The Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced robust financial results for the first quarter of the fiscal year 2024-25, ending June 30, 2024. In the first quarter of FY 2024-25, the company reported financial growth with revenues at INR 1,596 Crores, marking a 5 per cent increase from INR 1,516 Crores in the same period the previous year.
The EBITDA stood at INR 496 Crores, an 8 per cent rise from INR 459 Crores in Q1 FY24, with margins expanding to 31 per cent. The net profit (PAT) saw a 12 per cent surge, reaching INR 248 Crores from INR 222 Crores in Q1 FY24. These results reflect a robust performance driven by various strategic initiatives.
The company has performed well with their RevPAR (Revenue Per Available Room) achieving a 60 per cent premium over industry standards. This shows their strong market presence and operational excellence. New ventures such as Ginger, Qmin, and amã Stays & Trails reported revenues of INR 162 Crores, growing 37 per cent year-over-year. Reimagined segments like TajSATS and The Chambers brought in INR 274 Crores, showing a 17 per cent increase from the previous year. Management fee income also rose by 17 per cent to INR 114 Crores, aligning with the company’s focus on capital-light expansion.
In terms of growth and expansion, the company signed 16 new hotels. These include popular brands like Taj, SeleQtions, and Ginger. They also opened six new hotels in various locations including Mahabaleshwar, Jamshedpur, Nagpur, Gangtok, and Srinagar. This aggressive expansion is likely to further boost their market presence and revenue streams.
For the fiscal year, the company managed to narrow its losses by a substantial 73 per cent. It reported a post-tax loss of INR 409 Crore, a significant improvement from last year’s INR 1,503 Crore loss. This turnaround was possible thanks to achieving an EBITDA of INR 772 Crore, compared to a negative INR 33 Crore the previous year.
On the environmental, social, and governance (ESG) front, the company made significant strides. 37 per cent of its energy now comes from renewable sources, with 343 electric vehicle (EV) charging stations installed at 142 locations. They have also achieved 42 per cent water recycling and have installed 46 bottling plants to eliminate single-use plastics. The company is also committed to talent development, with 35 skill centers across 15 states to build industry-relevant talent pools.Commenting on the results, Puneet Chhatwal, Managing Director & CEO, IHCL, stated, “IHCL’s strong financial performance in Q1 is marked by an all-time high revenue of INR 1,596 Crores and a healthy EBITDA margin of 31 per cent. The diversified top line and growth in new businesses have significantly contributed to our success. With demand outpacing supply and favorable market conditions, we anticipate strong revenue growth in the upcoming quarters.”
Ankur Dalwani, Executive Vice President and CFO, IHCL, added, “Our operating revenue grew by 6 per cent, and RevPAR outperformed the industry with a 60 per cent premium. The focused cost management has resulted in a 12 per cent growth in consolidated PAT. We continue to maintain healthy operating cash flows, with a gross consolidated cash balance of INR 2,091 Crores as of June 30, 2024. Additionally, we have secured approval to amend our Shareholder Agreement with SATS Singapore, enabling us to consolidate Taj SATS results on a line-by-line basis as a subsidiary.”
