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Indian Hotels Company Limited’s (IHCL) net losses narrowed to ₹130 crore during the second quarter of FY22 compared to a loss of ₹252 crore in the same period last year. IHCL’s board also approved raising ₹2,000-crore through rights issue and another ₹2,000 crore through QIP.
The company’s revenue from operations grew 2.5x over the past year. For the quarter that ended September 30, its revenue stood at ₹728 crore compared to ₹256 crore in the same time last year. Expenses grew to ₹871.14 crore, from ₹606 crore in the same time last year.
Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said, “Overall recovery has been stronger and quicker after the second Covid wave. IHCL has seen significant improvement in performance quarter on quarter.”
Acquisition of Roots Corpn
Confident about the potential of the reimagined Ginger brand, the board also approved the purchase of balance shares of Roots Corporation Limited (RCL) from existing shareholders, aggregating to 39.84 per cent of equity share capital, at an equity valuation of ₹1,225 crore. Post-acquisition, RCL will be a wholly-owned subsidiary of IHCL.
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, said, “We remain confident in the continued momentum of growth with very encouraging market indicators. The sustained cost optimization measures have helped the company improve cash flows and liquidity. The acquisition of the balance shares of Roots Corporation Limited is also in accordance with the company’s strategic objective of consolidating and simplifying its holding structure.”
Expansion across brands
IHCL said that it has signed over 1,200 rooms with eight new hotels in the first half of the year across its brand. It has opened five new hotels –year to date (YTD) across brands. The amã Stays & Trails homestay portfolio has 59 bungalows, including recent new signings.
The Chambers announced the launch of its new outpost in London — Taj The Chambers, located at the iconic Taj 51 Buckingham Gate Suites and Residences.
IHCL expanded the presence of Qmin – its food delivery platform — to 19 cities delivering favourites from across 37 hotels and over 78 IHCL restaurants across India. Qmin app is also available across nine countries globally, giving people overseas the opportunity to gift meals to loved ones in India.
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