IHCL Sets New Growth Benchmark With Q3 Results

Indian Hotels Company Ltd (IHCL) reported a 29% year-on-year surge in net profit for the December quarter, reaching ₹582.32 crore. Total income rose to ₹2,592 crore, a 29% increase from the previous year.

New Update
IHCL

IHCL has a portfolio of 360 hotels including 123 projects under-development globally across 13 countries and in over 150 locations.

IHCL Surpasses Growth Expectations in Q3

Indian Hotels Company Ltd (IHCL) reported a 29% year-over-year jump in net profit to ₹582.32 crore for the three months ended December 2024, driven by the consolidation of the air and institutional catering business.

This was in comparison to ₹451.95 crore in the corresponding quarter of the preceding fiscal.

In a regulatory filing, the company also reported that its total income surged by 29% to ₹2,592 crore in the quarter under review, up from ₹2,003.64 crore in the October-December quarter of the preceding fiscal year (FY24).

Q3 HIGHLIGHTS

DELIVERS RECORD FINANCIAL PERFORMANCE 

-Domestic same-store hotels delivered a 13% Consolidated RevPAR growth with a premium of 78% compared to the industry at the enterprise level.

The International Consolidated portfolio reported an occupancy of 78%, up 400 basis points. This resulted in a RevPAR growth of 9%, led by 25% RevPAR growth in The Pierre, New York.

-Management Fee income grew by 32% to INR 177 crores because of not-like growth.

NEW & REIMAGINED BUSINESSES

-The Air & Institutional Catering business segment (TajSATS) clocked a revenue of INR 275 Crore, 18% growth over the previous year and EBITDA margin at 26.7%.

The new Businesses vertical, comprising Ginger, Qmin, and amã Stays & Trails, reported an Enterprise revenue of INR 218 crores, a 38% increase, and a Consolidated revenue of INR 164 crores, an increase of 40%.

Ginger's enterprise Revenue was INR 186 C. It has a substantial EBITDAR margin of 46% and a portfolio of 72, 72 of which are in operation.

- Qmin has grown to 59 outlets, and amã Stays & Trails has reached a milestone of 250 bungalows in its portfolio, with 119 in operations.   

EXPANSION MOMENTUM CONTINUES

-In Q3, IHCL signed 20 hotels, which included 3 Taj hotels in destinations like Chail and Ayodhya, The Claridges, New Delhi, SeleQtions hotels in Diu and Mandvi, a Vivanta in Surat, Tree of Life resorts in Udaipur and Naldehra, 6 under the newly reimagined Gateway and 5 Ginger hotels.

IHCL opened 8 new hotels in Q3, bringing the total number of operating hotels to 237 across brands. These include a Taj in Puri and Cochin International Airport, SeleQtions in Thimpu, Goa, and Kumbhalgarh, a Tree of Life resort in Bandhavgarh, and 2 Ginger hotels in Diu and Goa.

ESG+ FRAMEWORK OF PAATHYA

-IHCL now uses 37% of its energy from renewable sources and has installed 336 EV charging stations.

-Continuing its journey of eliminating single-use plastic, IHCL installed 61 bottling plants and achieved 48% + recycling of water used.

-IHCL has partnered with 46 skilling centres to bridge the employability gap in the industry.

Puneet Chhatwal, Managing Director and CEO of IHCL attributed the strong quarterly performance to the consolidation of the air and institutional catering business.

IHCL
Puneet Chhatwal, Managing Director and CEO, IHCL

"Q3 marks 11 consecutive quarters of record performance with the hotel segment reporting a strong revenue growth of 16%... The revenue performance was driven by 40% increase in new businesses, not like-for-like growth and double-digit growth in same store hotels led by 20% growth in the US portfolio," he added.

Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL
Ankur Dalwani, Executive VP and Chief Financial Officer, IHCL

Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL said, “With continued demand buoyancy in the domestic market IHCL Standalone reported a revenue of INR 1,517 crores, an increase of 15% over the previous year, EBITDA margin 47.8%, an expansion 240 basis points and a 23% growth in PAT at INR 469 crores. Led by a broad-based business performance, IHCL Consolidated reported EBITDA margin of 39.4% an expansion of 80 bps resulting in a strong gross cash position as on 31st December of INR 2,823 crores.” 

He added, “The company in January has acquired 55% shareholding in Rajscape Hotels, the brand holding company of Tree of Life and will form a part of IHCL Consolidated from Q4.”

Moreover, in Q4 and the subsequent quarters of the next financial year, the sector is expected to continue to witness demand buoyancy due to large-scale regional events, weddings, and sustained transient travel.

IHCL has a portfolio of 360 hotels, including 123 projects under development in over 150 locations across 13 countries. The hospitality firm is well poised to open 700 hotels by 2030.

Latest Stories