Indian Hotels Company Ltd — Q4 FY26

Indian Hotels Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=peQOYnLQISg Published: 2 days ago

0:00 Gentlemen, good day and welcome to the Indian Hotels Company Limited earnings conference call for the quarter and fiscal year ended 31st March 2026. 0:10 10 seconds On the call, we have with us Mr. Punit Chhatal, managing director and CEO, ICL and Mr. Ankur Galwani, EVP and CFO ICL. 0:21 21 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:28 28 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touchdown phone. 0:37 37 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Pun Chhatwal. 0:44 44 seconds Thank you and over to you Mr. Chatwal. 0:49 49 seconds Good evening everyone and thank you for joining our conference call for Q4 and FY2526. 0:58 58 seconds We are pleased to inform you that we have continued our record performance for the 16th consecutive quarter driven 1:06 1 minute, 6 seconds by sustained strength in our core business while building scale with profitability. 1:14 1 minute, 14 seconds Let me start with why we think this was an important year uh the FY26. 1:23 1 minute, 23 seconds We also call it the year of strengthening the foundation. It was an important milestone year for IHCL where 1:31 1 minute, 31 seconds we built the foundation for the next phase of growth, strengthening our brandscape, enhancing resilience, 1:40 1 minute, 40 seconds scaling our platforms and investing in capabilities that will make IHCL future ready. 1:48 1 minute, 48 seconds Despite a year marked by multiple macroeconomic headwinds like geopolitical conflicts and weather 1:55 1 minute, 55 seconds related disruptions, IHCL continued to deliver strong performance with consistency and discipline. 2:04 2 minutes, 4 seconds This reflects the structural strength of our business model and the agility of our teams across markets. Over the last 2:12 2 minutes, 12 seconds year, we have focused on building three defining attributes of the ICL ecosystem. 2:19 2 minutes, 19 seconds Number one, the word which I've just used often at the beginning of my speech that is resilience through a diversified 2:27 2 minutes, 27 seconds portfolio across segments, markets and business models allowing us to deliver 2:34 2 minutes, 34 seconds consistently across cycles. I call it also resilience by brand, by contract type and by geography. 2:43 2 minutes, 43 seconds Number two is scale through accelerated portfolio expansion, strategic 2:50 2 minutes, 50 seconds acquisitions and strengthening most important strengthening our management growth platform or capital light growth. 3:00 3 minutes Number three, future readiness by investing in new brands, digital capabilities, refreshed assets, and 3:09 3 minutes, 9 seconds emerging hospitality formats that position us for long-term relevance. 3:14 3 minutes, 14 seconds Together, these three pillars have laid a strong and enduring foundation, one that now allows us to transition 3:21 3 minutes, 21 seconds confidently into our next phase of sustainable growth at scale. 3:28 3 minutes, 28 seconds Now we should move to what built this foundation. Our business today is structurally more diversified with 3:35 3 minutes, 35 seconds leadership positions across both luxury and midscale segments. Our capital light strategy continues to be a defining 3:44 3 minutes, 44 seconds competitive advantage with 68% of our operating portfolio and 93% of our 3:51 3 minutes, 51 seconds pipeline under managed or asset light formats. This enables disciplined expansion with superior returns. 4:00 4 minutes Even as we invested meaningfully for future growth, we delivered EIA margin of 35% reflecting operating discipline 4:08 4 minutes, 8 seconds and structural efficiency. Our balance sheet remains exceptionally strong with gross liquidity of over 4,300 crores 4:17 4 minutes, 17 seconds giving us significant flexibility to pursue both organic and suitable inorganic growth opportunities. 4:26 4 minutes, 26 seconds Over the last 3 years, we have invested over 2500 crores in capital expenditure to strengthen our iconic assets and 4:35 4 minutes, 35 seconds enhance strategic capabilities. As we have mentioned over last several years, asset management was is and remains a 4:43 4 minutes, 43 seconds key focus area for the asset heavy part of our portfolio. 4:49 4 minutes, 49 seconds Even going forward, we will continue to invest 1,000 to,200 crores annually to strengthen our existing competitive 4:56 4 minutes, 56 seconds advantages and at the same time build new ones. Alongside this, we deployed over 500 crores across four strategic 5:05 5 minutes, 5 seconds acquisitions, expanding our presence into high growth adjacencies and strengthening future revenue streams. 5:13 5 minutes, 13 seconds Importantly, our newer and emerging brands are now reaching meaningful scale and are well positioned to increase 5:21 5 minutes, 21 seconds their contribution to enterprise revenues from the current 10%. 5:27 5 minutes, 27 seconds Taken together, these actions have created a business that is not only resilient in the present but increasingly scalable and future ready for the opportunities ahead. 5:39 5 minutes, 39 seconds What are the future ready building blocks in place? That's my point number three. Before we move into detailed 5:46 5 minutes, 46 seconds performance review, it is important to highlight the structural building blocks that position ICL for sustainable long-term growth. Over the last few 5:56 5 minutes, 56 seconds years, we have consciously built a diversified and resilient ecosystem, one 6:02 6 minutes, 2 seconds that combines scale, brand strength, operational excellence, and institutional capability. 6:10 6 minutes, 10 seconds Let me start with diversified brandscape. Today ICL has one of the most comprehensive hospitality brand 6:17 6 minutes, 17 seconds portfolios in the country spanning luxury upper upscale upscale midscale 6:24 6 minutes, 24 seconds and emerging lifestyle segments. This multibrand architecture allows us to participate across consumer segments, travel occasions and price points. 6:34 6 minutes, 34 seconds Number two, portfolio and pipeline. With over 630 hotels, 64,000 plus keys in the 6:42 6 minutes, 42 seconds portfolio, we continue to scale with discipline through a strong mix of managed, leased, and owned assets, 6:49 6 minutes, 49 seconds creating long-term visibility with capital efficiency. 6:54 6 minutes, 54 seconds Along with our 375 plus Arma villas, Arma which is our homeay brand, our portfolio has now crossed the milestone 7:03 7 minutes, 3 seconds of 1,000 units when combined with 633 630 plus hotels portfolio. As mentioned 7:11 7 minutes, 11 seconds earlier, our pipeline remains strong at 31,000 plus keys and continues to be largely capital light. Number three, our 7:20 7 minutes, 20 seconds people and our culture. Hospitality at its core remains a people-led business. 7:26 7 minutes, 26 seconds Our greatest strength lies in our 50,000 plus associates who bring excellence to life every day through trust, awareness 7:34 7 minutes, 34 seconds and joy, T AJ or what we proudly call Tajess consistently delivering exceptional experiences across brands 7:43 7 minutes, 43 seconds and markets. The trust, awareness and joy is a common culture and core values that we have put to all brands and we 7:52 7 minutes, 52 seconds don't use anywhere by Taj or a bit of Taj as a prefix or suffix in any of the brands because we do believe core values 8:00 8 minutes is what drives your business which drives your resilience and which drives profitability. 8:07 8 minutes, 7 seconds Number four, owners and partners. Over the years, we have built deep and trusted relationships with owners and stakeholders across the ecosystem. Our 8:16 8 minutes, 16 seconds ability to create win-win value propositions through scalable operating models continues to drive strong signing 8:23 8 minutes, 23 seconds momentum and long-term partnerships. We have now 40 plus owners who have trusted us with more than one asset in our 630 hotel portfolio. 