Indian Hotels Q2 Results: Profit More Than Triples, Revenue Up 27%
Margin expands 270 basis points to 27.5% in the quarter ended Sept. 30.
The Indian Hotels Co.'s consolidated net profit more than tripled in the second quarter of the current financial year, beating analysts' estimates.
The profit of the hospitality firm, which operates the Taj brand, increased to Rs 582.7 crore in the quarter ended Sept. 30, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had pegged the profit at Rs 248 crore.
IHCL Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 27% to Rs 1,826.1 crore versus Rs 1,433.2 crore (Bloomberg estimate: Rs 1,738 crore).
Ebitda up 41% to Rs 501.3 crore versus Rs 354.8 crore (Estimate: Rs 468 crore).
Margin expands 270 basis points to 27.5% versus 24.8% (Estimate: 26.9%).
Net profit up 226% to Rs 582.7 crore versus Rs 178.97 crore (Estimate: Rs 248 crore).
The company reported an exceptional gain of Rs 307.4 crore in the second quarter.
Other Key Highlights
International Consolidated portfolio reported an occupancy of 75% (up 600 basis points), resulting in a RevPAR growth of 10%.
Management Fee income grew by 15% to Rs 100 crore on the back of not like for like growth.
The Air & Institutional Catering business segment (TajSATS) clocked a revenue of Rs 254 Crore, 19% growth over the previous year and sustained EBITDA margin at 24%.
New Businesses vertical comprising of Ginger, Qmin and amã Stays & Trails reported an Enterprise revenue of Rs 173 crores, a growth of 42% and Consolidated revenue of INR 143 crores, a growth of 47%.
"For FY2025, we continue to maintain a guidance of double-digit revenue growth led by the sustained growth in New Businesses, not like for like growth and healthy same store performance. This is reflected in a strong 16.5% growth in consolidated hotel segment revenue in October which is set to accelerate in the remaining months of Q3," said Puneet Chhatwal, Managing Director & CEO, IHCL.
“IHCL has achieved a record signing of 42 hotels resulting in an industry leading portfolio of 350 hotels and met its market guidance of opening two hotels a month with 14 new hotel openings till date," he added,
Shares of IHCL closed 0.12% lower at Rs 683.80 apiece on the NSE, compared to a 1.16% decline in the benchmark Nifty 50. The results were declared after market hours.
