India’s largest hospitality company Indian Hotels Company (IHCL) on Wednesday reported a consolidated net profit of Rs 74 crore for the quarter ended March 2022. However, it missed the Bloomberg consensus estimate of Rs 105 crore.
The company had posted a consolidated net loss of Rs 91 crore in Q4FY21.
IHCL’s revenue from operations increased 42% year-on-year (y-o-y) to Rs 872 crore in Q4FY22.
A top-line recovery combined with a focus on asset-light growth and tight cost controls resulted in the company’s Ebitda (earnings before interest, taxes, depreciation and amortisation) margins climbing 670 basis points to 18.2% during the quarter. The Ebitda jumped 124% y-o-y to Rs 159 crore.
Business outlook is positive with April and May trending ahead of 2019. Our industry-leading pipeline along with scaling up of high margin new businesses like Ginger, ama Stays & Trails and Qmin will provide further impetus,” Puneet Chhatwal, MD and CEO, IHCL, said.
IHCL signed five new hotels in Q4FY22, including two SeleQtions hotels in Manali and Udaipur, two Vivanta hotels in Nashik and Thane, and a Ginger hotel in Agra. During the quarter, the company opened five new hotels across brands, including Taj Exotica Resort & Spa, The Palm, Dubai; Raajkutir, Kolkata – IHCL SeleQtions; Vivanta Turbhe; Ginger Greater Noida and Ginger Kochi.
This year has seen significant progress on the shape of the P&L and balance sheet. The successful raising of Rs 4,000 crore demonstrates continued investor confidence in IHCL. Overall, top-line recovery, focus on asset-light growth through management contracts and other revenue initiatives, together with the tight cost controls have enabled us to achieve industry-leading margins,” Giridhar Sanjeevi, executive vice-president and CFO, IHCL, said.
IHCL shares ended the day on the BSE at Rs 235.85 apiece, gaining 1.27% over the previous close.