8:35 8 minutes, 35 seconds Number five, customer and loyalty. We continue to strengthen guest engagement through our expanding loyalty ecosystem, 8:42 8 minutes, 42 seconds digital platforms and partnerships enabling deeper customer connect, higher repeat business and improved customer value proposition. 8:51 8 minutes, 51 seconds Finally, enterprise resilience. We have significantly strengthened institutional capabilities across governance, digital 8:59 8 minutes, 59 seconds infrastructure, risk management, and operational processes creating a more agile, resilient, and future ready 9:06 9 minutes, 6 seconds organization. Collectively, these building blocks provide the foundation for sustained growth, stronger margins, and long-term value creation. 9:16 9 minutes, 16 seconds Now is the time to come to Q4 performance highlights. 9:21 9 minutes, 21 seconds Let me now begin with Q4 performance highlights. On a consolidated basis, revenue for Q4 25-26 grew 14% yearonear 9:30 9 minutes, 30 seconds to 2845 crores. Abita grew 15% yearonear to rupees 1,52 cr yielding EITA margin of 37%. 9:41 9 minutes, 41 seconds Our consolidated PAT before exceptional items grew 14% yearon year to rupees 600 9:47 9 minutes, 47 seconds crores. Our standalone performance in Q4 was also the best ever with industryleading 12% growth in repar. 9:56 9 minutes, 56 seconds This resulted in overall revenue growing to 1,721 crores and a ebitita margin expansion by 160 basis points to 49.5%. 10:09 10 minutes, 9 seconds Standalone PAT before exceptional items grew 15% to 569 crores taking PAT margin to 33.1%. 10:21 10 minutes, 21 seconds Other parts of our performance highlights for FY26 is that on a consolidated basis revenue 10:28 10 minutes, 28 seconds for 2526 grew 16% yearonear to rupees 9,971 10:34 10 minutes, 34 seconds crores. EITA grew 16% yearonear to 3,477 crores yielding EITA margin of 34.9%. 10:44 10 minutes, 44 seconds For the first time ever, we crossed milestone of 2,000 plus cr in profit after tax. On a standalone basis, 10:53 10 minutes, 53 seconds revenue grew 10% year-on-year to 5,640 crores. EIA grew 13% year-on-year to 2543 11:02 11 minutes, 2 seconds crores, yielding EITA margin of 45.1%, an expansion of 120 basis points yearon year. 11:11 11 minutes, 11 seconds Standalone PAT grew 14% to 1,632 crores taking PAT margin to 29%. 11:19 11 minutes, 19 seconds What is important is to step back and reflect on our growth journey over the past four years. We have delivered a 11:26 11 minutes, 26 seconds double-digit keer across revenue, EIA and PAT on both a consolidated and standalone basis. This underscores the 11:35 11 minutes, 35 seconds consistency, quality and the structural strength of our business model. 11:42 11 minutes, 42 seconds Let me move on to the new businesses which are at an inflection point. Our new businesses vertical comprising ginger, cumin, amma stays and trail and 11:51 11 minutes, 51 seconds tree of life delivered 25% growth in FI26. 11:55 11 minutes, 55 seconds This resulted in a consolidated revenue of 753 crores. Over the past four years, the new business's vertical has 12:03 12 minutes, 3 seconds delivered a kar of 31% growth, reflecting the strong momentum and successful scaling of our high growth 12:11 12 minutes, 11 seconds brands. The flagship ginger hotel at Mumbai airport crossed the milestone of 100 plus cr in revenue for the first time while delivering an industry-leading ebitar margin of 56%. 12:24 12 minutes, 24 seconds Cumin expanded its footprint to 100 plus outlets while Arma crossed the milestone of 375 bungalows in its portfolio with 85 villas signed during the year. 12:35 12 minutes, 35 seconds Cumin also on a GMV has crossed almost 200 crores uh last year. We have never 12:44 12 minutes, 44 seconds left our focus on asset management and investment. On the contrary, we remain con committed to investing in our assets 12:52 12 minutes, 52 seconds and building our capabilities for the future, thus strengthening our competitive advantages. ICL in FY2526 13:01 13 minutes, 1 second spent over 1,000 crores towards capeex out of which around 650 crores was used for renovations, routine maintenance and 13:10 13 minutes, 10 seconds digital initiatives while the rest half was used towards green field projects. 13:16 13 minutes, 16 seconds Coming on to dividend payout, our strong and consistent financial performance has enabled us to continue enhancing shareholder returns while maintaining a 13:25 13 minutes, 25 seconds disciplined approach to capital allocation. Reflective of this sustained performance, the board has proposed a dividend equivalent to 25% of 13:34 13 minutes, 34 seconds consolidated PAT amounting to rupees 3.25 per equity share subject to shareholders approval. This includes a 13:43 13 minutes, 43 seconds one-time special dividend of 050 rupees per share to commemorate's 13:49 13 minutes, 49 seconds landmark 125th AGM as well as the exceptional gains realized during the year. 13:56 13 minutes, 56 seconds The proposed dividend of rupees 3.25 per share represents an increase of approximately 44% 14:04 14 minutes, 4 seconds over the dividend of rupees 2.25 per share declared in FY2425. 14:10 14 minutes, 10 seconds More importantly, over the last four years, ICL has delivered a dividend keer of 48% reflecting both the strength of 14:18 14 minutes, 18 seconds our cashation capabilities and our commitment to delivering long-term value to shareholders. 14:25 14 minutes, 25 seconds As we move now to FY27, we do so with immense confidence and strong momentum. 14:33 14 minutes, 33 seconds The foundations built over the past few years position ICL well for the next phase of accelerated growth. In 14:42 14 minutes, 42 seconds conclusion, in FI27, we expect 60 plus hotel openings across brands and geographies. 14:50 14 minutes, 50 seconds Number two, our recent acquisitions are expected to contribute over 250 crores in incremental revenue. Number three, 14:58 14 minutes, 58 seconds Ginger and the midscale platform continue to strengthen our leadership position in a structurally underpenetrated segment. As I mentioned 15:07 15 minutes, 7 seconds on a few occasions, we expect the Ginger brand itself to have a total portfolio of 250 hotels either under development or in operation at the end of FY27. 15:20 15 minutes, 20 seconds Number four, renovated inventory across key assets is expected to create further upside through improved pricing power 15:27 15 minutes, 27 seconds and guest experience. Finally, industry fundamentals also remain favorable, supported by resilient domestic demand 15:35 15 minutes, 35 seconds and limited incremental supply across key markets. 15:40 15 minutes, 40 seconds On the outlook as we look ahead to FI27 and beyond, we remain confident of delivering double-digit revenue growth 15:47 15 minutes, 47 seconds with sustained margins, strong cash generation, and improved quality of earnings. Our ambition is not only to 15:55 15 minutes, 55 seconds grow larger but to build one of the most admired and future ready hospitality 16:02 16 minutes, 2 seconds ecosystems around the globe. With strong foundations in place, disciplined execution and a clear strategic 16:09 16 minutes, 9 seconds direction. ICL is well positioned to continue creating long-term value for all stakeholders. 16:17 16 minutes, 17 seconds Thank you very much for listening and we will now be happy to take your questions. 16:24 16 minutes, 24 seconds Thank you very much. We will now begin with the question and answer session. 16:29 16 minutes, 29 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. 16:40 16 minutes, 40 seconds Participants are requested to use handsets while asking a question. 16:45 16 minutes, 45 seconds Ladies and gentlemen, we will wait for a moment while the question cube assembles. 