The Indian Hotels Company Limited (IHCL) has reported its consolidated financials for the first quarter ending June 30th 2024.
Commenting on the quarter’s performance, Puneet Chhatwal, Managing Director & CEO, The Indian Hotels Company Limited, said, “IHCL consolidated reported a strong financial performance for the first quarter with an all -time high revenue of INR 1,596 crores and a healthy EBITDA margin of 31%. Our performance was enabled by a diversified top line, with new businesses growing at 37% over the previous year and incremental revenues from the not like for like growth. Continuing the growth momentum our portfolio is now over 325 hotels with 16 signings and 6 openings in the quarter.”
He added, “With demand continuing to outpace supply and favourable structural tailwinds, the sector is set to clock strong revenue growth in the quarters ahead.”
IHCL’s iconic brand Taj has been recognized as India’s Strongest Brand across sectors for the fourth time and as the World’s Strongest Hotel Brand for the third time by Brand Finance.
PERFORMANCE HIGHLIGHTS
- Outperformed the industry on domestic same store RevPAR with a premium of 60% vs competition.
- New Businesses vertical comprising of Ginger, Qmin and amã Stays & Trailsreported a revenue of INR 162
crores, a growth of 37% over the previous year. - The Reimagined Businesses of TajSATS and The Chambers (membership fee) reported a revenue of INR
274 crores, a growth of 17% over the previous year. - Management Fee income stood at INR 114 crores, 17% over the previous year, in line with capital light
growth strategy.
INDUSTRY LEADING GROWTH
- IHCL continues to demonstrate industry leading growth with 16 hotels signed and 6 hotels opened.
- The recent signings are well represented across all brands with 6 Taj, 2 each of SeleQtions, Tree of Life and
Ginger, 1 Vivanta and 3 under the reimagined Gateway brand. - In Q1, IHCL opened 6 hotels with a SeleQtions hotel in Mahabaleshwar, Vivanta in Jamshedpur, a Ginger
in Nagpur and Jamshedpur and Tree of Life resorts in Gangtok and Srinagar.
ESG+ HIGHLIGHTS UNDER PAATHYA
- IHCL now uses 37% energy from renewable sources and has installed 343 EV charging stations across 142
locations in India. - Continuing its journey of eliminating single use plastic, IHCL has installed 46 bottling plants and achieved
42% recycling of water used. - IHCL partners and operates 35 skill centres across 15 States in India to build industry relevant talent pools.
Ankur Dalwani, Executive Vice President and Chief Financial Officer, The Indian Hotels Company Limited said, “IHCL Consolidated grew operating revenue by 6% and RevPAR outperformed the industry with 60% premium on a same store basis for domestic hotels. On the back of strong cost focus, IHCL’s operating EBITDA margins expanded by 210 and 100 basis points on Standalone and Consolidated basis respectively leading to a Consolidated PAT growth of 12%. IHCL’s healthy operating cash flows, resulted in a gross consolidated cash balance of INR 2,091 crores as on 30th June 2024 with free cash flows generated in the quarter at 3x of Q1 FY 24.”
He added, “In line with our strategy of simplification, The Indian Hotels Company Limited has secured approval to execute an amendment to its Shareholder Agreement with our partner, SATS Singapore, enabling a consolidation of Taj SATS results on a line-by-line basis as a subsidiary as opposed to equity accounting consolidation.”
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