Indian Hotels Company Ltd. (IHCL) of the Tata Group reported first quarter consolidated net profit rose 31% to ₹222 crore from ₹170 crore in the year-earlier period owing to strong focus on profitability and cash flow management.
Revenue for the quarter increased 17% to a record ₹1.516 crore compared with ₹1,293 crore in the year-earlier period backed by strong demand for hotel rooms, primarily from domestic tourists and business travellers.
“IHCL ended the first quarter with a strong performance led by a double-digit revenue growth,” said MD & CEO Puneet Chhatwal. “The outlook for the upcoming quarters remains strong with the pace of demand driven by domestic consumption momentum, global events, and revival of international arrivals,” he added.
During the quarter, IHCL signed up for 11 new hotels and opened 5 new hotels across all its brands.
“A strong focus on profitability and cash flow resulted in IHCL consolidated reporting a steady EBITDA margin of 30.3% and net cash of ₹889 crore as on June 30, 2023,” said executive VP and CFO Giridhar Sanjeevi.
He said in Q1 the company had commenced capital investments towards renovation and upgradation of select hotels in its portfolio.
The company said it outperformed on domestic same category RevPAR with 55% premium over industry levels. It said demand buoyancy in international hotels led to an occupancy of 65%, up 11 percentage points over the previous year.
Among new businesses, Ginger hotels crossed the ₹100-crore revenue milestone while TajSATs, the air catering business, reported 55% revenue growth at ₹205 crore. Qmin has grown to 40 outlets and ama Stays & Trails portfolio crossed 125 bungalows across over 50 holiday destinations. “We are building these businesses for the future,” Mr. Chhatwal said.
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