At over Rs 1,000 crore, Taj reports highest ever annual profit in FY 23 – Times of India

NEW DELHI: Taj parent Indian Hotels Company Ltd (IHCL) has reported its highest-ever quarterly profit of Rs 328 crore in the period ended March 31, 2023, up 343% from a profit of Rs 74.2 crore in same period last year.
The Tata Group company has reported a bumper profit of Rs 1,003 crore in fiscal 2022-23, compared to a loss of Rs 248 crore in FY 22. The total income revenue 85% from Rs 3,211 crore in FY 22 to Rs 5,949 crore in FY 23.
It has recommended paying a 100% dividend of Re 1 per fully paid up equity share of Re 1 each, up from 40% dividend last fiscal. IHCL scrip closed at Rs 339.9 on Thursday BSE, down 0.3% when the broader market was up 0.6%.
IHCL had seen its highest ever quarterly numbers in terms of revenue and profit in the peak October-December 2022 travel period. But the subsequent lean travel quarter, January-March 2023, saw those numbers being bested by new all time highs, signalling that the strong post-pandemic recovery in the space is nowhere close to running out of steam.
IHCL MD-CEO Puneet Chhatwal said: “IHCL achieved a record setting year with a number of significant accomplishments including the highest ever full year consolidated revenue, an all-time high and industry leading EBITDA margin and profit after tax of over Rs 1,000 crores a historic first for the company. This performance was enabled by consecutive four quarters of sustained high demand, additionally bolstered by IHCL demonstrating revenue per available room leadership across its brandscape in all its key markets.”
“During last fiscal, IHCL crossed over 260 hotels in its portfolio including 36 signings and 16 openings in the year… also able to achieve an optimal 50:50 mix between our owned/leased and managed hotels,” the MD said.
TajSATS, the Taj-owned flight catering company which is the largest in India, accounted for 58% market share in FY 2022-23 and had a revenue of Rs 641 crore — up 53 over pre-Covid — and a profit before tax of Rs 107 crore.
IHCL EVP & CFO Giridhar Sanjeevi said: “Robust demand across markets and segments has led to all group companies reporting a full year positive profit after tax in domestic operations. Growth in same store performance supported by margin enhancing new businesses and asset light growth has led to a record EBITDA margin. This has been made possible by maximising operating leverage of our owned/leased hotels and margin enhancing fee-based business. IHCL continues to report a healthy consolidated free cash flow of Rs 1,017 crores in FY 2022- 23 and remains net cash positive.”
Chhatwal added: “IHCL’s performance reflects the affection and loyalty of our guests, the continuous guidance and support from our Board and the remarkable passion and commitment of the 28,000-strong IHCL team. The management’s focus remains on value creation for all stakeholders, offering customers a unique hospitality ecosystem across segments, leading the way in engaging local communities in our value chain, pioneering new destinations in the country and delivering continued superior performance.”