Indian Hotels Company Ltd (IHCL), which operates Taj hotels, posted 12 per cent growth in consolidated net profit in Q1 FY25 on a year on year basis driven by growth in new businesses.
Net profit for the quarter stood at ₹248 crore against ₹222 crore in the same period last year. Revenue rose by 5 per cent on a year on year basis to ₹1,596 crore and earning before interest tax depreciation and amortisation was higher by 8 per cent at ₹496 crore.
In a statement, the company's Managing Director and CEO Puneet Chhatwal said the performance was enabled by a diversified top line, with new businesses growing at 37 per cent over the previous year.
Strong revenue growth
"With demand continuing to outpace supply and favourable structural tailwinds, the sector is set to clock strong revenue growth in the quarters ahead," Chhatwal said. IHCL signed 16 new properties and opened six hotels in the preceding quarter increasing its total portfolio to 325 hotels.
Ankur Dalwani, Executive Vice-President and Chief Financial Officer, said IHCL's consolidated operating revenue grew 6 per cent and revenue per available rooms (RevPAR) outperformed the industry with 60 per cent premium on a same store basis for domestic hotels.
In line with its strategy of simplification, IHCL has decided to consolidate accounts of its in-flight catering arm Taj SATS basis on a line by line basis as a subsidiary as opposed to equity account consolidation. The change will be carried out following an amendment to the shareholder agreement with its partner SATS Singapore.