16:57 16 minutes, 57 seconds Your first question comes from the line of Sam Kumar from Motila Swal. Please go ahead. 17:04 17 minutes, 4 seconds Yeah. Hi sir. Uh so uh can you talk on the current scenario how how the city the city wise impact or uh any benefit 17:14 17 minutes, 14 seconds of uh uh say a lowering outbound? So how how is the scenario uh for the hospitality industry? 17:24 17 minutes, 24 seconds Sumant um I just help me clarify. You mean because of the West Nation crisis 17:31 17 minutes, 31 seconds or you mean because of the comments made by some leadership uh uh 17:38 17 minutes, 38 seconds or by the prime minister or I I I can't follow because we are having business as 17:44 17 minutes, 44 seconds usual. Dubai is down, Maldives is down, uh London is okay and um domestic is 17:53 17 minutes, 53 seconds very strong. So it's a very simple answer. Are you there Suman? 18:01 18 minutes, 1 second What about Yeah. Yeah. Yeah. Yeah. What about uh the the the current scenario say in the month of say April and uh in 18:08 18 minutes, 8 seconds the the current month, how is the business uh uh considering current scenario 18:15 18 minutes, 15 seconds the business uh was a bit sluggish. Uh I would say March was a difficult month. 18:22 18 minutes, 22 seconds Beginning of April was difficult. middle of April came the stability since then we are seeing uh strong growth um but 18:32 18 minutes, 32 seconds you know there is months and weeks I think it's important to to to state what 18:38 18 minutes, 38 seconds we just said in terms of our outlook we remain fairly confident 18:45 18 minutes, 45 seconds that we will again digit uh deliver doubledigit growth uh between 12 let's 18:52 18 minutes, 52 seconds say and 14% in the FY27 fiscal and should everything subside in West Asian 19:00 19 minutes crisis you could expect more the figures in line with what we had in the last financial year which was not easy either 19:07 19 minutes, 7 seconds because we started with Pelgam in April Synindhur in May uh airline accident in 19:15 19 minutes, 15 seconds June you know you can go on and on and finish the year with the West Asian crisis so I don't see any reason especially in light of our not like 19:22 19 minutes, 22 seconds for-like growth that we should be able to do doubledigit topline growth and when we see the subsidiary 19:31 19 minutes, 31 seconds performance uh console minus standalone overall operating level we have seen a subdued performance so which uh 19:39 19 minutes, 39 seconds geography has done uh better say gems or US how's the how is the performance in this quarter 19:47 19 minutes, 47 seconds so hi Ankur you're talking about Q4 four. 19:55 19 minutes, 55 seconds Hello Suman. 19:59 19 minutes, 59 seconds I think uh Q4 Q4. 20:01 20 minutes, 1 second Yeah. So Suman I think uh Q4 kind of reflective of the folio trends which you saw on the on the on the slide we put 20:09 20 minutes, 9 seconds out. So there was definitely impact in the after the West Asia conflict in the global market. So we did see some loss 20:15 20 minutes, 15 seconds of revenues in uh you know some of our hotels internationally including London and uh you know and that's what we tried 20:23 20 minutes, 23 seconds to summarize also on the slide on impact of the west Asia conference about 40 to 50 crores of revenue on the console 20:30 20 minutes, 30 seconds basis and almost close to almost close to 100 crores on an enterprise basis which got impacted because of cancellation and reschedument of uh 20:39 20 minutes, 39 seconds events uh you know which were kind of last minute cancellation which came through. So uh but I think the good thing about this is that domestic has 20:47 20 minutes, 47 seconds been pretty resilient u and even in the month of April domestic has actually done quite well. It's uh uh doing placing quite well keeping in mind that 20:56 20 minutes, 56 seconds you know international travel is kind of subdued right now. So let's just see how the quarter goes. Overall u you know we think double digit growth should be 21:03 21 minutes, 3 seconds possible on the on the lines which was just guided by Mr. Jal. 21:10 21 minutes, 10 seconds Thank you so much sir. Thank you. 21:13 21 minutes, 13 seconds Thank you. The next question comes from the line of Charleen Kumar from UBS India. Please go ahead. 21:20 21 minutes, 20 seconds Yeah. Hi. Uh am Yes. Hi Char. 21:25 21 minutes, 25 seconds Hi sir. So uh you know when I was looking your presentation and I was looking for the city by performance for 21:31 21 minutes, 31 seconds FI26 I think there's a big variation we can see like 5% to something like 15% kind of a growth right? Uh that's a kind 21:40 21 minutes, 40 seconds of variation in FI26. So you know is there any market where you're looking that the trend will change for instance 21:48 21 minutes, 48 seconds Mumbai or Goa you're looking that you know your base is favorable or you know there something else is happening where 21:55 21 minutes, 55 seconds you those those uh cities can help you achieve you know your double digit goals. So that's that's question number one. 22:03 22 minutes, 3 seconds Good uh good question Shalen. I think half of it you answered Mumbai the base is very high so it's difficult to get to 22:10 22 minutes, 10 seconds 15% growth but Goa we have seen almost in the month of April 22:17 22 minutes, 17 seconds north of 25% growth in all our hotels some have gone to 30 and beyond so 22:23 22 minutes, 23 seconds averaging at 25 uh Goa is definitely back since the last few months March and April and the trend is not changing uh 22:33 22 minutes, 33 seconds Kerala could improve and Chennai could also improve but Delhi had a very good year last year. So Delhi and uh and Mumbai have a high base. 22:45 22 minutes, 45 seconds Okay. Actually I thought you will say Mumbai because uh I think there was some renovation happening right at so I 22:53 22 minutes, 53 seconds thought that u Mumbai. Yes, you're right. In President, we had renovations. 22:57 22 minutes, 57 seconds So, President will show an exceptional gain, but u uh but you know um Lensend 23:05 23 minutes, 5 seconds has been operating consistently at 90% plus occupancy. So, only rates can go up and uh we have u uh if we on a very high 23:14 23 minutes, 14 seconds base if you do high single digit is good. If you do 6 7 8% on a 20,000 repar 23:22 23 minutes, 22 seconds is as good as you do 15% on a 10,000 repar. Yeah. 23:29 23 minutes, 29 seconds Then there is actually a fundamental question um because that why like why are you operating at 90%. Like I I know 23:37 23 minutes, 37 seconds like this is a very basic question why question I'm asking like why don't we see that let's increase the rate by more 23:45 23 minutes, 45 seconds and and maybe operate at let's say 80 85%. What do you think no 90% is better 23:52 23 minutes, 52 seconds than keeping the rate where they are? I mean I'm asking that even 90% you have a you have a lot of pricing power isn't it? 24:01 24 minutes, 1 second Yeah, I uh don't disagree with you, but we prefer to do both. Increase the rate also and the occupancy also. So that's 24:09 24 minutes, 9 seconds what we have done. If you go back four, five years back on or even six, seven, if you look at the rates or the ref part 24:17 24 minutes, 17 seconds together, it's more than doubled in in our main hotels in Mumbai. So we also need that because you know in India you 24:26 24 minutes, 26 seconds make money on food and beverage and uh more of the people staying in hotels eat in hotels. So I think that's also 24:34 24 minutes, 34 seconds important to find the right balance given my experience personal experience of the west you look more at only rate 24:42 24 minutes, 42 seconds and occupancy because FNB is not profit making in most of the western parts. So but that's a different way of looking at it. 24:52 24 minutes, 52 seconds No fair enough just one last question um on your guidance let's let's if we work with even 12% you know for let's say you 25:01 25 minutes, 1 second able to target 12% in FI 27 how should one think about breaking that growth I mean how should I think about or AR plus 25:10 25 minutes, 10 seconds occupancy plus the new asset contri contribution um plus anything else is there a you know possibility to give a 25:19 25 minutes, 19 seconds broad breakup even a range change is fine. You know it will help us to think and conceptualize like what kind of a growth we are looking at on on various parameters. 