EIH Hotels , the flagship company of The Oberoi Group, has reported a mixed set of financial results for the quarter. The company saw growth in revenue but experienced a significant decline in net profit, largely due to exceptional items.

Revenue Growth and Profit Decline

EIH Limited reported a standalone profit of Rs 36.36 crore for the quarter, compared to Rs 85.35 crore in the same period last year. Revenue from operations increased to Rs 518.77 crore from Rs 455.94 crore year-on-year, showing a positive trend in the company's core hospitality business.

Exceptional Items Impact

The company faced exceptional items worth Rs 110.32 crore primarily due to adjustments related to Mashobra Resort Limited (MRL) following a High Court order. These adjustments included:

1. Writing down the investment in MRL to Rs 13.00 crore
2. Reducing advances recoverable from MRL by 50% to Rs 68.09 crore
3. Reversing user fee obligations of Rs 85.99 crore

Consolidated Performance

On a consolidated basis, EIH Limited reported a profit of Rs 36.88 crore with revenue from operations at Rs 573.58 crore.

Other Financial Highlights

The proposed final dividend is subject to shareholder approval.

Future Outlook

EIH Hotels continues to face challenges related to the MRL adjustments, which may impact financial results in the near term. However, the growth in revenue suggests a positive trend in the core hospitality business.

Investors and industry analysts will be closely watching EIH Hotels' performance in the coming quarters, particularly how it manages the impact of the exceptional items while pursuing growth in its operations.

EIH Limited , a prominent player in the Indian hospitality sector, has announced its fourth-quarter financial results, showcasing robust growth across key metrics. The company reported a 5.7% year-on-year increase in net profit to ₹261.60 crore, demonstrating significant improvements in profitability and revenue.

Financial Highlights

Revenue and Profitability

EIH reported a substantial increase in revenue, which rose to ₹827.50 crore from ₹740.00 crore in the same quarter of the previous year, marking an 11.6% year-over-year growth. This uptick in revenue indicates strong demand for the company's hospitality services.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed impressive growth, increasing to ₹350.90 crore from ₹304.10 crore in the corresponding quarter last year. This represents a significant 15.4% year-over-year increase. Moreover, the EBITDA margin improved to 42.40% from 41.10%, reflecting enhanced operational efficiency and cost management.

Net Profit

EIH's consolidated net profit for Q4 stood at ₹261.60 crore, up from ₹247.50 crore year-over-year, marking a 5.7% increase. This growth in net profit demonstrates the company's ability to maintain profitability despite potential challenges in the hospitality sector.

Dividend Announcement

In a move that will likely please shareholders, EIH has recommended a final dividend of ₹1.50 per equity share. This announcement underscores the company's commitment to delivering value to its investors and reflects confidence in its financial stability.

Conclusion

EIH's Q4 results demonstrate the company's ability to drive revenue growth and improve profitability margins in the competitive hospitality industry. The substantial improvements in EBITDA and net profit underscore the company's operational strength and market position. The recommended dividend further highlights EIH's positive outlook and commitment to shareholder returns.