Hotel Leela (HOTLEE) - ICICI Direct

Exhibit 5: Quarterly trends in sales and net profitSales for Q4FY13 grew ~16.6% YoY mainly due toaddition in room inventory as growth in the revenue perroom remain muted|. crore250200150100500-50-100-150172Exceptional gain on accountof sale of property10112-26128-65159-100139210Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13Sales138Net Profit-97132-92183-97201-142Source: Company, ICICIdirect.com ResearchExhibit 6: Trends in operating margins60Operating margins for the quarter declined due to higheroperating costs led by new room additions in Chennai(%)40200-20-4039.525.427.715.415.418.09.711.67.5Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13-35.0EBITDA Margin (%)Source: Company, ICICIdirect.com ResearchSells IT park to RIL for | 170 crore, further sale of non-core assets on cardsDuring the quarter, the company sold its non-core assets (IT park inChennai) to RIL for | 170 crore. The company is also looking at selling itsexisting hotel properties (In Chennai, Bangalore, etc) and retaining rights tomanage them in order to pare down its debt. The company is also shelvingits plan for further development of its 3.85 acre property in Hyderabad,which could fetch up to | 125 crore. Similarly, in Pune, Leela has shelvedits plan to build a luxury hotel. We believe any developments with regardsto the sale of land or property remain an upside risk to our call in futureExhibit 7: AssumptionsHotels Rooms FY12 FY13 FY14E FY15EOwned 1457 1607 1607 1607Mang cont 412 595 651 651Total Room Count 1869 2202 2258 2258RevPAR FY12 FY13 FY14E FY15EARR (| per room) 11400 11570 12068 12369Occupancy (%) 61.0 62.0 63.0 65.0Source: Company, ICICIdirect.com ResearchICICI Securities Ltd | Retail Equity Research Page 3