25:29 25 minutes, 29 seconds You see if we take your example of 12% it would be fair to say that 4% or to 5% 25:36 25 minutes, 36 seconds will come from new businesses and not like for like growth because we'll be opening uh 60 hotels 25:44 25 minutes, 44 seconds and then we have atan and all these new businesses that we have added. If only seven is left to come from the from the 25:52 25 minutes, 52 seconds rest uh it would be fair to say you know occupancies are at a very high level so you could have most of the growth coming 26:01 26 minutes, 1 second which is driven by rate only so you know I think we've maintained uh shallen consistently that uh on on a 26:09 26 minutes, 9 seconds sustained basis high single digits let's say you know anywhere starting from sevenish going up 8 9% depending on the 26:16 26 minutes, 16 seconds hotel and the region and the and the quarter you pick. That's the kind of range for for life for like and then of course uh you know you could 26:25 26 minutes, 25 seconds have quarters when you end up doing double digit like we did this quarter. So that is a positive surprise. 26:30 26 minutes, 30 seconds Uh we did 12% on standalone as as you saw from our announcement. So uh that's that's the endeavor to push it up but I think if you want to look at 26:38 26 minutes, 38 seconds like a one or two year horizon I think that's a safe assumption. will be in this u you know mid plus to going high close to high single digits and then of 26:47 26 minutes, 47 seconds course uh the good thing is our pipeline is very real. It's not a pipeline which is not converting to opening. So you see a consistent trend of hotels moving from 26:56 26 minutes, 56 seconds pipeline into openings um and then of course that keeps on chugging the management fee income plus also whatever 27:04 27 minutes, 4 seconds keeps coming on our balance sheet. So another full year benefit should come through. Frankfurt uh is a bit delayed. 27:10 27 minutes, 10 seconds be expected to open in June now and and uh you know that's also in a way it's good because of the situation the way it is it's also help from that point of 27:18 27 minutes, 18 seconds view so uh we'll get the benefit of that in this in this fiscal year uh and then the the rest of the hotels which will 27:26 27 minutes, 26 seconds open on management contract and and the ginger leases will add to the not like for like growth 27:33 27 minutes, 33 seconds got it you also have the acquisitions to hopefully fire you know atan etc is doing really 27:40 27 minutes, 40 seconds and uh I think and as well as the ANK pride uh integration is going very strong. So you know the the from a 27:48 27 minutes, 48 seconds business perspective our our sort of endeavor is to ensure that we are able to integrate the the brand portfolio um in this fiscal year and therefore get 27:57 27 minutes, 57 seconds the benefit of that let's say towards the second half of this fiscal year. 28:02 28 minutes, 2 seconds No. So, so is is it fair to assume then that's 12 to 14% bridge or then a lot basically then it's we're looking at AR 28:10 28 minutes, 10 seconds from 7 to 9 that's where the middle and most right so we can work with a base case of 7%. Yeah, that's right. I think 28:18 28 minutes, 18 seconds the the the the tail these are the tailwinds. They're also little headwinds as you know because of the West Asian conflict. There is right now the 28:26 28 minutes, 26 seconds international hotels uh are little bit subdued performance. We saw that in April and uh so we also watching the 28:33 28 minutes, 33 seconds situation carefully. We have fortunately Dubai we don't own hotels so you know but it's still painful to see the what what's happening there as well as uh the 28:42 28 minutes, 42 seconds impact of uh you know both Indian travelers as well as transit hub you know Dubai being a big transit hub impacting our hotels in London and uh 28:50 28 minutes, 50 seconds some of the other markets understood sir thank you so much thank you so much and best of luck I'll join 28:58 28 minutes, 58 seconds back this thank you thank you the next question comes from on the line of Pratik Kumar from Jeff. 29:05 29 minutes, 5 seconds Please go ahead. 29:09 29 minutes, 9 seconds Yeah, good evening sir and congrats for great results. Uh my first question is on uh your foreign tourist mix. Have you 29:16 29 minutes, 16 seconds ch seen any change in your foreign tourist mix uh in like past 2 3 months also related question is like on currency depreciation. So this is more 29:26 29 minutes, 26 seconds like a technical question. When a foreign tourist uh is booking on your portal, he uh or he or she will be like looking 29:34 29 minutes, 34 seconds at a lower rate now with currency depreciation sharply or like I mean my question is regarding your rates on your 29:42 29 minutes, 42 seconds portal are rupee denominated or dollar denominated rupee. So they are rupee denominated. I 29:50 29 minutes, 50 seconds think that's that's a decision we took a few years back. So that remains the way it is. We do get the benefit of rupee depreciation in two ways. One is of 29:57 29 minutes, 57 seconds course our international hotels because the translation happens at the average exchange rate for the for the period and the second is of course in a way it also 30:05 30 minutes, 5 seconds pro this you know property depreciating in a way makes it more expensive for people to travel abroad. So domestic tourism and and uh you know uh that's 30:14 30 minutes, 14 seconds one of the trends we have seen both in March April and that I think will continue for the year. You have drive vacation drive to vacation and consolidation of miles towards domestic 30:22 30 minutes, 22 seconds resorts. uh I think that's a strong one which we expect that trend to continue in this in this uh fiscal year. on on 30:30 30 minutes, 30 seconds your other question uh you know Pratik on on the percentage of tourists uh I think it's not moved dramatically at 30:37 30 minutes, 37 seconds least for the fiscal year uh as we had mentioned earlier it's you know close to 30% for standalone uh is what we call 30:45 30 minutes, 45 seconds foreign tourists or people who are of having foreign passports u and and that's is slightly lower for the enterprise because you know I guess 30:53 30 minutes, 53 seconds the standalone has uh hotels in the bigger cities so that the number is pretty much consistent for the year. We'll see the trends how it continues. 31:02 31 minutes, 2 seconds But I think the good part in all of this is the domestic tourism is holding up. 31:07 31 minutes, 7 seconds The domestic travel is held up quite nicely and uh which is which is supporting us. 31:12 31 minutes, 12 seconds If I may add Pratik um the foreign tourist arrivals remains a hidden upside in perpetuity. We are all waiting for it 31:21 31 minutes, 21 seconds but one day it will come and it will come by leaps and bounds and then that will help us uh compensate. But it's at 31:29 31 minutes, 29 seconds the moment is challenging. The flying time is longer. Um uh but the currency as you said that will help uh in choosing India as a destination. 31:39 31 minutes, 39 seconds And a lot of connectivity was happening through the Gulf uh with the airlines the way they are which is also moved the 31:48 31 minutes, 48 seconds pricing of the tickets very expensive on other airline carriers. So it should normalize and at some point I think we 31:56 31 minutes, 56 seconds will have some good campaigns on India as a destination and we are doing our bit as you know as uh at different trade 32:05 32 minutes, 5 seconds fairs and which we'll keep doing. Um but it remains a hidden upside in perpetuity. 