Hospitality chain EIH Limited, the flagship company of the Oberoi Group, reported consolidated revenue of Rs 522.6 crore for the June quarter of financial year 2024 up 26.7 percent year-on-year (YoY).
The hospitality chain reported a profit after tax (PAT) of Rs 106 crore in the first quarter of FY24 up 61 percent YoY.
"We are delighted with the remarkable financial performance for the first quarter of FY24. The significant growth in revenue and profitability reflects the dedication of our team and the enduring trust of our valued guests," said Vikram Oberoi, CEO and MD, EIH.
The company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 180 crore up 53.1 percent YoY.
In FY23, the company reported the highest-ever revenue income making it a record year for the hotel chain due to the spike in travel demand post-Covid.
Shares of the company were down 0.10 percent at Rs 209.80 on the National Stock Exchange (NSE) on August 8 at 15:58.
Analysts expect the hotel business to witness strong occupancy and an increase in room rates in FY24.
Pan-India, the premium hotel occupancy is estimated at 70-72 percent in FY24 from 68-70 percent in FY23, according to brokerage firm ICRA. Premium hotel average room rates (ARRs) across the country are expected to be at Rs 6,000-6,200 in the current financial year.
ICRA expects the occupancy to be at decadal highs.
Consistent improvement in consumer sentiments despite the inflationary environment, stable corporate performance, and domestic air passenger traffic inching above pre-Covid levels augur well for travel and hotel demand. The demand recovery has been strong in the last year, and ICRA anticipates it to continue in FY2024 as well.
Sustenance of domestic leisure travel, higher bookings from meetings, incentives, conferences, and exhibitions (MICE), and business travel, along with an increase in foreign tourist arrivals (FTAs), would support demand, the brokerage feels. The industry is also likely to benefit from specific events like the G20 summit and the ICC World Cup 2023.
ICRA estimates a 13-15 percent revenue growth for the Indian hotel industry in FY24.
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