Results     18-Jan-25
Analysis
Indian Hotels Co
Revenue up 29% YoY, Net Profit up 28.9% YoY in Q3FY2025
On consolidated basis

Quarter ended December 2024 compared with Quarter ended December 2023.

Net sales (including other operating income) of Indian Hotels Co has increased 28.98% to Rs 2533.05 crore.  

Operating profit margin has jumped from 37.29% to 37.97%, leading to 31.31% rise in operating profit to Rs 961.68 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 7.80% to 9.89%.   Employee cost decreased from 23.86% to 22.88%.   Other expenses fell from 31.04% to 29.27%.   

Other income rose 47.44% to Rs 58.68 crore.  PBIDT rose 32.14% to Rs 1020.36 crore.  Provision for interest fell 1.45% to Rs 52.39 crore.  

PBDT rose 34.62% to Rs 967.97 crore.  Provision for depreciation rose 17.17% to Rs 133.94 crore.  

Profit before tax grew 37.92% to Rs 834.03 crore.  Share of profit/loss was 51.95% lower at Rs 18.71 crore.  Provision for tax was expense of Rs 220.21 crore, compared to Rs 166.72 crore.  Effective tax rate was 25.82% compared to 25.90%.

Minority interest increased 101% to Rs 50.21 crore.  Net profit attributable to owners of the company increased 28.85% to Rs 582.32 crore.  

Promoters’ stake was 38.12% as of 31 December 2024 ,compared to 38.12% as of 31 December 2023 .  

Year-to-date (YTD) results analysis.

Net sales (including other operating income) of Indian Hotels Co has increased 21.51% to Rs 5909.4 crore.  

Operating profit margin has jumped from 30.79% to 32.36%, leading to 27.73% rise in operating profit to Rs 1,912.55 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 7.83% to 9.12%.   Employee cost decreased from 27.51% to 26.44%.   Other expenses fell from 33.87% to 32.08%.   

Other income rose 23.41% to Rs 168.82 crore.  PBIDT rose 27.37% to Rs 2081.37 crore.  Provision for interest fell 8.44% to Rs 154.48 crore.  

PBDT rose 31.49% to Rs 1926.89 crore.  Provision for depreciation rose 12.43% to Rs 376.16 crore.  

Profit before tax grew 37.13% to Rs 1,550.73 crore.  Share of profit/loss was 35.03% lower at Rs 54.19 crore.  Provision for tax was expense of Rs 436.85 crore, compared to Rs 322.34 crore.  Effective tax rate was 22.84% compared to 26.55%.

Minority interest increased 78.14% to Rs 90.14 crore.  Net profit attributable to owners of the company increased 64.66% to Rs 1,385.29 crore.  

Promoters’ stake was 38.12% as of 31 December 2024 ,compared to 38.12% as of 31 December 2023 .  


Full year results analysis.

Net sales (including other operating income) of Indian Hotels Co has increased 16.50% to Rs 6768.75 crore.  

Operating profit margin has jumped from 31.06% to 31.87%, leading to 19.54% rise in operating profit to Rs 2,157.13 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 8.14% to 7.69%.   Employee cost decreased from 27.23% to 26.67%.   Other expenses rose from 33.57% to 33.77%.   

Other income rose 31.69% to Rs 182.92 crore.  PBIDT rose 20.41% to Rs 2340.05 crore.  Provision for interest fell 6.71% to Rs 220.22 crore.  Loan funds declined from Rs 3,139.01 crore as of 31 March 2023 to Rs 2,736.23 crore as of 31 March 2024.  Inventories rose to Rs 116.44 crore as of 31 March 2024 from Rs 109.21 crore as of 31 March 2023.  Sundry debtors were higher at Rs 476.46 crore as of 31 March 2024 compared to Rs 446.45 crore as of 31 March 2023.  Cash and bank balance rose to Rs 1,485.50 crore as of 31 March 2024 from Rs 1,053.43 crore as of 31 March 2023.  Investments rose to Rs 2,261.20 crore as of 31 March 2024 from Rs 1,891.04 crore as of 31 March 2023 .  

