- Reviewing #VaibhavGlobal's Q3 results
- #ParkHotels #IPO opens on February 5
Find out where money is moving in the market today with Hiral Dadia and Agam Vakil on 'Hot Money'. #NDTVProfitLive
- #ParkHotels #IPO opens on February 5
Find out where money is moving in the market today with Hiral Dadia and Agam Vakil on 'Hot Money'. #NDTVProfitLive
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TVTranscript
00:00 aims to, well, refile for the IPO according to sources to NDTV Profit. We have Saloni
00:07 who is joining us to give us more details. Saloni, good afternoon. What do you have for
00:11 us?
00:12 Hi, Agam. Yes, as you mentioned, Blackstone, Adar Housing Finance is aiming to refile the
00:17 IPO papers by February in the next two weeks. That's what we've known from sources. Now,
00:22 Adar Housing Finance had applied for IPO in January of 2021 and they had got in the study
00:29 in May of 2022. So that means that they had one year, that is till May 2023 to come up
00:35 with the IPO but they did not, which we've gotten to know from sources based on the market
00:38 conditions that we had seen in the first half of the year last year. So now they are aiming
00:43 to refile for it and they aim to raise about Rs. 4000 to 6000 crore range which will depend
00:49 on how much equity shares they sell through their OFS. Now, this is reduced from the Rs.
00:55 4000 crore that they had actually aimed to file when they had released the DRHP in January
01:01 2021. Blackstone, which owns about 90% actually stake in the company and they had acquired
01:07 the company by Diwan Housing in 2019. So they will also sell stake. Now, this is at a time
01:12 when private equity investors are going with the whole market momentum and trying to exit
01:19 these firms that they hold stakes in through the primary issues as well. So that's what
01:24 we have from our sources as of now. All right, Saloni. Thanks for getting us those updates.
01:28 We'll continue to give you more on the same as and when we have, well, news around that
01:36 particular subject. But we move on and address Weber Global. We have the group CFO of Weber
01:42 Global, Mr. Nitin Panwad, who's joining us at the moment on what looks like a very strong
01:48 quarter too. Nitin, good afternoon. Thanks for joining in. Can you tell us as to how
01:54 we've seen so much strength come in? What are the factors that are contributing to the
01:59 near 23% growth in your revenue? And we've also seen an improvement in margins. Can you
02:04 take us through the highlights of the quarter? Sure, sure. Good afternoon to you and all
02:10 the viewers and thanks for having me. So past quarter performance, we are pretty pleased
02:15 with the performance with a 23% growth we have reported in past quarter. I recorded
02:21 revenue of 888 crores. There are multiple factors. There are existing business, which
02:26 is also improving. But apart from that, the new acquisitions that we have done in past
02:31 quarter, which is also coming in our revenue line. So existing business with the increasing
02:39 in our households, expansion in Germany, focusing on our customer experience side, and the new
02:46 acquisition assimilation successfully done in our existing business, all helping us to
02:51 improve our top line. In terms of margins, so we are continuously focusing on the pricing
02:57 of the product and giving us a leveraging our supply chain, vertically integrated in
03:02 India and Asian countries, helping us to improve our gross margins. And also with the higher
03:08 sales we generate operating leverage, overall giving us a benefit in our operating margins,
03:13 which is almost 11% we have reported, 99 crores in last quarter. Okay, so what I noticed in
03:22 terms of your geographical mix, that has been a little bit more diversification. I don't
03:27 know if one quarter would be enough to make that observation. But from the quarter last
03:36 year, your contribution from US has come down from nearly 70% to currently 62%. Is this
03:43 something which has been sought after actively? Are you looking for other markets to diversify
03:49 and thereby reducing risk? Yeah, so in terms of percentage, it is looks the share has gone
03:55 down, but the absolute terms, all the territory is growing. US itself has grown in constant
04:01 currency terms 7% over the past year, same quarter. But the new acquisition, which is
04:08 ideal world in UK and mindful souls in Dutch based company in Europe. So that is expanding,
04:14 which is obviously last year, which was a new revenue of it. So that is why you see
04:19 the other than US market share has increased. But we are focusing on our existing markets,
04:27 not looking to enter in a new territory, because there's a lot of potential in our existing
04:31 household for the question itself. US is only having 30 to 40% additional household that
04:36 we can reach. But right now, around 70% we are covered in US. So there's a potential
04:43 of potential in existing markets. So we are focusing on our existing territories.
