ITC Hotels on Thursday released its fiscal fourth quarter earnings with profit at Rs 256.90 crore. This was 40.78 per cent higher in comparison to Rs 182.48 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 1060.62 crore, up 16.90 per cent as against Rs 907.31 crore reported during the fourth quarter of previous financial year.
On a standalone basis, ITC Hotels’ profit during the quarter in review stood at Rs 264.05 crore, posting a growth of 43.77 per cent in comparison to Rs 183.66 crore recorded during the year ago period. Revenue for Q4 came in at Rs 981.49 crore.
Capex for new hotel
The company board also approved the capital expenditure of Rs 328 crore for construction of a hotel in Visakhapatnam, Andhra Pradesh. At present, the company manages two hotels in Visakhapatnam under the management contracts viz. Welcomhotel Devee Grand Bay with around 104 keys and Fortune in Sree Kanya (through wholly owned subsidiaries) with nearly 68 keys.
The newly proposed hotel will consist of approximately 200 keys and the construction of the hotel is expected to be completed by 2029. The project will be funded entirely through internal accruals.
Currently, ITC Hotels operates 140 properties with approximately 13,000 keys. Among these, 45 per cent are owned by the company. It has set a goal of expanding its portfolio to over 200 hotels with more than 18,000 keys by 2030.
This is the second earnings announcement by ITC Hotels since its demerger and listing on January 29, 2025. In the previous quarter, ITC Hotels posted a profit of Rs 74.35 lakh from Rs 41.68 lakh in the same period last year. The company also managed to trim its expenses sharply, dropping from Rs 215.96 lakh to Rs 64.56 lakh. Employee expenses alone were at Rs 50.92 lakh for the October-December quarter.