Indian Hotels Company - IIFL - Result Update (Q3 FY14)

Indian Hotels Company (Q3 FY14) - Market Performer - CMP Rs60, Target Rs56, Downside 8.2%

- Indian Hotels consolidated Q3 revenues grew 10.1% yoy while margins expanded 122bps yoy on lower other overheads

- Standalone sales grew at a tepid 3.6% yoy despite Q3 being a seasonally strong quarter for domestic market, an indication of continued weakness in demand; margins remained largely flat yoy as lower license fees and other costs countered higher staff and input expenses

- Consolidated PAT up 19.7% yoy and impacted by FX loss to the tune of Rs91mn and lower other income yoy

- We remain cautious on the demand environment given a weak economy which in turn would restrict margin expansion; revise our FY14/15 estimates and introduce FY16 forecasts but retain Market Performer with revised 9-12mth target of Rs56.

Source : Equity Bulls

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