Hospitality chain Indian Hotels Company-backed by the Tata Group on July 27 posted a 30.58 percent rise in profit after tax at Rs 222 crore for the quarter ended June due to strong travel demand.
In the corresponding period last year, profit after tax came in at Rs 170 crore.
Further, revenue from operations increases 17 percent to Rs 1,516 crore in the quarter under review as compared to Rs 1,293 crore a year ago.
According to analysts, the company was expected to see a jump of 13 percent in its revenue on year-on-year basis. The firm surpassed analysts expectations with a growth of 17.2 percent in revenue.
IHCL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 13 percent at Rs 459 crore in the April-June quarter versus Rs 405 crore in Q1 FY23.
Commenting on the quarterly performance, Puneet Chhatwal, Managing Director & CEO, said, “IHCL ended the first quarter with a strong performance led by a double-digit revenue growth. Turnover crossed the Rs 1,500 crore mark, making it a historical Q1. IHCL signed 11 and opened 5 new hotels across all its brands."
"The outlook for the upcoming quarters remains strong with pace of demand driven by domestic consumption momentum, global events, and revival of international arrivals,” Chhatwal added.
The hotel chain recorded an occupancy of 65 percent, up 11 percent over the previous year due to strong demand in the international portfolio.
IHCL portfolio expanded with signing of 11 hotels with a 400-room hotel in Delhi and a 120-room hotel in Kochi and entered new markets like Raichak in West Bengal and Dhaka in Bangladesh. IHCL opened 5 new hotels in the quarter taking the total operating hotels to 191 across brands. It added to its wellness offering with Taj Gandhinagar Resort & Spa and forayed into the cities of Jammu and Bhubaneshwar.
In Q1, we have commenced capital investments towards renovation and upgradation of select hotels in our portfolio, said Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL.
Indian Hotels shares closed 1.35 percent lower at Rs 384.95 on July 27, 2023 (NSE).
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