Indian Hotels Company Limited (IHCL), India's largest hospitality company, has reported robust financial results for the first quarter, while simultaneously unveiling ambitious expansion plans. The company, which operates the iconic Taj brand among others, continues to demonstrate resilience and growth in the hospitality sector.

Record-Breaking Financial Performance

IHCL reported a consolidated revenue of ₹2,102.00 crore for Q1, marking a significant 32% increase compared to the same period last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 29% to reach ₹637.00 crore. Profit After Tax (PAT) saw a healthy 19% rise, standing at ₹296.00 crore for the quarter.

Segment-wise Performance

The hotel segment, which forms the core of IHCL's business, demonstrated strong growth with revenue increasing by 14% to ₹1,814.00 crore. This segment maintained a robust EBITDA margin of 31.40%. The company's air catering and institutional business, operated through TajSATS, also showed impressive results with a 21% revenue growth, reaching ₹290.00 crore.

Expansion and Portfolio Growth

IHCL's expansion strategy remains aggressive, with the company signing 12 new hotels across its various brands during the quarter. This expansion has taken IHCL's portfolio to over 390 hotels, including 143 in the pipeline. The company opened six new properties in Q1, including:

1. Taj Alibaug
2. The Claridges, New Delhi (under the Claridges Collection)
3. Two SeleQtions resorts in Lakshadweep
4. A Gateway hotel in Coorg
5. A Ginger hotel in Dehradun

Focus on Asset-Light Growth

The company's management fee income grew by 17% to ₹133.00 crore, underscoring the success of IHCL's asset-light growth strategy. This approach allows IHCL to expand its brand presence without significant capital expenditure.

New Business Ventures

IHCL's new business verticals, including Ginger hotels, Qmin (food delivery), amã Stays & Trails, and Tree of Life, reported a consolidated revenue growth of 27%, reaching ₹162.00 crore. Ginger hotels, in particular, showed strong performance with an EBITDAR margin of 42%.

International Performance

The company's international portfolio reported an occupancy of 78%, up by 460 basis points, resulting in a RevPAR (Revenue Per Available Room) growth of 13%.

Future Outlook

Despite facing some challenges such as flight disruptions and geopolitical events, IHCL remains confident about maintaining double-digit revenue growth for the year. The company plans to open over 30 new hotels and is eyeing opportunities arising from India's upcoming world-class convention centers and high-profile diplomatic visits.

Puneet Chhatwal, Managing Director & CEO of IHCL, stated, "Q1 marks the thirteenth consecutive quarter of record performance. In line with our guidance, the company reported a double-digit growth in consolidated revenue. The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth."

With its strong financial performance, expanding portfolio, and focus on diversified revenue streams, IHCL appears well-positioned to capitalize on the growing opportunities in the hospitality sector, both in India and internationally.

Indian Hotels Company Limited (IHCL), a leading player in the hospitality sector, has announced its financial results for the first quarter, showcasing robust growth across key financial metrics.

Revenue Surge

The company reported a significant increase in revenue from operations, which grew by 31.7% to ₹2,041.00 crore, up from ₹1,550.20 crore in the corresponding quarter of the previous year. This substantial growth reflects the company's strong market position and effective strategies in capturing the growing demand in the hospitality sector.

Profitability Improvements

IHCL's consolidated net profit saw a notable rise of 19.4%, reaching ₹296.00 crore compared to ₹248.00 crore in the same period last year. This increase in profitability demonstrates the company's ability to effectively manage costs while driving revenue growth.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a strong improvement, increasing by 28% to ₹576.00 crore from ₹450.00 crore year-over-year. This growth in EBITDA indicates enhanced operational efficiency and cost management.

Margin Analysis

While the EBITDA margin slightly decreased to 28.22% from 29% year-over-year, it remains at a healthy level, reflecting the company's ability to maintain profitability despite potential cost pressures in the industry.

Segment Performance

The consolidated financial results reveal strong performance across different segments:

The Hotel Services segment continues to be the primary revenue driver, while the Air and Institutional Catering segment also contributes significantly to the overall results.

Management Commentary

Puneet Chhatwal, Managing Director and CEO of IHCL, stated, "We are pleased with our strong start to the fiscal year. The substantial growth in revenue and profitability reflects our strategic initiatives and the recovering momentum in the hospitality sector. We remain committed to delivering value to our stakeholders while maintaining operational excellence across our portfolio."

Looking Ahead

With a solid performance in Q1, Indian Hotels Company Limited is well-positioned to capitalize on the ongoing recovery in the travel and hospitality sector. The company's focus on revenue growth, cost management, and strategic expansion is expected to drive continued success in the coming quarters.

The financial results were reviewed by the Audit and Compliance Committee and approved by the Board of Directors at their meeting held on July 17. The results are subject to limited review by the statutory auditors of the company.