On October 27, 2023: Indian Hotels Co. Ltd. BSE, (NSE: INDHOTEL) announced its Q2 2023-24 financial results, with Q2 marking 6 consecutive quarters of exemplary and record performance with Revenue, EBITDA, and PAT up by significant figures.
Table of Content
Key Highlights Of Indian Hotels Co. Ltd.
Here are the main highlights of the Q2 results of the Indian Hotels Co. Ltd. (IHCL):
- The quarter displays significance in terms of an increase in Revenue standing at ₹1,481 Cr, a rise of 18% YoY.
- The Profit After Tax in Q2 FY23-24 witnessed a 37% YoY growth and stands at ₹167 Cr.
- EBITDA for the quarter is up 26% YoY and is at 402 Cr. This reflects an EBITDA Margin expansion of 180 BPS.
Additional Read: Q2 Results Dashboard
Deluxe Hospitality Company Delivers Deluxe Performance
Here are some aces in the Indian Hotel Co. Ltd.’s bag of superior Q2 FY23-24 results:
- Delivering a record Q2 financial performance, the company has outperformed the industry on the domestic same-store RevPAR with a premium of 63% versus the competition.
- A buoyancy in demand in the company’s international operations has led to an occupancy of a huge 64% which is a rise of 800 basis points (8%) against the previous fiscal year RevPAR.
- Management Fee Income witnessed a growth of 14% over the previous fiscal year, proof of the fact that the company’s asset-light tactic is having its desired effect.
- The momentum of expansion for the premium hotel enterprise continues in Q2 with the signing up of 6 new hotels by IHCL, including 3 Taj Hotels on the global stage (in Frankfurt and Bhutan), 2 SeleQtions hotels (Goa and Himachal Pradesh), and 1 Ginger hotel (Assam).
- Besides signing up with hotels, new hotels were also opened in Q2, of which 2 boasted the Taj brand (Mumbai and Gangtok) and 1 SeleQtions hotel in Indore (a first for the enterprise).
A Boost for Business
In Q2 FY23-24, the company excelled in different business streams, the features of which are highlighted below:
- TajSATs the flight catering business under the company’s helm has clocked a Revenue of ₹213 Cr, resulting in growth of 48% YoY, and maintaining a first-in-industry EBITDA Margin of 24% in Q2 FY23-24.
- The enterprise Revenue of Ginger Hotels has exceeded ₹100 Cr in Q2. This is a 24% growth YoY with robust EBITDA margins at 34% in Q2 FY23-24.
- Qmin has seen growth, reaching the establishment of 38 outlets, and ama Stays and Trails has achieved a milestone in the operations of 75 bungalows and an entire bungalow portfolio of 125.
- The company continues its efforts at sustainability, using 37% of energy from renewable resources. It has also installed some 335 EV charging stations all over India.
Also Read: Indian Hotels Co Ltd Share Price
Management Commentary
The MD and CEO of IHCL, Puneet Chatwal, had some reflections on the Q2 results, and these are indicated below:
- Due to consistent growth in double digits, the company has generated a system-wide Revenue amounting to ₹2,687 Cr, which is 1.8x the consolidated Revenue of the company.
- The growth in Revenue reflects the success of the company’s strategy to strike a balance between leased/owned and managed hotels and take advantage of the diversified brand portfolio spanning more than 125 locations.
- In Q2, by signing on new hotels and opening new ones, the company has managed to remain a leader in the industry, with a total of 82 hotels.
- High spending by consumers and the overall economic momentum in India are contributing to the success of IHCL.
- As the on-the-books business remains healthy, the company is prepared for the demands of the rest of the present fiscal year.
Executive VP and CFO of IHCL, Giridhar Sanjeevi, had some points to add regarding the Q2 result:
- Q2’s results are largely representative of a boost to the company via the domestic market as witnessed in the standalone Revenue of IHCL – ₹949 Cr. This is a growth of 23% YoY with a robust EBITDA Margin at 34.7%.
- In spite of product upgrades, the company extended margins at consolidated and standalone levels by 180 and 410 basis points, respectively, and this was the outcome of optimising cost and revenue flow-throughs. Consolidated Cash and Cash Equivalents are also healthy at ₹1,395 Cr for Q2.
Awards and More
The company has been honoured with the following recognitions (added to its already huge collection of awards) recently:
- The Golden Peacock Award for Risk Management 2023
- 2023 International Centre for Responsible Tourism, India Foundation Responsible Tourism Award (in the “Best for Tackling Plastic Waste” category)
- Brand Finance’s Brand Value Report India 2023, naming Taj as the strongest brand (third time).
Financial Results Of Indian Hotels Co. Ltd.
Here are the financial results of Q2 in a nutshell, YoY performance-wise:
| Metrics | Q2 FY2023-24 | Growth |
| Revenue | ₹1,481 Cr | 18% |
| EBITDA | ₹402 Cr | 26% |
| EBITDA % | 27.2% | 1.8pp |
| PAT | ₹167 Cr | 37% |
About Indian Hotels Co. Ltd.
In a timeline spanning 119 years, the Indian Hotels Co. Ltd. has built a successful and unrivalled brand and reputation that speaks volumes about the word “hospitality”. At the very heart of the company, is its sense of service with an emphasis on perfection. This solid foundation, firmly planted in Indian hospitality and reflected via real experiences, has distinctly made the company the leading (and the largest) South Asian hospitality company.
IHCL has subsidiaries that blend a basket of businesses offering a mix of world-class service and warm “Indianness”. These brands/businesses comprise Taj – the iconic legacy brand for discerning guests, positioned as the World’s Strongest Hotel Brand and the strongest brand in India, over a range of sectors as per Brand Finance Hotels 50 Report 2022 and India 100 Report 2022, respectively; SeleQtions, handpicked hotels; Vivanta, modern upmarket hotels that represent joie de vivre; Ginger, budget, yet high-standard, hotels, and amã Stays & Trails, a quaint portfolio of exclusive and private villas/bungalows in picture-perfect locales.
Source:
https://www.ihcltata.com/investors/