04:48 Can you give us an idea as far as your digital revenue outlook is concerned? I believe it
04:53 is 40% of your B2C revenue mix currently. What's the way forward here?
04:58 Yeah, so way forward is continuously increasing digital market share with the 40% last quarter
05:05 that we have reported and our guidance that we have given to reach 50% by FY27. We are
05:11 comfortable on it to achieve that number by FY27.
05:15 You also, you know, briefly mentioned what is happening with ideal world. And also, if
05:21 you could give us an idea about what's happening with mindful souls, BV, a little bit of an
05:27 uptake with respect to the business, how things are panning out here.
05:31 Sure. So both of the acquisition is working well. At the end of the last quarter, September
05:39 end, that we got that both of the company and the revenues reported in this quarter
05:45 for the full quarter, and then both is working out very well. Ideal world, especially the
05:50 company couldn't generate, hardly generate any profits in past history. But within the
05:56 first quarter on direct cost basis, we have generated profit in ideal world. And we anticipate
06:03 that after allocating all the costs, which is indirect cost, rent or support staff or
06:10 IT or HR, finance salaries, after allocating a full allocation, we anticipate that next
06:15 nine months, we will be profitable in ideal world. But on direct cost basis, it is already
06:20 profitable. But also in mindful souls, which is a cash generating a profitable company,
06:26 10% profit margins they have. And we have also seen in the past quarter, the 10% margin
06:32 mindful souls has generated for us.
06:35 Okay. Also a question on the kind of investments that you have year marked, not only for this
06:42 this upcoming quarter, but also for perhaps FI25. And in what areas are these investments
06:47 going into?
06:48 Yeah, so our main focus for this year and the upcoming years to expand our digital presence
06:57 through the acquiring customer via social media, or omni channel or TV driven customers.
07:04 Also we are focusing on our broadcasting increasing our penetration in US. Germany, we already
07:11 95% covered, but increasing our penetration in our US markets. So those investments will
07:17 give us a return and we are anticipating that FI25 to grow high T numbers. And subsequently
07:25 after FI25, mid T numbers growth and we'll continue that guidance.
07:32 Okay, well, we live with that. Thank you so much for joining us and taking us through
07:38 the quarter's earnings, as well as what we can expect going forward. We wish you the
07:42 best for the future. That's of course the management of WebO Global, looking at a very
07:48 strong quarter coming through. We are looking at a little bit of weakness in today's year
07:52 of trade. But if you keep that on the side, it's been quite a year for WebO Global too,
07:59 and which is very evident in the kind of numbers that you've seen there you have it, that's
08:02 your 12 month up move. So a clear out performance as far as this particular company is concerned.
08:07 But on the note, we slip into a short break. But on the other side, we get you a lot more
08:11 in terms of stocks. Stay tuned in.
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11:59 Hello and welcome to NDTV Profit. You're watching IPO at Da and the company which is coming
12:03 to the Lulz Street next week is APJ Surinder Park Hotels. It's a company which owns the
12:10 brand Park Hotel. And joining me is Ms Priya Paul, who is a chairperson and executive director,
12:16 and Vijay Diwan, who is the managing director of the company. The company is coming out
12:20 with an IPO with the price band of 147 to 155, opening on Feb 5th, closes on Feb 7th.
12:26 There's a price issue of 600 crores and OFS of 320 crores, so a total size of 920 crores
12:31 coming in as part of the IPO. Ma'am and Mr Diwan, thank you for joining us on NDTV Profit.
