Analyst Concall
Indian Hotels targets 25 new hotels in FY25, 30 in FY26
This story was originally published at 06:00 IST on 8 November 2024
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--Indian Hotels: Confident will deliver double-digit revenue growth Oct-Mar
--Indian Hotels: Plan to open 30 new hotels in FY26
--CONTEXT: Comments by Indian Hotels mgmt in analyst call post-earnings
--Indian Hotels: Target capital investment of INR 7 bln-INR 8 bln in FY25
--Indian Hotels: See foreign tourist arrivals at pre-COVID levels by Mar
--Indian Hotels: Expect foreign tourist arrivals to cross pre-COVID levels FY26
--Indian Hotels: Strategy for expansion of hotels overseas will be asset lite
By Arya S. Biju
MUMBAI – Indian Hotels Co. Ltd. is targeting to open 25 new hotels in 2024-25 (Apr-Mar), and up to 30 new hotels in FY26, said Puneet Chhatwal, chief executive officer of the company, said in a post-earnings conference call. Going forward, the company's focus will be on scaling up new businesses and strengthening its competitive advantage through capital allocation, Chhatwal said.
The company said it remains confident of delivering its guidance of double-digit revenue growth for FY25. The company has already achieved 11% growth as of Sept. 30 and expects to deliver higher growth in Oct-Mar, led by the expected increase in foreign tourist arrivals. The company also expects 30% more wedding dates than last year. The company is targeting a capital expenditure of INR 7.50 billion-INR 8 billion in FY25.
The company expects the foreign tourist arrivals to reach the pre-COVID level by March 2025, and expects it to cross the level by FY26. The company said its strategy for overseas expansion is an asset light model. This strategy will combine management contracts or lease contracts in which a sliver of equity would go in, and not a large part of capital gains.
The company that owns the Taj brand of luxury hotel chains, Thursday reported better-than-expected earnings for the September quarter. This was on the back of key strategic initiatives and continued growth momentum, Chhatwal said. 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. The company's consolidated revenue for the quarter was INR 18.26 billion, up 27.4% on year, beating analysts' estimate of INR 17.07 billion.
Thursday, shares of Indian Hotels closed 0.1% down at INR 683.80 on the National Stock Exchange. The company announced its earnings for the September quarter after market hours. End
Edited by Deepshikha Bhardwaj
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