Indian Hotels Company Limited (IHCL), India's largest hospitality company, has announced its financial results for the first quarter, showcasing strong performance and continued growth momentum.

Strong 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, with an EBITDA margin of 30.3%. Net profit for the quarter stood at ₹296.00 crore, representing a 19% year-on-year growth.

Segment-wise Performance

Hotel Services

The hotel services segment continued to be the primary revenue driver, contributing ₹1,814.00 crore to the total revenue, a 14% increase from the previous year. The segment's EBITDA margin remained strong at 31.4%.

Air Catering and Institutional Catering

The air catering and institutional catering business, operated through Taj SATS Air Catering Limited, reported a revenue of ₹290.00 crore, showing a robust growth of 21% year-on-year.

Operational Highlights

IHCL's domestic hotels delivered an 11% growth in RevPAR (Revenue Per Available Room), maintaining a premium of 60% over the industry average. The international portfolio also performed well, with occupancy increasing by 460 basis points to 78% and RevPAR growing by 13%.

Expansion and New Initiatives

During the quarter, IHCL continued its expansion strategy by signing 12 new hotels across its brand portfolio. The company opened six new properties, including:

• A Taj hotel in Alibaug
• Two SeleQtions resorts in Lakshadweep
• A Gateway in Coorg
• A Ginger in Dehradun

The company's new business vertical, comprising Ginger, Qmin, amã Stays & Trails, and Tree of Life, reported a strong 27% growth in consolidated revenue, reaching ₹162.00 crore.

Management Commentary

Puneet Chhatwal, Managing Director & CEO of IHCL, commented on the results, stating:

"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 hotel segment's revenue at ₹1,814.00 crores grew by 14% leading to a strong EBITDA margin of 31.4%."

He further added:

"IHCL continued its growth momentum with 12 signings taking the portfolio to 390+ hotels and opened 6 new hotels in the quarter. Maintaining its leadership, Taj continues to be an icon in the global hospitality landscape with the brand being recently ranked by Brand Finance-UK as the World's Strongest Hotel Brand for the fourth time and India's Strongest Brand across sectors for the fifth time."

Future Outlook

Despite some geopolitical headwinds, IHCL remains confident about the sustained growth in the hospitality sector. The company's strong performance, coupled with its expansion plans and diversified revenue streams, positions it well for continued success in the coming quarters.

With a robust pipeline of new properties and a focus on asset-light expansion, IHCL is poised to capitalize on the growing demand in both domestic and international markets, further solidifying its position as a leader in the Indian hospitality industry.

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.