32:13 32 minutes, 13 seconds Yeah. Uh my question also regarding like has that number of 30% or slightly lower has that changed in like month of March, April, May. 32:22 32 minutes, 22 seconds Of course. See, but there is one thing which you have to know which has changed in India. We should not look at foreign 32:30 32 minutes, 30 seconds arrivals as tourist only. I think we have to coin a new term called foreign business arrivals. whether they come for AI summit or they come for now the 32:39 32 minutes, 39 seconds Africa summit which is going to happen or in September October we'll have again a a B20 or a G20 kind of uh event we are 32:48 32 minutes, 48 seconds happening so um uh the bricks sorry I'm saying not G20 B20 the bricks in September October uh so there is a lot 32:57 32 minutes, 57 seconds of these events which have moved to India's India has gained economic prominence so lot of delegations keep 33:04 33 minutes, 4 seconds coming just last week was Vietnamese delegation head of state and if you start from the month of Jan you you the 33:12 33 minutes, 12 seconds German chancellor and you had the December you had the British uh premier you you know everybody's come in so and 33:19 33 minutes, 19 seconds it will it's something which is not going to stop in foreseeable future so a lot of people who come on business tend 33:26 33 minutes, 26 seconds to combine other cities for business and that is helping us tourist per se is on 33:33 33 minutes, 33 seconds a decline and has stayed subdued to less than precoid level and and and I think it's fair to say 33:40 33 minutes, 40 seconds that there will be some impact of um you know non-resident guests coming coming numbers going down for for us but I 33:49 33 minutes, 49 seconds think that's that's being made up at least domestically we see our numbers in April they seem they've done quite well so I think they being made up by both 33:56 33 minutes, 56 seconds the not lifeli growth as well as the domestic buy consolidation uh sure uh One other question on 34:05 34 minutes, 5 seconds domestic tourism. Uh while you're saying clearly uh looking like leisure tourism is benefiting but uh has you seen any 34:12 34 minutes, 12 seconds changes in corporate travel slowdown or in terms of the mix of corporate versus ledger particularly for 34:20 34 minutes, 20 seconds domestic uh not not uh meaningfully impacting the numbers. 34:32 34 minutes, 32 seconds So so far not we will see how we'll monitor in the sense you know given what's u what's been announced over the 34:39 34 minutes, 39 seconds weekend if there any impact but as of now nothing. Sure. Thank you and all the best. 34:49 34 minutes, 49 seconds Thank you. The next question comes from the line of Archel Kumar from HSBC. Please go ahead. 34:55 34 minutes, 55 seconds Yeah. Hi. Um thanks for taking my question. Um so um first of all uh just going back to your comments about the 35:02 35 minutes, 2 seconds domestic um travel holding up and I guess as Ankor rightly said that uh must have been replaced the international 35:09 35 minutes, 9 seconds because international people are not not able to travel. Um so do you see that uh sort of u has replaced the international 35:18 35 minutes, 18 seconds completely um in terms of volume as well as uh the pricing of course I believe that international tourism is sort of a 35:26 35 minutes, 26 seconds high end of the hotels they say at the high end of hotels so how do you see the replacement and now especially after uh 35:34 35 minutes, 34 seconds today's comments from our honorable prime minister not to take foreign travels do you think u domestic could 35:41 35 minutes, 41 seconds actually hold up well and then and and uh and replace the international demand uh pretty pretty well. Can you please uh give a bit of a color on that your thoughts around that? 35:52 35 minutes, 52 seconds So you're you're right. I mean there there was definitely some uh displacement we did and I mentioned that in the in the beginning that on console 35:59 35 minutes, 59 seconds about 40 50 crores of impact which obviously included some domestic impact as well as the international hotels. Uh 36:06 36 minutes, 6 seconds so some of it uh was has been a displacement from this quarter to maybe Q1 or Q2 depending on how how things 36:14 36 minutes, 14 seconds shape out but um is this is this going to continue is something we are also watching. Now the impact of the recent announcement or the current announcement 36:22 36 minutes, 22 seconds is something obviously not known. Uh it could be a positive as well because it was could just spur more domestic uh 36:29 36 minutes, 29 seconds sort of activities in the country and so it's too early to react to that statement. Uh 36:36 36 minutes, 36 seconds and and especially you know um since uh Mr. Modi asked for more work from home uh going back to the COVID times uh do 36:45 36 minutes, 45 seconds you think that that that if there's more work from home could increase the length of the stay at your hotels I mean is 36:52 36 minutes, 52 seconds there any is there any sort of color from your uh experience previously? 37:01 37 minutes, 1 second So yeah, I mean those are all things we will have to just wait and watch. It's u and as to also what shape and form this 37:08 37 minutes, 8 seconds gets uh you know goes is taken ahead and how it is implemented. It's it's uh you know again too premature but you know I think the good thing is that the 37:16 37 minutes, 16 seconds institutional memory is has been bu has been built uh co is only uh you know five four five years back so everybody 37:24 37 minutes, 24 seconds knows what to do if such a situation arises and uh you know we will obviously figure out a way of handling that if it 37:31 37 minutes, 31 seconds does come to that level uh but you know if it comes to that there are various ways of figuring out whether we do more etc like we're saying people have long 37:39 37 minutes, 39 seconds stays so leisure markets can get a flip It's a little bit of flux situation ael. 37:44 37 minutes, 44 seconds So it's very difficult to give an answer to you with some clarity. But I think the levers are there that teams have seen this situation before. So we are 37:51 37 minutes, 51 seconds confident that whatever comes whatever gets thrown at us we'll be able to take tackle it. 37:56 37 minutes, 56 seconds Okay fine. My second question was around the AR growth. We have given the guidance of AR growth of 7 to 9% say 38:03 38 minutes, 3 seconds assume 7%. Um so is that se so so 7% I mean you know how much of that you think 38:12 38 minutes, 12 seconds it could be because of the changing mix how much of that could be because of the revenue management are you doing strong revenue management and punit spoke about 38:20 38 minutes, 20 seconds digital so you're spending lot you spend things digital you know and how much is the underlying um ARS you think will 38:28 38 minutes, 28 seconds grow so can you please give a bit of a color breaking down breaking down your 7% please So uh very broadly speaking I think um 38:37 38 minutes, 37 seconds uh firstly 7 to 8% which I mentioned or 7 to nine which I mentioned was more on the raft bar side so the combination of occupancy and AR uh and also the FNB 38:46 38 minutes, 46 seconds side so more like a total revenue type of same store growth u and you know again various levers exist revenue management is clearly a big sort of 38:55 38 minutes, 55 seconds focus area for us we've actually invested fair bit of money behind that by you know getting uh some of the latest tools on on that front and you So 39:04 39 minutes, 4 seconds uh we are seeing some benefit of that