Indian Hotels Company Limited (IHCL), which owns and operates Taj hotels, posted its sixth consecutive strong performance with 37 per cent year-on-year growth in net profit in Q2 FY24. Net profit for the quarter stood at ₹167 crore, compared to ₹121.5 crore in the same period last year. The profit growth was led by revenue performance, especially on the domestic segment as hotel chains benefitted from G-20-related events in the country.
Consolidated revenue grew 18 per cent to ₹1,481 crore on a yo-y basis, with domestic market clocking faster growth.
Giridhar Sanjeevi, Executive Vice-President and Chief Financial Officer, IHCL, said: “Q2 performance was significantly enabled by the domestic market as seen in IHCL’s standalone revenue of ₹949 crore, a growth of 23 per cent over the previous year and a healthy EBITDA margin of 34.7 per cent,” said IHCL.
Enterprise revenue, which includes contribution from managed properties and air catering business, amounted to ₹2,687 crore, which was 1.8x of consolidated revenue in Q2 FY24.
“This reflects the successful execution of our strategy to build a balance between owned/leased and managed hotels and leverage the diversified brand portfolio across 125+ locations. We opened 8 hotels and signed 17 more in the first half of the fiscal, thereby maintaining an industry-leading pipeline of 82 hotels. India’s economic momentum coupled with higher consumer spends augurs well for the industry,” said Puneet Chhatwal, MD and CEO of IHCL.
The company also announced the acquisition of 7 per cent stake in Piem hotels, a subsidiary company, which operates six to seven hotels in the country. The transaction, which is part of business simplification exercise, will see IHCL increase its stake in the company to 58 per cent. New Vernon private equity limited which holds a stake in Piem Hotels will get a minority stake in IHCL as a part of a share swap transaction. The total deal size of acquisition is ₹128 crore