What if Normal was worth changing?
The old way of working had all sorts of historical baggage
The Indian Hotels Company Ltd (IHCL) reported a 43.8 per cent lower net profit of ₹92.5 crore for the fourth quarter ended March 31 in comparison to ₹164.77 crore recorded in the same quarter of the previous fiscal. However, the hospitality firm recorded the highest full-year PAT at ₹354 crore, up 24 per cent on a y-o-y basis.
The total revenue of the parent company of Taj Hotels dropped to ₹754.07 crore in the last quarter of FY20, from ₹874.62 crore in the last quarter in FY19. IHCL’s total expense for the reporting quarter stood at ₹616.16 crore, against ₹632.12 crore in the same time last year.
Commenting on the results, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said, “IHCL has delivered on the promise of profitable growth across all parameters, culminating in an all-time high EBITDA and PAT.”
The company opened 12 hotels, one hotel a month in 2019-20, and added over 1,500 rooms to its operational inventory.
Chhatwal said the re-imagined brandscape helped IHCL reach a significant milestone of 200 hotels in its portfolio. “Another proud moment for us is the recent recognition of Taj as India’s Strongest Brand across all industries by Brand Finance. This ranking is a testament to the strength of our brand and the trust reposed in us by all our stakeholders, as we ready to welcome guests in the new normal with enhanced health and safety protocols.”
Part of the Tata Group, IHCL has a portfolio of 200 hotels, including 42 under development globally across 4 continents, 12 countries and in over 100 locations.
Giridhar Sanjeevi, Executive Vice-President and Chief Financial Officer, IHCL, said, “We have consistently been able to deliver industry-leading growth while maintaining profitability and balance sheet strength.”
Dealing with Covid impact
The company, in its filings to the exchanges, said it has assessed the potential impact of Covid-19 on its capital and financial resources, profitability, liquidity position, ability to service debt and other financing arrangements, supply chain and demand for its services.
“Various steps have been initiated to raise finances from banks and institutions for working capital needs and long term fund requirements and the company is in a comfortable liquidity position to meet its commitments. IHCL said it has judiciously invoked the force majeure clauses for relief during the lockdown period and does not foresee any disruption in raw material supplies,” it said in a statement.
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