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The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts

and Palaces and is recognised as one of Asia's largest and finest hotel company. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. Taj Hotels Resorts and Palaces comprises 93 hotels in 55 locations across India with an additional 16 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa and the Middle East. Spanning the length and breadth of the country, gracing important industrial towns and cities, beaches, hill stations, historical and pilgrim centres and wildlife destinations, each Taj hotel offers the luxury of service, the apogee of Indian hospitality, vantage locations, modern amenities and business facilities. IHCL operate in the luxury, premium, mid-market and value segments of the market through the following: Taj (luxury full-service hotels, resorts and palaces) is the flagship brand for the world's most discerning travelers seeking authentic experiences given that luxury is a way of life to which they are accustomed. Spanning world-renowned landmarks, modern business hotels, idyllic beach resorts, authentic Rajput palaces and rustic safari lodges, each Taj hotel reinterprets the tradition of hospitality in a refreshingly modern way to create unique experiences and lifelong memories. Taj also encompasses a unique set of iconic properties rooted in history and tradition that deliver truly unforgettable experiences. A collection of outstanding properties with strong heritage as hotels or palaces which offer something more than great physical product and exceptional service. This group is defined by the

emotional and unique equity of its iconic properties that are authentic, nonreplicable with great potential to create memories and stories. Taj Exotica is the resort and spa brand found in the most exotic and relaxing locales of the world. The properties are defined by the privacy and intimacy they provide. The hotels are clearly differentiated by their product philosophy and service design. They are centered around high end accommodation, intimacy and an environment that allows its guest unrivalled comfort and privacy. They are defined by a sensibility of intimate design and by their varied and eclectic culinary experiences, impeccable service and authentic Indian Spa sanctuaries. Taj Safaris are wildlife lodges that allow travelers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer India's first and only wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience based on a proven sustainable ecotourism model. Vivanta by Taj Hotels & Resorts span options for the work-hard-play-hard traveller across metropolitan cities, other commercially important centres as well as some of the best-loved vacation spots. Stylish & sophisticated, Vivanta by Taj delivers premium hotel experiences with imagination, energy & efficiency. It's the flavour of contemporary luxury, laced with cool informality and the charming Taj hospitality. Created for the cosmopolitan global traveller and bon vivant, Vivanta by Taj Hotels & Resorts create experiences that will amuse, invigorate & inspire you. Vivanta revels in a spirit that presents the normal with an unexpected twist. Experiences which make you pause & appreciate the hidden beauty in life! It challenges your expectations of a hotel and unfolds multiple layers of delight. Innovative cuisine concepts, the smart use of technology & the challenge to constantly engage, energize and relax you all add up to make Vivanta by Taj the new signature in hospitality. The Gateway Hotel (upscale/mid-market full service hotels and resorts) is a panIndia network of hotels and resorts that offers business and leisure travelers a hotel designed, keeping the modern nomad in mind. At the Gateway Hotel, we believe in keeping things simple. This is why, our hotels are divided into 7 simple zonesStay, Hangout, Meet, Work, Workout, Unwind and Explore. Ginger (economy hotels) is IHCL's revolutionary concept in hospitality for the value segment. Intelligently designed facilities, consistency and affordability are hallmarks of this brand targeted at travelers who value simplicity and self-service. Taj Hotels Resorts and Palaces is committed to replicate its domestic success onto international shores with plans to build an international network of luxury hotels, which will provide an exemplary product-service combination and in the process create a global brand. The current international portfolio includes luxury resorts in the Indian Ocean, business and resort destinations in the Middle East and Africa, serviced apartments in the UK, the first hotel in Australia and three a top-end luxury hotels in the US. Throughout the Company's expansion, its mandate has been twofold: to infuse a sense of Indian heritage and culture within each diverse property, while also

anticipating the needs and desires of the sophisticated traveller. Over the years, the Taj has won international acclaim for its quality hotels and its excellence in business facilities, services, cuisine and interiors. IHCL operates Taj Air, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault Aviation, France; and Taj Yachts, two 3bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala. IHCL also operates Taj Sats Air Catering Ltd., the largest airline catering service in South Asia, as a joint venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.

Taj Hotels Resorts and Palaces is a worldwide chain of hotels and resorts. A part of the Tata Group, one of India's largest business conglomerates, Taj Hotels Resort and Palaces own and operate 76 hotels, 7 palaces, serviced apartments, 6 private islands and 12 resorts and spas, spanning 52 destinations in 12 countries across 5 continents and employ over 13000 people. Besides India, Taj Hotels Resort and Palaces are located in the United States of America, England, Africa, the UAE, Maldives, Malaysia, Bhutan, Sri Lanka and Australia. Jamshedji Nusserwanji Tata, founder of the Tata Group, opened the Taj Mahal Palace & Tower, the first Taj property, on December 16, 1903. He was inspired to open the grand luxury hotel after an incident involving racial discrimination at the Watson's Hotel in Mumbai, where he was refused entry as the hotel did not permit Indians.

