Earnings Review
Indian Hotels' consol PAT rises 25% YoY but below estimate
This story was originally published at 20:08 IST on 5 May 2025
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--Indian Hotels: To spend INR 12 bln in FY26 on asset mgmt, new projects
--Indian Hotels: Expect FY26 revenue to grow in double digits
--Indian Hotels Jan-Mar consol EBITDA margin 36.9%, up 80 bps on year
--Indian Hotels Jan-Mar consol EBITDA INR 9.18 bln, up 30% on year
--Indian Hotels FY25 consol revenue INR 83.35 bln vs INR 67.69 bln year ago
--Indian Hotels FY25 consol net profit INR 19.08 bln vs INR 12.59 bln yr ago
--Indian Hotels to pay INR 2.25 per share dividend
--Indian Hotels Jan-Mar consol revenue INR 24.25 bln vs INR 19.05 bln yr ago
--Indian Hotels Jan-Mar consol net profit INR 5.22 bln vs INR 4.18 bln
--Analysts saw Indian Hotels Jan-Mar consol net profit INR 5.36 bln
--Indian Hotels Jan-Mar consol net profit INR 5.22 bln
By Sunil Raghu
AHMEDABAD - The Indian Hotels Co. Ltd. Monday reported a 25% on-year jump in its consolidated net profit for the March quarter, led by 73% occupancy in its international portfolio and a 7% rise in revenue per available room. The rise in net profit was below market expectations, but the growth in revenue was better than the Street's expectations and the highest in seven quarters.
The company reported a consolidated net profit of INR 5.22 billion for the quarter, up nearly 25% on year but lower than analysts' estimate of INR 5.36 billion. Sequentially, the bottom line fell 10.3%. The company's consolidated revenue for the quarter was INR 24.25 billion, up almost 27.3% on year and marginally surpassing expectations of INR 24.1 billion. On a sequential basis, the top line fell 4.3%. The company's consolidated earnings before interest, tax, depreciation, and amortisation for the March quarter was INR 9.18 billion, up 30% on year.
For the financial year ended Mar. 31, the company's consolidated net profit was INR 19.08 billion, up 51.55% from INR 12.59 billion in the previous year. The revenue for the year was INR 83.35 billion, up 23.13% from INR 67.69 billion a year ago. The company's consolidated EBITDA for FY25 was INR 30 billion, up 28% from the previous year.
The company's total income for the March quarter was INR 24.9 billion, up 27.4% on year. Its EBITDA margin for the March quarter was 36.9%, up 80 basis points on year.
The company's total expenditure for the March quarter was INR 17.65 billion, up 24.53% on year. Employee benefit expenses and payment to contractors were INR 5.88 billion, up 25.86% on year. Food and beverages consumed for the quarter were INR 2.35 billion, up 68% on year. The company's other operating expenses for the quarter were INR 7.45 billion, up 16.74% on year. Its depreciation and amortisation expenses were INR 1.42 billion, up 18.6% on year.
The March quarter is the twelfth consecutive quarter of record performance with the hotel segment reporting a revenue growth of 13%, the company said in a press release. The company's revenue growth during the quarter was driven by 40% increase in new businesses and a double-digit growth in same-store hotels, the company said.
The company's air and institutional catering business segment clocked a revenue of INR 10.51 billion, up 17% on year. Its relatively new businesses vertical, comprising Ginger, Qmin, and ama Stays and Trails, reported a consolidated revenue of INR 8.02 billion, up 41% on year. Of this, enterprise revenue of Ginger, which has a portfolio of 103 hotels including 30 in the pipeline, stood at INR 6.75 billion.
The company said that Qmin now has 72 outlets across multiple formats, ama Stays and Trails has 301 bungalows in its portfolio, with 132 in operation, and Tree of Life has a portfolio of 20 resorts, with 18 in operation.
On Apr. 15, the company said in a notice to the exchanges that it now has an overall portfolio of 380 hotels across multiple brands as Taj, Claridges Collection, SeleQtions, Tree of Life, Vivanta, Ginger, and Gateway. As of Mar. 31, the company had 243 operating hotels and 137 in the pipeline. The company has announced its intent to achieve a portfolio of 700 hotels under its 'Accelerate 2030' strategy.
The company said that outlook for the hotel sector remains strong, with demand outpacing supply, recovery in foreign tourist arrivals, and steady momentum across leisure and social segments. It expects revenue to grow in double digits in FY26, driven by strong same-store performance, sustained momentum in new business, and 30 new hotel openings. The company plans to spend INR 12 billion towards continued comprehensive asset management and upgradation programme and green field projects with focus on the Taj brand and digital capabilities.
The company board approved a dividend of INR 2.25 per share of face value INR 1. On Monday, shares of Indian Hotels closed at INR 801.80 on the National Stock Exchange, up 0.2% from Friday. End
Edited by Ashish Shirke
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