL. This gonna take a while to recover.

For those curious to understand the potential implication of the alleged “Letter” sent by the Government to SECI, NHPC, SJVN etc, check out the article above. It’s a very simple breakdown of the situation (I hope). No Mental Gymnastics involved.

I’ve also written to the Writer of the article requesting for more information on the “letter” sent by the government since I have not read the letter myself nor is it available to the public at this point.

Bear in mind, all other articles are based on this one article and this article’s sources is what I’m hoping to learn more about/verify.

Also, Shoutout to @manhar for the above post.

IRCTC ties up with Swiggy & Zomato to deliver your order meals in train at specified stations