Shares of Indian Hotels Company (IHCL) soared 7 per cent to Rs 322 on the BSE in Wednesday’s intra-day trade amid heavy volumes after the company reported an all-time high profit after tax (PAT) of Rs 383 crore in December quarter (Q3FY23), which exceeds any previous full year PAT.
India’s largest hospitality company had posted PAT of Rs 76 crore in a year ago quarter (Q3FY22). PAT was up 88 per cent from pre-Covid levels of Rs 203 crore in Q3FY20.
IHCL reported strong growth in revenues in Q3. Revenue grew 51.7 per cent YoY to Rs 1,685 crore, up 22.8 per cent vs pre-Covid levels led by strong performance from the domestic segment. Earnings before interest, tax, depreciation, and amortisation (Ebitda) margin expanded by around 700 bps YoY and 441 bps from pre-Covid levels to 35.4 per cent on a consolidated basis.
IHCL said, buoyed by a strong demand in third quarter, both leisure and business hotels in key domestic markets reported occupancy of over 70 per cent and a rate growth of 27 per cent as compared to pre-COVID levels.
Puneet Chhatwal, Managing Director & CEO, IHCL, said the demand outlook for the sector in 2023 remains robust on the back of sporting events such as world cup hockey and cricket, global events like the ongoing G20 and recovery of inbound and corporate travel. IHCL with its vast network of hotels spread across 125+ cities is well positioned to cater to this rising demand, Chhatwal added.
According to ICICI Securities, the current quarter has witnessed continued strength in the business segment as well as leisure segment. The same is expected to get a further boost from foreign tourists aided by key events. The company with a lighter balance sheet is also well placed to capture the growth opportunity in the hotels space. We remain positive on the company, the brokerage firm said.
IHCL and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj – the iconic brand for the most discerning travellers; SeleQtions, a named collection of hotels; Vivanta, sophisticated upscale hotels; and Ginger, which is revolutionising the lean luxe segment.
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