PBDT rose 24.15% to Rs 2119.83 crore.  Provision for depreciation rose 9.19% to Rs 454.3 crore.  Fixed assets increased to Rs 8,904.54 crore as of 31 March 2024 from Rs 8,496.96 crore as of 31 March 2023.  Intangible assets increased from Rs 653.62 crore to Rs 662.32 crore.  

Profit before tax grew 28.98% to Rs 1,665.53 crore.  Share of profit/loss was 58.05% higher at Rs 128.65 crore.  Provision for tax was expense of Rs 463.94 crore, compared to Rs 323.21 crore.  Effective tax rate was 25.86% compared to 23.49%.

Minority interest increased 41.66% to Rs 71.17 crore.  Net profit attributable to owners of the company increased 25.58% to Rs 1,259.07 crore.  

Equity capital increased from Rs 142.04 crore as of 31 March 2023 to Rs 142.34 crore as of 31 March 2024.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 38.12% as of 31 March 2024 ,compared to 38.19% as of 31 March 2023 .  

Cash flow from operating activities increased to Rs 1,935.14 crore for year ended March 2024 from Rs 1,618.99 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 636.96 crore, compared to Rs 470.59 crore during the year ended March 2023.  

Q3 Performance :

Domestic same store hotels delivered a 13% Consolidated RevPAR growth with a premium of 78% vs industry at enterprise level.

International Consolidated portfolio reported an occupancy of 78%, up 400 basis points, resulting in a RevPAR growth of 9% led by 25% RevPAR growth in The Pierre, New York.

Management Fee income grew by 32% to INR 177 crores on the back of not like for like growth.

 

Expansion:

In Q3, the company signed 20 hotels which included 3 Taj hotels, in destinations like Chail and Ayodhya, The Claridges, New Delhi, SeleQtions hotels in Diu and Mandvi, a Vivanta in Surat, Tree of Life resorts in Udaipur and Naldehra, 6 under the newly reimagined Gateway and 5 Ginger hotels.

The company opened 8 new hotels in Q3, taking the total operating hotels to 237 across brands with a Taj in Puri and Cochin International Airport, SeleQtions in Thimpu, Goa and Kumbhalgarh, a Tree of Life resort in Bandhavgarh and 2 Ginger hotels in Diu and Goa.

Management Commentary

Commenting on the performance, Mr. Puneet Chhatwal, Managing Director & CEO, IHCL, said, “Q3 marks eleven consecutive quarters of record performance with the hotel segment reporting a strong revenue growth of 16% resulting in EBITDA margin of 40.9%. The revenue performance was driven by 40% increase in New Businesses, not like for like growth and double-digit growth in same store hotels led by 20% growth in the US portfolio. With the consolidation of air and institutional catering business, Revenue and PAT grew by 29% at INR 2,592 crores and INR 582 crores respectively. In Q4 and the subsequent quarters of the next financial year, the sector will continue to witness demand buoyancy on account of large-scale regional events, weddings and sustained transient travel.”

He added “In line with Accelerate 2030, IHCL sets a new growth benchmark with 55 signings and 20 openings till date this fiscal and 85% of these signings are capital light. With a portfolio of 360 hotels and an industry leading pipeline of 123 hotels, IHCL at this pace of growth is well poised to reach 700 hotels by 2030.”

 

Mr. Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL said “With continued demand buoyancy in the domestic market IHCL Standalone reported a revenue of INR 1,517 crores, an increase of 15% over the previous year, EBITDA margin 47.8%, an expansion 240 basis points and a 23% growth in PAT at INR 469 crores. Led by a broad-based business performance, IHCL Consolidated reported EBITDA margin of 39.4% an expansion of 80 bps resulting in a strong gross cash position as on 31st December of INR 2,823 crores.”

