Indian Hotels Company (IHCL) has posted a 27.3% rise in consolidated net profit at Rs 418 crore during a seasonally strong fourth quarter, but was below Street estimates’ Rs 428 crore.

In comparison, the operator of Taj brand of hotels, had posted a net profit of Rs 328 crore for the same period of the previous fiscal. The Tata group company’s board also recommended a dividend of Rs 1.75 per share.

During the reporting quarter, IHCL’s revenue rose 17.2% to Rs 1,905 crore from Rs 1,625 crore posted during the year-ago period, while Ebitda rose 23.2% to ?660 crore, it said in a statement.

A consensus estimate of Bloomberg analysts was expecting the Tata Group firm to post a consolidated revenue of Rs 1,914 crore and Ebitda of Rs 680 crore.

“The fourth quarter marked eight consecutive quarters of record financial performance driven by double-digit revenue growth in same store hotels, incremental revenue from not like for like hotels (new hotels) and scaling of new businesses. With 53 signings in FY24, IHCL achieved a portfolio of 310 hotels, enabled by attaining scale in each of our brands and forming strategic alliances in new market segments,” IHCL MD & CEO, Puneet Chhatwal said.

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In FY25, IHCL will continue to deliver double digit revenue growth with new businesses at 30% and opening of 25 hotels. It will also start the roll out of Gateway, a full-service hotel brand in the upscale segment, starting with 15 hotels. The launches would commence from Bekal in Kerala, and Nashik in this quarter, followed by Bengaluru, Thane and Jaipur. The brand will scale up to a 100-hotel portfolio by 2030.

IHCL had started its five-year capital deployment plan from FY23 to FY27, entailing a total investment of Rs 3,500 crore.

Deepika Rao, executive vice president (New Businesses and Hotel Openings) said: “We already began deploying the capital. We have completed renovation of the Taj Mahal, Delhi, opened Ginger at Mumbai Airport, and Taj Usha Kiran Palace, Gwalior. We will open the new Chambers at Taj West End, Bengaluru and a new Indian restaurant there”.

IHCL also achieved key goals under ‘Ahvaan 2025’ well ahead of time with a full year consolidated EBITDA margin of 33.7%, a portfolio of more than 300 hotels and a cash position of Rs 2,206 crore.

In May 2022, IHCL rolled out a strategy – ‘Ahvaan 2025’ – to restructure its entire portfolio of hotels, including becoming a zero net debt firm and clocking 33% EBITDA margin, by FY26.