Indian Hotels Company Limited (IHCL), which owns and operates Taj Hotels, posted 31 per cent year-on-year growth in consolidated net profit in the first quarter of FY24 on the back of a rise in occupancy and room rates.
Net profit in the first quarter of FY24 stood at ₹222 crore as against ₹170 crore in the same period last year. EBITDA grew by 13 per cent to ₹459 crore, and revenue rose 17 per cent to ₹1,516 crore in the same period.
The company also announced a decision to sign a lease agreement for the operation of a hotel in Frankfurt (Germany) for up to 30 years. It will also acquire a luxury hotel in Lusaka (Zambia) from a Tata-group entity for $15 million. Currently, IHCL operates the luxury hotel in Lusaka under an agreement with the group entity, subject to regulatory approval. This is an in principle approval, the company added.
Positive outlook
In a statement, IHCL managing director and CEO Puneet Chhatwal said double-digit revenue growth led to revenue crossing ₹1,500 crore in the first quarter. “The outlook for upcoming quarters remains strong, with the pace of demand driven by domestic consumption momentum, global events, and the revival of international arrivals,” he said.
The company said it outperformed industry peers, reporting a 55 per cent premium in revenue per available room. Occupancy in international properties too showed 11 per cent year-on-year growth to 65 per cent.
IHCL’s chief financial officer, Giridhar Sanjeevi, said a strong focus on profitability and cash flow resulted in the company reporting a steady EBITDA margin of 30.3 per cent and net cash of ₹889 crores as of June end. “In Q1, we have commenced capital investments towards the renovation and upgradation of select hotels in our portfolio,” Sanjeevi said.