actually already come through uh because what we measure very carefully is what is our RGI relative to you know the comp 39:11 39 minutes, 11 seconds set uh for all the key hotels and I think this is wherever we have kind of deployed these tools you can see the you can see that actually in the RGI numbers 39:21 39 minutes, 21 seconds uh now if if the market itself is a bit subdued then of course that also shows in the that will get affected revenues but I think the sort of the lead 39:29 39 minutes, 29 seconds indicator is RGI and I think that's you're happy to see that we continue to maintain the premium Um and you know I think this is an ongoing financial it's hard to break 39:37 39 minutes, 37 seconds down that 7 8% saying that how much is from absolutely revenue management on inflation you know it's going to be a 39:43 39 minutes, 43 seconds combination of several things uh what crew business you take what you don't what you decline etc what kind of events are happening in the city so I think 39:52 39 minutes, 52 seconds it's it's uh it's a combination of several things which actually go into that it's more of an art rather than a pure science so hard to pinpoint and say 40:00 40 minutes okay this is how we will dissect the 78 percentage number. 40:04 40 minutes, 4 seconds No, I mean you're right and why I ask this is because you know I think uh so in in the PTP in in the PPT has given 2% 40:12 40 minutes, 12 seconds crew business. So I mean at such a high occupancy levels are you going to do strong revenue management are you going to remove the low ARR business you know 40:20 40 minutes, 20 seconds uh so from that perspective are coming through and of course you're spending a lot on digital from that perspective I thinking that what space or what sort of 40:29 40 minutes, 29 seconds leeway you have to play with the revenue management and and further increase ARR you know and that's that's exactly where I was coming from 40:36 40 minutes, 36 seconds yeah no I think that's that's a good question we have I mean this is definitely an area for us to keep on improving Not only uh I mean in within 40:45 40 minutes, 45 seconds this also you know uh what you could have different types of like mice is one segment you could have uh corporate mice 40:52 40 minutes, 52 seconds versus uh you know individual mice uh trans transient you've also got some mixture of uh corporate transient versus non-corporate transient. So I think 41:00 41 minutes those are all levers which you know the commercial team actually does this for a living and uh they do a pretty good job of that. Um and you can also see on the 41:09 41 minutes, 9 seconds right hand side of the chart how the distribution mix is also you know evolving with the website's investment coming up and we've seen a gain of 41:16 41 minutes, 16 seconds almost 2 percentage points. So you know all of all of these goes into getting the refs up where they are. 41:24 41 minutes, 24 seconds Okay. My final question um is around the trading in the first quarter while while you've guided uh for um 12% growth in revenue in FI27. How the Q1 looks like? 41:36 41 minutes, 36 seconds I mean do you see impact in April May going on from March or do you see the sort of a booking levels are are holding up well and and what kind of business do 41:45 41 minutes, 45 seconds you see on the book as at same point were last year please? 41:50 41 minutes, 50 seconds So I think uh uh Q1 has both headwinds and tailwinds. The headwind is of course the west Asia conflict which we which 41:57 41 minutes, 57 seconds we've talked about. I think the good tailwind is that we have a good base to sort of work on. Um and then that's particularly true for second half of May 42:05 42 minutes, 5 seconds and and end of till end of June. So I think that will play to our strengths. 42:10 42 minutes, 10 seconds Um I think we we should do do okay overall. Uh of course u I think between domestic and international domestic 42:17 42 minutes, 17 seconds market will I think do much better than international and that's what we are sort of um sort of observing. We think we should be above 12% for the quarter. 42:28 42 minutes, 28 seconds Okay. Perfect. Thank you so much uncle. Thank you. 42:33 42 minutes, 33 seconds Thank you. The next question comes from the eye of Samit Senna from Aquaryi. Please go ahead. 42:39 42 minutes, 39 seconds Yes, thank you very much. So u first was I wanted to stress test that 12 to 14%. 42:45 42 minutes, 45 seconds Uh you know I can imagine it's not a science but I'm just trying to see how you arrived at number. Do you just take the weakness in April and kind of 42:53 42 minutes, 53 seconds calibrate the rest of year based on that or are you making some assumption about uh the extent or the duration of this 43:01 43 minutes, 1 second conflict? Uh that's my first question. I guess I'll have follow-ups after that. 43:09 43 minutes, 9 seconds Yeah, sure. I think um we have um you know we have key account management, we have some corporates, we know what rates 43:16 43 minutes, 16 seconds we have locked in um uh for the current financial year. Second, we know what are the number of wedding dates, what is the 43:25 43 minutes, 25 seconds business on the books. Number three, what is our not like for like growth? We are expecting to open 60 new hotels and we have certain um uh income from them. 43:37 43 minutes, 37 seconds But more importantly also the 26 + 30 hotel uh 26 + 36 hotels which we opened 43:44 43 minutes, 44 seconds in last year they were also in the growth phase. So they have not stabilized. So I think their returns also should increase. So if I take all 43:53 43 minutes, 53 seconds this u into u consideration and then add to it uh what are the other 44:02 44 minutes, 2 seconds possibilities that we have in terms of other businesses how they are scaling up what are our initiatives I've said it all in my opening remarks asset 44:10 44 minutes, 10 seconds management which places are under renovation as an example last year we had 100 rooms less in Taj Genjes and Viranasi this year we have added them 44:19 44 minutes, 19 seconds last year we had two floors less in Taj Palace is which we said to you in our um previous quarterly calls. They're all 44:27 44 minutes, 27 seconds renovated. They are back. Um uh similarly we had two company owned hotels less in ekanagar the vivanta and 44:35 44 minutes, 35 seconds ginger. Then we have some other critical ginger openings on capital light model. 44:41 44 minutes, 41 seconds So I think growth is a very important part coupled with asset management and then comes what everybody asks all the 44:49 44 minutes, 49 seconds analysts always ask only refer and I've always maintained and I still say refpar is one very important metric but not the 44:58 44 minutes, 58 seconds sole metric um in India prepar is very important because your total revenue per 45:04 45 minutes, 4 seconds available room has a sometimes a more significant impact uh especially if it is driven 45:11 45 minutes, 11 seconds a lot by in certain quarters by a lot by the sire dates or the auspicious dates you have uh for weddings and other activities. 45:22 45 minutes, 22 seconds Got it. Okay. Um then in terms of your fiscal 27 number of openings uh did I if I'm seeing it correctly did you re 45:30 45 minutes, 30 seconds reduce the number of rooms by 500 for this year? 45:36 45 minutes, 36 seconds Uh I don't know that once again Ankur would you have idea did we reduce 500 rooms 45:44 45 minutes, 44 seconds you're saying opening for FI26 correct yes yeah I think it's it's pretty much what we had for mentioned 5,000 keys on an 45:53 45 minutes, 53 seconds average perom so see these are rounded figures they don't include any growth which is of an 46:00 46 minutes existing see last year we added gateway palm in Goa or We added gateway in Ahmedabad. They never hit the pipeline. 