He added, “The company in January has acquired 55% shareholding in Rajscape Hotels, the brand holding company of Tree of Life and will form a part of IHCL Consolidated from Q4.”



Indian Hotels Co : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202412202312Var.(%)202412202312Var.(%)202403202303Var.(%)
Net Sales (including other operating income)2,533.051,963.8428.985,909.404,863.4121.516,768.755,809.9116.50
OPM (%)37.9737.2967 bps32.3630.79158 bps31.8731.0681 bps
OP961.68732.3831.311,912.551,497.3327.732,157.131,804.5619.54
Other Inc.58.6839.8047.44168.82136.8023.41182.92138.9031.69
PBIDT1,020.36772.1832.142,081.371,634.1327.372,340.051,943.4620.41
Interest52.3953.16-1.45154.48168.72-8.44220.22236.05-6.71
PBDT967.97719.0234.621,926.891,465.4131.492,119.831,707.4124.15
Depreciation133.94114.3117.17376.16334.5712.43454.3416.069.19
PBT834.03604.7137.921550.731130.8437.131665.531291.3528.98
Share of Profit/(Loss) from Associates18.7138.94-51.9554.1983.41-35.03128.6581.458.05
PBT before EO852.74643.6532.491604.921214.2532.171794.181372.7530.70
EO Income00-307.360-03.29-
PBT after EO852.74643.6532.491912.281214.2557.491794.181376.0430.39
Taxation220.21166.7232.08436.85322.3435.52463.94323.2143.54
PAT632.53476.9332.631475.43891.9165.421330.241052.8326.35
Minority Interest (MI)50.2124.98101.0090.1450.678.1471.1750.2441.66
Net profit582.32451.9528.851385.29841.3164.661259.071002.5925.58
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations582.32451.9528.851385.29841.3164.661259.071002.5925.58
EPS (Rs)*4.093.1828.858.195.9138.498.857.0325.88
* EPS is on current equity of Rs 142.34 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Previous News
  Indian Hotels Co
 ( Results - Analysis 08-Nov-24   06:13 )
  Indian Hotels Co consolidated net profit rises 11.67% in the June 2024 quarter
 ( Results - Announcements 19-Jul-24   17:23 )
  Indian Hotels Co
 ( Analyst Meet / AGM - Conference Call 06-Feb-23   17:56 )
  Indian Hotels Co reports consolidated net profit of Rs 76.01 crore in the December 2021 quarter
 ( Results - Announcements 01-Feb-22   17:40 )
  Outcome of board meeting of Indian Hotels Co
 ( Corporate News - 19-Jul-24   16:32 )
  The Indian Hotels Company
 ( Results - Analysis 22-Oct-21   08:40 )
  Indian Hotels Co
 ( Results - Analysis 08-Aug-22   21:00 )
  Indian Hotels Company schedules board meeting
 ( Corporate News - 23-Mar-22   11:55 )
  Volumes soar at Mahindra Lifespace Developers Ltd counter
 ( Hot Pursuit - 19-Jan-23   11:00 )
  Indian Hotels Co reports standalone net loss of Rs 53.90 crore in the September 2021 quarter
 ( Results - Announcements 21-Oct-21   16:41 )
  Indian Hotels Company Q2 net loss narrows to Rs 121 cr
 ( Hot Pursuit - 22-Oct-21   10:38 )
Other Stories
  Patanjali Foods
  11-Feb-25   12:29
  Bata India
  11-Feb-25   12:19
  Cords Cable Industries
  11-Feb-25   09:40
  Engineers India
  11-Feb-25   09:29
  CRISIL
  11-Feb-25   08:46
  ICRA
  11-Feb-25   08:40
  Cantabil Retail India
  11-Feb-25   05:44
  EIH Associated Hotels
  11-Feb-25   05:27
  Garware Technical Fibres
  11-Feb-25   02:20
  Balmer Lawrie & Company
  11-Feb-25   01:50
Back Top