Any current/future new fundraising through debt or equity?

The company maintains a conservative approach to debt, not exceeding a debt-to-equity ratio of 25%. For upcoming expansion projects, including hotel developments, the debt equity ratio will not be exceeded. No specific details on new fundraising through equity were disclosed during the call. Capital expenditure for expansions and acquisitions is planned to be funded through a combination of internal accruals and debt, adhering to the debt limit. For the London property investment, the company aims for a 50% debt and 50% equity split but also looks to bring in partners to reduce EIH's direct eq

Any current/future capex/capital investment/strategic investment?

EIH Limited plans significant CAPEX for expanding their hotel portfolio over the next years; details have been disclosed to the stock exchange and can be shared upon request. The company does not exceed a debt-equity ratio of 25% for these projects. Current developments include mixed-use projects at Hebbal, Bangalore, featuring an Oberoi Hotel, a Trident Hotel, and commercial spaces. The Oberoi Hotel in London (Mayfair) involves a total project cost of £69 million with EIH's equity exposure slightly under £18 million; expected operational by 2028. Renovations are ongoing at several properties,

Future growth expectations in sales/revenue/volumes?

Strong demand anticipated across segments including leisure, business, and MICE, especially in winter months (Page 12). High occupancy and room rate growth expected, contributing to RevPAR growth particularly in luxury hotels (Page 12). Expansion pipeline includes 20 properties by 2029, adding significant keys both domestically and internationally (Page 4). Focus on both owned and managed hotels with a plan to open 50 hotels by 2030, indicating long-term revenue growth (Pages 4, 21). Improvement in occupancy in domestic portfolio observed in Q2, driven by robust performance across MICE, direct

Future growth expectations in earnings/operating earnings/profits/EPS?

Operating margins have improved significantly in the last two years (2023 and 2024) to above 30-35%, with a question of sustainability (Page 19). Vikram Oberoi expresses optimism that this uptrend in earnings and RevPAR growth will continue in the coming 3-4 years, supported by strong demand across leisure, MICE, corporate, and direct segments (Pages 12, 14, 19). The company forecasts strong revenue and profitability in Q3 and Q4, especially in leisure hotels, with city hotels also benefiting from higher occupancy and rates (Page 12). Expansion plans including 20 new properties by 2029 (

EIHQ2 FY25Leisure Services

EIH Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹298P/E: 25.4Market Cap: ₹18.4K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

Strong demand anticipated across segments including leisure, business, and MICE, especially in winter months (Page 12).
High occupancy and room rate growth expected, contributing to RevPAR growth particularly in luxury hotels (Page 12).
Expansion pipeline includes 20 properties by 2029, adding significant keys both domestically and internationally (Page 4).
Focus on both owned and managed hotels with a plan to open 50 hotels by 2030, indicating long-term revenue growth (Pages 4, 21).
Improvement in occupancy in domestic portfolio observed in Q2, driven by robust performance across MICE, direct, and corporate segments (Page 22).
Positive outlook with continuation of growth trend; operating margins above 30-35% seen as sustainable (Pages 19, 22).
Capital expenditure on hotel projects planned after thorough planning, signaling controlled and efficient growth (Page 22).

Margin guidance

Category 3

Operating margins have improved significantly in the last two years (2023 and 2024) to above 30-35%, with a question of sustainability (Page 19).
Vikram Oberoi expresses optimism that this uptrend in earnings and RevPAR growth will continue in the coming 3-4 years, supported by strong demand across leisure, MICE, corporate, and direct segments (Pages 12, 14, 19).
The company forecasts strong revenue and profitability in Q3 and Q4, especially in leisure hotels, with city hotels also benefiting from higher occupancy and rates (Page 12).
Expansion plans including 20 new properties by 2029 (both owned and managed) are expected to contribute to future earnings growth (Pages 4, 10).
CAPEX projects target minimum internal rate of return of 15% or higher, indicating profitable growth (Page 10).
Overall, the leadership remains confident of sustained earnings growth driven by expansion, high service standards, and robust demand outlook.

See what EIH management said on margin guidance — free account, 30 seconds.

Fundraise plans

The company maintains a conservative approach to debt, not exceeding a debt-to-equity ratio of 25%.
For upcoming expansion projects, including hotel developments, the debt equity ratio will not be exceeded.
No specific details on new fundraising through equity were disclosed during the call.
Capital expenditure for expansions and acquisitions is planned to be funded through a combination of internal accruals and debt, adhering to the debt limit.
For the London property investment, the company aims for a 50% debt and 50% equity split but also looks to bring in partners to reduce EIH's direct equity exposure.
Detailed disclosures on CAPEX and project financing have been shared with the stock exchange and are available publicly.
Additional information can be provided upon request via investor relations but was not detailed in the session.

Order book

Yes

The transcript in the provided document does not explicitly mention current or expected order book or pending orders for EIH Limited. However, it provides detailed insights into the company's expansion and development pipeline: - EIH has 20 properties expected to open by 2029, comprising 13 Oberoi hotels, 4 Trident hotels, and 3 luxury boats/Nile cruisers. - Out of these, 11 are in India and 9 internationally; 9 are owned hotels, and 11 will be managed hotels. - The company is actively planning multiple owned and managed hotel projects, many currently in the planning stage to avoid delays and overspend. - The development pipeline includes significant projects in Bangalore at Hebbal, with over a million square feet development including Oberoi hotel, Trident hotel, and commercial space. - Capital expenditure (CAPEX) for owned properties is yet to ramp up substantially as most hotels are still in the planning phase; typically, hotel planning takes at least a year.

See what EIH management said on order book — free account, 30 seconds.

Capex plans

Yes

EIH Limited plans significant CAPEX for expanding their hotel portfolio over the next years; details have been disclosed to the stock exchange and can be shared upon request.
The company does not exceed a debt-equity ratio of 25% for these projects.
Current developments include mixed-use projects at Hebbal, Bangalore, featuring an Oberoi Hotel, a Trident Hotel, and commercial spaces.
The Oberoi Hotel in London (Mayfair) involves a total project cost of £69 million with EIH's equity exposure slightly under £18 million; expected operational by 2028.
Renovations are ongoing at several properties, including Ranthambore (completion early next year) and grand renovations at Oberoi Grand.
New hotel openings scheduled through 2029 include 20 properties adding over 1,350 keys, with a mix of owned and managed hotels internationally and domestically.
Minimum internal rate of return targeted on owned projects is 15% or higher.

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EIH Q2 FY25 Earnings Call Analysis

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What EIH's management said in earlier quarters

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