46:09 46 minutes, 9 seconds The time they got signed and by the time they got opened was like a few weeks difference. So there are certain properties that come in. The ones which 46:18 46 minutes, 18 seconds we from a prudence point of view show is what we already know which is signed and announced to the market. So some of 46:26 46 minutes, 26 seconds these may get delayed. So let's say instead of 5,000 maybe we open 4,500 but there could be 5 7 800 that may come in which we don't know of today. 46:36 46 minutes, 36 seconds Yeah because you know as an ongoing basis we keep on having discussions for platform partnerships which could which 46:43 46 minutes, 43 seconds could easily give get us you know like Mr. Set mentioned 300 400 keys through a portfolio of partnership. We've had 46:50 46 minutes, 50 seconds we've had a few of them signed last year and and uh some of I'm not talking about acquisition I'm talking about partnerships. So these are something which is a work in progress thing and 46:59 46 minutes, 59 seconds and uh can definitely make up for any any shortfall if we have on the organic side and uh but I think this is a fairly 47:07 47 minutes, 7 seconds uh good number to work with roughly 5,000 keys uh you know give and take 5%. 47:12 47 minutes, 12 seconds uh but you know I think the the key point here is that large portion of this is management keys and therefore the impact on the P&L is actually very very 47:20 47 minutes, 20 seconds minuscule uh and that that's actually made up more than made up by what uh the existing ones which have opened this year could be delivering on the full so 47:29 47 minutes, 29 seconds uh you know more than the physical keys I think the impact of PN is actually quite small of very very small number 47:38 47 minutes, 38 seconds got it no I can imagine you guys are balancing a lot of things so one final question. Uh so pit as you think about if you look at your pipeline uh I think 47:46 47 minutes, 46 seconds by the end of fiscal 30 you'll probably end up at 30 owned and operated 30% owned and operated 70% is going to be 47:53 47 minutes, 53 seconds under the capital model u you know last time we met which was at analyst day you had said a goal was 4367 something like 48:02 48 minutes, 2 seconds that 3763 so this number seems to have changed so is there going to be an update in terms 48:08 48 minutes, 8 seconds of your long-term ROC's and things based on this kind of uh change. 48:14 48 minutes, 14 seconds My very very good um question. So because you remind us that it's time to 48:21 48 minutes, 21 seconds announce our next capital market day which we will do so in the next few weeks. Um we were just waiting for the 48:28 48 minutes, 28 seconds the right moment and now that we have completed the bridge transaction and uh we would we are hoping to 48:36 48 minutes, 36 seconds announce also the uh you know we have signed more than 30 amendments to that ankh and pride portfolio of which 15 48:44 48 minutes, 44 seconds should convert and open in this first quarter itself. Um I think it's time for the next capital market date to be 48:51 48 minutes, 51 seconds announced so we can give you more accurate guidance. 48:56 48 minutes, 56 seconds um because with the uncertainty around what was happening with the west Asian crisis all the focus was there but allow 49:04 49 minutes, 4 seconds us to do that I think it's better that what we said we'll do 63% capital light and if it is moving towards 70 on a 49:12 49 minutes, 12 seconds larger portfolio we are obviously very pleased with it and I'm sure you are also pleased with that yeah I think just to add uh I think we 49:21 49 minutes, 21 seconds we didn't have the hindsight of the ANK pride portfolio within the capital market day that portfolio is actually largely it is actually completely 49:30 49 minutes, 30 seconds capitalized with exception of you know very few hotels which are on the balance machine sheet. So essentially that has obviously made the portfolio look more 49:37 49 minutes, 37 seconds capital light but it is not at the cost of letting go of any capital heavy asset it's actually on top of that. 49:46 49 minutes, 46 seconds Got it. Okay, just just to sum it up, that is what was a very important part of our 49:55 49 minutes, 55 seconds uh in introductory remarks on building resilience and scale by brand, by contract type and by geography. 50:07 50 minutes, 7 seconds Fair enough. Yep. Thank you. 50:11 50 minutes, 11 seconds Thank you. The next question comes from the line of Karan Kana from Ambit Capital. Please go ahead. 50:18 50 minutes, 18 seconds Hi, good evening and thanks for the opportunity and uh congrats on double digit rap growth during the quarter despite external headwinds. Um my first 50:26 50 minutes, 26 seconds question to you Punit and Ankur um with the overall crude oil volatility and global geopolitical scenario feeding 50:34 50 minutes, 34 seconds into aviation costs and broader inflation. While we haven't heard anything yet uh but if we start seeing capacity reduction announcements by 50:42 50 minutes, 42 seconds domestic carriers over next few months uh and if this volatility continues how should we think about the second order 50:49 50 minutes, 49 seconds impact on travel demand pricing power and perhaps even the operating margins over next two to three years. 50:58 50 minutes, 58 seconds Karum u every crisis is an opportunity. 51:02 51 minutes, 2 seconds Some of the brands that you hear today were created in the worst crisis where everything came to a halt. You know, 51:09 51 minutes, 9 seconds Cumin, Arma, uh all these started uh without any upfront capital investment 51:16 51 minutes, 16 seconds during COVID. And uh for a sector that has kind of seen zero revenue in a 51:23 51 minutes, 23 seconds lockdown I think u a few shifts here and there might create opportunities 51:30 51 minutes, 30 seconds even let's say work from home but the home could be in holiday village or in port auada or in one of our armor home 51:36 51 minutes, 36 seconds stays and sales. So there is a lot of change that may happen and also may not necessarily happen because we don't know 51:44 51 minutes, 44 seconds maybe the war is called off but we are monitoring it very closely and one of the reasons we got to the growth in Q4 51:53 51 minutes, 53 seconds and uh a decent start in April and the first 10 days of May is we do a lot of 52:00 52 minutes tactical stuff. We cannot control where the market is going but we can control our market share. So we can increase our 52:08 52 minutes, 8 seconds market share with the strength of our brand with the strength of our sales and marketing activities and we have been successfully able to do that. So I think 52:17 52 minutes, 17 seconds we remain overall quite optimistic. If a doomsday scenario comes and then it's doomsday for all then we figure out what 52:25 52 minutes, 25 seconds we'll do. The only difference this time would be last time when that happened we had a lot of debt. This time we have none and we have a lot of cash. So it might throw other opportunities. 52:36 52 minutes, 36 seconds Yeah. and and just on the uh you know comments regarding repar and you know if you look at FI26 uh despite several 52:44 52 minutes, 44 seconds one-off headwinds every quarter you still manage 78% occupancy and 8% repar growth for FI26 52:51 52 minutes, 51 seconds uh but going into FI27 where you know you're also talking about the industry tailwinds and also a favorable base uh 52:58 52 minutes, 58 seconds the 7% or 8% repar guidance like for like is that on the lower end because of these geopolitical uncertainties or are 53:06 53 minutes, 6 seconds we hearing somewhere you know the end of the cycle where in growth here on will not be pricing led but not liked driven 53:14 53 minutes, 14 seconds so I think on cycle you see um a chart on supply we've looked at what's got announced what's really got built and I 53:22 53 minutes, 22 seconds think uh we feel reasonably uh certain that you know this is going to be a tight supply situation at least for the 53:28 53 minutes, 28 seconds reasonable future uh and therefore you know um ref power should continue to sort of be inflation plus 53:36 53 minutes, 36 seconds giving you the ability to pass on costs etc. 53:39 53 minutes, 39 seconds uh and and beyond that. So I think that that is the context in which we are sort of dealing. Of course there is the on on top of this you have this u sort of 53:49 53 minutes, 49 seconds overhang of of what's happening geopolitically. So there is some temper. 