Indian Hotels Q3 Results Review - Improvement In Realisations, Occupancies: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.The Indian Hotels Company Ltd.'s reported consolidated revenue growth of 16.5% YoY, in line with our expectations. The Q3 is seasonally a strong quarter and this growth was mainly due to the increase in revenue per available room to Rs 9,840, up 24.9% YoY in domestic hotels. Indian Hotels’ RevPAR in international assets, U.S. declined by -3.0% YoY while increasing by 10% YoY in the UK respectively.It reported an consolidated Ebitda margins of 37.3%, up 187 basis points YoY however impacted by Ebitda losses - 1.1% in U.S. opeartions. Profit after tax stood at Rs 477 crore, up 18.2% YoY, led by revenue growth and strong operating leverage.The standalone business reported a 470 bps YoY improvement in occupancies to 76.8% and a +17.2% YoY increase in realizations to Rs 18,111 compared to Q3 FY23..Key risks to our estimates and target priceThe economic slowdown in India may impact the demand for the travel Industry. An increase in supply could impact the realisations of the company.Negative operating leverage is a big hurdle to sustaining Ebitda margins..Click on the attachment to read the full report:.Divgi TorqTransfer Shares Fall Most In Seven Months After Q3 Profit Declines.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indian Hotels Q3 Results Review - Improvement In Realisations, Occupancies: Axis Securities

Rich valuations like enterprise value/Ebitda 28.2 and earning price 43.0 times FY26E lead to limited upside.

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Indian Hotels Q3 Results Review - Improvement In Realisations, Occupancies: Axis Securities

Rich valuations like enterprise value/Ebitda 28.2 and earning price 43.0 times FY26E lead to limited upside.

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