IHCL reported its consolidated financials for the second quarter ending September 30th, 2023. Six consecutive quarters of record performance.
KEY CONSOLIDATED FINANCIAL RESULTS FOR Q2 AND H1 FY 2023-24
| Q2 YoY PERFORMANCE | |||
| Revenue ↑ 18% | EBITDA ↑ 26% | EBITDA % ↑ 1.8pp | PAT ↑ 37% |
| ₹ 1,481 Cr | ₹ 402 Cr | 27.2% | ₹ 167 Cr |
| H1 YoY PERFORMANCE | |||
| Revenue ↑ 17% | EBITDA ↑19% | EBITDA % ↑ 0.4 pp | PAT ↑ 34% |
| ₹ 2,997 Cr | ₹ 862 Cr | 28.8% | ₹ 389 Cr |
Commenting on the Q2 FY24 performance, Puneet Chhatwal, Managing Director & CEO, IHCL, said,“Driven by consistent double-digit growth, IHCL generated a system-wide revenue of INR 2,687 crores – 1.8X of our consolidated revenue. This reflects the successful execution of our strategy to build a balance between owned/leased and managed hotels and leverage the diversified brand portfolio across 125+ locations.”
He added, “We opened 8 hotels and signed 17 more in the first half of the fiscal thereby maintaining an industry-leading pipeline of 82 hotels. India’s economic momentum coupled with higher consumer spends augurs well for the industry. Business on the books remains strong and the company is well positioned for the traditionally stronger second half of the financial year.”
In recent announcements, IHCL has been honoured with the2023 International Centre for Responsible Tourism (ICRT), India Foundation Responsible Tourism Award in the category of ‘Best for Tackling Plastic Waste” and the prestigious Golden Peacock Award for Risk Management 2023.
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL said,“Q2 performance was significantly enabled by the domestic market as seen in IHCL’s standalone revenue of INR 949 crores, a growth of 23% over the previous year and a healthy EBITDA margin of 34.7%.”
He added, “Despite ongoing product upgrades, we expanded margins at standalone and consolidated level by 410 and 180 basis points respectively. This was the result of continuous focus on optimising cost and revenue flow-throughs. IHCL consolidated recorded healthy cash and cash equivalents of INR 1,395 Crores as on September 30th 2023.”
| DELIVERS RECORD Q2 FINANCIAL PERFORMANCE |
| – Outperforms the industry on domestic same store RevPAR with a premium of 63% vs competition. – Demand buoyancy in the international portfolio led to an occupancy of 64% (up 800 basis points), resulting in a RevPAR growth of 8% over the previous year. – Management Fee income grew by 14% over the previous year validating IHCL’s asset-light strategy. |
| EXPANSION MOMENTUM CONTINUES |
| – IHCL signed 6 hotels in Q2 which included three Taj hotels in international markets, a 134-room hotel in Frankfurt and two hotels in Bhutan, two SeleQtions hotels, one each in Goa and Himachal Pradesh and one Ginger hotel in Assam. – IHCL opened 3 new hotels in Q2 taking the total operating hotels to 192 across brands. It added two Taj branded hotels, Taj The Trees Mumbai and Taj Guras Kutir Resort & Spa, Gangtok and SeleQtions brand forayed into Indore with a 125-room hotel. |
| NEW BUSINESSES |
| – The air catering business TajSATS clocked a revenue of INR 213 Crore, 48% growth over the previous year maintaining an industry first EBITDA margin of 24% in Q2 – Enterprise Revenue of Ginger exceeded INR 100 Crore with a 24% growth over the previous year and continued reporting healthy EBITDA margins at 34% in Q2. – Qmin has grown to 38 outlets and amã Stays & Trails reached a milestone of 75 bungalows in operations and a portfolio of 125+ bungalows. |
| ESG+ FRAMEWORK OF PAATHYA – H1 HIGHLIGHTS |
| – IHCL now uses 37% energy from renewable sources and has installed 335 EV charging stations across 142 locations in India. – Continuing its journey of eliminating single use plastic, IHCL installed 27 bottling plants and achieved 47% recycling of water used. – In its effort to bridge the employability gap in the industry, IHCL has partnered for 22 skill centres across locations in India including Kupwara, Lucknow, Bengaluru, Guwahati, Gwalior among others. |
Read more: News
