Indian Hotels drops over 5% despite strong growth in Q4 profit, revenue
Upstox
2 min read • Updated: April 25, 2024, 3:59 PM
Summary
IHCL’s profit after tax (PAT) grew 27% to ₹418 crore in Q4FY24 compared with the year ago quarter. Revenue jumped 18% year-on-year to ₹1,951 crore during the fourth quarter.
Shares of The Indian Hotels Company Ltd (IHCL) slumped over 5% in trade on Thursday, April 25, even as the India’s largest hospitality company reported strong growth in revenue and net profit for the fourth quarter ended March 2024 (Q4FY24).
The IHCL stock lost as much as 5.1% on Thursday to hit an intraday low of ₹577.05 apiece on the National Stock Exchange of India (NSE). The share price had risen around 4% cumulatively in the previous two sessions ahead of the results announcement.
IHCL’s profit after tax (PAT) grew 27% to ₹418 crore in Q4FY24 compared with the year ago quarter. Revenue jumped 18% year-on-year to ₹1,951 crore during the fourth quarter of FY 2023-24.
The company’s operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), jumped 25% year-on-year to ₹706 crore during Q4 FY24. EBITDA margins, meanwhile, were up 2 percentage points to 36.2% during the quarter compared with a year ago.
For full fiscal 2023-24, IHCL’s revenue grew 17% to ₹6,952 crore, while PAT jumped 26% to ₹1,259 crore.
Commenting on the company’s performance, IHCL’s managing director and CEO Puneet Chhatwal said, “Q4FY24 marked eight consecutive quarters of record financial performance driven by double-digit revenue growth in same store hotels, incremental revenue from not like-for-like hotels and scaling of new businesses.”
Like-for-like refers to the hotels that were in operation during the entire period as well as during the corresponding period of the previous year.
Chhatwal added, “With 53 signings in FY2024, IHCL achieved a portfolio of 310 hotels, enabled by attaining scale in each of our brands and forming strategic alliances in new market segments.”
IHCL also announced that it will introduce the re-imagined ‘Gateway’, a full-service hotel offering in the upscale segment, to capture growth opportunities in emerging micro markets in metros and Tier II and Tier III cities.
The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik during the June quarter, followed by destinations like Bengaluru, Thane and Jaipur. The brand will scale to a 100 hotels portfolio by 2030.
Shares of Indian Hotels closed 5.1% lower at ₹577 apiece on the NSE.