IHCL profit grows 21% to ₹358 crore
AI Summary
Indian Hotels Company Limited (IHCL) reported a 21% year-on-year increase in consolidated net profit, reaching ₹358 crore, driven primarily by strong domestic business growth. Despite challenges in international markets and air catering due to geopolitical tensions, the company's core hotel revenue grew by 17%, and it continues to expand its portfolio with plans to open 60+ hotels by FY 27.
Indian Hotels Company Limited (IHCL) reported 21 per cent year-on-year growth in consolidated net profit led by growth in domestic business.
Net profit for the quarter stood at ₹358 crore compared to ₹296 crore in the same period last year. Revenue rose 15 per cent to ₹2,419 crore and earnings before interest tax depreciation and amortisation grew 18 per cent to ₹753 crore.
While the domestic business supported growth, international business and air catering segment saw muted performance due to geopolitical tensions and flight cancellations.
“Our domestic business is resilient and growing. However, there are challenges in Dubai and Maldives,” IHCL managing director and CEO Puneet Chhatwal said. Air catering business, which contributes to around 13 per cent of the company’s revenue also saw modest 3 per cent growth as airlines cut flights due to West Asia conflict and higher fuel prices.
IHCL’s core hotel business registered 17 per cent growth in revenue following upgrades to 300 plus rooms across its properties in Delhi, Bengaluru, Goa, Mumbai and Udaipur. The company said it continues to see demand momentum in second quarter with upgrades allowing it to charge higher rates.
In the first quarter IHCL signed 20 properties and opened 11 hotels including one each in Frankfurt and Kruger National Park in South Africa. IHCL has said it plans to open 14 hotels in second quarter and remains on track to open 60 plus hotels in FY 27 as per its guidance.
Original Article
Published on Hindu BusinessLine