53:53 53 minutes, 53 seconds We have tempered that outlook with with what's happening geopolitically. That's the upside also you know at the end of the day this is not going to last 54:01 54 minutes, 1 second forever and like like we've said in our slide that you know we we me we lost out on certain amount of revenues uh which 54:09 54 minutes, 9 seconds are actually quite uh visible of basis the pace we had February 28th right so I think that's that's also the upside we see that you know as and when things 54:18 54 minutes, 18 seconds become normal which could be you know this month it could be six months we don't know that but we're well positioned to take advantage of that as and when that happens Sure. 54:28 54 minutes, 28 seconds And then lastly on the cancellations during the quarter specifically on mice business that it was lost. Uh are you expecting this business to return over 54:36 54 minutes, 36 seconds next few quarters or has that gotten cancelceled altogether? And also on outbound travel which is expected to see a slowdown. Are you seeing any sustained 54:44 54 minutes, 44 seconds substitution of that by domestic luxury and leisure demand and perhaps do you expect that trend to continue beyond FI27 as well? 54:53 54 minutes, 53 seconds It'll be a mix or the all these things are always a mix. Some of that get does get deferred and comes back. We are we we postpone our own sort of conference 55:02 55 minutes, 2 seconds uh hospitality conference. So some of that actually uh is something which gets deferred but and of course in 55:09 55 minutes, 9 seconds hospitality there will be some element which will be lost uh because you know lights nights are gone. Uh but uh you know I think that's that's part and 55:16 55 minutes, 16 seconds parcel of the game. So you know we sort of factoring that in as we look at the forecast for Q1 and for the year. 55:25 55 minutes, 25 seconds Great. Thanks Ankur and Pun and all the best. Thank you. 55:30 55 minutes, 30 seconds Thank you. The next question comes from the line of Mortaza from Kot Securities. Please go ahead. 55:37 55 minutes, 37 seconds Yeah. Hi sir just on um some data points uh on roots and tats if you could give 55:43 55 minutes, 43 seconds your full year revenue and epida numbers stats is there in the segments if you 55:52 55 minutes, 52 seconds see the se it's there on slide 26 okay uh these are impacted by uh so I would 56:00 56 minutes like to just clarify that some of the growth numbers you see on aida which is lower than and revenue is primarily because of the levy impact which we had 56:09 56 minutes, 9 seconds called out at the beginning of the year that there will be this year uh you know some impact of levy which which was accounted in a different manner as per 56:17 56 minutes, 17 seconds the you know how the airports have now charged that to to tacks and to every to every catering company uh adjusted for 56:25 56 minutes, 25 seconds that the margin actually expanded by a percentage but the revenue growth would have been lower it would have been uh more like 11 12% and not 16%. 56:34 56 minutes, 34 seconds Sure. and roots. Ginger yeah I think roots also um I mean we've given the ginger slide which gives a you 56:43 56 minutes, 43 seconds know overall uh revenue of uh close to 700 crores which is effectively roots corporation and ginger uh Mumbai airport 56:51 56 minutes, 51 seconds because you know the thing is roots corporation does not own root ginger Mumbai airport so therefore yeah from a from a from a business 56:59 56 minutes, 59 seconds perspective it makes sense now to look at ginger console rather than looking at roots on the standalone legal entity so this has grown at about uh you know uh 57:07 57 minutes, 7 seconds 79 crores which has grown nicely and maintain a very highar margin 57:17 57 minutes, 17 seconds that's also on slide 29 on new business 57:30 57 minutes, 30 seconds does it answer the questions yeah thank you thank you thank thank Thank you. We will take the 57:37 57 minutes, 37 seconds last question from the line of Rahul Jen from Philip Capital. Please go ahead. Yeah. Hi. Uh good evening sir. 57:44 57 minutes, 44 seconds Congratulations on a resilient set of numbers. Uh I just have one question. uh on the operating leverage side uh uh the 57:52 57 minutes, 52 seconds annual standalone portfolio I mean the revenue has grown high single digit but we've still managed to expand the margins uh uh at a decent rate uh in 58:01 58 minutes, 1 second FI26 and uh FI2 FI26 console numbers uh in the on the margin front were relatively flattish but uh we're still 58:09 58 minutes, 9 seconds seeing good healthy like forlife and non-life forlight growth so how do you uh uh how do you uh see the margins going forward do we still have room for 58:18 58 minutes, 18 seconds operating leverage to play out in the system or uh is it more of a mix between the non-life like like and like 58:29 58 minutes, 29 seconds you know I think there is still scope uh for improvement and the reason is that most of these brands as we have said are 58:37 58 minutes, 37 seconds in an infancy phase they have not yet scaled up on top of that we had high costs of acquisitions it's not just that 58:45 58 minutes, 45 seconds you acquire something you have high legal fees high travel costs, costs of due diligence. 58:51 58 minutes, 51 seconds So, we are very happy with the 35% margin as long as I've I've said it in several quarterly calls that we did not 59:00 59 minutes put any upfront capital investment with the new brands. So, we need to but put enough horsepower behind them in terms 59:09 59 minutes, 9 seconds of sales, marketing, uh talent, people uh to scale up that business. So that's 59:17 59 minutes, 17 seconds how we are scaling up our portfolio and we have more than increased it by 400% in last 8 years and at the same time we 59:26 59 minutes, 26 seconds have more than uh you know at an enterprise level we have almost increased our revenue by 300%. 59:32 59 minutes, 32 seconds And by the right mix by brand by geography and by contract type we are getting this margin and the resilience 59:40 59 minutes, 40 seconds in the margins. So there is a little bit of a art and a science attached to it. 59:46 59 minutes, 46 seconds Art is the art of growth and science is the kind of growth that you do to create that resilience in your margin and 59:55 59 minutes, 55 seconds create elasticity in the portfolio by removing whatever volatility is possible to be removed in this kind of business. 1:00:06 1 hour, 6 seconds Understood. Thank you. Thank you. 1:00:11 1 hour, 11 seconds Ladies and gentlemen, we take that as a last question for today. I now hand the conference over to Mr. Punit Chhatwal for closing comments. 1:00:20 1 hour, 20 seconds Ladies and gentlemen, thank you very much for joining us on this call. We are very pleased uh to have shared our 1:00:26 1 hour, 26 seconds results with you and um the management summary. We look forward to interacting with you uh in the next fiscal and in 1:00:36 1 hour, 36 seconds the next quarter uh in a maximum of 90 days from now. Thank you very much everybody. Have a wonderful evening. Thank you. 1:00:44 1 hour, 44 seconds Thank you. 1:00:46 1 hour, 46 seconds Thank you on behalf of the Indian Hotels Company Limited. That concludes this conference. Thank you everyone for joining us and you may now disconnect your lines.