Hotels which accepted only European guests were common across British India. Jamshedji Tata traveled to London, Paris, Berlin and Dsseldorf to get the best materials and pieces of art, furniture and interior artifacts for his hotel. Due to its prime location, traditional architecture and massive size, this hotel soon gained the status of the most iconic hotel in India.

FINANCIAL RATIOS: (Year 2010)

Profitability Ratios : Ratio Profit Margin Ratio Asset Turnover Ratio Return On Asset Ratio Return On Equity Ratio Earnings Per Share 36.27/414.02*100 = 8.76% 36.27/281.85*100 =12.86% 36.27/627.01*100 = 5.78 43.34/440.29*100 = 9.84% 43.34/306.99*100 = 14.11 43.34/627.01*100 = 6.91 2010 36.27/228.25*100 = 15.8% 228.25/414.02 = 0.55 2011 43.34/259.28*100 = 16.71% 259.28/440.29 = 0.59

Interpretation:: The profit margin ratio has increased from 2010 to 2011. This shows that the pressure on the margin has decreased and Taj group is better equipped to face an event if there is a sudden increase in costs or drop in selling prices. This increase is a result of increase in sales turnover of the company. The asset turnover has slightly increased from 2010 to 2011. This increase shows that the company is moving towards efficiently utilizing its assets in order to generate

sales and the minimal difference is because the amount of sales have increased proportionately with amount of assets. The return on assets/investments shows a significant increase, thus the overall performance of the company is profitable and the investments are being made in right places to secure maximum returns. The return on equity also shows a significant increase and indicates proper allocation and use of shareholders money and also the returns provided to them. It means the company got more opportunities to invest the money in profitable areas. The EPS is showing an increase which indicates the rise in the market value of the company.

Liquidity Ratios : Ratio Current Ratio Quick Ratio Debtor Turnover Ratio Average Debt Collection Inventory Turnover Ratio 2010 36.42/79.7 = 0.45 32.01/79.7 = 0.40 228.25/6.595 = 34.60 360/34.60 = 10.40 days 142.04/4.45 = 31.91 2011 45.80/73.19 = 0.63 41.12/73.19 = 0.56 259.28/8.29 = 31.28

360/31.28 = 11.5 days 163.01/4.505= 36.18

Interpretation:: The current ratio of the company although is less than one in both years but has increased from 2010 to 2011. Thus it indicates that the company has come in a better position to pay off its current liabilities using its current assets from the previous year. The quick ratio is not even nearing the ideal situation of 1:1, however it is increasing slightly from 2010 to 2011. This indicates the group is not well equipped to meet its liabilities using its liquid assets. The debtor turnover ratio has declined which is a warning signal for the company as it shows poor collection policy of the company from its debtors and also not a good quality of the debtors. Along with the debt collection period has also increased which is another alarm for the Taj group. The inventory

turnover ratio has increased from the previous year which means that the inventory management if the firm has improved from the past.

Solvency Ratios : Ratio Debt Equity Ratio Liability to Equity Ratio Interest Coverage Ratio 67.5/12.22 = 5.52 97.65/11.30 = 8.64 2010 125.33/292.67 = 0.43 125.33/292.67 = 0.42 2011 141.14/321.44 = 0.44 141.43/321.44 = 0.44

Interpretation:: The debt equity ratio of the Taj group is not to high and remains almost stable in both years. This shows that the financial structure of the company is not very risky for the creditors to invest in the company and it should be maintained this way to avoid high risk due to large amount of financial leverage. The liability to equity ratio is low but increasing from the past year so it should be looked into because it is a sign of increasing dependence on liabilities. The interest coverage ratios are appropriate and it increase from 2010 to 2011 which shows that the company is better equipped to pay off the interest to creditors as against 2010.

Capital Market Ratios : Ratio Price Earning Ratio Dividend Yield Price to Book Ratio 130/46.68=2.78 92.5/51.26=1.80 100/130= 0.77 100/92.5=1.08 2010 2011

130/5.78=22.49 times 92.5/6.91=13.4 times

Interpretation:: The price earning ratio of the company is declining from the previous year and is a matter of concern as it indicates the declining confidence of tha market in the growth of the company and may lead to fall in market value. The dividend yield has increased and shows that the cash return on shares has gone up this shows that the shareholders still trust the company to grow even though the market does not. The price book ratio is more than 1 but has decreased from the previous year. This shows that the market expects the stock to earn higher than required rate but this expectation is also declining with the price to book ratio.

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