Indian Hotels Company Limited (IHCL) reported a 27.43% YoY rise in Q4 net profit to INR 418 crore, though net profit fell 8% QoQ. Revenue rose 18% YoY to INR 1,951 crore. For FY24, net profit grew 26% to INR 1,259 crore on a 17% revenue increase to INR 6,952 crore. IHCL achieved its 'Ahvaan 2025' goals ahead of schedule and will also launch upscale hotels under the re-imagined Gateway brand, expand internationally, and invest INR 3,500 crore over 5 years. IHCL is well positioned for continued growth, having already exceeded its strategic goals.
In its quarterly earnings announcement, Indian Hotels Company Limited (IHCL) reported a 27.43% year-over-year (YoY) rise in consolidated net profit for the March quarter to INR 418 crore, from INR 339 crore in the corresponding period last year. However, profit after tax (PAT) was down 8% quarter-on-quarter (QoQ) from INR 477 crore in Q3FY24.
Revenue from operations for the quarter stood at INR 1,951 crore, up 18% YoY but down 3% QoQ. For the full fiscal year, net profit increased 26% to INR 1,259 crore while revenue rose 17% to INR 6,952 crore.
The QoQ decline in net profit was attributed to a 5% rise in operating and general expenses to INR 638 crore from INR 610 crore last quarter. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter jumped 25% YoY to INR 706 crore. FY24 EBITDA increased 20% to INR 2,340 crore.
The company's EBITDA grew 23.2% to INR 659.7 crore from INR 535.5 crore in the year-ago period, while the EBITDA margin was at 34.6% compared to 33%.
Commenting on the full-year performance, Puneet Chhatwal, Managing Director & CEO of IHCL, said that the company achieved its key goals under Ahvaan 2025 well ahead of time with a full-year consolidated EBITDA margin of 33.7%, a portfolio of 300+ hotels and a cash position of INR 2,206 crore.
Indian Hotels Company (IHCL) is the operator of Taj brand of hotels. In May 2022, IHCL rolled out a strategy - 'Ahvaan 2025' - to restructure its entire portfolio of hotels, including becoming a zero net debt firm and clocking 33% EBITDA margin, by FY26.
Q4 FY24 marked eight consecutive quarters of record financial performance driven by double-digit revenue growth in same-store hotels, Chhatwal said, adding that with 53 signings in FY2024, IHCL achieved a portfolio of 310 hotels. IHCL will also launch upscale hotels under the re-imagined Gateway brand and deliver double-digit revenue growth in FY 2025.
IHCL expects over 30% growth in new businesses and 25 hotel openings in FY25. Indian Hotels Company Limited (IHCL) said that it will invest INR 3,500 crore over the next five years towards key assets upgradation, building digital capabilities and select new projects.
The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik this quarter followed by destinations like Bengaluru, Thane and Jaipur. The brand will scale to a 100 hotels portfolio by 2030.
Going forward, IHCL is well positioned for continued growth, having exceeded its strategic goals. The company's expansion into new hotel brands, markets, and technologies through strategic investments should help drive further revenue and profitability gains over the medium term. Executing on its plans successfully could allow IHCL to strengthen its leadership in the hospitality industry.
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