IHCL Reports 48% Growth in Net Profit in Q2 FY25 at Rs. 247 Cr
IHCL signed 42 hotels which included 12 Taj hotels, three of which are in international markets of Bahrain and Thimpu
The Indian Hotels Company Limited (IHCL), India’s largest hospitality company, reported its consolidated financials for the second quarter ending September 30th, 2024.
In Q2 FY25, IHCL has posted PAT of Rs. 247 crore, reflecting a growth of 48 per cent. Revenue, in Q2 FY25, increased by 16 per cent to Rs. 1,772 crore. EBITDA stood at Rs. 524 crore.
Considering the performance post TajSats consolidation in Q2 FY25,IHCL has reported net proft of Rs. 555 crore, revenue of Rs. 1,890 crore and EBITDA of Rs. 565 crore.
For H1 FY25, IHCL has posted PAT of Rs. 803 crore (+106%), revenue of Rs. 3,486 crore (+16%) and EBITDA of Rs. 1,061 crore.
Puneet Chhatwal, Managing Director & CEO, IHCL, said, “The second quarter witnessed a strong revival of demand resulting in overall revenue growth of 28% and 16% growth for the hotel segment, marking the best ever Q2 Consolidated EBITDA margin at 29.9%.
“For FY2025, we continue to maintain a guidance of double-digit revenue growth led by the sustained growth in New Businesses, not like for like growth and healthy same store performance. This is reflected in a strong 16.5% growth in consolidated hotel segment revenue in October which is set to accelerate in the remaining months of Q3.”
He added, “IHCL has achieved a record signing of 42 hotels resulting in an industry leading portfolio of 350 hotels and met its market guidance of opening two hotels a month with 14 new hotel openings till date. IHCL will take over the management of landmark hotel The Claridges, New Delhi in April 2025 under a hotel operating agreement. In addition, IHCL has entered into definitive agreements to acquire majority shareholding in Tree of Life brand holding company, expanding its brandscape with a boutique leisure offering.”
Highlights of Q2 FY25
Double-digit RevPAR performance across all brands with domestic same store hotels delivering a 12% growth in Consolidated RevPAR with a premium of 66% vs competition across the enterprise.
International Consolidated portfolio reported an occupancy of 75% (up 600 basis points), resulting in a RevPAR growth of 10%.
Management Fee income grew by 15% to Rs. 100 crores on the back of not like for like growth.
On Expansion Spree
IHCL signed 42 hotels which included 12 Taj hotels, three of which are in international markets of Bahrain and Thimpu, 3 each in SeleQtions and Vivanta, 5 under Tree of Life, 9 under the newly reimagined Gateway and 10 under Ginger.
Further to receiving key approvals, IHCL’s greenfield projects – Aguada Plateau, Goa and Shiroda, Maharashtra are set for a timebound development of these marquee hospitality assets.
Meanwhile, IHCL opened 14 new hotels taking the total operating hotels to 232 across brands with a Taj in Patna, a Gateway in Bekal and a Vivanta in Jamshedpur including SeleQtionsin Thimpu and Mahabaleshwar and 3 Tree of Life resorts and 6 Ginger hotels.
New Businesses and Reimagined Businesses
The Air & Institutional Catering business segment (TajSATS) clocked a revenue of Rs. 254 crore, 19% growth over the previous year and sustained EBITDA margin at 24%.
New Businesses vertical comprising of Ginger, Qmin and amã Stays & Trails reported an Enterprise revenue of Rs. 173 crores, a growth of 42% and consolidated revenue of Rs. 143 crores, a growth of 47%.
Enterprise Revenue of Ginger exceeded Rs. 150 crore with a strong EBITDAR margin at 42% and a portfolio of 100 hotels with 70 in operations. Qmin has grown to 52 outlets and amã Stays & Trails has reached a portfolio of 227 bungalows.
ESG + Paathya
IHCL now uses 38% energy from renewable sources and has installed 336 EV charging stations. Continuing its journey of eliminating single use plastic, IHCL installed 55 bottling plants and achieved 45% + recycling of water used.
Bridging the employability gap in the industry, IHCL has partnered for 37 skill centres across 15 States in India.
Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL said, “In Q2, IHCL Consolidated for hotel segment reported a strong EBITDA margin of 30.5%, a 330-basis points expansion, led by double-digit revenue growth and sustained operational leverage. IHCL Standalone reported an all-time high Revenue of Rs. 1,125 crores, a year on year growth of 19% and an EBITDA margin of 38.6%, an expansion of 390 basis points. Reflective of a strong balance sheet, the gross cash position for IHCL Consolidated as on 30th September 2024 stood at Rs. 2,460 crores. He added, “In line with our strategy of simplifying the holding structure, TajSATS is fully consolidated in IHCL, for 2 months in Q2. IHCL Consolidated PAT grew 48% on year-on-year basis to Rs. 247 crores, excluding an exceptional item of Rs. 307 crores on account of this consolidation.”
