Last Updated on February 2, 2024 by ethinos
On February 1, 2024, Indian Hotels Co Limited (BSE, NSE: INDHOTEL) announced its Q3 2023-24 results, marking its 7th quarter of record-breaking performance by a Hotel conglomerate. Revenue was up 15% YoY while PAT saw a rise of 18% YoY.
Table of Content
Main Result Takeaways
India’s largest and most prominent hospitality conglomerate reported a quarter of solid and reliable growth. Here are the relevant highlights:
- Q3 FY24 for the leading hospitality company stood at ₹2,004 Cr, a rise of 15% YoY compared to the Revenue in Q3 FY23 when it was at ₹1,744 Cr.
- The EBITDA for the quarter was at ₹772 Cr, up by 18% on a YoY basis.
- The EBITDA Margin was at 38.5%, up by 1.00pp.
- The Profit After tax was up by 18% versus the same quarter of the previous fiscal year and stood at ₹452 Cr for Q3 FY24.
Additional Read: Q3 Results Dashboard
Peak Performance
The stellar performance of the hotel conglomerate was a reflection of key contributing factors and these are mentioned below:
- The Total Revenue for Q3 FY24 was chiefly driven by a 21% growth in Room Revenue.
- The Company ended the quarter outperforming the hotel industry based on domestic same-store RevPAR backed by a premium of 70% over the competition.
- In Q3 FY24, the Company witnessed a buoyancy in demand from its international side of the business, leading to an occupancy of 70%. This resulted in a RevPAR growth of 9% against the previous fiscal year.
Q3 – New Hotels, New Growth
While reporting Q3 stellar financial performance, the Company also shed some light on new businesses that began operations during the period and their performance:
- The New Business vertical of Indian Hotels comprising Qmin, Ginger, amã Stays & Trails, TajSATS, and The Chambers registered a Revenue of ₹420 Cr.
- The New Business vertical presently accounts for an 11.1% share of Indian Hotels Co Ltd Enterprise revenue, a rise of 130 bps from 9.8% in the previous fiscal year.
- TajSATS pegged a Revenue of ₹233 Cr, marking 34% growth over the previous fiscal year, maintaining an industry-first EBITDA Margin of 25.8%.
- Ginger recorded a Revenue of ₹134 Cr and 34% growth over the previous fiscal year with an EBITDA margin of 44%.
- Boosting the brand’s “lean luxe” placement, the new flagship Ginger at Mumbai Airport recorded an 80% occupancy and a net profit with positive figures in its first month of operations.
- amã Stays & Trails achieved a YTD December brand Revenue of ₹25 Cr, marking a 31% growth relative to the previous fiscal year. The portfolio of this accommodation category now stands at 144 with 94 bungalows in operation.
- The Management Fee Income increased by 13% relative to the previous fiscal year at ₹134 Cr, a reflection of the asset-light strategy of the Company.
The Management’s Take on Q3 Results
The MD and CEO of Indian Hotels Co Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company has registered reported a consolidated all-time high Q3 EBITDA Margin of 38.5% and a PAT margin of 22.6%. This marks seven successive fiscal quarters of record-breaking performance.
- The strong financial performance of the company is largely attributed to same-store hotels registering a RevPAR premium spread over markets and segments, and robust performance of not-like-for-like growth along with the scaling of new businesses.
- As reflected in its Q3 FY24 results, Indian Hotels Co Ltd continues its run of being the leading company of growth in the industry, with 20 new hotels signed with it and 16 new hotels opened for business.
- At the end of Q3 FY24, the company boasts a hotel portfolio of 285 properties with 85 in the pipeline.
- This is a special year for the Company as it marks the “200 operating hotels” milestone for the Company as well as the commencement of the new Ginger Hotel at Mumbai Airport.
- With a reach of 130 locations and a strong balance sheet, the Company has expansion plans for the upcoming year.
- In recent announcements, the iconic Taj brand under the helm of Indian Hotels was recognised at the 101 Executive Summit in Germany as the winner in the ‘World’s Finest Luxury Grand Palaces’ category.
- The stellar performance of the Company in Q3 FY24 was largely led by Domestic market performance.
- Indian Hotels’ consolidated results have shown robust performance with an Operating EBITDA Margin of 37.3%, a rise of 190 bps. This is mainly a reflection of the high revenue flow-through.
- On a year-to-date basis, the Company’s consolidated performance translated to an all-time high Revenue of ₹5,000 Cr, an EBITDA margin of 32.7% aligned with the guidance of Ahvaan 2025.
- The Company has also managed to maintain solid cash and cash equivalents of ₹1,810 Cr at the close of Q3 FY24.
Financial Results at a Glance
Here is a glimpse of the Consolidated financial results of Q3 (figures in ₹ Cr as reported by the Company, except where indicated otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY Change % |
| Revenue | 2,004 | 1,744 | 15% |
| EBITDA | 772 | 655 | 18% |
| EBITDA Margin | 38.5% | 37.6% |
Additional Check: Indian Hotels Share Price
Q3 FY24 Result Summary
The Indian Hotels Company Limited and its subsidiaries culminate in a group of brands and businesses offering an interesting blend of warm Indian hospitality and standards of world-class service. These comprise Taj – the legacy brand for
discerning travellers and being ranked as India’s Strongest Brand 2023 (Brand Finance); SeleQtions, a collection of hotels that are named; Vivanta, classy upscale hotels; and Ginger, in the budget segment. Established by the founder of the Tata Group, Sir Jamsetji Tata, the Company’s first hotel was The Taj Mahal Palace located in Bombay in 1903. The portfolio of the Indian Hotels Co Ltd spans domestic and international spaces in more than 100 locations. By market capitalisation, Indian Hotels Company Limited (IHCL) stands out as India’s largest hospitality company.
The Company’s robust performance is a reflection of its sound fundamentals and the ability to plan its financials with proficiency. With the growth reflected in many of the conglomerate’s verticals, Indian Hotels Co Ltd has had a quarter marked by success and milestones. In Q3, there has been solid Revpar growth across Indian cities and in international markets in which the Company has operations. Due to its customer-centric approach, the Company has boosted its NPS scores and remains on the top of its game in the hospitality industry.
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Source: Indian Hotels Co. Ltd. Investor Presentation on BSE
