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The Indian Hotels Company Limited (IHCL) has reported a net profit of ₹378.92 crore for the third quarter of the financial year 2022-2023, compared to ₹86 crore in the same period last year. The company’s revenue from operations rose to ₹1685.80 crore from ₹1111.22 crore in the previous fiscal year.
The expenses for the quarter amounted to ₹1,248.62 crore, compared to ₹1,014.23 crore in the same quarter the previous year. IHCL achieved a free cash flow of ₹766 crore for the nine months ended December 31, 2022.
The company attributes the strong financial performance to robust demand for both leisure and business hotels in key domestic markets, with occupancy rates surpassing 70per cent and rate growth of 27per cent compared to pre-Covid levels.
250 hotels
Puneet Chhatwal, Managing Director and CEO of IHCL, noted that the company has reached a milestone of having over 250 hotels in its portfolio by signing a total of 30 hotels in the financial year 2022-2023. The company has strengthened its portfolio with the opening of 14 new hotels under the Taj, SeleQtions, Vivanta, and Ginger brands, and introduced over 15 new destinations in 2022, including Manali, Dharamshala, Raipur, Vrindavan, and Jammu.
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer of IHCL, reported that robust demand across markets, including airline catering, has led to all group companies reporting a positive PAT in Q3 across domestic and international operations. The revenue performance, supported by scale benefits, has enabled strong flow-through and record margins. IHCL remains net cash positive and continues to report a healthy consolidated free cash flow of ₹766 crore till date in FY 2022-2023.
The company’s new businesses, such as Ginger, The Chambers, Qmin, and amã Stays & Trails, are also reporting steady growth. Ginger’s revenue was ₹225 crore, marking a 41 per cent growth over pre-Covid levels. The Chambers, India’s first business club, saw a 49 per cent growth in revenue over the period 2019-2020 with a rising membership base. Qmin and amã Stays & Trails are both on a steady growth path, with over 25 outlets and a portfolio of 108 bungalows, respectively.
Chhatwal stated that the demand outlook for the sector in 2023 remains robust, driven by sporting events such as the hockey and cricket world cups and the recovery of inbound and corporate travel. IHCL, with its extensive network of hotels, is well-positioned to cater to this rising demand.
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