Earnings Review
Indian Hotels PAT, revenue growth highest in six quarters
This story was originally published at 22:47 IST on 7 November 2024
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--Indian Hotels Jul-Sept consol net profit INR 5.55 bln
--Analysts saw Indian Hotels Jul-Sept consol net profit INR 2.54 bln
--Indian Hotels Jul-Sept consol PAT INR 5.55 bln vs INR 1.67 bln year ago
--Indian Hotels Jul-Sept consol revenue INR 18.26 bln vs INR 14.33 bln yr ago
--Indian Hotels Apr-Sept consol PAT INR 8.03 bln vs INR 3.89 bln year ago
--Indian Hotels Apr-Sept consol revenue INR 33.76 bln vs INR 29.00 bln yr ago
--Indian Hotels Jul-Sept consol EBITDA INR 5.65 bln vs INR 4.02 bln yr ago
--Indian Hotels Jul-Sept consol EBITDA margin 29.9% vs 27.2% year ago
--Indian Hotels Jul-Sept management fee income INR 1 bln, up 15% on year
--Indian Hotels Jul-Sept domestic average room rate INR 10,800
--Indian Hotels Jul-Sept domestic occupancy 77%
--Indian Hotels Jul-Sept domestic revenue per available room INR 8,350
By Arya S. Biju and Apratim Sarkar
MUMBAI – Indian Hotels Co. Ltd. reported better-than-expected earnings for the September quarter, marking 14 consecutive quarters of revenue growth and eight consecutive quarters of growth in net profit. The consolidated net profit of the company more than tripled on year to INR 5.55 billion for the latest quarter, beating analysts' estimate of INR 2.54 billion by a wide margin. This is the highest growth in net profit for the company in the last six quarters.
The hospitality company, which owns the Taj brand of luxury hotel chains, reported a consolidated revenue of INR 18.26 billion, up 27.4% on year, surpassing analysts' estimate of INR 17.07 billion. The growth in consolidated revenue of the company in the quarter was also the highest in six quarters.
The company's cost of food and beverages consumed surged 55% on year to INR 1.74 billion for the quarter. The other operating and general expenses of the company rose 20% on year to INR 6.28 billion. The employee benefit expenses and payment to contractors for the quarter were INR 5.23 billion, up 19% on year. The total expenditure of the company for the quarter was INR 15.02 billion, up 20% from INR 12.49 billion a year ago.
For the six months till September, the consolidated net profit of the company doubled to INR 8.03 billion from INR 3.89 billion a year ago. The revenue of the company in Apr-Sept was INR 33.76 billion, up 16.4% from INR 29.00 billion a year ago.
The country's largest hospitality company by market capitalisation reported consolidated earnings before interest, taxes, depreciation, and amortisation of INR 5.65 billion during the quarter, up 40% on year post consolidation of TajSATS Air Catering Ltd. Analysts had expected the company to report EBITDA of INR 4.66 billion for the quarter. The company reported an EBITDA margin of 29.9% for the September quarter, up from 27.2% a year ago.
The company's hoteliering segment reported a consolidated revenue of INR 16.61 billion in the September quarter, while its air and institutional catering segment reported a revenue of INR 1.66 billion.
The company's new business vertical, comprising Ginger, Qmin, and ama Stays and Trails, reported an enterprise revenue of INR 1.73 billion, up 42% on year and consolidated revenue of INR 1.43 billion, up 47% on year.
The company's management fee income grew 15% to INR 1 billion. In the September quarter, the international consolidated portfolio reported an occupancy of 75%, resulting in revenue per available room growth of 10%. In Jul-Sept, the total domestic average room rate was INR 10,800, up 9% on year.
The company's domestic hotel occupancy rate for the quarter was 77%, up 2 percentage points on year. In the September quarter, the company opened six new hotels and also plans to open 15 new hotels in the coming six months.
On Thursday, shares of Indian Hotels ended 0.1% lower at INR 683.80 on the National Stock Exchange. The company announced its earnings for the September quarter after market hours. End
Edited by Saji George Titus
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