EIH Associated Hotels , a member of The Oberoi Group, has reported a robust financial performance for the quarter, with significant growth in profitability and improved operational efficiency.

Financial Highlights

• Net Profit: Surged 72% year-over-year to ₹617.60 lakhs from ₹357.98 lakhs
• Revenue: Increased 6.6% to ₹6,874.35 lakhs from ₹6,448.16 lakhs
• Earnings Per Share: Improved to ₹1.01 from ₹0.59

Detailed Financial Performance

The company's unaudited financial results for the quarter reveal a strong performance:

Operational Efficiency

The significant improvement in profitability indicates the company's enhanced operational efficiency. This expansion in profit, coupled with the increase in revenue, suggests effective cost management and improved overall performance.

Exceptional Items

The company reported an exceptional charge of ₹131.20 lakhs during the quarter. This adjustment is related to the temporary closure of Trident Jaipur hotel for renovation.

Dividend and Bonus Shares

• The Board proposed a final dividend of ₹3.50 per share, subject to shareholder approval.
• The company issued bonus shares in a 1:1 ratio, doubling the paid-up share capital to ₹6,093.63 lakhs.

Outlook

EIH Associated Hotels' strong quarterly performance, marked by significant profit growth and revenue increase, positions the company well for the future. However, investors should consider the seasonal fluctuations inherent in the hospitality sector when evaluating these results.

The company's strategic decisions, including the renovation of Trident Jaipur and the issuance of bonus shares, demonstrate its commitment to long-term growth and shareholder value creation.

EIH Associated Hotels has announced its fourth-quarter financial results, showcasing growth in revenue and plans for expansion. The hospitality company has reported positive figures and unveiled its intentions to invest in a new banquet facility in Agra.

Q4 Financial Performance

EIH Associated Hotels demonstrated resilience in its fourth-quarter performance:

The company's revenue for the fourth quarter stood at ₹1,400.00 million, marking a 6.06% increase from ₹1,320.00 million in the same period last year. This growth indicates a positive trend in the company's top-line performance.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a slight improvement, reaching ₹505.70 million compared to ₹500.00 million in the previous year's corresponding quarter. However, the EBITDA margin experienced a marginal decline, dropping from 37.79% to 36.14% year-over-year.

Investment in New Banquet Facility

In a strategic move to expand its offerings, EIH Associated Hotels has announced plans to invest ₹290.00 million in developing a new banquet facility in Agra. This investment highlights the company's commitment to growth and its confidence in the hospitality sector's recovery.

The choice of Agra for this new facility is significant, given the city's popularity as a tourist destination, home to the iconic Taj Mahal. This expansion could potentially strengthen the company's presence in the lucrative wedding and corporate events market.

Looking Ahead

While EIH Associated Hotels has shown growth in revenue and a slight increase in EBITDA, the decrease in EBITDA margin suggests that the company may be facing some cost pressures. The investment in the new banquet facility in Agra could be seen as a strategic move to diversify revenue streams and potentially improve profitability in the long term.

As the hospitality industry continues to recover from the impacts of the pandemic, EIH Associated Hotels' financial results and expansion plans indicate a cautiously optimistic outlook for the company's future growth and performance.