12:38 To begin with Ms Paul, tell us what is the kind of expansion plans that you have for
12:47 this brand Park? And since you are getting into a much bigger city or other cities as
12:56 well, what is that capex that you're looking at?
13:03 Thank you. Thank you for having us on your show. We currently have 30 hotels which are
13:09 open across multiple brands, the Park Hotels of course being the signature iconic one that
13:16 you must know. And we have another about 20 hotels in the group under the brand zone by
13:22 the Park and that is present in tier 2 and tier 3 cities across the country. And as you
13:28 will see in the RHP, we have a very robust growth plan to take this to about 56 hotels
13:33 by 2026 and through a mixture of owned, leased and managed properties across all these brands.
13:40 And that's how we see ourselves moving forward and you'll see us in many more cities in the
13:48 years to come.
13:49 Mr Dhawan, you are the 8th largest hotel chain in the country. You're raising 600 crores
13:56 in fresh capital. What is it going to be used for?
14:04 So this capital is going to be largely used to retire the debt. About 550 crores are going
14:13 to be used to retire the debt and the balance 50 crores are going to be used for the general
14:19 corporate purposes.
14:22 Can you give me a sense because Ms Paul just articulated the runway to expand to nearly
14:29 56 hotels by 2026. How are you going to fund those CAPEX program?
14:40 So actually, I didn't finish your question, but it's actually, there's a lot of internal
14:46 accruals so all our projects will be funded through those internal accruals. The market
14:51 is very robust, there's a healthy growth, there's an ARR growth across the country and
14:57 with that we will fund our future growth and we are building about 630 rooms in the next
15:04 few years which is also as per the DRHP and which includes 3 greenfield projects as well
15:11 as 2 capacity expansions in our existing properties in Vishakhapatnam and Navi Mumbai.
15:18 Just to get an idea of this expansion plan that you have, will it be all owned ones or
15:26 will it be some on lease and some managed?
15:29 Well, we've grown to 30 hotels with a combination of these strategies, ownership, lease and
15:36 management contracts. As I said, currently we have 30 hotels of which 7 are owned. We
15:44 will be adding owned properties and other 3 as per the RHP in Pune, in Jaipur, in Kolkata
15:57 and then we'll be doing capacity expansions in our properties in Vishakhapatnam and Navi
16:02 Mumbai. We'll add to that with management contracts and lease properties which are in
16:09 many towns across India and we have 15 of them signed as per the RHP and these will
16:17 be opening out in the next few years.
16:19 So just to add to that, presently we have about 2,298 rooms. We plan to take it to 4,000
16:27 rooms over the next 5 years. Currently, as Ms. Paul just mentioned, we are adding 630
16:34 rooms of our own and about 1,365 rooms are going to be added on the management side of
16:44 the business. So all this will add up to from 2,298 rooms to 4,405 rooms. So virtually doubling
16:55 our inventory over the next 5 years.
16:58 Yeah, and that's the reason I was asking how are you going to fund it and what is the kind
17:02 of investment that will take you to doubling of the entire rooms?
17:09 No, so largely the investment is going to be all through internal accruals which the
17:17 internal accruals are going to largely fund the expansion plan and the management contracts
17:25 anyway are separate and outside this. So 630 rooms are going to be internally funded. So
17:32 this is how the plan is and currently as Ms. Paul also, the current situation, the current
17:39 is that we have say 3 hotels which we are going to develop of our own and in total we
17:46 have about 15 lakh square feet of total FSI which we have in our balance sheet and out
17:54 of which in the next 5 years we are going to develop about 11 lakhs of this FSI. 2.5
18:00 lakhs FSI development is going to take place in Pune, 6 lakhs is going to take place in
18:07 EM bypass in Calcutta, about 1.5 lakhs development is planned for Vishakhapatnam and 1 lakh for
18:15 Navi Mumbai. So 11 lakhs of FSI which is currently in the balance sheet is going to be developed
18:21 by us over the next 5 years.
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