Earnings Review
Indian Hotels consol revenue growth highest in 7 qtrs
This story was originally published at 18:23 IST on 17 January 2025
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--Indian Hotels Oct-Dec consol net profit INR 5.82 bln
--Analysts saw Indian Hotels Oct-Dec consol net profit INR 5.73 bln
--Indian Hotels Oct-Dec consol PAT INR 5.82 bln vs INR 4.52 bln year ago
--Indian Hotels Oct-Dec consol revenue INR 25.33 bln vs INR 19.64 bln yr ago
--Indian Hotels Apr-Dec consol PAT INR 13.85 bln vs INR 8.41 bln year ago
--Indian Hotels Apr-Dec consol revenue INR 59.09 bln vs INR 48.63 bln yr ago
--Indian Hotels Oct-Dec consol EBITDA INR 10.20 bln, up 32% on year
--Indian Hotels Oct-Dec consol EBITDA margin 39.4%, up 80 bps on year
--Indian Hotels Oct-Dec management fee income INR 1.77 bln, up 32% on yr
--Indian Hotels signed 20 hotels, opened 8 in Oct-Dec
--Indian Hotels TajSATS Oct-Dec revenue 2.75 bln, up 18% on year
By Akshita Kumar
MUMBAI – The Indian Hotels Co. Ltd. Friday reported a higher-than-expected consolidated net profit and revenue for the December quarter, driven by a 78% occupancy in its international portfolio and a 13% rise in revenue per available room. The on-year growth in revenue in the latest quarter was the highest in seven quarters.
The company reported a consolidated net profit of INR 5.82 billion for the quarter, up nearly 29% on year, and slightly higher than analysts' estimates of INR 5.73 billion. Sequentially, the bottom line grew 5%. The company's consolidated revenue for the reporting quarter was INR 25.33 billion, up almost 29% on year, surpassing expectations of INR 24.15 billion. On a sequential basis, the top line rose 39%.
For the nine months ended Dec. 31, the net profit was INR 13.85 billion, up 65% from INR 8.41 billion a year ago. The company's revenue in Apr-Dec was INR 59.09 billion, up 22% from INR 48.63 billion a year ago. The company's consolidated earnings before interest, tax, depreciation, and amortisation was INR 10.20 billion, up 32% on year.
The company reported a total income of INR 25.92 billion for the December quarter, up 29% on year. Its EBITDA margin was 39.4% in Oct-Dec, up 80 basis points on year. The company's total expenses for the quarter were INR 17.58 billion, up 26% on year. Employee benefit expenses were INR 5.79 billion, up 24% on year. Food and beverages consumed for the quarter were INR 2.51 billion, up 64% on year.
The company's other operating expenses for the reporting quarter were INR 7.41 billion, up 22% on year. Its deprecation and amortisation expenses were INR 1.34 billion, up 17% on year.
The December quarter is the eleventh consecutive quarter of record performance with the hotel segment reporting a revenue growth of 16%, the company said in a press release. The company's revenue growth in the quarter was driven by a 40% increase in new businesses and a double-digit growth in same-store hotels led by a 20% growth in the US portfolio, the company said. The company said that the hotel sector is expected to witness demand buoyancy due to large-scale regional events and weddings in the next quarter and subsequent quarters of 2025-26 (Apr-Mar).
The company's management fee income for the December quarter was INR 1.77 billion, up 32% on year. The company's hotel segment reported a consolidated revenue of INR 23.16 billion, up 16% on year. The company's air and institutional catering business segment clocked a revenue of INR 2.75 billion, up 18% on year. Its new businesses vertical, comprising Ginger, Qmin, and ama Stays and Trails, reported a consolidated revenue of INR 1.64 billion, up 40% on year.
The company signed 20 new hotels in the December quarter. It opened eight new hotels in the quarter, taking the total operating hotels to 237 across brands, the company said. Indian Hotels bought a 55% stake in Rajscape Hotels, the brand holding company of 'Tree of Life', in January, the company said. On Friday, shares of the company ended at INR 813.35 on the National Stock Exchange, up 0.2%. The company announced its earnings for the December quarter after market hours. End
Edited by Saji George Titus
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